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Pennsylvania State Senate
04/19/2024 12:50 AM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20190&cosponId=30104
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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: August 15, 2019 03:11 PM
From: Senator Daniel Laughlin
To: All Senate members
Subject: Increase Access to “Patient” Capital in Pennsylvania’s Opportunity Zones.
 

In the near future, I intend to introduce legislation that would increase access to “patient” capital in Pennsylvania’s Opportunity Zones.

Access to capital for real estate development and business start-up expenditures is a tremendous challenge and often prohibitive because of a soft real estate market. This means that the total cost of acquiring and redeveloping a real estate parcel in an Opportunity Zone is typically more than the appraised value upon completion of the project. The challenge is finding a capital source willing to finance the resulting gap.

This legislation would create a state level fund that provides capital to finance this gap. The fund would provide low interest loans with flexible terms, subordinate equity position and interest only for an extended period of time. These loans will provide the necessary gap financing to permit redevelopment projects in Opportunity Zones.

Please join me in cosponsoring this important piece of legislation.