|Posted:||December 17, 2012 03:30 PM|
|From:||Senator Wayne D. Fontana|
|To:||All Senate members|
|Subject:||Co Sponsorship: Small Business Investment Guarantee Program|
|In the near future, I plan to reintroduce legislation as part of the PA Works plan that will increase business access to capital. The Second Stage Loan Guarantee Program was created as part of Governor Rendell’s economic stimulus package in 2004. Restricted to life science, advance technology, and manufacturing projects in years 2 through 7 of development, the program has been vastly underutilized since its creation. By loosening the restrictions and refocusing the program, we can ensure that the funding originally allocated to the program is not lying stagnant.
A reconstituted $50 million Small Business Investment Guarantee Program would provide a needed catalyst to spur private banks and other commercial lenders access to capital for small business. Eligible small businesses could obtain a guarantee of up to 100 percent of the principal amount of the loan, up to $2 million to encourage lending in what remains a tight credit market. The plan expands eligibility to local governmental agencies that make loans and opens the program to all industry sectors.
Pennsylvania’s economic recovery remains slow after the recent recession. In fact, our state’s unemployment rate has risen above the national average for the first time in six years. It is critical that we pursue policies that stimulate the economy, move business forward and create jobs even in the midst of difficult fiscal times. The PA Works legislative package is designed to create thousands of new jobs by leveraging billions in new private investment while saving the Commonwealth millions.
This legislation was SB 683 during the 2011-12 session. Previous co-sponsors included Senators Costa, Tartaglione, Solobay, Hughes, Boscola, Wozniak, Yudichak, Brewster, Farnese, Kasunic, Ferlo, Leach, Washington and Blake.
Introduced as SB205