With many businesses beginning to reopen, increasing operating expenses are also on the horizon. Luckily, another opportunity for financial assistance is on its way. The Department of Community and Economic Development will be allocating $225 million for COVID-19 related relief to small businesses across the state of Pennsylvania. Beginning July 1st, applications for these grants of up to $50,000 will be available, and in preparation, we’d like to share more about this program with our fellow small businesses today.
These small business grants will be used for eligible businesses to cover operating expenses during the shutdown, and for expenses associated with the process of re-opening and stabilizing the business, including technical assistance, training, and guidance. 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 state order to close non-life-sustaining businesses and that will incur costs adapting to new business operations due to COVID-19.
$100 million for the Historically Disadvantaged Business Revitalization Program for small businesses that experienced loss as a result of the state order to close non-life-sustaining businesses, that will incur costs adapting to new business operations due 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 Community Development Financial Institutions the opportunity to offer forbearance and payment relief for existing portfolio businesses that are struggling because of COVID-19, as well as bolster the financial position of the CDFIs that are experiencing significant increased defaults in their existing loan portfolios.
House Democratic Leader Frank Dermody explained the importance of this program when he said, “Small businesses bore the brunt of the economic impacts of the pandemic. This investment is a good first step toward their recovery and the recovery of communities across the commonwealth.”
Applications will be available July 1st through the following Community Development Financial Institutions:
Progress Fund, Bridgeway Capital, Northside Fund, Metro Action, Rising Tide, ASSETS, Community First Fund, Reinvestment Fund, PIDC Community Capital, Impact Loan Fund, Beech Capital, West Philadelphia Financial Services Institution, Enterprise Center Capital, Neighborhood Progress Fund, Entrepreneur Works, Women’s Opportunities, Resource Center, and United Bank.
Some of these institutions also allow you to enter your email so that you are first to receive updates regarding the application. We encourage you to reach out to your local organization to learn more about this important relief opportunity.
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