Pennsylvania House Bill HB922

Pennsylvania 2023-2024 Regular Session

• Introduced: 4/17/23
• Refer: 4/17/23
• Refer: 5/23/23
• Report Pass: 5/24/23
• Engrossed: 5/24/23
• Refer: 6/5/23

Caption

In Commonwealth Financing Authority, further providing for Second Stage Loan Program.

Impact

The proposed changes under HB 922 would lead to significant alterations in how the Commonwealth supports commercial lending for crucial sectors in the economy. By allowing higher guarantee amounts and clearer operational guidelines, this bill aims to enhance access to necessary funding for businesses that are poised for growth. This could result in increased economic activity within these sectors, ultimately contributing to job creation in the state.

Summary

House Bill 922 seeks to amend Title 64 of the Pennsylvania Consolidated Statutes by enhancing the Second Stage Loan Program. This program aims to provide guarantees for loans issued by commercial lending institutions to existing businesses in the life sciences, advanced technology, or manufacturing sectors. The goal is to support these industries within Pennsylvania, facilitating their growth and expansion, which is vital for job creation and retention. The amendments introduce more flexible conditions for loan guarantees and support businesses that have been operational for at least two years but no more than seven.

Sentiment

The general sentiment surrounding HB 922 appears to be supportive among legislators who recognize the importance of fostering innovation and growth in Pennsylvania's key industries. However, there are concerns regarding the financial implications of expanded guarantees and the potential for misuse of the program, which could create division among stakeholders. Proponents argue that the economic benefits outweigh these risks, while opponents call for greater oversight to ensure responsible use of taxpayer resources.

Contention

Notable points of contention include discussions about the criteria for loan eligibility, particularly the duration of business operation required to qualify for the guarantees. There are concerns that limiting eligibility to businesses in operation for no less than two years could exclude startups that are equally deserving of support. Furthermore, ensuring that the state maintains oversight over guaranteed loans to prevent defaults or financial mishaps is a contentious issue, reflecting broader debates on fiscal responsibility in state funding.