(a)Application.--A small business may submit an application and any application fee to a certified economic development organization requesting a loan for a pollution prevention infrastructure under 64 Pa.C.S. § 1121(a) (relating to common application process). The application shall be on the form required by the authority and shall include or demonstrate all of the following, in addition to the contents required under 64 Pa.C.S. § 1121(b):
(1)The name and address of the applicant.
(2)A statement of the amount of loan assistance sought.
(3)A statement of the pollution prevention infrastructure, including a detailed statement of the cost of the infrastructure.
(4)A financial commitment from a responsible source for the cost of the pollution prevention infrastructure in excess of th
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(a) Application.--A small business may submit an application and any application fee to a certified economic development organization requesting a loan for a pollution prevention infrastructure under 64 Pa.C.S. § 1121(a) (relating to common application process). The application shall be on the form required by the authority and shall include or demonstrate all of the following, in addition to the contents required under 64 Pa.C.S. § 1121(b):
(1) The name and address of the applicant.
(2) A statement of the amount of loan assistance sought.
(3) A statement of the pollution prevention infrastructure, including a detailed statement of the cost of the infrastructure.
(4) A financial commitment from a responsible source for the cost of the pollution prevention infrastructure in excess of the amount requested.
(5) Any other information required by the authority.
(b) Certified economic development organization review.--
(1) Upon receipt of a completed application, a certified economic development organization shall investigate and determine all of the following:
(i) If the applicant is a small business.
(ii) If the project is for pollution prevention infrastructure.
(iii) If the applicant complied with all other criteria established by the authority.
(2) Upon being satisfied that all requirements have been met, the certified economic development organization shall recommend the applicant to the department and forward the application with all supporting documentation to the authority for its review and approval.
(c) Authority review.--
(1) Upon receipt of a recommendation and a completed application, the authority shall investigate and determine all of the following:
(i) If the pollution prevention infrastructure demonstrates a substantial likelihood of preventing or reducing pollution. The Department of Environmental Protection shall assist the authority in reviewing the applications and provide technical assistance.
(ii) The ability of the applicant to meet and satisfy the debt service as it becomes due and payable. In reviewing repayment obligations, loans shall not be approved on the basis of direct financial return on investment and shall not be held to the loan loss standards of private commercial lenders. Loans shall be reviewed for the purpose of reducing pollution through source reduction technologies or processes.
(iii) The existence and sufficiency of collateral for the loan.
(iv) Relevant criminal and credit history and ratings of the applicant as determined from outside credit reporting services and other sources.
(2) If the authority is satisfied that all requirements have been met, the authority may approve the loan request. A loan approved under this subsection may not exceed the lesser of:
(i) $100,000; or
(ii) 75% of infrastructure costs.
(3) The authority shall notify the certified economic development organization and applicant of its decision.
(d) Approvals.--For applications which are approved, the authority shall draw an advance equal to the principal amount of the loan from the Pollution Prevention Assistance Account. Prior to providing loan funds to the applicant, the authority shall require the applicant to execute a note and to enter into a loan agreement. In addition to the requirements of subsection (e), the loan agreement shall include a provision requiring the recipient to use the loan proceeds to pay the costs of the pollution prevention infrastructure. The authority may impose other terms and conditions on the recipient if the authority determines they are in the best interests of this Commonwealth, including a provision requiring collateral for any penalty imposed under subsection (g).
(e) Loan terms.--A loan agreement entered into in accordance with subsection (d) shall do all of the following:
(1) State the collateral securing the loan. All loans shall be secured by lien positions on collateral at the highest level of priority as may be determined by the authority.
(2) State the repayment period which may not exceed 10 years.
(3) State that the interest rate is 2%.
(4) State that any loan fee is not to exceed 5% of the loan amount.
(f) Loan administration.--A loan made under this section shall be administered in accordance with authority policies and procedures.
(g) Penalty.--
(1) Except as provided in paragraph (2), the authority shall impose a penalty upon a recipient if the recipient fails to carry out the pollution prevention infrastructure project as specified in its approved application.
(2) The authority may waive the penalty required by paragraph (1) if the authority determines that the failure was due to circumstances outside the control of the recipient.
(3) The amount of any penalty imposed under paragraph (1) shall be equal to an increase in the interest rate to 2% greater than the current prime interest rate for the remainder of the loan.
(h) Defaults.--The authority may take title by foreclosure to a pollution prevention infrastructure which it financed if acquisition is necessary to protect a loan made under this section. The authority shall pay all costs arising out of the foreclosure and acquisition from money held in the Pollution Prevention Assistance Account. The authority may, in order to minimize financial losses and sustain employment, lease the pollution prevention infrastructure. The authority may withdraw money from the Pollution Prevention Assistance Account to purchase first mortgages and to make payments on first mortgages on any pollution prevention infrastructure which it financed if the purchase or payment is necessary to protect a loan made under this section. The authority may sell, transfer, convey and assign the first mortgages and shall deposit any money derived from the sale of any first mortgages in the Pollution Prevention Assistance Account.