PRIOR PRINTER'S NO. 3493

PRINTER'S NO. 3601

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2369

Session of

2020

INTRODUCED BY GAYDOS, SOLOMON, BARRAR, CIRESI, DALEY, A. DAVIS,

DONATUCCI, GROVE, HANBIDGE, HOHENSTEIN, ISAACSON, KULIK,

MALAGARI, MERSKI, MURT, RAVENSTAHL, ROZZI, SANCHEZ,

Amending the act of June 29, 1996 (P.L.434, No.67), entitled "An

act to enhance job creation and economic development by

providing for an annual financing strategy, for opportunity

grants, for job creation tax credits, for small business

assistance, for the Small Business Advocacy Council, for a

family savings program, for industrial development

assistance, for community development bank grants and loans

and for tax-exempt bond allocation; conferring powers and

duties on various administrative agencies and authorities;

further providing for various funds; and making repeals," in

ASSISTANCE, FOR THE SMALL BUSINESS ADVOCACY COUNCIL, FOR A

FAMILY SAVINGS PROGRAM, FOR INDUSTRIAL DEVELOPMENT

ASSISTANCE, FOR COMMUNITY DEVELOPMENT BANK GRANTS AND LOANS

AND FOR TAX-EXEMPT BOND ALLOCATION; CONFERRING POWERS AND

DUTIES ON VARIOUS ADMINISTRATIVE AGENCIES AND AUTHORITIES;

FURTHER PROVIDING FOR VARIOUS FUNDS; AND MAKING REPEALS," IN

COMMUNITY DEVELOPMENT BANK GRANT AND LOAN PROGRAM, FURTHER

PROVIDING FOR DEFINITIONS AND PROVIDING FOR COVID-19 GRANT

AND LOAN PROGRAMS.

The General Assembly of the Commonwealth of Pennsylvania

Section 2507. Authority loans.

[The] (a) General rule.-- Subject to the provisions of

subsections (b) and (c), the authority may make loans to

eligible institutions from moneys appropriated to the program on

such terms and conditions as the authority may determine. Loans

shall be made by the authority pursuant to the act of August 23,

1967 (P.L.251, No.102), known as the Economic Development

Financing Law. Loans shall be made and used in a manner

consistent with the requirements of the Community Development

Banking and Financial Institutions Act of 1994 (Public Law 103-

(b) Rapid relief loans.--The following apply:

appropriated or available to the authority for the purpose,

rapid relief loans to eligible small businesses as provided

in this subsection.

shall not accrue interest for the first nine months after the

loan is disbursed and shall be subject to such terms and

conditions as to repayment and interest rate as determined by

the authority. The loan shall include a provision that

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subsection if the business is based in this Commonwealth,

employs not more than 50 individuals, is a small business as

determined by the authority and suffered severe financial

loss as a result of a disaster declaration of the Governor.

the authority for the purpose of loans under this subsection

is insufficient to fully fund all of the loans requested

under this subsection, the authority shall make a pro rata

distribution of loan amounts.

(c) Resilient recovery loans.--The following shall apply:

repayment and interest rate as determined by the authority.

The loan shall include a provision that requires the loan

recipient to work with a small business development center or

other technical assistance provider during the life of the

loan.

subsection if the business is based in this Commonwealth,

employs not more than 50 individuals, is a small business as

determined by the authority and suffered severe financial

loss as a result of the COVID-19 pandemic during 2020.

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distribution of loan amounts.

Section 2. The sum of $7,500,000 is appropriated to the

Pennsylvania Economic Development Financing Authority for the

purpose of making rapid relief loans under section 2507(b) of

the act.

Section 3. The sum of $2,500,000 is appropriated to the

Pennsylvania Economic Development Financing Authority for the

purpose of making resilient recovery loans under section 2507(c)

of the act.

Section 4. This act shall take effect immediately.

SECTION 2501. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

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"COVID-19 IMPACTED BUSINESS." A BUSINESS MATERIALLY IMPACTED

BY THE NOVEL CORONAVIRUS, KNOWN AS COVID-19, IDENTIFIED IN THE

PROCLAMATION OF DISASTER EMERGENCY ISSUED BY THE GOVERNOR ON

MARCH 6, 2020, PUBLISHED AT 50 PA.B. 1644 (MARCH 21, 2020), AND

ANY RENEWAL OF THE STATE OF DISASTER EMERGENCY.

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COVID-19 IMPACTED BUSINESSES. GRANTS UNDER THIS SUBSECTION SHALL

BE USED TO PROVIDE TECHNICAL ASSISTANCE, TRAINING OR OTHER

SUPPORT.

(B) COVID-19 LOAN PROGRAM.--FROM MONEY APPROPRIATED TO OR

OTHERWISE AVAILABLE TO THE AUTHORITY FOR LOANS UNDER THIS

SUBSECTION, THE AUTHORITY SHALL MAKE MONEY AVAILABLE TO

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS TO MAKE LOANS TO

COVID-19 IMPACTED BUSINESSES.

(C) REPORT.--THE AUTHORITY SHALL PREPARE, IN CONSULTATION

WITH THE COMMITTEE, A REPORT TO THE CHAIRPERSON AND MINORITY

DEPARTMENT AND THE NUMBER OF GRANTS AND LOANS DISBURSED TO

COVID-19 IMPACTED BUSINESSES.

(D) PROHIBITION ON ISSUANCE.--NO GRANTS OR LOANS MAY BE

ISSUED UNDER THIS SECTION 15 YEARS AFTER THE EFFECTIVE DATE OF

THIS SECTION.

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