Yesterday afternoon, Governor Tom Wolf of Pennsylvania announced a $225 million grant program intended to support Pennsylvania small businesses impacted by the COVID-19 related business closure orders meant to help slow the spread of the virus.
The funding comes from allocations to states and municipalities in the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was signed into law by President Trump March 27, 2020. The funding comes as part of $2.6 billion in federal stimulus funds that were allocated through the recently passed PA Budget. Of the $2.6 billion, $225 million was earmarked for small businesses.
The Department of Community and Economic Development (DCED) will distribute the funds to the Community Development Financial Institutions (CDFIs), which will then administer the funding in the form of grants. In late March, Pennsylvania offered the PA Working Capital Access Loan program which was run through Certified Economic Development Organizations (CEDOs).
Eligible businesses will be able to use the grants to cover operating expenses during the shutdown and transition to re-opening, and for technical assistance including training and guidance for business owners as they stabilize and relaunch their businesses.
The funds will be available through three programs:
- $100 million for the Main Street Business Revitalization Program for small businesses that experienced loss as a result of the governor’s March 19, 2020 order relating to the closure of all non-life-sustaining businesses and have or will incur costs to adapt to new business operations related to COVID-19;
- $100 million for the Historically Disadvantaged Business Revitalization Program for small businesses that experienced loss as a result of the business closure order, have or will incur costs to adapt to new business operations related to COVID-19, and in which socially and economically disadvantaged individuals own at least a 51 percent interest and also control management and daily business operations.
- $25 million for the Loan Payment Deferment and Loss Reserve Program, which will allow the CDFIs the opportunity to offer forbearance and payment relief for existing portfolio businesses that are struggling due to the impact of COVID, as well as shore up the financial position of the CDFIs that are experiencing significant increased defaults in their existing loan portfolios.
The Governor’s press release mentions that there are 17 CDFI’s in Pennsylvania though there is no link or information on how to connect to those organizations. There is also no application or information available on how to apply for the program yet. We have reached out to various PA representatives and the Governor’s office for additional information. We will be monitoring updates and release an alert as soon as we learn more.
Please reach out to email@example.com with questions.
We are in this together,
Brinker Simpson & Company, LLC
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice & cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).