On June 8, Governor Wolf announced a $225 million statewide grant program for small businesses impacted by COVID-19. The Department of Community and Economic Development (DCED) will distribute the funds to Community Development Financial Institutions (CDFIs), which will then administer the funding in the form of grants. The DCED will issue further guidance regarding the grants later this week.
The funds will be 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 Business Closure Order 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% 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-19, as well as shore up the financial position of the CDFIs that are experiencing significant increased defaults in their existing loan portfolios.
Eligible businesses will be able to use the funds to cover operating expenses during the shutdown and transition to re-opening as well as for technical assistance including training and guidance for business owners as they plan to reopen.
