The state House Commerce Committee recently advanced legislation that would modernize the Second Stage Loan program to create job opportunities and boost the economy.
The Second Stage Loan program was created in 2004 and funded with $50 million. It is intended to provide manufacturing businesses or businesses in advanced technology or life science with the capital to succeed during the early development stages. The program currently has $46.6 million in undistributed funds.
House Bill 267 would ensure that early and mid-stage businesses using the program and receiving loan guarantees are located in Pennsylvania and stay in the state.
“My bill adds needed transparency to the program, requiring businesses to certify that they are physically located in Pennsylvania and that they are keeping jobs right here at home,” state Rep. Melissa Shusterman (D-Chester/Montgomery) said. “Rolling out a strong, modernized Second Stage Loan program will contribute to Pennsylvania’s economic rebuild. This helps create sustainable businesses and jobs while keeping our skilled and highly educated workers in the commonwealth.
“These businesses might lack the liquidity to continue growing during the early phases of their business due to lack of bank history, working capital, and assets. We have smart business leaders and entrepreneurs in Pennsylvania who have strong ideas but need cash on hand to truly thrive.”