PRINTER'S NO. 1097
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1063
Session of
2021
INTRODUCED BY MALAGARI, N. NELSON, LONGIETTI, ISAACSON, HILL-
EVANS, SANCHEZ, BURGOS, GALLOWAY, SCHLOSSBERG, T. DAVIS,
D. WILLIAMS, CIRESI, MERSKI, PASHINSKI, SHUSTERMAN, STEPHENS,
DRISCOLL, DELLOSO, PARKER, FREEMAN, DAY, WEBSTER, SIMS,
WARREN, DEASY, ROZZI, PISCIOTTANO, OTTEN AND MARKOSEK,
MARCH 31, 2021
REFERRED TO COMMITTEE ON COMMERCE, MARCH 31, 2021
AN ACT
Establishing the Local Business COVID-19 Loan Interest Grant
Program and the Local Business COVID-19 Loan Interest Grant
Program Account; and providing for powers and duties of the
Department of Community and Economic Development.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Local
Business COVID-19 Loan Interest Grant Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." The Local Business COVID-19 Loan Interest Grant
Program Account established under section 5.
"COVID-19 disaster emergency." The proclamation of disaster
emergency issued by the Governor on March 6, 2020, published at
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50 Pa.B. 1644 (March 21, 2020), and any renewal of the state of
disaster emergency.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Program." The Local Business COVID-19 Loan Interest Grant
Program established under section 3.
"Small business." A person that:
(1) is engaged in a for-profit enterprise;
(2) employs 100 or fewer individuals; and
(3) has been granted a loan for assistance during the
COVID-19 disaster emergency.
Section 3. Local Business COVID-19 Loan Interest Grant Program.
(a) Establishment.--The Local Business COVID-19 Loan
Interest Grant Program is established within the department for
the purpose of distributing grants to small businesses to
subsidize interest charged on loans for assistance during the
COVID-19 disaster emergency.
(b) Eligibility.--To be eligible for a grant, a small
business must meet all of the following:
(1) Have been impacted by the COVID-19 disaster
emergency.
(2) Be registered and in good standing with the
Department of Revenue.
(3) Have applied to and been approved for a loan during
the COVID-19 disaster emergency.
(c) Procedure.--The following shall apply:
(1) A small business shall apply for a grant under this
section on a form furnished by the department providing the
facts establishing eligibility. An application under this
paragraph is subject to 18 Pa.C.S. ยง 4904 (relating to
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unsworn falsification to authorities).
(2) The department shall review the application to
determine eligibility.
(3) Within 30 days of receipt of the application, the
department shall make an eligibility and grant determination.
(d) Grants.--The following shall apply:
(1) The maximum grant amount to be awarded under the
program to a small business is $20,000 or the aggregate
amount of interest charged on a loan to the small business,
whichever is less.
(2) Grant applications shall be reviewed and grants
approved on a first-come, first-served basis until available
money is exhausted.
Section 4. Powers and duties of department.
The department shall adopt guidelines to administer the
program.
Section 5. Local Business COVID-19 Loan Interest Grant Program
Account.
A restricted account is established in the State Treasury to
be known as the Local Business COVID-19 Loan Interest Grant
Program Account. Money in the account shall be used to award
grants under the program.
Section 6. Appropriation.
The sum of $7,500,000, or as much as may be necessary, is
appropriated to the department from the Small Business First
Fund to carry out the purpose of this act.
Section 7. Termination.
The program and account shall terminate December 31, 2021, or
one year following the expiration or termination of the COVID-19
disaster emergency, whichever is later, and the money remaining
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in the account shall be transferred to the Small Business First
Fund.
Section 8. Effective date.
This act shall take effect immediately.
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