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State Rep. Scott Conklin, D-Centre County, introduced a bill passed by the Pa. House to benefit minority-owned businesses. PHOTO/PACAST
Bill to boost funding for minority-owned businesses passes Pa. House
Ed Gruver//May 6, 2024//
Listen to this articlePennsylvania‘s minority-owned businesses may soon secure the capital needed to grow and remain competitive.
Pennsylvania’s House of Representatives passed House Bill 2202 to create funding to provide low-interest loans and equity financing for eligible enterprises. Introduced by state Rep. Scott Conklin, D-Centre County, the bill advances to the state Senate for consideration.
H.B. 2202 is aimed at establishing the Minority Business Development Program to provide low-interest loans and equity financing to ethnic-owned businesses. As Majority chairperson of the Pennsylvania House Commerce Committee, Conklin said he introduced the legislation to get resources to underserved business communities.
“Minority-owned businesses have a critical role to play in Pennsylvania, but for too long, they have faced financing hurdles that have prevented them from growing and expanding,” Conklin said in a statement. “It’s time to level the playing field by connecting these businesses with the resources they need to thrive. Doing so creates jobs, adds healthy competition, grows our local and state economies, and empowers business owners to give back to their communities. It’s a win-win all around.”
Conklin’s bill would establish a fund to provide eligible businesses with means ranging from $3 million for one or more projects to a maximum of $5 million for up to three projects. The funds would be used as equity and patient capital, gap financing, and for soft loans and predevelopment.
Minority-owned businesses in counties of the First or Second Class would be eligible for a maximum of $10 million per applicant.
The program’s effectiveness would be assessed every five years by the PA Department of Community and Economic Development, which would report its findings to the General Assembly.
