HARRISBURG, PA — Pennsylvania will roll out a $225 million statewide grant program to support small businesses impacted by the coronavirus shutdown orders.
The program, which was announced Monday by Gov. Tom Wolf, was developed in partnership with state lawmakers. The funds are available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Pennsylvania received $2.6 billion in federal stimulus funds — $225 million was earmarked for small business relief.
Here’s how it will work: The Department of Community and Economic Development will distribute the funds to the Community Development Financial Institutions, which will then administer the funding in the form of grants.
Eligible businesses will be able to use the grants to cover operating expenses during the shutdown and transition to reopening. The money can also be used for technical assistance, including training and guidance as owners relaunch their businesses.
The funds will be available through three programs:
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$100 million for the Main Street Business Revitalization Program for small businesses that experienced loss as a result of the governor’s March 19 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.
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$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.
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$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.
“As we continue to navigate the COVID-19 pandemic and shift our focus toward reopening our commonwealth, we need to help all Pennsylvanians recover. We need to provide assistance for those who were hurt by the pandemic and the resulting economic downturn,” Gov. Wolf said in a statement. “This new program will provide direct support to impacted businesses to cover operating expenses during the shutdown and the transition to reopening.”
Learn more at the Department of Community and Economic Development website.
This article originally appeared on the Across Pennsylvania Patch