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House of Representatives
Session of 2023 - 2024 Regular Session


Posted: June 14, 2023 09:44 AM
From: Representative John T. Galloway
To: All House members
Subject: Giving more local communities greater purchasing power
Pennsylvania’s local municipalities each offer their own flavor, strengths and identities that, when combined, create a vibrant Commonwealth. No two are the same, but together they make Pennsylvania a good place to live, work and start and grow a business.

In 1990, the Local Government Capital Project Loan Program (LGCPLP) was created to provide low-interest loans to local governments for equipment, and purchase, construction, renovation or rehabilitation of municipal facilities in municipalities with populations of up to 12,000. The program, administered by the Governor’s Center for Local Government Services of the Department of Community and Economic Development (DCED), has not been updated since 1997 and is under-utilized because our municipalities often are able to go to a bank to obtain a better loan rate than this program, and because present day costs are more than what they were 26 years ago when the program last was updated.

I am offering legislation that would update the program to give more local communities greater purchasing power. My proposal would:
  • Increase the population size of a municipality that can apply from 12,000 to 15,000;
  • Increase the amount of loans for equipment from $50,000 to $150,000;
  • Increase the amount of loans for purchasing, constructing, renovating or rehabilitating facilities from $100,000 to $250,000;
  • Change the interest rate from 2% to a variable rate that cannot exceed 2%; and
  • Extend the loan term for DCED from 10 to 15 years.

These changes will ensure that more municipalities can participate in the program, and that the loan amounts that haven’t been increased in 26 years are realistic to today’s costs.

Please join me in supporting this legislation.

Introduced as HB1426