§7364. Assistance to volunteer fire companies, ambulance service and rescue squads.

(a) General rule.--The office is authorized, upon application of any volunteer fire company, volunteer ambulance service or volunteer rescue squad, to make loans for the following purposes:

(1) Establishing or modernizing facilities that house firefighting equipment, ambulance or rescue vehicles. The amount of a loan for establishing or modernizing facilities made to any one volunteer fire company, ambulance service or rescue squad shall not exceed 50% of the total cost of the facilities or modernization or $400,000, whichever is less, and a notarized financial statement filed under subsection (c) shall show that the applicant has available 20% of the total cost of the facilities in unobligated funds. Proceeds of the loan shall be used only for purposes of structure or land acquisition or renovation or construction and shall not be used for payment of fees for design, planning, preparation of applications or any other cost not directly attributable to structure or land acquisition or renovation or construction.

(2) Purchasing firefighting apparatus, ambulances or rescue vehicles. The amount of a loan made for purchasing firefighting apparatus to any one volunteer fire company shall not exceed $200,000 for any single firefighting apparatus equipment or utility or special service vehicle or heavy duty rescue vehicle as defined by regulation or guideline, or 50% of the total cost of the equipment or vehicle, whichever is less, except for loans for aerial apparatus as defined by regulation or guideline, which shall not exceed $300,000. The amount of a loan made to any one volunteer fire company, ambulance service or rescue squad for any ambulance or light duty rescue vehicle as defined by regulation or guideline shall not exceed $100,000 and for a watercraft rescue vehicle shall not exceed $30,000 or 50% of the cost of the ambulance or rescue vehicle, whichever is less, and a notarized financial statement filed under subsection (c) shall show that the applicant has available 20% of the total cost of the vehicle in unobligated funds.

(3) Purchasing protective, accessory or communication equipment. No volunteer fire company, ambulance service or rescue squad shall receive a loan for protective, accessory or communicative equipment more than once in any five-year period. Each volunteer fire company, ambulance service or rescue squad may apply for a loan for a mobile and portable radio unit for each existing serviceable apparatus equipment, ambulance or rescue vehicle. Radio equipment obtained through loans under this subchapter shall be equipped with a frequency or frequencies licensed by the Federal Communications Commission for firefighting or emergency response purposes. A notarized financial statement shall be filed and loans under this subchapter for the purchase of protective, accessory or communicative equipment shall not exceed $20,000.

(4) Refinancing debt incurred or contracts entered into after November 4, 1975, and used for the purchase of apparatus equipment or for the construction or modernization of facilities or for modification of apparatus equipment in order to comply with National Fire Protection Association standards.

(5) Repair or rehabilitation of apparatus equipment. Where it has been determined that existing apparatus equipment no longer meets the standards of the National Fire Protection Association and the repair or rehabilitation of such equipment will bring it in compliance with National Fire Protection Association standards, loans for the repair or rehabilitation for a single apparatus equipment shall be for at least $2,000 but shall not exceed the lesser of $70,000 or 80% of the total cost of repair or rehabilitation.

(6) Purchasing of used firefighting apparatus, equipment, used ambulances, used rescue vehicles, used communications equipment, used accessory equipment or used protective equipment, except that the used vehicles and equipment shall meet the National Fire Protection Association (NFPA) standards and loans for the purchase of a used single apparatus equipment shall not exceed $120,000 or 80% of the total cost of the equipment, whichever is less.

(7) Purchasing Pennsylvania Fire Information Reporting System (PennFIRS) hardware and software. A volunteer fire company shall be eligible to apply one time only for a loan of not more than $4,000 or 75% of the cost of such acquisition, whichever is less, and with a term not exceeding five years for the purpose of acquiring the hardware and software necessary to participate in the Pennsylvania Fire Information Reporting System. The office shall develop, at its discretion, such procedures and forms as it may deem necessary to facilitate loans for PennFIRS hardware and software. The loans shall be secured as required by law.

(a.1) Limitation.--Loans under this subchapter may be made for any of the purposes of subsection (a) undertaken by a volunteer fire company, volunteer ambulance service and volunteer rescue squad on or after November 4, 1975.

(b) Loans.--Loans made by the office in the amount of $30,000 or less shall be for a period of not more than ten years. Loans in excess of $30,000 but not in excess of $100,000 shall be for a period of not more than 15 years. The payback period of any loan in excess of $100,000, except a loan for establishing or modernizing facilities, shall not exceed 20 years. The payback period for any loan in excess of $200,000 for establishing or modernizing facilities shall not exceed 20 years. Loans shall be subject to the payment of interest at 2% per year and shall be subject to such security as shall be determined by the commissioner. The total amount of interest earned by the investment or reinvestment of all or any part of the principal of any loan shall be returned to the office and transferred to the Volunteer Companies Loan Fund and shall not be credited as payment of principal or interest on the loan. Except as provided in subsection (a)(5) and (7), the minimum amount of any loan shall be $10,000.

(c) Applications.--Every application for a loan shall be accompanied by a notarized financial statement of the volunteer fire company, ambulance service or rescue squad and a financial plan to show the amount of assets and projected revenues for the repayment of the loan, any other obligations of the volunteer company and operating expenses over the period of the loan. Every application shall be accompanied by evidence sufficient to show that all costs except the amount of the loan have been obtained by assets of the volunteer company and other loans or sources of revenue. If a volunteer fire company, ambulance service or rescue squad is unable to meet the 20% requirement of subsection (a), then a political subdivision which is served by the volunteer company may pledge its credit in the amount of funds necessary to satisfy the 20% requirement and, if it does so, shall cosign the application submitted by the volunteer company.

(d) Use.--Loans shall be used for the acquisition by volunteer companies of new or used apparatus equipment, new or used ambulances, new or used rescue vehicles, new or used communications equipment, new or used accessory equipment or new or used protective equipment or for the acquisition and renovation of existing structures to house firefighting equipment, ambulance or rescue vehicles or for the construction or modernization of facilities and, except as provided in subsection (a)(4), shall not be used for operating expenses or for the refinancing of renovated structures, refinancing of construction or modernization of facilities, apparatus equipment, communication equipment, accessory equipment, nor, except as provided in subsection (a)(4), shall be made or used to reduce any debt or other obligations issued prior to the effective date of this subchapter.

(e) Payment.--Loans made by the office shall be paid from the Volunteer Companies Loan Fund to the volunteer fire companies, ambulance services and rescue squads in accordance with guidelines and procedures developed by the office.

(f) Deposit.--All payments of interest on the loans and the principal thereof shall be deposited by the office in the Volunteer Companies Loan Fund.

(g) Eligibility.--A volunteer fire company, ambulance service and rescue squad shall be eligible for a loan regardless of legal ownership in whole or in part by any political subdivision of any facilities or apparatus equipment used by the volunteer fire company, volunteer ambulance and volunteer rescue squad. Any equipment or facilities financed may be transferred to a political subdivision served by the volunteer fire company, volunteer ambulance service or volunteer rescue squad subject to such security as shall be determined by the commissioner.

(h) Maximum amount.--Notwithstanding any other provision of this section to the contrary, the maximum amount of any loan to a volunteer fire company, volunteer ambulance service and volunteer rescue squad for the purchase of firefighting apparatus, ambulances or rescue vehicles manufactured or assembled in this Commonwealth, may exceed the loan limits set forth in this section by $20,000.

(i) Aggregation of loans.--

(1) Subject to paragraph (2), a fire company, volunteer rescue service or volunteer ambulance service shall not be eligible for more than three loans at one time.

(2) If more than one fire company, volunteer rescue service or volunteer ambulance service merge or consolidate into a single entity, as determined by the commissioner, the entity shall be eligible for not more than ten loans at one time for a period of ten years from the date of the merger or consolidation.

(Dec. 23, 2013, P.L.1256, No.129, eff. 60 days)

Notation

2013 Amendment.  Act 129 amended subsecs. (a) intro. par., (1), (2), (3), (5), (6) and (7), (b), (e), (f), (g) and (h) and added subsec. (i).