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:
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.
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.
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.
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 [email protected].
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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.