On June 8, Gov. Tom Wolf announced a $225 million statewide grant program to support small businesses that were impacted by the COVID-19 public health crisis and subsequent business closure order.
The Department of Community and Economic Development (DCED) will distribute the funds to the Community Development Financial Institutions (CDFIs), which will then administer the funding in the form of grants.
The intent is to provide assistance to businesses who have not taken advantage of other COVID-19 aid programs.
Gov. Wolf said at the press conference guidelines for the program are still being worked on.
“As we continue to navigate the COVID-19 pandemic and shift our focus toward reopening our Commonwealth, we need to help all Pennsylvanians recover. We need to provide assistance for those who were hurt by the pandemic and the resulting economic downturn,” Gov. Wolf said. “This new program will provide direct support to impacted businesses to cover operating expenses during the shutdown and the transition to reopening.”
The funding was developed in partnership with state lawmakers and allocated through the recently enacted state budget, which included $2.6 billion in federal stimulus funds through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, of which $225 million was earmarked for relief for small businesses.
Eligible businesses will be able to use the grants to cover operating expenses during the shutdown and transition to re-opening, and for technical assistance including training and guidance for business owners as they stabilize and relaunch their businesses.
The funds will be available through three 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 percent interest 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.
The PA CDFI Network is a group of 17 PA-based community development financial institutions that primarily provide financing options for small businesses.
"We are pleased to work with the governor on the COVID-19 Relief Statewide Small Business Assistance program to provide economic opportunities for those affected by the COVID-19 pandemic," said James Burnett, vice chairman of the PA CDFI Network. "We know how important it is to support the smallest, most vulnerable businesses throughout the Commonwealth, including historically disadvantaged and main street businesses.”
Visit the Commonwealth’s Responding to COVID-19 guide for the latest guidance and resources for Pennsylvanians or the Pennsylvania Department of Health’s dedicated coronavirus webpage for the most up-to-date information regarding COVID-19.
Live COVID-19 Briefing
MONDAY Live Briefing: Secretary of Health provides COVID-19 Update at 3:30 p.m. Watch Live: https://www.governor.pa.gov/live/ or facebook.com/governorwolf/ or pacast.com/live/doh
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Helpful Links:
Responding To COVID-19 In Pennsylvania - General Resource Page All Topics
Attorney General - Coronavirus Price Gouging Updates
[Posted: June 8, 2020]
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