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First Industries Program - 64 Pa. Cons. Stat. § 1552

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     § 1552.  First Industries Program.
        (a)  Establishment.--There is established a program to be
     known as the First Industries Program. The program shall provide
     financial assistance for projects related to tourism and
     agriculture located within this Commonwealth. The board shall
     allocate funds made available to the program among the different
     methods of financing authorized in this section.
        (b)  Applications for planning grants.--An applicant may
     submit an application to the authority requesting a planning
     grant in an amount not to exceed $250,000 for the costs of
     predevelopment activities and feasibility studies for a project
     related to tourism or agriculture. The application shall be on
     the form required by the board and shall include or demonstrate
     all of the following:
            (1)  The applicant's name and address.
            (2)  The location of the project.
            (3)  A description of the project.
            (4)  An estimate of the cost of the predevelopment
        activities and feasibility studies and the goal to be
        achieved by carrying out the proposed activities or studies.
            (5)  A statement of the amount of the planning grant
        sought.
            (6)  Any other information required by the board.
        (c)  Review and approval of planning grant applications.--
            (1)  The board shall review the application to determine
        that the project demonstrates one or more of the following:
                (i)  The project will have a demonstrable impact on
            the economy or well-being of the neighborhood, community
            or region where the project will be located.
                (ii)  The project will promote research and
            development efforts leading to increased
            commercialization or utilization of farm commodities.
                (iii)  The project will result in environmentally
            friendly or energy efficient operations related to
            agriculture, including projects authorized by the act of
            December 12, 1994 (P.L.888, No.128), known as the
            Agricultural By-Product Management Technology Act.
                (iv)  The project will result in more cost-effective
            and efficient marketing of regional assets related to
            tourism or agriculture.
                (v)  The project will result in a substantial
            increase in revenues for the Commonwealth or the host
            municipality.
                (vi)  The project proposes to utilize Commonwealth-
            owned natural resources for public/private development of
            tourism.
            (2)  Upon being satisfied that the requirements of
        paragraph (1) have been met, the board may approve the
        application, and, if approved, the authority shall award a
        planning grant.
            (3)  Copies of all reports and studies prepared with
        planning grant funds shall be filed with the authority and
        shall be made available to any person upon request.
        (d)  Loans to applicants.--If the department approves an
     application for a loan under the programs established in 12
     Pa.C.S. Ch. 23 (relating to small business first) or 29
     (relating to machinery and equipment loans), the department may
     request that the authority finance the loan. Upon being
     satisfied that the project is related to agriculture or tourism,
     the board may approve the request, and, if approved, the
     authority shall award a loan. Loans made under this subsection
     shall be administered by the department. Payments received shall
     be forwarded to the authority and credited to the account
     established in accordance with section 1542(b) (relating to
     revolving loan program accounts).
        (e)  Loan guarantees.--
            (1)  An applicant may request a guarantee for a loan to
        be made by a commercial lending institution or community
        development financial institution to assist with the
        financing of a project related to tourism or agriculture. The
        applicant may be the commercial lending institution or
        community development financial institution applying on
        behalf of a borrower. The application must be on the form
        required by the board and must include or demonstrate all of
        the following:
                (i)  The applicant's name and address. If the
            applicant is a commercial lending institution or
            community development financial institution, the
            borrower's name and address.
                (ii)  A description of the project.
                (iii)  A statement describing the anticipated
            economic impact to the Commonwealth and the host
            municipality as a result of the project.
                (iv)  A description of the proposed project
            financing, including terms, conditions and the collateral
            or security required for the loan for which the guarantee
            is being requested.
                (v)  A copy of the applicant's last two years of
            financial statements prepared or reported on by an
            independent certified public accountant. If the applicant
            is a commercial lending institution or a community
            development financial institution, a copy of the
            borrower's last two years of financial statements
            prepared or reported on by an independent certified
            public accountant.
                (vi)  The amount of the loan guarantee that is being
            requested.
                (vii)  The total project cost and the identification
            of all sources of capital for the project.
                (viii)  Any other information required by the board.
            (2)  The board shall review the application to determine
        all of the following:
                (i)  That the project has been awarded a planning
            grant under this section or that at least $1,000,000 of
            private funds are being invested in the project.
                (ii)  That the value of the proposed collateral is
            sufficient to cover the full amount of the loan.
                (iii)  That the applicant complied with all other
            criteria established by the board.
            (3)  Upon being satisfied that all requirements have been
        met, the board may approve the guarantee, and, if approved,
        the authority shall execute a guarantee agreement in favor of
        the commercial lending institution or community development
        financial institution stating the terms and amounts of the
        guarantee. The guarantee may not exceed 50% of the
        outstanding principal amount of the loan or $2,500,000 at any
        point in time, whichever is less. In addition to any other
        terms and conditions required by the board, the guarantee
        agreement shall provide for all of the following:
                (i)  The procedure for the submission by the
            commercial lending institution or community development
            financial institution of a claim for payment. This
            procedure shall require that the commercial lending
            institution or community development financial
            institution demonstrate that it has exhausted all
            available remedies against the borrower, other guarantors
            and collateral before seeking payment under the
            agreement.
                (ii)  A requirement that a percentage of any moneys
            recovered subsequent to the payment of a claim by the
            authority be remitted to the authority.
                (iii)  Periodic reporting requirements by the
            commercial lending institution or community development
            financial institution regarding itself and regarding the
            loans which have been awarded guarantees under this
            section.
            (4)  The board may establish a subcommittee composed of
        one or more board members and department staff to supervise
        the progress of projects for which loan guarantees have been
        awarded under this section.
        (f)  Limitations.--
            (1)  No more than $10,000,000 of the funds available for
        the program authorized by this section may be used for
        planning grants awarded under subsection (c).
            (2)  At least two-thirds of the funds available for the
        program authorized by this section shall be used for
        financing of projects related to agriculture.
     (Nov. 30, 2004, P.L.1708, No.218, eff. imd.)

        2004 Amendment.  Act 218 amended subsec. (e).
        Cross References.  Section 1552 is referred to in sections
     1542, 1543 of this title.

Last modified: November 27, 2007