Pennsylvania businesses in the hospitality industry received some good news as the Pennsylvania governor signed Senate Bill 109 into law on Friday, February 5.
In an effort to help Pennsylvania’s hospitality industry, $145 million of the spending bill is dedicated to providing grants to eligible applicants including hotels, restaurants, bars, and taverns. The money would be available in increments of $5,000, up to a total of $50,000, through grants to businesses that employ less than 300 full-time equivalent employees.
Eligible applicants must meet additional qualification requirements including reporting a 25% decline in revenue and less than $15,000,000 maximum net worth. Further, businesses will also be required to certify in good faith defined representations (listed in the bill). Priority in awarding the grants will be given to applicants who can demonstrate a 50% reduction in gross receipts in the period March 31, 2020 to December 31, 2020 compared to the prior year and who did not receive a Payroll Protection Program loan under the federal government’s CARES Act or the Consolidated Appropriations Act.
Applications will be made through economic development organizations identified for each county in the state, under processes to be developed by each county, beginning mid-March and will need to be submitted no later than June 15 (or prior if funds are exhausted prior to that date).
The provisions are part of an overall spending bill approving over $900 million in funds geared towards providing financial relief caused by the COVID-19 pandemic. The funding source for most of the spending is provided through federal government COVID-19 relief programs.
Our team of Business and Tax Advisors at Schneider Downs has extensive experience with these types of issues, so please do not hesitate to contact us with any questions.
You’ve heard our thoughts… We’d like to hear yours
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 [email protected].
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.