The COVID-19 public health crisis has impacted every Pennsylvanian in every community. The recently enacted state budget includes $2.6 billion in federal stimulus funds through the Coronavirus Aid, Relief, and Economic Security Act (CARES).
Within this allocation, the Department of Community and Economic Development has been allocated $225 million for COVID-19 relief to small businesses through a distribution to Community Development Financial Institutions (CDFIs).
DCED will distribute the funding to the Pennsylvania CDFI Network, which will then administer the funding in the form of:
Grants to cover operating expenses for the duration of the shutdown and the transition period to re-opening
Grants to cover technical assistance, including training and guidance, for business owners as they stabilize and relaunch their businesses
Debt payment relief for CDFI Pennsylvania borrowers
Loan loss reserves for CDFIs
The funds will be distributed in three ways:
Main Street Business Revitalization Program: $100 million
Historically Disadvantaged Business Revitalization Program: $100 million
Loan payment deferment and loss reserve: $25 million
All businesses must apply through an eligible CDFI and meet the program requirements which, at a minimum, include:
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
COVID-19 has had an adverse economic impact and makes this grant request necessary to support the ongoing operations of the applicant
The grant will be used to cover COVID-19 related costs
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
How to Apply
Eligible businesses must apply through an eligible CDFI.