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Application and administration - 12 Pa. Cons. Stat. § 2906

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     § 2906.  Application and administration.
        (a)  Procedures.--Application and administration procedures
     for fund loans shall be established by the secretary.
        (b)  Receipt.--The secretary shall receive applications from
     eligible business enterprises for machinery and equipment loans.
     Applications shall be made to the secretary in the form and
     manner as the department may require.
        (c)  Investigation.--Upon receipt of the application, the
     secretary shall investigate and review the application and
     either approve or disapprove the loan application by proper
     action of the department. The decision of the secretary shall be
     based, in whole or in part, upon the following criteria:
            (1)  Ability of the applicant to meet and satisfy all
        debt service as it becomes due and payable.
            (2)  Sufficiency of available collateral, including
        satisfactory lien positions on real and personal property.
            (3)  Eligibility of the applicant as a business
        enterprise involved in industrial processes, manufacturing,
        mining, production agriculture, information technology,
        biotechnology, services as a medical facility or other
        industrial or technology sectors as defined by the secretary.
            (4)  Sufficient evidence that funds shall be used only to
        acquire and install new equipment and machinery or upgrade
        existing equipment and machinery, including the acquisition,
        application and utilization of computer hardware and
        software.
            (5)  Capital needs of the applicant.
            (6)  Conformity of the project to the provisions of this
        chapter.
            (7)  Relevant criminal and credit history and ratings of
        applicant as determined from outside credit reporting
        services and other sources.
            (8)  Number of net employment opportunities created and
        retained by the proposed project. This paragraph does not
        apply to business enterprises involved in production
        agriculture or medical facilities.
            (9)  Supporting evidence that the loan project will
        increase the firm's competitiveness and value added within
        its respective industry.
            (10)  Explanation of how the loan will aid the
        Commonwealth in its efforts to assist business enterprises to
        increase their productivity and improve the future
        competitive position of this Commonwealth's industries.
            (11)  Compliance with the loan amount limitations
        provided for machinery and equipment loans.
            (12)  Payment to date of all tax obligations due and
        owing to the Commonwealth or any political subdivision
        thereof.
            (13)  Conformity of all aspects of the loan transaction
        with the substantive and procedural provisions of this
        chapter and regulations promulgated hereunder.
            (14)  Such information and documentation as the secretary
        shall require.
        (d)  Notification.--The secretary shall notify the applicant
     of final approval or disapproval of the loan application within
     a reasonable period of time following the receipt of the
     application. In the case of approval of a loan application, the
     secretary shall arrange to draw the loan amount from the fund
     and advance the sum to the recipient. The advance shall be made
     available in the form of a loan transaction, which loan shall be
     evidenced by a note executed by the recipient and secured in a
     manner as the secretary shall require in conformity in all
     respects to the loan as approved by the secretary.
        (e)  Policy requirements and report.--All loans shall be
     administered and monitored by the department in accordance with
     the policies and procedures prescribed by the secretary. On or
     before September 1 of each year, the secretary shall prepare a
     report that includes the following:
            (1)  Each outstanding loan.
            (2)  The date of approval.
            (3)  The original principal balance.
            (4)  The current principal balance.
            (5)  The interest rate.
            (6)  The purpose for which the loan was made.
            (7)  An enumeration of any problems or issues which have
        arisen with regard to each loan.
            (8)  A statement regarding the progress of the business
        enterprise in creating and retaining its requisite number of
        employment opportunities.
            (9)  Such other information and documentation as the
        secretary shall require.
        (f)  Penalty for noncompliance.--In the event that a loan
     recipient shall not comply with its approved application by
     failing to create or preserve the number of employment
     opportunities specified in its approved application, the
     secretary shall impose a penalty equal to an increase in the
     interest rate to 2% greater than the current prime interest rate
     for the remainder of the loan unless the penalty is waived by
     the secretary because the failure is due to circumstances
     outside the control of the loan recipient. The penalty shall be
     payable in installments that the secretary deems appropriate.

        Effective Date.  Section 6(1)(i) of Act 12 of 2004 provided
     that section 2906 shall take effect upon publication of the
     guidelines required by section 2912.
        Cross References.  Section 2906 is referred to in section
     2911 of this title.

Last modified: November 27, 2007