Budget Bridge Loan

County governments, Head Start Local Agencies and Pre-K Counts lead agencies, the Pennsylvania Coalition Against Domestic Violence and the Pennsylvania Coalition to Advance Respect who regularly receive annual state funding are eligible applicants. These entities who receive the line-item appropriation payment directly from the state are eligible to apply for the Budget Bridge Loan.

Only those Head Start and Pre-K Counts lead agencies who have a history of receiving the Head Start Supplemental Assistance or Pre-K Counts payments directly from the Commonwealth of Pennsylvania are eligible to apply. Partner agencies or providers must go through the lead agencies.

Most appropriations and state programs do not have restrictions on the use of funds to pay interest costs for normal operations. However, loan applicants should check their contract or grant agreements, state department policies or guidelines or regulations for any restrictions that may exist.

This loan program is made possible under the Investment Authority of the State Treasurer under Pennsylvania’s Fiscal Code which requires a market-based investment return on all investments, so Treasury is required by law to charge interest. Consequently, the loan agreements do require interest to be repaid on the loan.

However, there is pending state legislation (SB 1040) that if passed, would authorize the Treasurer to waive interest. Should that legislation pass, it would be the intent of the Treasurer to exercise that authority and forgive the interest.

Eligible entities received an email with instructions on how to apply. If you think that you are eligible but did not receive an email, please contact Treasury with any questions or requests for assistance at Budget_Bridge_Loan@patreasury.gov.

Once access to the portal is granted, eligible applicants may complete the application online.

The Loan Purpose question is asking specifically for the state appropriation line-item from which you regularly receive funding and have not received payments due in state fiscal year 2025-26.

Some examples of county appropriation line-items cited would include:

• Human Services Development Fund (10230)
• Early Intervention (10235)
• Mental Health Services (10248)
• Intellectual Disabilities – Community Base Program (10255)
• Behavioral Health Services (10262)
• County Child Welfare (10266) - Child Welfare
• Assistance to Drug and Alcohol Programs (11029) - Drug and Alcohol Base/SABG
• Pre-Admission Screening (10749)
• Caregiver Support (10914)
• State Food Purchase (10510)

Federally funded line-items cannot be considered, including Medical Assistance.

Credentials are provided to eligible applicants within about a day of responding to the initial email. Once all required information is received, Treasury will review and if conditional approval is granted, loan and repayment documents will be forwarded to the applicant. Once the documents are fully executed, payments will be made within about two business days.

The investment loan is structured to provide short-term financing that would be repaid from anticipated receipt of state appropriation following the enactment of the Fiscal Year 2025-26 Commonwealth General Appropriations Act. Borrowers are requested to execute a Debt Obligation Agreement, providing for the repayment of the loan principal and interest within 10 business days of the borrower’s receipt of state appropriations.

The loan repayment agreements are written to coincide with Pennsylvania’s annual fiscal year General Fund Budget, containing line-item appropriations identified in the agreement. As a consequence, the loan is not to extend beyond the fiscal year in which the appropriation is paid, and is to be repaid in full by June 30, 2026.

Yes, upon disbursement of the loan funds, information relating to the loan applicant and approved loan amount is public information and will be published and provided by Treasury upon request.