Current through Register Vol. 54, No. 49, December 7, 2024
(a) If an eligible business that has received a loan fails to create or retain the requisite number of full-time jobs within 3 years after the date of disbursement of MELF loan proceeds, the Secretary will impose a penalty equal to an increase in the interest rate on the loan to 2% greater than the prime interest rate. The penalty will apply for the remainder of the loan term. The penalty may be waived by the Secretary if the Secretary finds that failure to create or retain the requisite number of full-time jobs is due to circumstances beyond the control of the eligible business.(b) For purposes of this section, the prime interest rate shall be the highest rate known or declared to be prime by banking institutions located within this Commonwealth with assets in excess of $3 billion as of the first day after the termination of the 3-year period following loan disbursement.