Tag Archives: small business

New COVID-19 PA Small Business Relief Program

The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program will provide grants ranging from $5,000 to $50,000 to small businesses that have been economically impacted by COVID-19. This is not a first-come, first-served program. There will be multiple rounds of application windows.

Uses

DCED will distribute the funding to the Pennsylvania CDFI Network, which will then administer the funding in the form of:

  • Grants to cover operating expenses for the duration of the shutdown and the transition period to re-opening
  • Grants to cover technical assistance, including training and guidance, for business owners as they stabilize and relaunch their businesses
  • Debt payment relief for CDFI Pennsylvania borrowers
  • Loan loss reserves for CDFIs

The funds will be distributed in three ways:

  • Main Street Business Revitalization Program: $100 million
  • Historically Disadvantaged Business Revitalization Program: $100 million
  • Loan payment deferment and loss reserve: $25 million

In addition, the program will give additional consideration to the following factors: women-owned businesses, communities targeted for business investment by state government programs like Main Street and Elm Street, and rural communities.

At least 50% of the grants to small businesses will be awarded to Historically Disadvantaged businesses. Historically Disadvantaged businesses are at least 51% owned and operated by persons who are Black, Hispanic, Native American, Asian American, or Pacific Islander because they have traditionally been discriminated against and disadvantaged when seeking financial services and financial products.

Eligibility

All businesses must apply through an eligible CDFI and meet the program requirements which, at a minimum, include:

  • Be physically located, certified to do business, and generate at least 51% of their revenues in Pennsylvania
  • Have annual revenue of $1 million or less prior to the impact of COVID-19
  • Have 25 or fewer full-time equivalent employees prior to February 15, 2020.
  • The business was in operation on February 15, 2020 and if required paid income taxes to the state and federal government, as reported on individual or business tax returns
  • COVID-19 has had an adverse economic impact and makes this grant request necessary to support the ongoing operations of the applicant
  • The grant will be used cover COVID-19 related costs
  • During the period beginning on June 1, 2020 and ending on December 31, 2020, the applicant has not and will not receive another grant under this state program

How to Apply

Eligible businesses must apply through an eligible CDFI.

Businesses are encouraged to start gathering the items that will be necessary to apply. At a minimum, the following list of items will be needed to apply. Additional items may be specified later:

  1. Government Issued Photo ID such as a Driver’s License or Passport
  2. Business financial information:
    • Revenue from March 1st to May 31st for 2019 and 2020
    • Most recently submitted Federal Tax Return. 2018 or 2019 business and personal tax returns including Schedule C
    • If startup between January 1-February 15, 2020, Internal Profit & Loss Statement
  3. Proof of Business Registration with PA Department of State, as applicable:
    • Articles of Incorporation (for corporations and LLCs); or
    • Fictitious Name Registration/“Doing Business As” (Sole Proprietors); or
    • Business License (if applicable).
  4. Bank Account Information

Additional Information

COVID-19 Relief Statewide Small Business Assistance Fact Sheet
View the Factsheet in: French, Vietnamese and Chinese.

Governor Wolf Announces Financial Assistance Available to Small Businesses

Financial+Assistance+For+Small+Business

Governor Tom Wolf announced yesterday that new funding is available to help small businesses impacted by the novel coronavirus, COVID-19, through a new program under the Pennsylvania Industrial Development Authority’s (PIDA) Small Business First Fund, the COVID-19 Working Capital Access Program (CWCA).

The Commonwealth Financing Authority (CFA) recently authorized the transfer of $40 million to the Small Business First Fund for CWCA. PIDA authorized making $60 million available to provide loans of $100,000 or less to for-profit businesses with 100 or fewer full-time employees. Funds are expected to become available this week.

For the purposes of this program a retail or service enterprise is defined as a for-profit business entity that is involved in the business-to-business service, business-to-public service, mercantile, commercial, or point of sale retail sectors. An agricultural producer is defined as a business involved in the management and use of a normal agricultural operation for the production of a farm commodity. A “farm commodity” is any Pennsylvania-grown agricultural, horticultural, aquacultural, vegetable, fruit, and floricultural product of the soil, livestock and meats, wools, hides, furs, poultry, eggs, dairy products, nuts, mushrooms, honey products and forest products.

“There’s been major disruption to small businesses and their employees,” said House Democratic Leader Frank Dermody. “This is a bipartisan down payment to get some working capital out quickly. Much more help is needed and we’ll keep working on that.”
Eligible costs include working capital, which for purposes of this program is considered capital used by a small business for operations, excluding fixed assets and production machinery and equipment.

Any eligible working capital cost, as defined above, incurred by the eligible business enterprise three months prior to submission of the loan application will count as an eligible cost toward either the loan amount or, if applicable, the matching investment requirement. Retail / service enterprises are able to incur eligible working capital costs up to six months prior to submission of the loan application.

All loan applications must be submitted through a Certified Economic Development Organization (CEDO). For the list of CEDO’s operating within Pennsylvania, please refer to dced.pa.gov/programs/covid-19-working-capital-access-program-cwca/.

Businesses seeking guidance from DCED can also contact its customer service resource account at ra-dcedcs@pa.gov.