Legislation soon to be introduced in the state’s House of Representatives would modernize Pennsylvania Industrial Development Authority (PIDA) low-interest loans and lines of credit for businesses looking to expand or invest.
A business must demonstrate a minimum number of new jobs to be eligible for a low-interest loan or line of credit. Under the bill, low-interest loans and lines of credit would be able to be used to cover a portion of up-front costs for land and building acquisitions, construction and renovation costs, and machinery and equipment purchases.
“While the existing job-creation requirement is well intended to keep the program accountable to taxpayers, I believe we are missing a significant opportunity to encourage capital investment in our commonwealth if we limit eligibility to this metric,” state Rep. Paul Wentling (R-Mercer County), who will introduce the bill, said in a memo to House members. “In fact, participants and applicants have cited this as a flaw in the program that limits their ability to grow and expand in Pennsylvania.”
The bill also would allow PIDA to consider the level of capital investment when determining program eligibility and loan amounts and would require payback if a business leaves Pennsylvania.
Wentling seeks cosponsoring for the bill.