Desperately Needed Financial Assistance Is On Its Way for Small Businesses In Philadelphia And Beyond

In the past week, the federal government as well as the city government in Philadelphia have announced additional sources of funding for small businesses.

On April 20, 2020, Philadelphia Mayor Jim Kenney announced that the City of Philadelphia, in conjunction with the Philadelphia Industrial Development Corporation (PIDC) had awarded $9.2 million in grants and loans to 1,145 small businesses for the first round of the COVID-19 Small Business Relief Fund.  These funds will help small businesses continue operations, maintain payroll, and preserve jobs.  In the next week or two, another 600 small businesses will be awarded funding in the program’s second round of funding.

Additionally, yesterday, the United States Senate voted to provide an additional $310 billion to further finance the Payroll Protection Loan (“PPP”) program which ran out of funds last week.  Of the additional $310 billion for this governmental program, $60 billion will be set aside for smaller lending facilities, including community financial institutions, small insured depository institutions and credit unions with assets less than $10 billion.  Moreover, $10 billion was authorized for grants under the Emergency Economic Injury Disaster Loan program, $50 billion for disaster recovery loans, and $2.1 billion for additional salaries and expenses for the Small Business Administration.

The Senate’s bill will also provide $75 billion for hospitals and health care to address coronavirus expenses and lost revenue and an additional $25 billion for the federal government, states, and municipalities to expand COVID-19 testing.

The legislation will need to be approved by the House of Representatives which is expected to vote on it on Thursday before it can be forwarded to President Donald Trump for his signature.    

If you have any question about financial assistance for small businesses, please feel free to contact us at contact@nochumson.com and an attorney at Nochumson P.C. will immediately reach out to you to schedule a free consultation.

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