HARRISBURG – To support Pennsylvania’s economy and veterans, the Senate passed legislation that would establish a Veteran-owned Business Loan Guarantee Program, said Sen. Cris Dush (R-25).
The program would provide loan guarantees to commercial lending institutions that make loans to veteran-owned businesses. The Commonwealth Financing Authority would be authorized to guarantee up to 50% of the outstanding principle of the loan, limited to $250,000 for any one loan.
Senate Bill 830 would permit the allocation of $5 million for loan guarantees to veteran-owned businesses from the Second Stage Loan Program.
Commercial lending institutions must file an application for a proposed loan that includes basic information about the borrower, the number of projected new or retained employees, financial statements from the borrower and a statement regarding the purpose of the loan.
Having received support in the Senate, the bill now moves to the House of Representatives for consideration.
CONTACT: Zack Ankeny