On Monday, applications for the second round of funding under the COVID-19 Relief Statewide Small Business Assistance Program were opened. Grants of between $5,000 and $50,000, depending on a business’ revenues, will be issued by Pennsylvania’s 17 Community Development Financial Institutions within two weeks of the application period closing. Funding for the grant program comes from federal stimulus money provided to the state through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The second and final round of funding opened August 10, 2020 and will close at 11:59 PM on Friday, August 28, 2020. Eligible applicants not awarded in the first round do not need to re-apply and will be rolled into the next round for consideration.
Pennsylvania Community Development Financial Institutions (“CDFI”) will administer the funding in the form of:
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Grants to cover operating expenses for the duration of the shutdown and the transition period to re-opening;
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Grants to cover technical assistance, including training and guidance, for business owners as they stabilize and relaunch their businesses;
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Debt payment relief for CDFI Pennsylvania borrowers;
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Loan loss reserves for CDFIs.
The funds will be distributed in three ways:
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Main Street Business Revitalization Program: $100 million
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Historically Disadvantaged Business Revitalization Program: $100 million
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Loan payment deferment and loss reserve: $25 million
Eligibility:
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Be physically located, certified to do business, and generate at least 51% of their revenues in Pennsylvania;
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Have annual revenue of $1 million or less prior to the impact of COVID-19;
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Have 25 or fewer full-time equivalent employees prior to February 15, 2020;
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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;
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COVID-19 has had an adverse economic impact and makes this grant request necessary to support the ongoing operations of the applicant;
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The grant will be used cover COVID-19 related costs;
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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.
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