reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › FINANCIAL CONSIDERATIONS › Section 73.31 - Industrial development projects

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
						An industrial development project may be sold or leased only to a responsible
						buyer or a responsible tenant. A responsible buyer or responsible tenant shall
						have the financial ability to repay the Authority's loan and the financial
						ability to repay working capital and equipment financing necessary for the
						establishment and operation of a completed project.
(b) The application for an industrial
						development project shall include financial statements of the proposed
						responsible buyer or responsible tenant, parent company and proposed
						guarantors, if any. The specific form of financial statements and other
						documentation required to be filed are set forth in the Authority's statement
						of policy in Subchapter B (relating to statement of policy).
(c) The application for an industrial
						development project which involves a new entity as a responsible buyer or
						responsible tenant will require the submission of personal financial statements
						from the major investors and the submission of pro forma balance sheets and
						projected income statements and cash flows for the new entity. The specific
						form of financial statements and other documentation required to be filed are
						set forth in the Authority's statement of policy in Subchapter B.
(d) Financial statements submitted to the
						Authority shall be prepared by an independent certified public accountant,
						unless specifically waived in writing by the Authority.
(e) In determining whether a responsible
						buyer or responsible tenant exists, the Authority will consider the following
						financial factors:
(1) Form and content of
						financial statements, whether audited, reviewed or compiled.
(2) Equity of the responsible buyer or
						responsible tenant and guarantors, if any, in relation to the total project
						cost.
(3) Income in relation to the
						total project cost.
(4)
						Extraordinary items of income and expenses reflected in the statements of
						income.
(5) Cash flow in relation
						to project debt service.
(6)
						Current working capital ratio.
(7)
						Total debt to equity ratio.
(8)
						Trends of sales and net income.
(9)
						Contingent liabilities.
(10)
						Financial ability to adequately finance the working capital and equipment
						requirements of the industrial development project.
(11) Industry factors relevant to a
						particular industrial development project.
(12) Other factors determined by the
						Authority to be relevant to a particular application.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.51 - Conflicts of interest-attorneys

Current through Register Vol. 54, No. 28, July 13, 2024
The industrial development agency and the beneficial
						  owner or industrial occupant may not be represented by the same attorney or law
						  firm in matters relating to the Authority's loans, nor may the same attorney or
						  law firm represent both the Authority and either an industrial development
						  agency or a beneficial owner or industrial occupant in a matter without the
						  consent of the Authority.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.52 - Contractors

Current through Register Vol. 54, No. 28, July 13, 2024
An industrial occupant, beneficial owner or a related
						  firm may act as the general contractor on a project as long as work is
						  performed by unrelated contractors. If an industrial occupant, beneficial owner
						  or a related firm is performing its own work using its own forces or equipment
						  the following restrictions apply:
(1)
						The project shall be completed and costs approved by the Authority engineer
						prior to the Authority's loan closing.
(2) Only materials and the cost of
						independent subcontractors, and not labor or overhead, will be eligible for
						Authority financing.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.53 - Insurance proceeds

Current through Register Vol. 54, No. 28, July 13, 2024
If a project is intended to replace a facility
						  destroyed by fire or other casualty, the insurance proceeds for the destroyed
						  real estate shall be invested into the new project.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.54 - Financial consultant to Authority

Current through Register Vol. 54, No. 28, July 13, 2024
The Authority will engage the services of an
						  independent financial consultant to advise the Authority on the financial
						  ability of responsible buyers and responsible tenants, and to provide other
						  financial analysis as required or desired. The Authority will consider this and
						  other information available from all sources in reaching a decision on an
						  application for loan assistance or other request put before the
						  Authority.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.55 - Workouts

Current through Register Vol. 54, No. 28, July 13, 2024
The requirements in this chapter, which are not
						  otherwise mandated by the act, are not applicable to loans made, assigned or
						  amended pursuant to a workout plan relating to a prior loan made by the
						  Authority, whether the borrower is the same or a different entity. The primary
						  purpose of the Authority in pursuing a workout plan is to minimize financial
						  loss to the Authority.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.56 - Small businesses

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In
						determining whether a business qualifies as a small business, and therefore is
						eligible for increased Agency participation, the Authority will require the
						principals of the business and the business itself to submit a disclosure
						statement listing the ownership interests held by the principals or the
						business in other businesses. This disclosure statement will include the
						percentage of the interest owned and the annual full-time equivalent employes
						of the other business. If the interest owned by the principals or the business
						is 51% or more, the Authority will consider the other business to be an
						affiliate of the business and the annual full-time equivalent employment of the
						other business will be used in determining the total full-time equivalent
						employment of the business.
(b) The
						annual basis for determining full-time equivalent employment will be the 12
						months preceding the date on which the application is submitted to the
						Authority.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.57 - Use of grant funds

Current through Register Vol. 54, No. 28, July 13, 2024
The use of Federal, State or local government grants or
						  private grants for an industrial development project will reduce the cost of
						  the project for the purpose of determining the level of the Authority's
						  participation.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.58 - Inspection by the Authority

Current through Register Vol. 54, No. 28, July 13, 2024
Each industrial development agency, beneficial owner
						  and industrial occupant which applies for and receives a loan from the
						  Authority, or which receives direct benefits from an Authority loan, will
						  permit authorized employes or agents of the Authority or the Commonwealth to
						  inspect the plant, books and records during regular business hours, upon the
						  reasonable request of the Authority. Inspection will be limited to aspects of
						  the plant, books and records directly related to an application for a loan, the
						  use of loan proceeds or repayment of a loan.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter A - GENERAL PROVISIONS › MISCELLANEOUS › Section 73.59 - Statements of policy and guidelines

Current through Register Vol. 54, No. 28, July 13, 2024
The Authority may issue statements of policy or
						  guidelines as necessary to implement this chapter and the act. See Subchapter B
						  (relating to statement of policy).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › GENERAL PROVISIONS › Section 73.101 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this
						  subchapter, have the following meanings, unless the context clearly indicates
						  otherwise:
Act
-The Pennsylvania Industrial
						  Development Authority Act (73 P. S. §§
													301-314).
Beneficial owner
-A person or entity
						  other than an industrial occupant, who has acquired or will acquire title to an
						  industrial development project or multiple-tenancy building project from an
						  industrial development agency, and who has leased or will lease the industrial
						  development project or multiple-tenancy building project to an industrial
						  occupant or occupants.
Industrial development agency or
						  agency
-A nonprofit corporation to which PIDA is empowered to make
						  loans.
Industrial occupant
-An enterprise
						  which occupies and operates an industrial development project or
						  multiple-tenancy building project. An industrial occupant may also acquire
						  title to an industrial development project.
Investor-developer
-A beneficial owner
						  which has no significant ownership interest in the industrial occupant.
KIZ
-Keystone Innovation Zone.
PIDA
-The Pennsylvania Industrial
						  Development Authority.
Project
-
(i) A land, site, structure, facility or
						undertaking for which PIDA is empowered to make loans.
(ii) The term includes an industrial
						development project, an industrial park project or a multiple-tenancy building
						project, as defined in the act.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › PROJECT ELIGIBILITY › Section 73.111 - Industrial development projects

Current through Register Vol. 54, No. 28, July 13, 2024
The following criteria are used as guidelines by PIDA
						  in determining whether a particular business is eligible to receive funding as
						  an industrial enterprise. PIDA may relax or waive the criteria when justified
						  by the circumstances of a particular project.
(1) The act provides that, to be an eligible
						industrial enterprise, the enterprise must, by virtue of its size, require
						substantial capital and create substantial employment opportunities. Except as
						set forth in this section, PIDA will consider these requirements to be
						satisfied if the project cost is at least $200,000 and the industrial
						enterprise provides at least 25 full-time jobs (either retained or newly
						created) within 3 years after the PIDA loan closes.
(2) Each industrial enterprise that will be a
						tenant of a multiple-tenancy building project will not be required to satisfy
						the employment requirement and capital requirement that would be required in a
						single-occupant project, as long as all of the PIDA-eligible enterprises in the
						building will provide an aggregate of at least 25 full-time jobs and the total
						project cost of the building is at least $200,000.
(3) An industrial enterprise may be either a
						for-profit or nonprofit entity.
(4)
						Warehouses, terminal facilities, office buildings utilized as National or
						regional headquarters and computer or clerical operations centers may be
						considered industrial enterprises regardless of the nature of the underlying
						enterprise. Warehouse and terminal facilities will be considered only if they
						are designed to serve retail or wholesale operations or other business
						operations. National and regional headquarters, computer operations centers and
						clerical operations centers must generally meet heightened criteria. These
						criteria are more fully defined as follows:
(i) A National headquarters is a building
						which houses, among other things, the executive offices of a single company or
						group of companies, such as a conglomerate, and which meets the following
						criteria:
(A) The total project cost exceeds
						$1.5 million.
(B) At least 125
						full-time jobs, both preexisting and newly created, will exist at the project
						site within 3 years after the PIDA loan closes.
(C) The company has at least two regional
						offices which report to this facility.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › PROJECT ELIGIBILITY › Section 73.112a - Agricultural enterprises

Current through Register Vol. 54, No. 28, July 13, 2024
The act provides that, to be an eligible agricultural
						  enterprise, the enterprise must, by virtue of its size, require substantial
						  capital and create substantial employment opportunities. The following criteria
						  are used as guidelines by PIDA in determining whether a particular business is
						  eligible to receive funding as an agricultural enterprise. PIDA may relax or
						  waive the criteria when justified by the circumstances of a particular
						  project.
(1) For agricultural
						enterprises which are involved in the management and use of a normal
						agricultural operation for the production of a farm commodity, such as the
						production, harvesting or preparation for market of poultry, livestock and
						their products (including bee products), agricultural crops, timber,
						horticultural crops (including flowers, fruits, vegetables and shrubs), and
						aquaculture crops (including fish and plants grown in water), PIDA will
						consider these requirements to be satisfied if the project cost is at least
						$200,000 and the agricultural enterprise has at least $100,000 in annual gross
						sales.
(2) For agricultural
						enterprises which are engaged in either the manufacture, development or
						preparation for sale of one or more farm commodities which adds value to those
						commodities, or the conversion of a farm product into a marketable form,
						including, but not limited to, livestock by slaughtering, fruits and vegetables
						by canning and freezing and forest products by secondary processing, PIDA will
						consider these requirements to be satisfied if the project cost is at least
						$200,000 and the agricultural enterprise provides at least 25 full-time jobs
						(either retained or newly created) within 3 years after the PIDA loan
						closes.
(3) An agricultural
						enterprise may be either a for-profit or nonprofit entity.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › PROJECT ELIGIBILITY › Section 73.113a - KIZ projects

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The KIZ
						Program was established under 37 Pa.C.S. Chapter 12 (relating to Keystone
						Innovation Zones) and the PIDA Board was authorized to provide loans for
						projects in which at least one Keystone Innovation Zone company or "KIZ
						company" will be located. A "Keystone Innovation Zone Company" is defined in
						37 Pa.C.S. §
													3702
						(relating to definitions) as a for-profit business entity which is all of the
						following:
(1) Located within a KIZ.
(2) Has been in operation for less than 8
						years.
(3) Falls within one of the
						targeted industry segments adopted by the Keystone Innovation Zone Partnership
						in its strategic plan.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ADVANCED TECHNOLOGY PROJECTS › Section 73.121 - General

Current through Register Vol. 54, No. 28, July 13, 2024
As set forth in §
												73.13 (relating to interest
						  rates), PIDA may provide special interest rates for projects designated as
						  advanced technology. A company will be deemed to qualify as "advanced
						  technology" if it meets one of the following criteria:
(1) The company falls within one of the
						Standard Industry Codes described as "high tech" as described by the American
						Electronics Association in its publication "Cybernation," as those codes are
						further augmented by the Wharton Economic Forecasting Associates
						Group.
(2) The company is able to
						respond satisfactorily to the questions contained on PIDA's technology review
						form, as follows:
Question # 1:
To your knowledge, do any
						  other companies in this industry, either domestic or foreign, have access to
						  this technology or its equivalent? Yes No______
Question # 2:
Does the technology or
						  industrial process in question represent a significant improvement over the
						  existing technology and/or industrial process currently in general use within
						  the industry? Yes____ No _____ If yes, please elaborate on what advantages this
						  technology or process will provide.
Question # 3:
What year was this
						  technology first introduced to your industry? ________
Question # 4:
Does the company hold or
						  maintain:
Patents for the technology or process in question?
						  Yes_____ No_________
License(s) for the technology or its underlying
						  intellectual property? Yes No
Trade secrets covering the technology in question? Yes
						  _______ No ________
Question # 5:
Does the applicant have an
						  internal engineering department?
Yes______ No_______
If yes, what percent of the company's operating budget
						  is dedicated to this department?
Question # 6:
Does the applicant company
						  have any existing relationship with consultants, external research
						  organizations, universities or other entities to provide or introduce new
						  intellectual property or technology to the company?
Yes____ No_____ If yes, please describe.
Question # 7:
Has the company invested in
						  technology within the past 12 months, or is the company proposing to invest in
						  technology within the next 12 months that has advanced or will advance the
						  state of the art for the industry?
Yes_____ No______ If yes, please elaborate on how the
						  state of the art for the industry was or will be advanced by the technology and
						  what the potential effects on the company will be.
Question # 8:
Does the applicant have an R
						  & D department? Yes____ No If yes, what percent of the company's operating
						  budget is dedicated to this department?
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › FINANCIAL CONSIDERATIONS › Section 73.132 - Industrial parks and multiple-tenancy building projects

Current through Register Vol. 54, No. 28, July 13, 2024
(a) With respect to an industrial park
						project or a multiple-tenancy project when no investor-developer is involved,
						the limited financial requirements of the act reduce the financial analysis
						involved. By their nature, these projects are more speculative and require the
						application of different criteria. The financial strength of an industrial
						development agency may or may not be a primary factor respecting PIDA's
						proposed participation in either an industrial park or multiple-tenancy
						building project. Among other things, PIDA considers the industrial development
						agency's past record in developing other similar projects, the scope and
						completeness of the proposed project, evidence of satisfactory sources of
						financing for the entire industrial park or multiple-tenancy building project,
						proposed equity participation therein, any proposed governmental participation
						in the project, evidence of the demand for industrial park land or
						multiple-tenancy building space in the area of this Commonwealth in which the
						project is to be located, and the satisfactory projection of sufficient revenue
						generated by the project to repay the loan.
(b) When an investor-developer will be the
						owner of the proposed industrial park or multiple-tenancy building project, the
						financial analysis of the investor-developer will be similar to the financial
						analysis of a responsible buyer as described in §
												73.131 (relating to industrial
						development projects).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ENGINEERING GUIDELINES › Section 73.141 - General

Current through Register Vol. 54, No. 28, July 13, 2024
(a) PIDA will
						expect and require the industrial development corporation (IDC) or the private
						borrower, or both, to engage professionals that are needed to assure that the
						project is completed in accordance with applicable laws and acceptable building
						standards. PIDA will expect and require that the IDC or the private borrower,
						or both, to provide to PIDA information that may be needed by PIDA to assure
						that the project complies with the act and that the PIDA loan is adequately
						documented and secured.
(b) PIDA
						may retain 10% of its loan until a certificate of occupancy is issued by the
						appropriate building code official for the project.
This section cited in 12 Pa. Code §
														73.6 (relating to licensed
							 professional requirement).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ENGINEERING GUIDELINES › Section 73.144 - Costs

Current through Register Vol. 54, No. 28, July 13, 2024
This section sets forth a comprehensive tabulation of
						  items which may be questionable for PIDA financing, together with conditions
						  for or limitations of eligibility used by PIDA in its project review. For ease
						  of tabulations, items are arranged according to the 16-division grouping of the
						  Construction Specification Institute (CSI) format for building specifications,
						  commonly referred to as the Uniform Construction Index.
(1)
General requirements
.
						PIDA will examine unit costs and cost per square foot of building for each
						project. To establish a uniform standard, "unit cost" refers to unit
						acquisition cost or unit construction cost, and does not include items such as
						land, site work, interest, and the like. PIDA will require additional
						justification if the unit cost appears excessive.
(2)
Site work
.
(i)
Site utilities
. Offsite
						utilities are generally not eligible. Requests for inclusion of offsite utility
						costs are subject to special review.
(ii)
Railroad work
. Offsite
						rail sidings are not generally eligible.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ENGINEERING GUIDELINES › Section 73.147 - Checklist of requirements for a complete and comprehensive industrial appraisal

Current through Register Vol. 54, No. 28, July 13, 2024
(a) One
						independent appraisal by a member of the American Institute of Real Estate
						Appraisers or by a Pennsylvania-certified appraiser of an acquisition project
						is required. The appraisal should be of the "as is" property, and should not
						presume improvements thereto.
(b)
						Each appraisal must contain the customary certification, limiting conditions,
						appraiser's qualifications and an appraisal brief.
(c) The complexity of the appraisal depends
						on the size, value and complexity of the property.
This section cited in 12 Pa. Code §
														73.6 (relating to licensed
							 professional requirement).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › PENALTIES › Section 73.161 - General

Current through Register Vol. 54, No. 28, July 13, 2024
The purpose of the interest rate penalty is to insure
						  that PIDA's funds are being properly utilized for employment creation purposes.
						  If a project is not creating jobs, PIDA's funds would be better directed to
						  those businesses which would comply with the objectives of PIDA's program.
						  Actual employment creation is one measure of the program's success. Failure to
						  meet employment projections may be the direct result of factors beyond a
						  business's control. There are varying degrees of success in reaching employment
						  projection goals; some firms have exceeded their projections, others have
						  failed to achieve even 50% of their projections. Therefore, the criteria in
						  §
												73.162 (relating to criteria) have
						  been devised to provide a framework which will assist PIDA in evaluating each
						  project on a consistent basis and imposing penalties at its discretion.
						  Consistent application of these evaluation criteria will guide the imposition
						  of penalties.
This section cited in 12 Pa. Code §
														73.14 (relating to interest rate
							 penalty for failure to create projected
							 employment).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › PENALTIES › Section 73.162 - Criteria

Current through Register Vol. 54, No. 28, July 13, 2024
The following four criteria will be evaluated to
						  determine if a valid explanation exists for failure to meet employment
						  projections. Individually, each would require a "yes or no" decision by PIDA.
						  If PIDA determines that the company has a valid explanation for any one of the
						  following reasons, no penalty will be imposed. The criteria are:
(1)
Natural disaster
.
						Although occurring infrequently, this is the most clear-cut of the evaluation
						criteria. A company will not be held responsible for attaining employment
						projections if a natural disaster such as a fire, flood or tornado strikes the
						business.
(2)
Industry
						trends
. By examining sales and revenue figures for the industry in
						question, explanations have been given for declining industries which have been
						unable to produce their employment projections. Several points should be
						considered:
(i) When examining industry
						trends, only the years following occupancy of the project will be
						considered.
(ii) Often, crucial
						data is unavailable. For example, data may be available for the 2 digit
						Standard Industry Code (SIC) codes only, rather than for the more specific 4
						digit code.
(iii) Many companies
						produce or manufacture under several SIC codes. One industry classification may
						be doing well, while three other minor industries in which the company is
						classified may be in decline. An evaluation of the major SIC and industry
						trends must be made relevant to other activities undertaken by the company, and
						a determination reached that the company is primarily in one or more industries
						which are declining. An industry is considered in decline when that
						industry-measured by the appropriate three digit SIC code-experiences
						employment declines of 10% or more over any 12-month period.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › PENALTIES › Section 73.163 - Levying of penalties

Current through Register Vol. 54, No. 28, July 13, 2024
If PIDA determines that the failure to meet employment
						  projections is warranted by one of the explanatory criteria in §
												73.162 (relating to criteria), a
						  penalty will not be levied. If the failure is not warranted, the following
						  penalty scale criteria will be applied to determine the level of penalty to be
						  imposed:
If Job Creation %
									 is:
Penalty Interest Rate Increment
100
0.00%
[GREATER THAN]95
0.33%
[GREATER THAN]90
0.67%
[GREATER THAN]85
1.00%
[GREATER THAN]80
1.33%
[GREATER THAN]75
1.67%
[GREATER THAN]70
2.00%
[GREATER THAN]65
2.33%
[GREATER THAN]60
2.67%
[GREATER THAN]55
3.00%
[GREATER THAN]50
3.33%
[GREATER THAN]45
3.67%
[GREATER THAN]40
4.00%
[GREATER THAN]35
4.33%
[GREATER THAN]30
4.67%
[LESS THAN]30
5.00%
If Job Retention %
									 is:
100
0.00%
[GREATER THAN]95
1.00%
[GREATER THAN]90
2.00%
[LESS THAN]90
3.00%
(1) In
						addition to an interest rate penalty which may be imposed, PIDA may refuse to
						approve new loans for a company which fails to meet its employment projections
						if the failure is not warranted by one of the criteria listed in this
						section.
(2) Several options remain
						available to PIDA. For example, PIDA may choose to delay a penalty, conduct
						periodic reviews to remove an imposed penalty, or waive a penalty after it is
						imposed, depending on extenuating circumstances. The levying of interest rate
						penalties is at the sole discretion of PIDA.
This section cited in 12 Pa. Code §
														73.14 (relating to interest rate
							 penalty for failure to create projected
							 employment).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ACQUISITION OF PROJECT PROPERTY THROUGH STOCK PURCHASE › Section 73.191 - Eligibility; acquisition through stock purchase

Current through Register Vol. 54, No. 28, July 13, 2024
An application to finance the acquisition of a project
						  property through a stock purchase may be eligible for financing by
						  PIDA.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ACQUISITION OF PROJECT PROPERTY THROUGH STOCK PURCHASE › Section 73.192 - Financial considerations for stock purchase acquisition of assets

Current through Register Vol. 54, No. 28, July 13, 2024
(a) If an
						application is submitted to PIDA to finance the acquisition of a project
						property through a stock purchase, the following procedures will be followed by
						PIDA:
(1) PIDA will require the submission
						of:
(i) Financial statements, in form
						satisfactory to PIDA, prepared by an independent certified public accounting
						firm for both the acquiring company and the company being purchased.
(ii) Appraisals or other documentation
						acceptable to PIDA showing the fair market value of the land, buildings,
						equipment, machinery and similar immovable assets as of the time of the
						application.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › ENVIRONMENTAL SITE ASSESSMENT › Section 73.201 - Environmental site assessment

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
						Prior to loan closing and unless specifically waived by PIDA, PIDA requires a
						completed Phase I environmental site assessment report relating to the site of
						the industrial development project performed by an independent qualified
						environmental professional.
(b) The
						contract between the applicant or industrial occupant and the environmental
						consultant may be reviewed by PIDA to insure that the contract is in form and
						substance satisfactory to PIDA. The contract should provide expressly that PIDA
						is an intended third-party beneficiary of the contract and expressly permit
						PIDA to rely on the report and findings of the environmental audit in
						determining whether to close its loan. The contract should provide for a limit
						of liability for the consultant against losses arising from the consultant's
						negligence or misfeasance of no less than 10% of the total eligible project
						cost or $50,000, whichever is greater. The environmental consultant shall
						provide proof of professional liability insurance in amounts no less than the
						required limit of liability.
(c)
						The scope of work of the Phase I environmental assessment must be in accordance
						with the ASTM International E1527-00 Standard Practice for Environmental Site
						Assessments: Phase 1 Environmental Site Assessment Process.
(d) The applicant or industrial occupant may
						be required to demonstrate its use of best efforts to provide the consultant
						with information and materials needed to complete its work, including, without
						limitation, negotiation of contractual provisions requiring the seller of the
						particular project to furnish information to the applicant or industrial
						occupant and the consultant, to cooperate with the proposed audit and to permit
						access to the project site for purposes of inspection.
(e) After reviewing the Phase I report, PIDA
						may determine that additional environmental testing or remediation of
						contamination, or both, is required prior to closing the loan.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › JOB RETENTION PROJECTS › Section 73.211 - General

Current through Register Vol. 54, No. 28, July 13, 2024
Although PIDA has focused on encouraging new job
						  creation, a need exists to provide financing to industrial development projects
						  which retain quality jobs. If Pennsylvania's economy is to rival the economies
						  of the world's industrialized countries, PIDA must react to the need to make
						  existing Pennsylvania jobs more secure. Even when quality businesses are not
						  creating jobs, their efforts to maintain and improve their competitive edge are
						  essential to Pennsylvania's business vitality. In response to this need, PIDA
						  will finance job retention projects.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › JOB RETENTION PROJECTS › Section 73.212-73.215 - Reserved

Current through Register Vol. 54, No. 28, July 13, 2024
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.301 - Removal

Current through Register Vol. 54, No. 28, July 13, 2024
One of the statutory loan application requirements is
						  evidence that the establishment of a project will not cause the removal of a
						  facility from one area of the Commonwealth to another. Because there is no
						  statutory definition of the word "area," PIDA examines the facts attendant to
						  each application to make a reasonable determination respecting a possible
						  removal question. The use of county boundary lines is a convenient beginning
						  point, but is not necessarily determinative in a given
						  situation.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.303 - Payment of interest only; commencement of amortization

Current through Register Vol. 54, No. 28, July 13, 2024
For construction projects, the PIDA commitment and loan
						  documents generally provide for the payment of "interest only" during
						  construction or through a date reasonably certain as approved by the PIDA,
						  whichever occurs first. The PIDA's cash flow situation and disbursement
						  restrictions will always affect the "interest only" and "commencement of
						  amortization" provisions.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.306 - Closing requirements

Current through Register Vol. 54, No. 28, July 13, 2024
Documentation and other requirements for the closing of
						  PIDA's loans must be in form and substance satisfactory to counsel for PIDA.
						  PIDA's counsel may require documentation as may be reasonably necessary to
						  insure that PIDA's loan is properly secured.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.308 - Loan terms: industrial parks and multiple-tenancy building projects

Current through Register Vol. 54, No. 28, July 13, 2024
The terms of industrial park loans and multiple-tenancy
						  building project loans are generally as follows:
(1) Industrial park loan terms are 15 years.
						No principal will be required to be paid during the first 5 years. Interest on
						the loan for the first 2 years will be deferred and paid in a lump sum at the
						end of the first 2 years. Interest for the 3rd, 4th and 5th years will be paid
						monthly. Amortization of principal and interest will be paid on a regular
						monthly basis in the 6th-15th year. In addition, a portion of sales proceeds or
						rentals derived from a conveyance or lease of any portion of the industrial
						park shall be paid to PIDA and applied as a prepayment of PIDA's
						loan.
(2) Multiple-tenancy building
						project loan terms are 15 years. Interest only will be paid monthly for the
						first 2 years. Amortization of principal and interest will be paid on a regular
						monthly basis in the 3rd-15th year.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.309 - Commencement and refinancing

Current through Register Vol. 54, No. 28, July 13, 2024
A project may only be financed by PIDA if the project
						  is commenced after PIDA approves either assistance for the project or the
						  commencement of the project. For this purpose, commencement includes taking
						  title to project property, and actual commencement of construction. PIDA will
						  not refinance assets owned by a beneficial owner or industrial occupant or an
						  affiliate of a beneficial owner or industrial occupant before PIDA approves
						  either assistance for the project or commencement of the project. Assets leased
						  by a beneficial owner or industrial occupant or an affiliate of either may be
						  eligible for financing if there is no equity build up in those assets for the
						  benefit of the beneficial owner, industrial occupant or affiliate during the
						  term of the lease. PIDA's loan may be used to replace interim or construction
						  financing that was put in place after PIDA approved assistance for the project
						  or the commencement of the project.
This section cited in 12 Pa. Code §
														73.312 (relating to related
							 parties).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.310 - Investor-developers

Current through Register Vol. 54, No. 28, July 13, 2024
PIDA will participate in projects in which the project
						  will be purchased or conveyed by the industrial development corporation to an
						  investor-developer. The guaranty of the industrial occupant will not be an
						  automatic requirement in single-tenant and multi-occupancy projects where an
						  investor-developer will be the responsible purchaser of the project, but would
						  instead only be required on a case-by-case basis if the investor-developer is
						  not sufficiently credit-worthy in its own right, or other circumstances (such
						  as the relationship between the investor-developer and the industrial occupant)
						  suggest that such a guaranty is appropriate.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.311 - Subleasing

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Industrial development projects:
(1) No portion of the project may be leased
						to unrelated third parties without the prior written consent of PIDA and the
						following apply:
(i) When subleasing to an
						eligible activity, such as manufacturing and industrial, the leased space may
						not exceed 49% of the total square footage.
(ii) When subleasing to an ineligible
						activity, such as commercial, the leased space may not exceed 15% of the total
						square footage.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.312 - Related parties

Current through Register Vol. 54, No. 28, July 13, 2024
PIDA will not generally participate in a project if
						  persons having a significant ownership interest in the party selling an asset
						  or assets, either individually or in the aggregate, will also have an ownership
						  interest in the party buying the asset or assets. See also §
												73.309 (relating to commencement
						  and refinancing).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 73 - PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY › Subchapter B - STATEMENT OF POLICY › MISCELLANEOUS › Section 73.313 - Loss sharing agreement

Current through Register Vol. 54, No. 28, July 13, 2024
Following certification of an industrial development
						  agency by the PIDA, the PDIA may enter into an agreement with the agency for
						  the sharing of losses between the PDIA and the agency on industrial development
						  projects. A loss sharing agreement entered into would:
(1) Be subject to the approval of the PIDA's
						counsel.
(2) Not apply to
						industrial park or multitenancy projects, unless an investor-developer is
						involved in the project.
(3) Not
						apply in the event of losses caused by or attributable to the agency.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart D - Minority Lending › Chapter 81 - MINORITY BUSINESS DEVELOPMENT AUTHORITY › Subchapter B - LOAN PROGRAM ADMINISTRATION › GENERAL PROVISIONS › Section 81.101 - Authority for loans and guarantees

Current through Register Vol. 54, No. 28, July 13, 2024
Section 7 of the act (73 P. S. §
													390.7) authorizes the Authority to lend money
						  to and guarantee, endorse or act as surety on the bonds, notes, contracts or
						  other obligations of a minority business enterprise.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart D - Minority Lending › Chapter 81 - MINORITY BUSINESS DEVELOPMENT AUTHORITY › Subchapter B - LOAN PROGRAM ADMINISTRATION › GENERAL PROVISIONS › Section 81.102 - Purpose of the program

Current through Register Vol. 54, No. 28, July 13, 2024
The purpose of the program is to financially assist
						  businesses owned by socially and economically disadvantaged persons to allow
						  for fuller participation within our free enterprise system.