The Pennsylvania House of Representatives recently passed a bill to modernize Pennsylvania Industrial Development Authority (PIDA) low-interest loans and lines of credit for businesses looking to expand or invest in the Commonwealth.
PENNSYLVANIA STATE | At the last legislative session, the Pennsylvania House of Representatives unanimously voted to approve House Bill 2783, an Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, which assists in job creation by providing new terms for PIDA of loans.
A memorandum posted by Representative Parke Wentling that would become HB 2783 states, “The low-interest loans and lines of credit can be used to cover a portion of up-front costs for land and building acquisitions, construction and renovation costs, and machinery and equipment purchases. Currently, to be eligible for a low-interest loan or line of credit, a business must demonstrate a minimum number of new jobs created.
While the existing job-creation requirement is well intended to keep the program accountable to taxpayers, I believe we are missing a significant opportunity to encourage capital investment in our Commonwealth if we limit eligibility to this metric. In fact, participants and applicants have cited this as a flaw in the program that limits their ability to grow and expand in Pennsylvania.
My legislation would also allow PIDA to consider the level of capital investment, in addition to jobs created, when determining program eligibility and loan amounts. It would also put into place new taxpayer accountability provisions to require payback if a business would leave Pennsylvania.
If we want to compete, we need to implement policies that tell investors and searching businesses, “We want you in Pennsylvania.” If a business is willing to sink significant capital into our Commonwealth’s economy, it is more likely that they will be here for generations.”
Read HB 2783 HERE.
About Pennsylvania Industrial Development Authority
According to dced.pa.gov, The PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of certified economic development organizations (CEDOs) that partner with PIDA to administer the program.