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Committee advances bill to raise Small Business First loan cap for farmers to $2 million
Summary
The conference committee unanimously advanced House Bill 2207 to raise the Small Business First program cap for agricultural loans from $400,000 to $2,000,000 while retaining the rule that any loan cannot exceed 50% of project capital; supporters cited rising input and equipment costs for farms.
Chairman Conklin called up House Bill 2207 and the clerk described it as sponsored by Representative Friel and Chairman Lawrence. Representative Friel told the committee the bill would align agricultural loan limits with other small businesses under the Small Business First program by raising the cap from $400,000 to $2,000,000.
"It takes it from $400,000 up to $2,000,000," Representative Friel said, adding that the bill preserves the program rule that a loan cannot exceed 50% of the total capital employed on a project. He said the change responds to sharply higher input and equipment costs for farms, including fertilizer and machinery.
Chairman Lawrence said the initiative grew out of requests from the Chester County Economic Development Council and noted support from the Chester and Pennsylvania Farm Bureaus and the Pennsylvania Industrial Development Authority (PIDA). He emphasized rising prices for tractors and combines as a rationale for expanding the program cap.
The committee recorded no negative votes and Chairman Conklin announced the bill passed unanimously in committee.
The measure will move forward to the next legislative stage; committee members thanked the sponsor and staff for their work on the proposal.
