HARRISBURG (Newsradio 1020 KDKA) - With all of Pennsylvania entering either the yellow or green phase of the state’s coronavirus mitigation plan, Governor Tom Wolf said Monday, it is now time to focus on economic recovery.
Gov. Wolf says $225 million is being made available to small businesses in Pennsylvania that were impacted by COVID-19.
The funding was made available in partnership with the state legislature and had bi-partisan report.
Wolf wants to see the money distributed by the end of the week and says funds will be distrusted through community organizations.
“If we fail to assist small businesses that we rely on the landmarks of our main streets, we’re going to walk toward empty windows, leaving the fabric of our communities behind,” said Wolf.
The money is part of the CARES Act, which was passed by the federal government totaling $2.6 billion.
The grant money will be able to be used to cover operating expenses during the COVID-19 shutdown and help with the transition to re-opening.
The money will be made available through three 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.
"We are pleased to work with the governor on the COVID-19 Relief Statewide Small Business Assistance program to provide economic opportunities for those affected by the COVID-19 pandemic," said James Burnett, vice chairman of the PA CDFI Network. "We know how important it is to support the smallest, most vulnerable businesses throughout the commonwealth, including historically disadvantaged and main street businesses.”
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