|Posted:||April 21, 2020 02:35 PM|
|From:||Senator Lisa M. Boscola|
|To:||All Senate members|
|Subject:||Establishing PA Small Business Guarantee Program|
I plan to introduce legislation that would create a state guarantee program to help small businesses.
Throughout this crisis a lot of our small businesses have been devastated as a result of needing to close down or greatly reduce operations. It has also been clear that access to credit for working capital and inventory are out of reach for many of these businesses even with efforts to help them through this pandemic. Whether it is the lack of a pre-existing relationship with a bank, or other hurdles.
My plan would create a state guarantee program to help these businesses with needed capital for inventory to get back on their feet after the crisis stops. This is not a loan program. Rather we would work with our community banks, small business development centers and credit unions to stand behind credit given to these businesses in the months that follow the reopening of the state. Essentially acting as a backstop.
By acting as a guarantor we will help these businesses develop needed credit worthy relationships with local providers and will help create an atmosphere where banks would be willing to extend credit. With so many small businesses looking for financial help because they were left out of the federal program and their business interruption claims were denied. They need help, security and stability to reopen.
The funds would only need to be accessed should a business that entered the program close and be unable to pay back commercial loans offered through the program. The fund would be targeted to small Pennsylvania businesses that employ between 1 and 250 people.
Please join me in sponsoring this legislation, and providing more direct help to our business community.