reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 61 - PRIVATE ACTIVITY BONDS-STATEMENT OF POLICY › Section 61.3 - Restrictions on county allocations

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Except as provided in subsection (b), allocations of tax-exempt bond authority
				  to counties under §
										61.5(3) (relating
				  to allocations of tax-exempt bond authority) for small issue projects are
				  subject to the following restrictions:
(1) A
				  project shall be expected to generate at least one net new job or preserve one
				  full-time job for every $50,000 of bond authority, within 3 years of the
				  closing of the financing, to be eligible to receive an allocation. In order to
				  satisfy this requirement, the applicant shall submit a letter, on the
				  applicant's letterhead, certifying that as an inducement for the Department to
				  approve its allocation request, the applicant expects to create or preserve the
				  requisite number of jobs. Included in the letter shall be a statement
				  enumerating the jobs to be preserved and created in each of the following
				  categories: professional, skilled, semiskilled, unskilled and others. This
				  letter shall be submitted with the preliminary allocation request.
(2) An applicant who had a project approved
				  after January 1, 1984 and who failed to meet its job projections within 3 years
				  of closing, is not eligible to receive approvals on subsequent allocation
				  requests.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 61 - PRIVATE ACTIVITY BONDS-STATEMENT OF POLICY › Section 61.4 - Project selection

Current through Register Vol. 54, No. 28, July 13, 2024
In selecting projects which exceed a county's initial
					 allocation, are exempt facilities, are to be funded from the 50% contingency
					 reserve pool or are to be funded in the final allocation, the Secretary will
					 select projects based on the following criteria:
(1) Size of project.
(2) Number of net new jobs created.
(3) Economic distress of the area.
(4) The project's consistency with the
				  economic development plans of the Commonwealth and of municipalities and
				  regions.
(5) The amount of private
				  funds leveraged by tax-exempt financing.
(6) The ability to undertake the project
				  without tax free financing.
(7) The
				  date the bonds are to be issued.
This section cited in 12 Pa. Code §
												61.2 (relating to initial
						allocations for Commonwealth agencies); and 12 Pa. Code §
												61.7 (relating to
						reallocation).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 61 - PRIVATE ACTIVITY BONDS-STATEMENT OF POLICY › Section 61.7 - Reallocation

Current through Register Vol. 54, No. 28, July 13, 2024
The act specifies that a two-tier reallocation process, for
					 unused tax-exempt bond authority, is to occur each August 1 and
					 November.
(1)
August 1
				  reallocation
. On August 1 of each year in which the act applies, the
				  Secretary will determine the amount of unused tax-exempt bond authority
				  available at the close of business July 31 of that year and reallocate this
				  unused portion by September as follows:
(i)
				  Fifty percent will be allocated for small issue use by local issuers.
(ii) Fifty percent will be retained by the
				  Secretary as a contingency reserve for projects which are sponsored by
				  Commonwealth agencies, exceed a county's reallocated amount or are exempt
				  facilities. Allocations for these projects will be made at the Secretary's
				  discretion.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 63 - PRIVATE ACTIVITY BONDS-ALLOCATIONS › Section 63.1 - Allocations

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Authority for allocations.
The State unified volume cap for
				  the issuance of qualified private activity bonds provided by section 146(d) of
				  the Internal Revenue Code (26 U.S.C.A. §
											146(d)) for calendar year
				  1998 will be allocated utilizing the authority provided by section 146(e) of
				  the Internal Revenue Code and section 7(4) of the Tax-Exempt Bond Allocation
				  Act (73 P.S. §
											397.7(4)) in the manner
				  provided by this chapter.
(b)
Housing related bonds.
An amount equal to $160 million will be
				  allocated for housing related bonds, including qualified residential rental
				  projects and qualified mortgage bonds as defined by sections 142(d) and 143(a)
				  of the Internal Revenue Code (26 U.S.C.A. §§
											142(d) and
				  143(a)). Requests
				  to apply the housing related bond allocation to specific projects or uses,
				  including mortgage credit certificate programs, will be reviewed and may be
				  approved or disapproved by the Board of the Pennsylvania Housing Finance
				  Agency. Applications for housing related bond allocations shall be made to the
				  Executive Director of the Housing Finance Agency.
(c)
Qualified student loan
				  bonds.
An amount equal to $50 million will be allocated to the Higher
				  Education Assistance Agency for qualified student loan bonds provided by
				  section 144(b) of the Internal Revenue Code (26 U.S.C.A. §
											144(b)).
(d)
Qualified small issue
				  bonds.
(1) An amount equal to $175
				  million will be allocated for qualified small issue bonds under section 144(a)
				  of the Internal Revenue Code. Of this amount, $26,800,000 will be used to
				  allocate $400,000 to each county. The remaining $148,200,000 will be allocated
				  among the counties in accordance with the following formula:
(i) The Secretary will determine the ratio of
				  the county's total 1996 and 1997 allocation usage to the sum of every county's
				  1996 and 1997 allocation usage.
(ii) The Secretary will multiply the ratio
				  determined in subparagraph (i) by $148,200,000.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 63 - PRIVATE ACTIVITY BONDS-ALLOCATIONS › Section 63.2 - Provisions of the Tax-Exempt Bond Allocation Act suspended

Current through Register Vol. 54, No. 28, July 13, 2024
Provisions of the Tax-Exempt Bond Allocation Act
					 (73
					 P.S. §§
											397.1-397.8) inconsistent
					 with this chapter and 4 Pa. Code §§
										7.331-7.338 (relating to 1987
					 allocations of the unified volume cap under the Tax Reform Act of 1986) are
					 suspended as provided by section 6(a) of the Tax-Exempt Bond Allocation Act
					 (73
					 P.S. §
											397.5(a)). The
					 suspended portions of the Tax-Exempt Bond Allocation Act include the following
					 provisions:
(1) Section 5(a) of the
				  Tax-Exempt Bond Allocation Act (73 P.S. §
											397.5(a)) insofar as the
				  subsection does not provide allocations for housing related bonds.
(2) Section 5(a)(1) insofar as paragraph (1)
				  required 2/3 of the State ceiling to be allocated under a formula.
(3) Section 5(a)(2) insofar as paragraph (2)
				  allocated only 1/3 of the State ceiling for projects not funded using the
				  formula contained in section 5(a)(1).
(4) Section 5(a)(2)(iv) insofar as
				  subparagraph (iv) establishes a procedure for making allocations to the Higher
				  Education Assistance Agency and provides allocations to the agency using the
				  1/3 allocation provided by section 5(a)(2).
(5) Section 5(b) and (c) insofar as the
				  subsections do not provide reallocations for housing related bonds.
(6) The definition of "exempt facilities" in
				  section 3 of the Tax-Exempt Bond Allocation Act (73 P.S. §
											397.3) insofar as an example of an exempt
				  facility project is a pollution control facility. The other portions of the
				  "exempt facilities" definition remain in force and effect.
(7) Section 5(a) insofar as that section
				  requires the Secretary to allocate, by December 1 of the following calendar
				  year rather than by February 1 of the same calendar year, the tax-exempt bond
				  authority.
This regulation was promulgated under section 6(b) of the
						Regulatory Review Act (71 P.S. §
													745.6(b)) which provides
						that it takes effect for 120 days
The provisions of this §
												63.2 amended under sections 6 and
						7(4) of the Tax-Exempt Bond Allocation Act (73 P.S. §§
													397.6 and
						397.7(4))
						(Repealed).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 63 - PRIVATE ACTIVITY BONDS-ALLOCATIONS › Section 63.3 - Procedures

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Procedures for
				  the administration of private activity bond allocations shall be as provided by
				  Chapter 61 (relating to private activity bonds-statement of policy), except to
				  the extent the procedures are inconsistent with the requirements of this
				  chapter.
(b) The Secretary may
				  establish additional policies, guidelines, forms and reporting requirements
				  necessary to carry out the purposes of the Tax-Exempt Bond Allocation Act
				  (73
				  P.S. §§
											397.1-397.8) and this
				  chapter.
(c) State agencies and
				  other entities involved with the issuance or approval of qualified private
				  activity bonds related to this chapter will cooperate with the Department in
				  implementing this allocation system.
(d) Issuers failing to comply with
				  requirements of this chapter will be denied allocation approvals until
				  compliance is achieved.
The provisions of this §
												63.3 amended under section 7(4) of
						the Tax-Exempt Bond Allocation Act (73 P.S. §
													397.7(4))
						(Repealed).
This section cited in 12 Pa. Code §
												61.5 (relating to allocations of
						tax-exempt bond authority); and 12 Pa. Code §
												63.1 (relating to
						allocations).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart B - Bonds › Chapter 63 - PRIVATE ACTIVITY BONDS-ALLOCATIONS › Section 63.4 - Reallocations

Current through Register Vol. 54, No. 28, July 13, 2024
The unused portion of an allocation provided under §
										63.1(b)-(e)
					 (relating to allocations) will be reallocated by the Secretary in cooperation
					 with the Executive Director of the Higher Education Assistance Agency in the
					 manner provided by section 5(b) and (c) of the Tax-Exempt Bond Allocation Act
					 (73
					 P.S. §
											397.5(b) and
					 (c)). Reallocations under section 5(b)(1)(ii)
					 of the Tax-Exempt Bond Allocation Act may be made to an eligible project or use
					 provided by §
										63.1(b)-(e).
This regulation was promulgated under section 6(b) of the
						Regulatory Review Act (71 P.S. §
													745.6(b))
The provisions of this §
												63.4 issued under sections 6 and
						7(4) of the Tax-Exempt Bond Allocation Act (73 P.S. §
													397.7(4))
						(Repealed).
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.1 - Purpose of program

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
					 Machinery and Equipment Loan Fund (MELF) is designed to stimulate the growth
					 of, and to assist in the retention of, Pennsylvania businesses by providing
					 low-interest financing for machinery and equipment to businesses unable to
					 fully finance their projects with equity, bank financing or other private and
					 public sources.
(b) The goal of
					 MELF is to increase the competitiveness, productivity and value of
					 Pennsylvania's businesses, in conjunction with other State and local financing
					 programs and other economic development programs.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.2 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
						have the following meanings, unless the context clearly indicates
						otherwise:
Act
-The Machinery and Equipment Loan
						Fund Act (73 P. S. §§
												399.31-399.40).
Agricultural processes
-Processing or
						warehouse and terminal operations related to agricultural endeavors or related
						businesses supporting the development of agriculture. The term does not include
						service, mercantile, commercial or retail operations.
Eligible business
-A for-profit
						corporation, partnership or proprietorship which is involved in industrial
						processes, mining, manufacturing or other industrial sectors.
Industrial operations
-Processing and
						warehouse and terminal operations. The term does not include service,
						mercantile, commercial or retail operations.
MELF
-The Machinery and Equipment Loan
						Fund.
Machinery and equipment
-Machinery and
						equipment belonging to or to be acquired by an eligible business which is
						directly related to the manufacturing or industrial process of that
						business.
Manufacturing operations
-The giving of
						new shapes, new qualities or new combinations to matter by the application of
						skill and labor.
Mining operations
-Engaging directly in
						mining operations.
Program
-The Machinery and Equipment Loan
						Fund Program.
Project
-The acquisition, installation or
						upgrade of machinery and equipment by an eligible business at a site located
						within this Commonwealth.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.3 - Eligible business

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
					 eligible business shall be involved in industrial processes, mining,
					 manufacturing or other industrial sectors that include the following types of
					 activities:
(1) Manufacturing
					 operations.
(2) Industrial
					 operations.
(3) Agricultural
					 processes.
(4) Mining
					 operations.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.4 - Loans

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Department
					 will provide loans to eligible businesses for eligible projects in accordance
					 with the terms and conditions of the act and this chapter.
(b) Interest rates will be set by the
					 Secretary and will become effective when the Secretary prescribes. In setting
					 interest rates, the Secretary will consider the current and longer term
					 unemployment levels of the region of this Commonwealth within which the project
					 is located, as well as market interest rates, Program funding, and the need to
					 keep the Commonwealth and its businesses competitive. Interest rates
					 established will be published annually as a notice in the
Pennsylvania
					 Bulletin.
(c) The maximum
					 loan term will be for the lesser of 10 years or the useful life of the
					 machinery or equipment acquired. In individual cases, the Secretary may provide
					 for a lesser term for reasons based on principles of economic development
					 financing.
(d) The maximum loan
					 amount is $500,000 or 50% of the eligible cost of the project, whichever is
					 less.
(e) A project shall create or
					 retain one full-time equivalent job for each $25,000 of loan proceeds received
					 within 3 years after disbursement of loan proceeds. A full-time equivalent job
					 is 1,950 hours of employment per year.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.5 - Machinery and equipment

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
					 Machinery and equipment to be acquired with loan funds shall be purchased by
					 the eligible business or by an affiliate thereof outright, through a
					 lease/purchase option or through an installment sale option.
(b) Machinery and equipment to be upgraded
					 with loan funds shall be owned by the eligible business or by an affiliate
					 thereof.
(c) When machinery and
					 equipment is owned or to be purchased by an affiliate of an eligible business,
					 the affiliate shall be involved in industrial processes, mining, manufacturing
					 or other industrial sectors as described in §
											71.3 (relating to eligible
					 business).
(d) An eligible business
					 may place an order for machinery and equipment, or may place a security deposit
					 on machinery and equipment, prior to receiving approval of its loan application
					 from the Department. Machinery and equipment to be financed with loan funds may
					 not be installed or upgraded prior to the Department's approval of the
					 loan.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.6 - Application

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An eligible
					 business shall apply for a loan by submitting an application and supporting
					 documentation to the Department on forms prescribed by the
					 Department.
(b) The eligible
					 business shall update information in its application to the Department if
					 conditions change or to the extent that the information originally provided
					 becomes inaccurate or misleading. Failure to update information may render an
					 application ineligible or result in a withdrawal of a loan made.
(c) After 12 months following disbursement of
					 MELF loan proceeds, the recipient of a MELF loan may reapply to the Department
					 for another MELF loan for a new project.
(d) The Department will make every attempt to
					 review and act upon a MELF loan application within 30 working days following
					 receipt of a completed loan application. The failure of the Department to take
					 action within this time does not constitute either approval or disapproval of
					 an application.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.7 - Condition of eligibility

Current through Register Vol. 54, No. 28, July 13, 2024
In addition to the criteria in section 5(c) of the act
						(73
						P. S. §
												399.35(c)), an
						eligible business shall also demonstrate a contribution of equity to the
						project commensurate with the size and financial capabilities of the
						business.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.8 - Application evaluation

Current through Register Vol. 54, No. 28, July 13, 2024
In addition to the factors in the act for application
						evaluation, the Department will also review factors pertaining to business
						evaluation, project criteria and public benefit criteria, as follows:
(1)
Business evaluation.
The
					 historical performance of an eligible business will be evaluated to assess its
					 ability to repay the MELF loan. This evaluation may include:
(i) Financial performance of the
					 business.
(ii) Financial
					 performance of the owners.
(iii)
					 Market performance.
(iv) Management
					 ability.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.9 - Conditions of lending

Current through Register Vol. 54, No. 28, July 13, 2024
(a) If a loan is
					 approved by the Department, the eligible business shall comply with the
					 following conditions of lending:
(1) Interest
					 on the loan principal will accrue as of the date of disbursement of loan
					 proceeds.
(2) Loans will be
					 evidenced by a note and will be secured, at a minimum, by a lien on the
					 machinery and equipment acquired or upgraded with MELF loan proceeds and by
					 other collateral as determined by the Department to be necessary to adequately
					 secure the loan.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.10 - Penalty

Current through Register Vol. 54, No. 28, July 13, 2024
(a) If an eligible
					 business that has received a loan fails to create or retain the requisite
					 number of full-time jobs within 3 years after the date of disbursement of MELF
					 loan proceeds, the Secretary will impose a penalty equal to an increase in the
					 interest rate on the loan to 2% greater than the prime interest rate. The
					 penalty will apply for the remainder of the loan term. The penalty may be
					 waived by the Secretary if the Secretary finds that failure to create or retain
					 the requisite number of full-time jobs is due to circumstances beyond the
					 control of the eligible business.
(b) For purposes of this section, the prime
					 interest rate shall be the highest rate known or declared to be prime by
					 banking institutions located within this Commonwealth with assets in excess of
					 $3 billion as of the first day after the termination of the 3-year period
					 following loan disbursement.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.11 - Inspection by Department

Current through Register Vol. 54, No. 28, July 13, 2024
An eligible business which applies for or receives a loan
						under the program will permit authorized employes of the Department or the
						Commonwealth to inspect the plant, books and records of that business during
						regular business hours, upon the reasonable request of the Department. The
						inspection will be limited to aspects of the plant, books and records directly
						relating to an application for a loan and repayment thereof.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter A - MACHINERY AND EQUIPMENT LOAN FUND › Section 71.12 - Implementation of program

Current through Register Vol. 54, No. 28, July 13, 2024
The Department may further implement the program through
						the publication of statements of policy or the preparation and distribution of
						guidelines and applications.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter B - STATEMENT OF POLICY › Section 71.101 - Purpose of program

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
					 Machinery and Equipment Loan Fund (MELF) is designed to stimulate the growth
					 of, and to assist in the retention of, mature Pennsylvania businesses by
					 providing low-interest financing for machinery and equipment to businesses
					 unable to fully finance their projects with equity, bank financing or other
					 private and public sources.
(b) The
					 goal of MELF is to increase the competitiveness, productivity and value of
					 Pennsylvania's businesses, in conjunction with other State and local financing
					 programs and other economic development programs.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter B - STATEMENT OF POLICY › Section 71.102 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
						have the following meanings, unless the context clearly indicates
						otherwise:
Act
-Machinery and Equipment Loan Fund
						Act (73 P. S. §§
												399.31-399.40).
Eligible business
-A for-profit
						corporation, partnership or proprietorship which is involved in industrial
						processes, mining, manufacturing or other industrial sectors.
Machinery and equipment
-Machinery and
						equipment belonging to or to be acquired by an eligible business which is
						directly related to the manufacturing or industrial process of that
						business.
Program
-The Machinery and Equipment Loan
						Fund Program.
Project
-The acquisition, installation or
						upgrade of machinery and equipment by an eligible business at a site located
						within this Commonwealth.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter B - STATEMENT OF POLICY › Section 71.103 - Application evaluation

Current through Register Vol. 54, No. 28, July 13, 2024
In addition to the factors in the act for application
						evaluation, the Department will also review the following factors pertaining to
						business evaluation, project criteria and public benefit criteria:
(1)
Business evaluation
. The
					 historical performance of an eligible business will be evaluated to assess its
					 ability to repay the MELF loan. Specifically, this evaluation will include:
(i)
Financial performance of the
					 business
. This involves an evaluation of 1 year pro forma projections
					 and the prior 3-year financial performance, including an examination of income
					 statements, balance sheets and cash flow statements. Start-up firms are
					 required to submit 3-year pro forma projections.
(ii)
Financial performance of the
					 owners
. This involves an evaluation of the current personal financial
					 statement of the owners of the business.
(iii)
Market performance
.
					 This involves an evaluation of the local and national market and the
					 applicant's current and projected position or market share.
(iv)
Management ability
.
					 This involves an evaluation of the experience and skills of the proprietor,
					 partners or officers. This includes general business experience as well as
					 specialized experiences in the particular industry.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter B - STATEMENT OF POLICY › Section 71.104 - Application process

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
					 application can be obtained from the Department of Community and Economic
					 Development, Private Capital Financing Office, Commonwealth Keystone Building,
					 4th Floor, Harrisburg, Pennsylvania 17120, (717) 787-6245.
(b) Applications will be reviewed in the
					 order in which they are received by the Department.
Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part III - Business Financing › Subpart C - Loans › Chapter 71 - MACHINERY AND EQUIPMENT › Subchapter B - STATEMENT OF POLICY › Section 71.105 - Effect

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter is intended solely to provide guidance to
						the general public and program applicants and to interpret statutes and
						regulations. The chapter may be relied upon insofar as it binds the Department
						to follow a stated course of action. The Department may revise this statement
						prospectively.
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 › GENERAL PROVISIONS › Section 73.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this
						  chapter, have the following meanings, unless the context clearly indicates
						  otherwise:
Act
-The Pennsylvania Industrial
						  Development Authority Act (73 P. S. §§
													301-314).
Authority
-The Pennsylvania Industrial
						  Development Authority.
Beneficial owner
-A person or entity
						  other than an industrial occupant, who has acquired or will acquire title to an
						  industrial development project from an industrial development agency, and who
						  has leased or will lease the industrial development project to an industrial
						  occupant. The term includes an individual, a husband and wife, a partnership or
						  a corporation.
Industrial development agency
or
agency
-A nonprofit corporation to which the Authority is
						  empowered to make loans.
Industrial occupant
-An enterprise
						  which occupies and operates an industrial development project. An industrial
						  occupant may also acquire title to an industrial development project. The term
						  includes a sole proprietorship, a partnership or a corporation.
Job
or
full-time equivalent
						  job
or
full-time equivalent employment
-One thousand
						  nine hundred fifty hours of compensated work per year.
Project
-A site, structure, facility,
						  land or an undertaking for which the Authority is empowered to make loans. The
						  term includes an industrial development project, an industrial park project and
						  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 A - GENERAL PROVISIONS › GENERAL PROVISIONS › Section 73.2 - Industrial development agencies-certification

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An industrial development agency will not
						be eligible to apply for, or receive assistance from, the Authority until it
						has been certified by the Authority under this section. An application for
						certification shall contain the following:
(1)
						Articles of incorporation on file with the Department of State and bylaws of
						the agency which indicate industrial development as a purpose. Either the
						articles of incorporation or the bylaws shall provide that membership in the
						agency is open to all persons interested in industrial development willing to
						pay the agency's dues, and that the management of the agency is vested in a
						board of directors elected by the full membership of the agency.
(2) A good standing certificate of the agency
						issued by the Department of State.
(3) A certified resolution of the agency
						adopting the code of ethics at §
													73.3 (relating to industrial
						development agency code of ethics).
(4) A list of current members and the
						organization, if any, each represents.
(5) A brief resume of each current board
						member.
(6) A brief resume of the
						executive director or other officer of the agency principally involved with the
						Authority's program, and each staff member.
(7) The location of the permanent office of
						the agency, a list of other organizations utilizing the office and a
						description of the activities of the other organizations.
(8) The current or proposed membership dues
						structure of the agency and a list of other anticipated revenues.
(9) Indication of a broad-based private
						sector support evidenced by a fundraising drive which satisfies the following
						criteria:
(i) A minimum of $10,000 is
						raised.
(ii) There are a minimum of
						25 contributors for each 100,000 in population of the geographic area served by
						the agency, but in no case fewer than 25 contributors.
(10) An industrial development plan of the
						agency, including an explanation of the need for a new agency in the geographic
						area the agency will serve.
(11) A
						bound copy of the latest financial statement of the agency prepared by an
						independent certified public accountant.
(12) A statement as to the geographic area
						the agency will serve.
(13) A
						statement of the service fee the agency will charge.
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 › GENERAL PROVISIONS › Section 73.3 - Industrial development agency code of ethics

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The following applies to industrial
						development agencies:
(1) An officer,
						director or employe of an agency who is a party to or who is interested in a
						project shall disclose the nature and extent of the interest to the board of
						directors of the agency, and may not vote on action of the agency concerning
						the project, nor participate in the deliberations of the agency concerning the
						project.
(2) A consultant or
						independent contractor of an agency who is a party to or who is interested in a
						project shall immediately disclose the nature and extent of the interest to the
						board of directors of the agency.
(3) The disclosures required under paragraphs
						(1) and (2) include the existence of:
(i) A
						financial interest in a project.
(ii) An interest of a relative by blood or
						marriage in a project.
(iii) An
						employer-employe, partnership, agency or fiduciary relationship with a party to
						or a person financially interested in a project.
(iv) A matter which might reasonably be
						expected to influence that person in the discharge of the person's official
						duties concerning a project.
(4) The board of directors of the agency
						shall take action which is necessary in light of the facts revealed by the
						disclosure to avoid a conflict of interest or impropriety with regard to a
						project. The disclosure statement of the officer, director, employe, consultant
						or independent contractor, and action by the board of directors, shall be made
						a part of the minutes of the agency at the next regular or special meeting and
						shall be disclosed 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 › GENERAL PROVISIONS › Section 73.4 - Training requirement

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Each
						industrial development agency shall cause at least one officer or staff member
						whose primary responsibility includes the Authority program to attend at least
						once during each calendar year a training seminar sponsored or cosponsored by
						the Authority. An officer of the Authority will certify as to the
						attendance.
(b) The Authority will
						sponsor annually a conference or training program to satisfy the requirements
						of subsection (a). Sponsorship may include the actual conduct of a conference
						or training program by the Authority, or the approval by the Authority of a
						conference or training program offered by a third party.
This section cited in 12 Pa. Code §
														73.8 (relating to
							 decertification).
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 › GENERAL PROVISIONS › Section 73.5 - Annual reporting requirement

Current through Register Vol. 54, No. 28, July 13, 2024
Each industrial development agency shall submit
						  annually to the Authority the following:
(1) Financial statements of the agency
						prepared by an independent certified public accountant. After reviewing the
						financial statements, the Authority may require an independent audit of the
						agency's records.
(2) A list of the
						agency's current officers.
(3) The
						agency's current mailing address and telephone number.
(4) A statement of the current service fee
						charged by the agency.
(5) Copies
						of the agency's current articles of incorporation and bylaws if they are
						amended during the previous year.
(6) A statement of the action taken by the
						agency with respect to the agency's projects that are delinquent in repayment
						to the Authority.
This section cited in 12 Pa. Code §
														73.8 (relating to
							 decertification).
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 › GENERAL PROVISIONS › Section 73.6 - Licensed professional requirement

Current through Register Vol. 54, No. 28, July 13, 2024
When the Authority has consistently experienced
						  problems in obtaining information from an agency, which is needed to grant
						  final engineering approval to projects under §§
												73.141,
						  73.144 and
						  73.147 (relating to engineering
						  guidelines), the Authority may require the agency to retain at least one
						  licensed architect or licensed professional engineer to assist the Authority's
						  engineer in conducting his review of the agency's projects. The industrial
						  development agency's engineering costs for a project will be an eligible
						  project cost.
This section cited in 12 Pa. Code §
														73.8 (relating to
							 decertification).
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 › GENERAL PROVISIONS › Section 73.7 - Job certification

Current through Register Vol. 54, No. 28, July 13, 2024
The industrial development agency and the industrial
						  occupant shall certify to the Authority for the third, fourth and fifth year
						  after the occupancy of each project the number and types of jobs that exist at
						  the project site and other information requested by the
						  Authority.
This section cited in 12 Pa. Code §
														73.8 (relating to
							 decertification).
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 › GENERAL PROVISIONS › Section 73.8 - Decertification

Current through Register Vol. 54, No. 28, July 13, 2024
If an agency fails to comply with §§
												73.3-73.7, the Authority may decertify
						  the agency, and the agency shall cease to be eligible to apply for, or receive
						  assistance from, 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 › LOAN AMOUNTS AND TERMS › Section 73.11 - Loan ceiling

Current through Register Vol. 54, No. 28, July 13, 2024
The Authority may establish maximum loan amounts. In
						  establishing maximum loan amounts the Authority will consider unemployment
						  statistics, inflation, the Authority's cash flow, and the need to keep the
						  Commonwealth and its businesses competitive. Notice of maximum loan amounts
						  will be published as a notice in the
Pennsylvania Bulletin
at
						  the same time notice of the establishment of interest rates is published under
						  authority of §
												73.13 (relating to interest
						  rates).
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 › LOAN AMOUNTS AND TERMS › Section 73.12 - Job creation requirements

Current through Register Vol. 54, No. 28, July 13, 2024
The Authority may establish minimum levels of job
						  creation for its loans, or a requirement that one new job be created for a
						  certain amount of funds loaned, which shall be known as the PIDA cost per job.
						  In establishing a PIDA cost per job the Authority will consider unemployment
						  statistics, inflation, the Authority's cash flow and the need to keep the
						  Commonwealth and its businesses competitive. Notice of job creation
						  requirements will be published as a notice in the
Pennsylvania
						  Bulletin
at the same time notice of the establishment of interest
						  rates is published under authority of §
												73.13 (relating to interest
						  rates).
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 › LOAN AMOUNTS AND TERMS › Section 73.13 - Interest rates

Current through Register Vol. 54, No. 28, July 13, 2024
Interest rates on the Authority's loans, including
						  penalty interest rates for delinquent loans, will be set by the Authority and
						  will become effective when the Authority prescribes. In setting interest rates
						  the Authority will consider unemployment statistics, market interest rates, the
						  Authority's cash flow and the need to keep the Commonwealth and its businesses
						  competitive. Projects designated as advanced technology projects by the
						  Department, projects located in areas designated as enterprise zones, planning
						  stage enterprise zones or distressed areas and projects affecting industries
						  designated by the Department as Statewide or regional strategic industries, may
						  receive special low interest rates. Notice of the Authority's interest rates
						  will be published annually as a notice in the
Pennsylvania
						  Bulletin
.
This section cited in 12 Pa. Code §
														73.11 (relating to loan ceiling);
							 12 Pa. Code §
														73.12 (relating to job creation
							 requirements); and 12 Pa. Code §
														73.121 (relating to
							 general).
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 › LOAN AMOUNTS AND TERMS › Section 73.14 - Interest rate penalty for failure to create projected employment

Current through Register Vol. 54, No. 28, July 13, 2024
Job creation projections shall be required on
						  applications for assistance from the Authority for industrial development
						  projects. Industrial occupants have 3 years from the date of occupancy of the
						  project to meet the job projections. Jobs created at the project site after the
						  industrial development agency agrees to sponsor the project will be counted by
						  the Authority. The loan documents may provide that an increased interest rate
						  may be imposed on a project which fails to meet its 3-year employment
						  projections, under §§
												73.161-73.163 (relating to
						  penalties).
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 › LOAN AMOUNTS AND TERMS › Section 73.15 - Maturities

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Authority
						may establish maximum terms for its loans. In establishing maximum loan terms,
						the Authority will consider the current state of the commercial lending market
						and the need to keep the Commonwealth and its businesses competitive. In any
						case, the Authority will have discretion to establish the term for an
						individual loan based on sound commercial lending practices. The term of an
						individual loan made by the Authority may be, but is not required to be, as
						long as the term of the first lien mortgage loan obtained for the project from
						an independent and responsible financial source. The maximum loan term
						established by the Authority will be published as a notice in the
Pennsylvania Bulletin
.
(b) If the industrial development agency or
						its affiliate elect to participate in the project with its own funds, the term
						of its loan shall be at least as long as the term of the Authority
						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 › LOAN AMOUNTS AND TERMS › Section 73.16 - Disbursement

Current through Register Vol. 54, No. 28, July 13, 2024
The Authority loan will be disbursed to reimburse the
						  industrial development agency for eligible project costs incurred and invoiced.
						  Disbursements will be based on information disclosed by an affidavit as to
						  project costs incurred and invoiced and shall be made under §
												73.307(Reserved).
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 › APPLICATION REQUIREMENTS › Section 73.21 - General

Current through Register Vol. 54, No. 28, July 13, 2024
Applications for assistance submitted by an industrial
						  development agency include items required by the act, as well as other items
						  the Authority may require to establish the eligibility and credit-worthiness of
						  the proposed project, and on forms and in accordance with submission deadlines
						  the Authority prescribes.
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 › APPLICATION REQUIREMENTS › Section 73.22 - Taxes

Current through Register Vol. 54, No. 28, July 13, 2024
If a beneficial owner, industrial occupant or an
						  affiliate thereof is delinquent on taxes due the Commonwealth, the application
						  will not be considered until the taxes are paid in full or evidence is
						  presented of a satisfactory arrangement agreed to by all parties or the funds
						  in question are placed into an escrow account in form and substance
						  satisfactory 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 › APPLICATION REQUIREMENTS › Section 73.23 - Commitments and fees

Current through Register Vol. 54, No. 28, July 13, 2024
A commitment issued by the Authority is not effective
						  until the industrial development agency and the industrial occupant and, if
						  applicable, the beneficial owner of the project have accepted and acknowledged
						  the commitment and paid the commitment fee established by the
						  Authority.