PRINTER'S NO. 2901
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2202
Session of
2024
INTRODUCED BY CONKLIN, HILL-EVANS AND DELLOSO, APRIL 10, 2024
REFERRED TO COMMITTEE ON COMMERCE, APRIL 10, 2024
AN ACT
Amending the act of July 22, 1974 (P.L.598, No.206), entitled
"An act creating the Pennsylvania Minority Business
Development Authority as a governmental instrumentality and
as a body corporate and politic; prescribing the rights,
powers and duties of such authority; authorizing such
authority to acquire by gift or purchase; to make loans,
guarantees or other financial accommodations to minority
business enterprises, to borrow money and issue bonds
therefor, providing for the payment of such bonds and giving
security therefor, prescribing the rights of the holders of
such bonds; providing that no debt of the Commonwealth shall
be incurred in the exercise of any powers granted by this
act; exempting the property and securities of such authority
from taxation; authorizing the authority to enter into
contracts with and to accept grants from the Federal
Government or any agency thereof; providing for the
examination of the accounts and affairs of the authority; and
making an appropriation," further providing for activities
and powers of the authority in general; and establishing the
Minority Business Development Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 6(1) of the act of July 22, 1974
(P.L.598, No.206), known as the Pennsylvania Minority Business
Development Authority Act, is amended to read:
Section 6. Activities and Powers of the Authority;
General.--The authority, as a public corporation and
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governmental instrumentality exercising public powers of the
Commonwealth, is hereby granted and shall have and may exercise
all powers necessary or appropriate to carry out and effectuate
the purposes of this act, including the following powers, in
addition to others herein granted:
[(1) To have existence for a term of fifty years.]
* * *
Section 2. The act is amended by adding a section to read:
Section 8.1. Minority Business Development Program.--(a)
The Minority Business Development Program is established within
the authority to provide minority business enterprises with
awards for any of the following:
(1) Equity or patient capital.
(2) Gap financing.
(3) Soft loans, including loans for predevelopment.
(b) The authority shall administer the program and issue
guidelines to implement this section. The guidelines, at a
minimum, shall include the following:
(1) An application process for a minority business
enterprise to apply for an award under the program.
(2) Eligibility requirements for an award under the program.
(3) Allowable uses of an award under the program, including
any condition that a minority business enterprise must meet.
(4) The maximum amount of an award under the program, in
accordance with the following:
(i) The maximum aggregate amount for loan awards under the
program shall not exceed:
(A) Except as provided in clause (B), five million dollars
($5,000,000) per applicant per year.
(B) For development projects located in a county of the
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first class or a county of the second class, ten million dollars
($10,000,000) per applicant per year.
(ii) The maximum aggregate amount for equity or patient
capital awards under the program shall not exceed:
(A) Except as provided in clause (B), three million dollars
($3,000,000) per applicant per year.
(B) For development projects located in a county of the
first class or a county of the second class, five million
dollars ($5,000,000) per applicant per year.
(iii) An applicant may not have more than three development
projects financed through the program per year.
(5) The interest rates and repayment terms regarding an
award under the program.
(c) As used in this section, the term "program" means the
Minority Business Development Program established under
subsection (a).
Section 3. This act shall take effect immediately.
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