Politics & Government

PA Works – Focusing on Small Business

Fontana discusses PA Works plan. And he's appointed PHEAA vice chairman.

As I announced last week, the Senate Democrats have rolled out a six-point jobs plan called PA Works that is focused on creating jobs, reducing spending and giving businesses incentives to make community investments.  The six areas include small business, workforce training, critical state investments, clean and green energy, infrastructure investment, and tax fairness. 

One of my priorities as this plan was being developed was to find ways to help small business.  Small businesses are the lifeblood of our economy.  They represent 99.7 percent of all employer firms, employ half of all private sector employees, pay 45 percent of total U.S. private payroll and have generated 60 to 80 percent of net new jobs annually over the last decade. Quite clearly, they are the key to our recovery.

There are five main components of our plan to put small business first.  First, we propose that the Small Business First Fund be retooled to increase maximum loan amounts and repayment periods and decrease maximum interest rates for all loans. 

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Second, we want to increase access to capital, by loosening the restrictions and refocusing the Second State Loan Guarantee Program with $50 million to be used to spur private banks and other commercial lenders.  Eligible small businesses could obtain a guarantee of up to 100% of the principal amount of the loan up to $2 million, to encourage lending in what remains a tight credit market.  The plan also expands eligibility to local governmental agencies that make loans and opens the program to all industry sectors.

Third, we would like to empower the Small Business Council.  I was honored to be appointed to this Council last year.  The members are focused, determined and what to work proactively to make a real impact for small businesses.  By revising the law that established the Council, their voice becomes stronger with increased powers and duties.  All executive agencies submitting proposed rulemakings would also be required to submit them to the council for review, comment, objection and recommendations and permitted under the Regulatory Review Act.  The Council would also have the opportunity to visit with each executive agency at least once every two years to review their policies and regulations and make recommendations.

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Fourth, we propose making the Neighborhood Assistance Act tax credits more accessible by providing small businesses and non-profit groups increased access to the program by permitting claimants to claim credits against employee payroll taxes.

Finally, the Procurement Code would be modernized to promote small and disadvantaged business participation in government contracting through establishment of a statewide bonding program, a mentor-protégé program, and other targeted initiatives to increase the ability of small businesses to compete for these contracts.

As we continue to develop and tweak this plan and expand on each of these areas, I will share that information with you and hope that you will also feel free to weigh in with your thoughts. 

Vice Chairman of PHEAA

I am honored to have been elected Vice Chairman of the PA Higher Education Assistance Agency (PHEAA) Board of Directors by my peers on the Board during last week’s meeting in Harrisburg.  I am proud of the opportunity the Board has given me and look forward to continuing to work with all Board members in addressing the education issues facing our students and their families. 

One of my priorities in my role as Senator is making sure students have the tools they need to find and apply for student assistance.  As I receive information that may be helpful to you, I will pass it along in the News & Views.  If you haven’t already, I encourage you to visit PHEAA’s website for the latest financial aid information, helpful tips and information on upcoming deadlines and free workshops.  The website also has useful information on careers and how to find a school that best fits your needs.


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