Shusterman Bill Aims To Keep Second-Stage Loan Businesses In PA

TREDYFFRIN TOWNSHIP, PA — State Rep. Melissa Shusterman (D-157th) has introduced legislation to keep business in Pennsylvania.

Shusterman’s H.B. 267 would ensure that early and mid-stage businesses using the Second Stage Loan program and receiving loan guarantees are not only located in Pennsylvania but stay in Pennsylvania.

The legislation aims to modernize Pennsylvania’s Second Stage Loan program, thereby boosting the state’s economy and creating more job opportunities; it passed out of the House Commerce Committee today.

“My bill adds needed transparency to the program, requiring businesses to certify that they are physically located in Pennsylvania and that they are keeping jobs right here at home,” Shusterman said.

“Rolling out a strong, modernized Second Stage Loan program will contribute to Pennsylvania’s economic rebuild. This helps create sustainable businesses and jobs while keeping our skilled and highly educated workers in the commonwealth.”

Established in 2004, the Second Stage Loan program was funded with $50 million. Today, $46.6 million still remains undistributed. This funding is intended to provide businesses in life science, advanced technology, or manufacturing businesses with the necessary capital to succeed during their early development stages.

Shusterman's bill calls for transparency and efficiency improvements to make this program work for Pennsylvania's businesses now.

The program is a loan guarantee to be administered by the Commonwealth Financing Authority (CFA). It guarantees loans made by commercial lending institutions to life science, advanced technology, or manufacturing businesses.

"These businesses might lack the liquidity to continue growing during the early phases of their business due to lack of bank history, working capital, and assets. We have smart business leaders and entrepreneurs in Pennsylvania who have strong ideas but need cash on hand to truly thrive. My legislation helps these small business owners and aims to help restabilize our economy," Shusterman said.

Questions and comments can be directed to Shusterman’s office by calling (484) 200-8260 or emailing RepShusterman@pahouse.net.