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FOR IMMEDIATE RELEASE |
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State
Rep. Mike Hanna |
  
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Bill to expand loan access for Pa. farmers voted out of
House Agriculture and Rural Affairs Committee
HARRISBURG, Sept. 24 – State Rep. Mike Hanna, D-Clinton/Centre, chairman of the House Agriculture and Rural Affairs Committee, said legislation he supports that would expand the ability of agricultural producers to access loans was voted out of the committee this week.
The legislation (S.B. 768) would authorize farm credit system institutions to participate in Pennsylvania's First Industries Loan Guarantee Program and lower the amount of private funds required to be invested in a project.
Hanna said the First Industries program provides financial assistance, including loan guarantees, to projects associated with tourism and agriculture. However, institutions that only offer credit and don't take deposits are currently not allowed to participate in the program.
"This bill would change that provision so farmers who already work with certain institutions have access to the benefits of getting funding through the First Industries program," Hanna said.
The legislation also would lower the amount of private funding required for a project to be eligible for a loan guarantee through First Industries from $1 million to $500,000. This would allow more agricultural producers and projects to participate.
"When the First Industries program was implemented, it excluded the state's largest agricultural lender," Hanna said. "This legislation would correct that."
"It's about customer choice," he said. "This bill would promote more competition in lending, which is in the public's best interest. Consumers should have the ability to choose the lender they want to help them expand their business."
The legislation now goes to the full House for approval.
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