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FOR IMMEDIATE RELEASE |
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State
Rep. Jaret Gibbons |
  
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Gibbons bill to help 'Protect Our Progress' passes House
HARRISBURG, June 3 – State Rep. Jaret Gibbons, D-Lawrence/Beaver/Butler, today announced the House unanimously passed economic development legislation vital to shoring up the state’s defenses against the weakening national economy.
Gibbons' bill, H.B. 2503, would authorize the secretary of Community and Economic Development to make annual transfers of surplus funds in the Machinery and Equipment Loan Fund account into the frequently busier account of the Pennsylvania Industrial Development Authority.
"My bill creates more flexibility and better coordination for the economic development process," Gibbons said. "And at the same time, it will ensure that all Pennsylvania businesses continue to have a reliable, stable source of assistance for large equipment acquisitions."
Gibbons emphasized that the bill includes a protection for MELF that would ensure at least 25 percent of all PIDA funds available each year be reserved for MELF-eligible loans.
The two programs have different loan types and criteria. PIDA provides low-interest loans for land and building acquisition, construction or renovation. Its assistance requires that the business be located in an economically distressed area; MELF, which provides low-interest loans to purchase, upgrade or renovate equipment, does not.
The bill also would delete the current MELF requirement that one job be created or retained for each $25,000 in state assistance.
"But, that doesn’t mean we won’t have standards," Gibbons said. "This just allows the PIDA board to update the standard for inflation and economic reasons from time to time without coming back to the legislature."
The current guideline used by the board is $35,000 per job created or retained.
Gibbons said his legislation is a major component of Gov. Rendell's Protecting our Progress portion of this year's state budget. The bill now moves to the Senate for consideration.
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l:'print'releases' PIDA-MELF.010
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