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Boscola Bulletin

Grants for Small Business Affected by COVID-19 Coming Soon

Grants for small businesses impacted by COVID-19It has been a long road for small businesses in Pennsylvania during this pandemic and there hasn’t been much help for our neighborhood businesses, our local shops, our barbers and salons, our pet groomers, and so many more of our community businesses — until now.

Earlier today, the Pennsylvania Department of Community and Economic Development (DCED) announced that program guidelines and additional details for the new COVID-19 Relief Statewide Small Business Grants are now available.

This new grant program will provide $225 million in COVID-19 relief assistance to small businesses across Pennsylvania. Funding will be distributed through Community Development Financial Institutions – servicing Northeastern PA (Lehigh Valley) will be The Rising Tide Community Loan Fund.

Once the funding is released to the Pennsylvania CDFI Network, local CDFIs will then administer the funding in the form of:

  • Grants to cover operating expenses for the duration of the shutdown and the transition period to re-opening;
  • Grants to cover technical assistance, including training and guidance, for business owners as they stabilize and relaunch their businesses;
  • Debt payment relief for CDFI Pennsylvania borrowers;
  • Loan loss reserves for CDFIs.

The funds will be distributed in three ways:

  • $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.

COVID-19 RELIEF STATEWIDE
SMALL BUSINESS ASSISTANCEEligible businesses with 25 or fewer employees may receive a maximum grant of $50,000 so long as the business was in operation on February 15, 2020 and, if required, paid income taxes to the state and federal government, as reported on individual or business tax returns; COVID-19 has had an adverse economic impact and makes this grant request necessary to support the ongoing operations of the applicant; the grant will be used cover COVID-19 related costs; and during the period beginning on June 1, 2020 and ending on December 31, 2020, the applicant has not and will not receive another grant under this state program. 

We will update you as more information becomes available. If you have any questions, please let me know.

All businesses must apply through an eligible CDFI and meet the program requirements which, at a minimum, include:

  • The business was in operation on February 15, 2020 and if required paid income taxes to the state and federal government, as reported on individual or business tax returns;
  • COVID-19 has had an adverse economic impact and makes this grant request necessary to support the ongoing operations of the applicant;
  • The grant will be used to cover COVID-19 related costs;
  • During the period beginning on June 1, 2020 and ending on December 31, 2020, the applicant has not and will not receive another grant under this state program.

When the application process becomes available, I will be sure to update you immediately.

In the meantime, for more information on this historic program, visit https://dced.pa.gov/programs/covid-19-relief-statewide-small-business-assistance/.  

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Offices of State Senator Lisa M. Boscola

www.senatorboscola.com

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