Pennsylvania COVID-19 Relief Statewide Small Business Assistance

This article was updated on June 12, 2020. Further updates will be made as new information becomes available.

Schneider Downs continues to track the evolving landscape of Pennsylvania financial programs offered due to the disruption of the coronavirus (COVID-19). On June 8, 2020, the Commonwealth of PA announced that it was providing $225 million in available grant funds for state businesses impacted by COVID-19. Additional details were provided two days later. Here’s a summary of the programs:

Uses:

  • Grants to cover operating expenses for the duration of the shutdown and the reopening transition;
  • Grants to cover technical assistance, including training and guidance, for business owners as they relaunch their businesses.
  • Debt payment relief for Pennsylvania Community Development Financial Institution (CDFI) borrowers;
  • Loan loss reserves for CDFIs.

Distribution:

The Pennsylvania Department for Community & Economic Development (DCED) will distribute funds to the CDFI network, which will then distribute the money under three programs:

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

Eligibility/Terms:                                                   

All businesses must apply through an eligible CDFI and meet a number of requirements, including but not limited to:

  • 25 employees or less;
  • Maximum grant of $50,000;
  • Must certify the following:
    • In operation on February 15, 2020;
    • COVID-19 has had an adverse impact, making the grant necessary to support ongoing operations;
    • Between June 1, 2020 and December 31, 2020, the business has not and will not receive another grant under this state program; and
    • In compliance with all relevant Pennsylvania laws, orders and regulations during the PA COVID-19 disaster emergency declaration.

More details can be found here:

https://dced.pa.gov/programs/covid-19-relief-statewide-small-business-assistance/

https://dced.pa.gov/download/covid-19-relief-statewide-small-business-assistance-guidelines/?wpdmdl=94994

If you have other questions regarding these programs, first reach out to your local CFDI. If you need more information, please reach out to any of your connections at Schneider Downs or contact Joel Rosenthal at jrosenthal@schneiderdowns.com.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2020 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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