|Posted:||June 17, 2020 03:26 PM|
|From:||Representative Brad Roae|
|To:||All House members|
|Subject:||Amending the 2% Volunteer Loan Assistance Program to Include Used Fire Apparatus|
|In the near future, I plan to introduce legislation to amend the 2% Volunteer Loan Assistance Program to include used fire apparatus to qualify for the program.
Currently only new fire apparatus qualifies. Many volunteer fire departments cannot afford to purchase a new $500,000 fire engine or a new $1,000,000 ladder truck. Low budget departments often struggle to scrape together $100,000 in financing to buy used apparatus because they cannot use the 2% loan program.
Loans for used vehicles are riskier than loans for new vehicles. This legislation would amend Act 208 of 1976 to offer 3% loans for used apparatus and it would keep the current 2% interest rate for new apparatus. The current policy of a maximum loan amount only up to 50% of the purchase price would also apply to used apparatus. Small, low budget, rural volunteer fire departments could really be helped by this legislation.
I would greatly appreciate your co-sponsorship of this legislation. For your review, please see the following information from PA Fire Commissioner’s website:
The General Assembly established the Volunteer Companies Loan Fund on July 15, 1976, with Act 208. The Volunteer Loan Assistance Program (VLAP) provides loans at a fixed 2% interest rate to volunteer fire, ambulance, and rescue companies for the acquisition, rehabilitation, or improvement of apparatus, facilities, and equipment.
Loans are made for the following purposes:
To purchase new, or to repair/rehabilitate apparatus that no longer meets NFPA standards and to bring it into such compliance.
To construct or modernize those portions which house apparatus or purchase a used facility.
To purchase accessory, communications or protective.
The type of project and the project cost will determine the loan amount.
Application and Instructions
The Volunteer Loan Assistance Program application and instructions are available online.
The VLAP staff provides professional, courteous assistance to all applicants. Contact us at 800-670-3473Opens In A New Window or (717) 651-2200Opens In A New Window or via e-mail using RA-VLAP@pa.gov.