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FOR IMMEDIATE RELEASE |
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State
Rep. Rick Mirabito |
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Mirabito bill that would help high-tech businesses grow
advances to full House
HARRISBURG, June 16 – State Rep. Rick Mirabito's bill designed to help high-tech and manufacturing businesses grow in Pennsylvania was unanimously approved by the House Commerce Committee today.
House Bill 1597 now moves to the full House for consideration.
The Second Stage Loan program is operated by the Pennsylvania Department of Community and Economic Development and guarantees loans made to life science, manufacturing and technology businesses.
"In its five years of existence, the Second Stage program has issued only six loan guarantees. That means there may be businesses out there that are not able to access the capital they need to grow because there isn't enough participation by the banks," said Mirabito, D-Lycoming. "Without spending any additional tax dollars, my bill would revise the program to make it more attractive to lenders."
Currently the program restricts the loan guarantee amount to 50 percent of the loan for the first two years then lowers it to 25 percent for the remainder of the term. Loans can only be made to businesses that are at between two and seven years old, and the loan amounts are capped at $1 million.
Mirabito's bill would keep the two-year age minimum but eliminate the age cap of seven years, retain the 50 percent loan guarantee for the life of the term, and increase the per-loan cap to $5 million.
"The bill shifts $50 million from the under-utilized Tax Increment Financing Guarantee Program to the Second Stage Loan program where I believe it would do more good," Mirabito said. "This program helps high-tech and manufacturing companies that have survived startup make it to that next level of being an established business that is creating family-sustaining jobs in Pennsylvania."
Mirabito said H.B. 1597 has the support of the Rendell administration.
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