The Pennsylvania Story

A brief review of Thornburgh economic initiatives

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* Pennsylvania's Commerce Department was ordered to stop chasing after big, new industrial plants and focus its energies on modernizing existing businesses and helping new concerns get started in advanced-technology industries.

* The Pennsylvania Industrial Development Authority was ordered to direct an increasing proportion of its long-term, low-interest loans to small rather than large businesses. In addition, a new Pennsylvania Capital Loan Fund was created to provide working capital to small businesses through Local Development Districts.

* Thirteen Small Business Action Centers were established to provide technical assistance and management training.

* The Ben Franklin Partnership was established to get industry and academics working together on research that might result in marketable new products and processes; to finance small-business incubators and venture capital workshops; to initiate education and training programs targeted to new business opportunities; and to help local manufacturers analyze how they could upgrade production processes to remain competitive. To date, a state investment of more than $76 million in The Partnership has leveraged $281 million in private investment, and helped to create or retain about 8,000 jobs.

* Legislation was passed to allow 1% of the state's pension funds -- or approximately $138 million -- to be invested in venture capital. In addition, the state provided $4.5 million in venture capital that was used as seed money to leverage private investment in Pennsylvania start-ups.

* A $50-million Business Infrastructure Development program provided loans and grants to local agencies for infrastructure improvements that would allow a business to locate or expand within the state.

* Enterprise zones were established to focus the entire range of existing state-assistance programs on distressed communities with active local redevelopment organizations.