Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part V - Community Affairs and Development › Subpart A - Strategic Planning and Operation › Chapter 121 - ENTERPRISE DEVELOPMENT AREA INITIATIVE-STATEMENT OF POLICY › Section 121.10 - Application for enterprise zone designation and second-year funding

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Eligibility to apply.
An applicant shall have completed the
				  enterprise zone planning cycle, including development of the required local
				  business development strategy for the proposed zone in order to be eligible to
				  apply.
(b)
Type of
				  grant.
Applicants granted enterprise zone designation and approval for
				  funding receive a basic grant for administrative support and seed money for
				  projects relatively modest in scale.
(c)
Application contents.
The application for zone designation and second-year funding shall contain the
				  following:
(1) A clear and complete
				  description of the boundaries of the proposed zone, accompanied by a map in
				  which each item in the description is clearly legible. Copies of clear boundary
				  descriptions and maps from the applicant's enterprise planning zone application
				  are acceptable. Approximate total acreage or square mileage and the most recent
				  population, employment and percentage of poverty figures for the proposed zone
				  should be included.
(2) A summary
				  of the description in the applicant's preceding enterprise planning zone
				  application concerning particular area characteristics which either facilitate
				  or impede business expansion. Representative case examples, from the small
				  business survey interview results included in the strategy document, which
				  either confirm or modify what was previously known about business expansion
				  opportunities or constraints in the zone should also be listed. The general
				  size of the firms in terms of small, medium or large work force and the type of
				  product or service provided by the firm should be indicated, although the names
				  of individual firms do not need to be provided in the case example. The
				  significance of the selected case examples to the earlier description should be
				  briefly explained.
(3) The types
				  and costs of resources needed to increase or redirect the economic development
				  capacity of the applicant in order to implement the local business development
				  strategy with continued funding for the designated enterprise zone. The amounts
				  of funds needed and identification of funding source should be included under
				  the proper column of the budget form for this application when expenditures for
				  this purpose are required. Examples of budget items include establishment of a
				  development corporation, hiring or reassignment of qualified staff or
				  contracting with an experienced consultant.
(4) A brief general summary of the methods
				  and activities that will be used to accomplish the objectives of the strategy,
				  including the types of assistance typically requested by firms in the proposed
				  zone, and the activities to be implemented to respond to these requests. The
				  strategy document should be the source of these descriptions.
(5) A project sheet for each item of
				  assistance requested by individual firms as identified in the strategy document
				  and the enterprise zone program application budget sheet. Project sheets and
				  the budget sheet are provided in the grant application package. A project sheet
				  should be completed for each business assistance activity which is expected to
				  account for a significant part of the anticipated enterprise zone program
				  grant, and the budget sheet should reflect the activities as budget line items.
				  A signed letter on the business letterhead of the prospective beneficiary firm
				  requesting the assistance should be attached to the completed project sheet.
				  The letter should contain contingent commitments to approximate amounts of
				  new/additional business investment and new jobs. The project sheet should list
				  the private and public resources identified as available, and additional
				  private and public resources required for successful implementation of the
				  project. For each required resource not yet available, an expected date of
				  availability should be listed.
(6)
				  Documentation from business survey findings of a need for business development
				  finance services to justify a revolving loan fund work activity and budget line
				  item. This work activity shall include provision for counseling and technical
				  assistance in review and revision or preparation as needed of a creditable
				  business plan for each prospective revolving loan fund applicant to ensure that
				  conventional bank financing, Pennsylvania Industrial Development Assistance,
				  and other sources are available to the maximum extent and on the most
				  advantageous terms possible. A local inter-bank commitment of pooled resources
				  should be negotiated to supplement enterprise zone program capitalization of
				  the revolving loan fund. Local bank commercial loan officers and local business
				  people should comprise the bulk of the loan review committee. Effort should be
				  made to secure participation from minority and women among local business firms
				  and banks. Applicants without at least 3 years of successful experience in the
				  administration of business loan funds shall name a cooperative agency with
				  appropriate experience to administer the revolving loan fund. Documentation
				  should be provided of the nature and length of the proposed administering
				  agency's experience, a copy of the agency's loan policies, additional detail
				  required to identify sources of capitalization in the revolving loan fund, the
				  composition by qualification of the loan committee, and a general but
				  quantitative review of performance of outstanding loans in terms of payment
				  regularity, defaults and nonperforming loans.