HARRISBURG - A major expansion of a state loan program that helps volunteer fire and ambulance companies purchase equipment won final approval this week from lawmakers.
The legislation, sponsored by Rep. Matt Baker, R-68, awaits the governor's signature following Senate approval.
The low-interest loan amounts available for various categories of equipment under the Volunteer Loan Assistance Program double under this measure.
For example, loan amounts to modernize facilities increase from $200,000 to up to $400,000. Loan amounts to purchase aerial apparatus increase from $150,000 to up to $300,000.
"The program's loan amounts have not been adequately updated in more than 20 years," Baker said. "My legislation ensures the amount of loans granted under the program is up-to-date with today's costs."
The bill is a top priority of firefighters and will help stem a long-term decline in volunteers, said Sen. Lisa Baker, R-20, who chairs the Senate Veterans Affairs and Emergency Preparedness Committee.
"This decline is often linked to the amount of time our first responders must spend at chicken barbecues, bingo games and other fundraisers," she said. "The VLAP program eases the fundraising burden on our volunteers, helps to attract and retain firefighters and ultimately aids in protecting and saving the victims of fire, motor vehicle accidents and other life-and-death emergencies."
The new loans will be supported by a self-sustaining revolving loan fund and no additional tax dollars will be needed to cover them, Baker said. The loan default rate for the fund is at zero.
The bill uses access to loans as an incentive for companies to merge or consolidate. Those companies will be able to hold up to 10 loans for a period of 10 years.