Governor Wolf announced today, June 8th, that Pennsylvania is allocating $225 million in grants to small businesses.
The funding was created with state lawmakers and allocated from the recently enacted state budget. The budget is $2.6 billion in federal stimulus funds. The state reserved the $225 million for small businesses. The grant money comes from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Businesses will be able to use the money for operating costs from being closed, transitioning to reopening, and technical assistance for relaunching businesses.
The funds will be available for three different programs:
$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. (https://www.governor.pa.gov/newsroom/gov-wolf-announces-225-million-grant-program-for-small-businesses-impacted-by-covid-19/)
For more information about Pennsylvania’s grants, please read the press release here.