Pennsylvania Code
Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT
Part III - Business Financing
Subpart D - Minority Lending
Chapter 81 - MINORITY BUSINESS DEVELOPMENT AUTHORITY
Subchapter B - LOAN PROGRAM ADMINISTRATION
ELIGIBILITY
Section 81.112 - Eligible projects
Universal Citation: 12 PA Code ยง 81.112
Current through Register Vol. 54, No. 44, November 2, 2024
(a) To be eligible for a loan, loan guarantee or another form of assistance under the program established by the act, a project must meet the following criteria, based upon information that the Authority may require:
(1) Loans shall be made available primarily
for the purpose of providing working capital, purchasing machinery and
equipment and, where the need is determined by the Board, defraying the cost of
acquiring or renovating land or buildings.
(2) The following types of projects are
ineligible for a loan, loan guarantee or other type of assistance:
(i) A restaurant, except for regional or
national franchises.
(ii) A bar,
tavern or other project established for the principal purpose of dispensing
alcoholic beverages.
(iii) A
project for the acquisition, renovation or alteration of a building or property
for the principal purpose of real estate speculation.
(iv) A project for the principal purpose of
refinancing existing debt.
(v)
Another type of project determined by the Board to be inappropriate for
assistance.
(3) At least
25% of the eligible project costs shall be contributed in cash from sources
other than the Authority.
(4) A
project that has been rejected by the Board may not be presented again to the
Board within 1 year of the date of the Board's rejection, except by invitation
of the Board.
(5) To be eligible
for a loan, a project shall also comply with §
81.131 (relating to amount and
terms of loans).
(6) To be eligible
for a loan guarantee or other assistance, the project shall also comply with
§
81.132 (relating to guarantee
provisions).
(b) [Reserved].
The provisions of this §81.112 amended under section 9 of the Pennsylvania Minority Business Development Authority Act (73 P.S. § 390.9).
This section cited in 12 Pa. Code § 81.121 (relating to application forms); and 12 Pa. Code § 81.124 (relating to additional conditions).
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