PENNSYLVANIA $1.1B in bonding approved to help economy

Small- and medium-sized businesses are to benefit.
HARRISBURG (AP) -- The Legislature approved $1.1 billion in bonding to help companies expand and municipalities attract businesses, moving a large chunk of the $2 billion in borrowing that Gov. Ed Rendell first proposed last year an important step closer to reality.
The legislation has evolved in negotiations since last spring in response to Republicans' concerns about delays in getting money to businesses, but still embodies Rendell's plan to use the money to reinvigorate an economy that has slipped to the bottom of some federal indicators.
Rendell plans to sign the bill.
Before the bill passed the Senate on Wednesday, the Republicans who control that chamber held it up for a few hours until they received a concession from Rendell to review the prevailing-wage rules for projects financed with state funds.
Who would benefit
The biggest beneficiaries would be small- to medium-sized businesses that need capital to expand or to buy expensive machinery, and cities and towns that want to attract businesses but need money to make their properties more attractive.
The $1.1 billion would be issued over at least four years. Of that, about $1 billion would be low-interest loans distributed directly to businesses and loan guarantees to banks, venture-capital firms and municipalities or public development agencies.
The legislation singles out the manufacturing, biotech, high-tech, agricultural and tourism sectors, among others, for help.