Current through Register Vol. 54, No.43, October 26, 2024
Section 117.54 - Loan limitations(a) Loans for equipment may not exceed $25,000 for a single piece of equipment or 50% of the total cost of the piece of equipment, whichever is less.(b) Loans for facilities may not exceed $50,000 for a single facility or 50% of the total cost for purchasing, constructing, renovating or rehabilitating the facility, whichever is less.(c) The remainder of project costs shall be provided as the local share. The local share may include, as appropriate, grants or loans from other sources, or assets or revenues of the municipality.(d) The minimum amount of a loan is $1,000.(e) Eligible municipalities may submit no more than one application in each funding cycle.(f) Loans may not be used for operating expenditures or for the refinancing or reduction of a debt or obligation.(g) Loans shall be repaid in a period not to exceed either 10 years or the useful life of the equipment or facility, whichever is less. A loan in the amount of $10,000 or less shall be for a period of not more than 5 years or the useful life of the equipment or facility, whichever is less.(h) Loan repayments shall include principal plus interest at the rate of 2% per annum payable monthly on the unpaid principal, with the repayments to commence not later than 2 months after the date of the loan agreement and payable on the first day of each quarter thereafter throughout the term of the loan.(i) A delinquency charge of 6% per annum will be imposed for a loan repayment that is 30 or more days after the original due date.The provisions of this §117.54 adopted August 21, 1992, effective 8/22/1992, 22 Pa.B. 4315.The provisions of this §117.54 issued under section 7 of the Local Government Capital Project Loan Fund Act (53 P. S. § 6781-7).