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§ 3116. Microenterprise loans

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 Pa.C.S.A. Taxation and Fiscal AffairsEffective: August 30, 2021

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 Pa.C.S.A. Taxation and Fiscal Affairs
Chapter 31. Microenterprise Assistance
Subchapter B. Microenterprise Loan Programs
Effective: August 30, 2021
72 Pa.C.S.A. § 3116
§ 3116. Microenterprise loans
Currentness
(a) Loan issuance.--
(1) An administrative entity may issue a loan to a microenterprise that operates on property owned by the administrative entity within the program.
(2) An administrative entity may partner with a private entity that issues microloans for the purpose of providing a loan under paragraph (1).
(3) If a loan payment becomes delinquent, the administrative entity may offer a hardship agreement to the microenterprise to restructure the payment process.
(b) Training.--
(1) For the purpose of reducing the financial risk involved in issuing a loan under subsection (a)(1) and providing loan applicants with the skills necessary to succeed, a loan applicant must complete business courses and workshops on operating a business, creating market strategy and customer interaction to be eligible to receive a loan.
(2) If the loan applicant is a worker cooperative corporation, all owners of the worker cooperative corporation must complete the business courses and workshops under paragraph (1).
(c) Training resources.--
(1) Upon request by an administrative entity, the department shall assist the administrative entity in identifying organizations that can provide the business training required under subsection (b) to loan applicants. The administrative entity shall direct loan applicants to the organizations that provide the business training.
(2) The administrative entity may partner with a private entity, including commercial and nonprofits or organizations specializing in training start-up entrepreneurs, for any of the following:
(i) using the private entity's facilities or expertise to help loan applicants fulfill the business training required under subsection (b); or
(ii) acquiring building space, whether the building space is leased or donated, for the purpose of conducting business training required under subsection (b).
(d) Eligible applicants.--
(1) An administrative entity shall impose requirements for eligible applicants, and the requirements shall be readily available to the public. The requirements shall include provisions that:
(i) An applicant must be low income and located in this Commonwealth.
(ii) An applicant must demonstrate need for capital and technical assistance to operate a business, with need defined by the administrative entity.
(iii) An applicant must have an established business plan and provide a summary of the plan to the administrative entity, if requested.
(2) (Reserved).

Credits

2021, June 30, P.L. 190, No. 37, § 1, effective in 60 days [Aug. 30, 2021].
72 Pa.C.S.A. § 3116, PA ST 72 Pa.C.S.A. § 3116
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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