PA House advances bill to encourage development of micro-enterprises

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The state House of Representatives advanced Monday a bill designed to encourage the development of startups in Pennsylvania downtown business communities.

House Bill 324 would set up a process for local governments to promote the development of micro-enterprises, businesses that employ one to five people. The bill is designed to support the reuse of downtown building and move people from social programs to employment.

Under the legislation, a municipality, or two two or more contiguous municipalities within the same county, with a population of more than 10,000 could create community development authorities to develop blighted, low-income neighborhoods and create jobs. The legislation also encourages development collaboration between existing authorities and redevelopment authorities to operate a community development authority through intergovernmental cooperation agreements.

Community development authorities could issue loans to micro-enterprises. The loans would be funded through a mechanism of fees, fines and private partnerships, making the program self-sustaining.

The legislation also requires loan applications to complete business development training.

“With my background as a business author, practitioner and professor teaching entrepreneurship, it led me to help extend the reach of this proposed initiative to a more diverse set of beneficiaries, including worker cooperatives,” Rep. Chris Rabb (D-Philadelphia), who co-sponsored the bill, said. “This business assistance program would now be made available to more prospective business owners who would most benefit from it, and prevent others outside of Pennsylvania from taking advantage of opportunities meant for state residents already invested in their local communities.”

The prime sponsor of the bill is Keith Gillespie (R-York).

The legislation now heads to the Senate for consideration.