|Posted:||December 17, 2014 09:50 AM|
|From:||Representative Thomas P. Murt|
|To:||All House members|
|Subject:||Local Government Capital Project Loan Fund (Prior HB 1107)|
|I plan to reintroduce legislation to amend the Local Government Capital Project Loan Fund Act (found within the “Fiscal Code”) to increase the maximum amount of loans under the program.
The Local Government Capital Project Loan Program provides low interest (2%) loans to counties and municipalities with a population of 12,000 or less. These loans may be made to purchase equipment and to purchase, construct or renovate facilities. The maximum amount of loans for equipment is $25,000, or 50% of the total cost, whichever is less, and the maximum amount of loans for facilities is $50,000, or 50% of the total cost, whichever is less. My legislation would increase the maximum amount of equipment loans to $50,000 and the maximum amount of facilities loans to $100,000. Unfortunately, other than a one-year temporary provision to increase the loan amounts, these limits have not been changed since the program was enacted in 1990.
A revolving loan fund, the Local Government Capital Project Loan Fund is of vital importance to small counties and municipalities that cannot afford to borrow money at conventional loan rates. The program provides a means by which small local governments may obtain loan funds to maintain and improve municipal services at lower costs.
Previous Cosponsors: V. BROWN, CALTAGIRONE, COHEN, DeLUCA, M. K. KELLER, LONGIETTI, MILLARD, PASHINSKI, SWANGER and TOOHIL
Introduced as HB1008