Section 81.112. Eligible projects

(a) To be eligible for a loan, loan guarantee or another form of assistance under the program established by the act, a project shall 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, and funds from sources other than commercial lenders or public lending bodies shall be placed in an escrow account along with Authority funds.

(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 adopted July 11, 1975, effective July 12, 1975, 5 Pa.B. 1781; amended February 6, 1987, effective February 7, 1987, 17 Pa.B. 634. Immediately preceding text appears at serial pages (49504) to (49505).

Notation

Authority

The provisions of this § 81.112 amended under section 9 of the Pennsylvania Minority Business Development Authority Act (73 P. S. § 390.9).

Cross References

This section cited in 12 Pa. Code § 81.121 (relating to application forms); and 12 Pa. Code § 81.124 (relating to additional conditions).