On Monday, June 8th, Pennsylvania Governor Thomas Wolf announced new state grant programs totaling $225 million to assist small businesses impacted by the Covid-19 pandemic and the resultant business closure order.
These governmental programs will provide direct assistance to businesses to cover operating expenses during the shutdown and the transition to reopening and for technical assistance, including training and guidance, for business owners as they stabilize and relaunch their businesses.
The funds from these governmental programs were earmarked from federal stimulus funds provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Pennsylvania’s Department of Community and Economic Development (DCED) will distribute the funds to Community Development Financial Institutions (CDFIs), which will then administer the funding in the form of grants.
The CDFI network is a group of 17 community development financial institutions that provide financing options primarily for small businesses.
A list of the CDFIs can be found at https://ofn.org/cdfi-locator.
The funds will be available through 3 different governmental 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% interest of the business 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.
Any business with less than $1 million in sales or less than 25 employees can apply for help.
Grants are expected to be $5,000 to $50,000 per business, which must be based in Pennsylvania and be current on all taxes at least through 2018.
The CDFIs hope to have a standard website up for applications by the end of June and grants will be given out on a first-come, first-serve basis.
If you have any questions about these newly enacted amendments to the PPP, or require assistance with any legal matter as a result of the pandemic, we are offering consultations at no cost. To learn more, please visit http://covid19.nochumson.com/. We look forward to helping you and your business.