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Export financing loans - 12 Pa. Cons. Stat. § 2310

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     § 2310.  Export financing loans.
        (a)  Application.--A person may submit an application and any
     applicable application fee to the department or its area loan
     organization requesting a loan for certain costs of a capital
     development project which will be used in export activities. The
     application must be on the form required by the department and
     must include or demonstrate all of the following:
            (1)  The name and address of the applicant.
            (2)  A statement of the amount of loan assistance sought.
            (3)  A statement of the capital development project,
        including a detailed statement of the cost of the project.
            (4)  A financial commitment from a responsible source for
        any cost of the capital development project in excess of the
        amount requested.
            (5)  A statement that the loan, if approved, would not
        supplant funding from private sector sources on commercially
        reasonable terms.
            (6)  Any other information required by the department.
        (b)  Review.--Upon receipt of a completed application, the
     department shall investigate and determine all of the following:
            (1)  If the applicant is an export business.
            (2)  If the project is a capital development project.
            (3)  The ability of the applicant to meet and satisfy the
        debt service as it becomes due and payable.
            (4)  The existence and sufficiency of collateral for the
        loan.
            (5)  Relevant criminal and credit history and ratings of
        the applicant as determined from outside credit reporting
        services and other sources.
            (6)  Number of employment opportunities to be created or
        preserved by the proposed capital development project.
            (7)  If the applicant complied with all other criteria
        established by the department.
        (c)  Approvals.--If the department is satisfied that all
     requirements have been met, the department may approve the loan
     request. A loan approved under this section may not exceed
     $350,000. The department shall notify the applicant and, if
     applicable, the area loan organization of its decision. The
     department shall reserve an amount equal to the principal amount
     of the loan within the fund or the special account authorized by
     section 2304(c)(2) (relating to fund and accounts). Prior to
     providing funds to the applicant, the department shall require
     the applicant to execute a note and enter into a loan agreement.
     In addition to the requirements of subsection (d), the loan
     agreement shall include a provision requiring the recipient to
     use the loan proceeds to pay the costs of the capital
     development project. The department may impose other terms and
     conditions on the recipient if the department determines they
     are in the best interests of this Commonwealth, including any of
     the following:
            (1)  A provision requiring collateral for any penalty
        imposed under subsection (f).
            (2)  A provision requiring the person to be eligible for
        an insurance policy.
            (3)  A provision requiring the loan to be guaranteed by
        the Working Capital Guaranty Program offered by the Ex-Im
        Bank.
            (4)  A provision requiring an export credit sales
        contract insured by an insurance policy.
        (d)  Loan terms.--A loan agreement entered into in accordance
     with subsection (c) shall do all of the following:
            (1)  State the collateral securing the loan. All loans
        shall be secured by lien positions on collateral at the
        highest level of priority as may be determined by the
        department.
            (2)  State the repayment period as determined by the
        department.
            (3)  State the interest rate as determined by the
        department.
        (e)  Loan administration.--A loan made under this section
     shall be administered in accordance with departmental policies
     and procedures.
        (f)  Penalty.--
            (1)  Except as provided in paragraph (2), the department
        shall impose a penalty upon a recipient if the recipient
        fails to carry out the export activities specified in its
        approved application.
            (2)  The department may waive the penalty required by
        paragraph (1) if the department determines that the failure
        was due to circumstances outside the control of the
        recipient.
            (3)  The amount of the penalty imposed under paragraph
        (1) shall be equal to an increase in the interest rate to 2%
        greater than the current prime interest rate for the
        remainder of the loan.
        (g)  Defaults.--The department may, by foreclosure, take
     title to a capital development project which it financed if
     acquisition is necessary to protect a loan made under this
     section. The department shall pay all costs arising out of the
     foreclosure and acquisition from money held in the fund or a
     special account authorized by section 2304(c)(2). The department
     may, in order to minimize financial losses and sustain
     employment, lease the capital development project. The
     department may withdraw money from the fund or a special account
     authorized by section 2304(c)(2) to purchase first mortgages and
     to make payments on first mortgages on any capital development
     project which it financed if purchase or payment is necessary to
     protect a loan made under this section. The department may sell,
     transfer, convey and assign the first mortgages and shall
     deposit any money derived from the sale of any first mortgages
     in the fund or a special account authorized by section
     2304(c)(2).

Last modified: November 27, 2007