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FOR IMMEDIATE RELEASE |
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State
Rep. Rick Mirabito |
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House unanimously passes Mirabito bill aimed at helping
high-tech businesses grow
HARRISBURG, June 23 – The Pennsylvania House of Representatives today unanimously passed state Rep. Rick Mirabito's bill designed to help high-tech and manufacturing businesses grow in Pennsylvania.
House Bill 1597 now moves to the state Senate for consideration.
"This bill changes our Second Stage Loan program to enable more high-tech and manufacturing businesses to secure the loans they need to grow and create jobs," said Mirabito, D-Lycoming. "And it does this without spending any new tax dollars."
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.
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. Since it began five years ago, the Second Stage program has issued only six loan guarantees.
"This is a very underutilized program," Mirabito said. "My 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. I believe these changes would make the program more accessible to more life-science, high-tech and manufacturing companies."
Mirabito noted no new tax dollars are needed since the bill shifts $50 million from the underutilized Tax Increment Financing Guarantee Program to the Second Stage Loan program.