| |
| PRIOR PRINTER'S NO. 2888 | PRINTER'S NO. 3266 |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY MASSER, EVERETT, FARRY, GINGRICH, F. KELLER, KILLION, MAJOR, MALONEY, MILLARD, PICKETT, QUINN, CULVER, TOBASH, VULAKOVICH AND TOOHIL, DECEMBER 13, 2011 |
| |
| |
| AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 26, 2012 |
| |
| |
| |
| AN ACT |
| |
1 | Providing for a Small Business Flood Relief Supplementation | <-- |
2 | Program; making an appropriation; and providing for |
3 | termination of the program. |
4 | The General Assembly of the Commonwealth of Pennsylvania |
5 | hereby enacts as follows: |
6 | Section 1. Short title. |
7 | This act shall be known and may be cited as the Small |
8 | Business Flood Relief Supplementation Act of 2011. | <-- |
9 | Section 2. Declaration of policy. |
10 | (1) Hurricane Irene and Tropical Storm Lee and the |
11 | resulting flood emergency impacted many small businesses of |
12 | this Commonwealth, causing substantial economic and physical |
13 | damage. |
14 | (2) Small businesses are an integral part of communities |
15 | and a vital component to Pennsylvania's economy. |
16 | (3) Federal emergency declarations designated certain |
17 | areas as eligible for business disaster assistance. |
|
1 | (4) Pursuant to section 17(b) of Article VIII of the |
2 | Constitution of Pennsylvania, the Commonwealth should provide |
3 | additional assistance to certain businesses to supplement |
4 | compensation received from private insurance and the Federal |
5 | Government. |
6 | Section 3. Definitions. |
7 | The following words and phrases when used in this act shall |
8 | have the meanings given to them in this section unless the |
9 | context clearly indicates otherwise: |
10 | "Adjusted loss." The difference between: | <-- |
11 | (1) eligible loss; and |
12 | (2) covered loss. |
13 | "Covered loss." Any amount received by or due the recipient |
14 | from private insurance and Federal loans on account of an |
15 | eligible loss. The term does not include an insurance deductible |
16 | paid by the recipient. |
17 | "Department." The Department of Community and Economic |
18 | Development of the Commonwealth. |
19 | "Eligible loss." Damage caused as a result of Hurricane |
20 | Irene and Tropical Storm Lee to a small business and certified |
21 | by the Pennsylvania Emergency Management Agency. |
22 | "Program." The Small Business Flood Relief Supplementation | <-- |
23 | Program established under section 6. |
24 | "Small business." A person that is engaged in a for-profit | <-- |
25 | enterprise and that employs 100 or fewer individuals. |
26 | "Working capital." Capital used by a small business for |
27 | operations, excluding fixed assets and machinery and equipment. |
28 | "Small business." A person that: | <-- |
29 | (1) is engaged in a for-profit enterprise; |
30 | (2) employs 100 or fewer individuals; and |
|
1 | (3) has applied to the Federal Small Business |
2 | Administration and has been granted a loan for an eligible |
3 | loss. |
4 | Section 4. Powers and duties of department. |
5 | The department shall adopt guidelines to administer the |
6 | program. |
7 | Section 5. Restricted account. |
8 | A restricted account is established in the State Treasury to |
9 | be known as the Small Business Flood Relief Supplementation | <-- |
10 | Account. The account shall be for the purpose of making loans | <-- |
11 | that shall be provided grants to small businesses eligible for | <-- |
12 | assistance under the program authorized under section 6 and be |
13 | funded by the appropriation contained in section 7 from which |
14 | loans to small businesses shall be provided by the department to |
15 | eligible small businesses to subsidize interest charged by the | <-- |
16 | Federal Small Business Administration on loans for eligible |
17 | losses. |
18 | Section 6. Small Business Flood Relief Supplementation Program. | <-- |
19 | (a) Establishment.--There is established the Small Business |
20 | Flood Relief Supplementation Program. | <-- |
21 | (b) Eligibility.--To be eligible for a loan grant, a small | <-- |
22 | business must meet all of the following: |
23 | (1) Be located in a county that has been declared a |
24 | Federal disaster area as a result of Hurricane Irene or |
25 | Tropical Storm Lee. |
26 | (2) Suffer an eligible loss. |
27 | (3) Meet the definition of small business in section 3. |
28 | (4) Be registered and in good standing with the |
29 | Department of Revenue. |
30 | (5) Have applied to and been approved for a loan from | <-- |
|
1 | the Federal Small Business Administration for an eligible |
2 | loss. |
3 | (c) Procedure.-- |
4 | (1) A small business shall apply for a loan grant under | <-- |
5 | this section on a form furnished by the department, setting |
6 | forth the facts establishing eligibility. An application |
7 | under this paragraph is subject to 18 Pa.C.S. § 4904 |
8 | (relating to unsworn falsification to authorities). |
9 | (2) The department shall investigate the application to |
10 | determine eligibility. |
11 | (3) Within 30 days of receipt of the application, the |
12 | department shall make an eligibility and loan grant | <-- |
13 | determination. |
14 | (d) Loans.-- | <-- |
15 | (1) The minimum loan amount to be awarded is $10,000 and |
16 | the maximum loan amount to be awarded under this program is |
17 | $100,000. |
18 | (2) Loan proceeds may be used for working capital, |
19 | inventory, equipment purchase and real property improvements, |
20 | if owned by the borrower, but cannot be used for refinancing |
21 | existing debt or outstanding debt payments. Equipment and |
22 | real property must be located within this Commonwealth. |
23 | (3) Loan proceeds must be drawn within 60 days of the |
24 | loan approval date. Failure to draw funds within the required |
25 | time period will result in revocation of the loan. |
26 | (4) Loan |
27 | (d) Grants.-- | <-- |
28 | (1) The maximum grant amount to be awarded under this |
29 | program to a small business is $20,000 or the aggregate |
30 | amount of interest charged by the Small Business |
|
1 | Administration on the loan of the small business, whichever |
2 | is less. |
3 | (2) Grant applications will be reviewed and loans grants | <-- |
4 | approved on a first-come, first-served basis until available |
5 | funds are exhausted. |
6 | (e) Loan terms.-- | <-- |
7 | (1) A loan for working capital or inventory shall be |
8 | made at an interest rate not to exceed 3% for the term of the |
9 | loan. The repayment period shall not exceed five years. |
10 | (2) A loan for equipment purchase or real property |
11 | improvement shall be made at an interest rate not to exceed |
12 | 1% for the term of the loan. The repayment period shall not |
13 | exceed 10 years. |
14 | Section 7. Appropriation. |
15 | The sum of $15,000,000 $7,500,000, or as much as may be | <-- |
16 | necessary, is appropriated to the department from the Small | <-- |
17 | Business First Fund to carry out the purpose of this act. |
18 | Section 8. Termination. |
19 | The program and account established under sections 5 and 6 |
20 | shall terminate on June 30, 2012 December 31, 2012, and any | <-- |
21 | money remaining in the account shall be transferred to the |
22 | General Fund Small Business First Fund. | <-- |
23 | Section 9. Effective date. |
24 | This act shall take effect immediately. |
|
