On March 25, Gov. Tom Wolf announced $60 million in 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 COVID-19 Working Capital Access Program (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.
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.
"My top priority is to save Pennsylvania lives, then save their livelihoods. I am utilizing every resource available to assist Pennsylvania's business during this incredibly difficult time, and this small business funding availability is a step in the right direction. It will help provide a little peace of mind to hundreds of small business owners and their employees," Gov. Wolf said. "I will continue to develop ways to assist Pennsylvania’s business community, as well as our workforce. I also need every Pennsylvanian to step up and do their part. The best way we can preserve our economic future is by minimizing the spread of COVID-19."
All loan applications must be submitted through a Certified Economic Development Organization (CEDO).
For all the details, visit DCED’s COVID-19 Working Capital Access Program webpage.
For the latest information on the coronavirus and precautions to take in Pennsylvania, visit the Department of Health’s Coronavirus (COVID-19) webpage, Follow them on Twitter, or Like them on Facebook.
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[Posted: March 25, 2020]