Wednesday, March 18, 2020

CFA Approves $40 Million Transfer To PA Industrial Development Authority For $61 Million Small Business Assistance Program

On March 18, the Commonwealth Financing Authority took a step toward providing relief to Pennsylvania small businesses impacted by COVID-19 by authorizing the transfer of $40 million to the PA Industrial Development Authority, according to Sen. Joe Scarnati (R-Jefferson).
The funding transfer approved will ultimately be combined with existing funds in PIDA’s Small Business First Program, and will be used to provide zero interest loans to small businesses. 
Over $60 million for loans will be available to businesses with 100 or fewer full time employees.  
Based on the actions taken by the CFA, as early as next week, PIDA will have the ability to launch the expanded loan program.
Loans of up to $100,000 will be available to small businesses to use as working capital. Interest rates are being dropped from approximately 3 to 0 percent.  
Detailed guidelines for the program are still being developed at this time.
 In addition to a 0 percent interest rate, there will be no application fees and the terms will include no payments and no interest during the first year of the loan. 
More details about this program and instructions for how small businesses can apply will be forthcoming as soon as they are established by PIDA.
Watch the PA Industrial Development Authority webpage for more information.
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[Posted: March 18, 2-20]

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