§ 113.4. Loan priorities and eligibility standards.
(a) A volunteer company that has met the requirements of § § 113.3 and 113.5(a) and (b) (relating to initial application procedure; and final application procedure) shall have its loan application classified within each category according to its status as a volunteer fire company, a volunteer ambulance service or a volunteer rescue service.
(b) A loan application which meets two of the following requirements of the act shall be given first priority:
(1) Replacement of apparatus equipment not in compliance with NFPA standards or facilities not meeting State or local building codes or fire prevention codes, Federal regulations or OSFC directives.
(2) Replacement of unsafe fire apparatus equipment or facilities, or both.
(3) Provision of additional equipment or facilities, or both, because of unusual demand on present service.
(c) If the volunteer company meets only one of the requirements in subsection (b), its loan application shall be given second priority and shall be processed in the order of its receipt.
(d) A volunteer company, whether its loan application is given first or second priority, shall have its eligibility for a loan based upon the following standards which are listed in the order of their importance:
(1) The financial need of the volunteer company.
(2) The volunteer company’s ability to repay the loan.
(3) The financial assets of the volunteer company and its ability to obtain revenue, income and financial support and resources from outside sources. Revenue sources shall include bank accounts, investment accounts with other types of financial investment institutions, income received from support groups of the volunteer company, membership fees or dues collected, income received from service billing activities, gifts, donations or contributions received from governmental and nongovernmental entities and other sources of income.
(4) The volunteer company’s prior loan repayment history to the Volunteer Companies Loan Fund. This standard shall include prior loan defaults, late payments, bankruptcies and related financial difficulties.
(5) The age and existing condition of the volunteer company’s apparatus equipment or facilities and the age of the apparatus equipment that is intended to replace the existing apparatus equipment.
(6) The geographic and demographic conditions that exist within the volunteer company’s service area. This standard includes unusual fire hazards, including the lack of an adequate water supply, the potential for and the incidence of natural and manmade disasters, the size of the population, the number of aged and disabled residents, and the growth or decline of the population within the service area, the amount of new home and business construction and expansion, the geographic size of the service area and the resulting amount of mileage and incidence of use incurred by the volunteer company’s apparatus equipment.
(7) The number and type of signed mutual aid agreements that the volunteer company maintains with other volunteer companies and political subdivisions located within or adjacent to the county where the volunteer company’s apparatus equipment and its supporting facility are located.
(8) The volunteer company’s training, certification and fire prevention program.
(e) The Commissioner of the OSFC has the authority to waive any of the loan priorities or standards established in this section whenever the applicant presents substantial evidence of potential hardship or other justification for the granting of a waiver.
Source The provisions of this § 113.4 adopted December 23, 1982, effective December 25, 1982, 12 Pa.B. 4333; amended December 18, 1992, effective December 19, 1992, 22 Pa.B. 6019. Immediately preceding text appears at serial pages (153419) to (153420).
Cross References This section cited in 4 Pa. Code § 113.5 (relating to final application procedure).
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