|Posted:||January 17, 2013 04:02 PM|
|From:||Senator Randy Vulakovich|
|To:||All Senate members|
|Subject:||Local Government Capital Project Loan Fund|
|I will soon be reintroducing SB 402, which would amend the Local Government Capital Project Loan Fund by increasing from $25,000 to $50,000 the amount that municipalities may receive for equipment loans and from $50,000 to $100,000 the amount that municipalities may receive for facility loans.
The Center for Local Government Services currently administers the Local Government Capital Loan Program, which provides low-interest (2%) loans to municipalities with less than 12,000 population for equipment (up to $25,000) and facilities (up to $50,000). Municipalities have 10 years to repay loans. Loan repayments constitute a revolving fund -- so there is no annual appropriation. The higher loan amounts ($50,000 for equipment and $100,000 for facilities) were put in place for FY 2007, but have since reverted back to the lower levels.
The Department of Community and Economic Development, the County Commissioners Association of PA, PA League of Cities and Municipalities, PA State Association of Boroughs, PA State Association of Township Commissioners, and PA State Association of Township Supervisors were all supportive of SB 402.
SB 402 was sponsored by Senators Orie, Alloway, Baker, Boscola, Browne, Brubaker, Costa, Earll, Eichelberger, Erickson, Ferlo, Fontana, Greenleaf, Piccola, Pileggi, Rafferty, Robbins, Smucker, Solobay, Stack, D. White, M. White, Yaw, and Yudichak.
If you have any questions regarding this legislation, please contact Nate Silcox of my staff at 717-787-6538 or firstname.lastname@example.org.
Introduced as SB591