HARRISBURG, PA — Pennsylvania lawmakers moved legislation forward Monday that would raise borrowing limits for agricultural businesses seeking state-backed financing, a change supporters say would help farmers manage rising costs and invest in long-term growth.
The state House Commerce Committee unanimously approved House Bill 2207, sponsored by state Reps. Paul Friel, D-Chester, and John Lawrence, R-Chester. The measure would increase access to low-interest loans through the Pennsylvania Industrial Development Authority’s Small Business First Fund by aligning agricultural loan limits with those available to other businesses.
Under current law, agricultural enterprises are limited to loans of $400,000 through the program, while non-agricultural businesses may qualify for financing of up to $2 million.
Supporters argue the disparity has become increasingly problematic as farmers face higher costs for land, equipment, buildings, and other capital investments needed to maintain or expand operations.
“Our farmers are small business owners, job creators and essential contributors to Pennsylvania’s economy,” Friel said. “As costs continue to rise, access to affordable capital is more important than ever.”
The legislation would allow farmers to pursue larger financing packages for projects including land acquisitions, equipment upgrades, new construction and other investments intended to improve productivity and operational efficiency.
Lawrence said the proposal has drawn bipartisan support and backing from agricultural and economic development organizations.
“This legislation is a top priority for the Chester County Economic Development Council and the Chester Delaware County Farm Bureau, and it would greatly improve financing opportunities for small and midsize farming operations across the commonwealth,” Lawrence said.
Farmers currently access PIDA loans and lines of credit through local Certified Economic Development Organizations, but proponents of the bill contend existing statutory limits no longer reflect the financial realities of modern agriculture.
Agriculture remains one of Pennsylvania’s largest industries, contributing billions of dollars annually to the state’s economy and supporting thousands of jobs across rural communities.
The legislation now advances to the full Pennsylvania House for consideration.
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