The Chamber & CREDC is in touch with national and state-level associations to keep a pulse on emergency funding, loans, or other economic resources available for businesses affected by the coronavirus.
COVID-19 Hospitality Industry Recovery Program
Governor Wolf signed legislation authorizing the creation of the COVID-19 Hospitality Industry Recovery Program that allocates $145 million to help support hospitality businesses suffering because of the COVID-19 pandemic. The legislation allocates funding to each county who, in turn, will contract with one or more designated Certified Economic Development Organizations or Community Development Financial Institutions to process applications from businesses within each county.
Eligible businesses will include those within the Accommodation industry and Food Services and Drinking Places industry as determined by the North American Industry Classification System. Additional eligibility criteria includes:
- It has fewer than 300 full-time equivalent employees.
- It has a maximum tangible net worth of not more than $15 million.
- It was in operation on February 15, 2020 and remains in operation and does not intend to permanently cease operations within one year of the date of application.
- COVID-19 has had an adverse economic impact on the eligible applicant which makes the grant request necessary to support the ongoing operations of the eligible applicant.
The maximum grant award will be $50,000 and be awarded in $5,000 increments.
The application window will open no later than March 15.
Harrisburg City CDBG-CV Grant Program
The current application window is currently closed.
The City of Harrisburg is providing federal Community Development Block Grant (CDBG-CV) funds for eligible Small Businesses and Microenterprises which have been negatively impacted by the Covid-19 pandemic. These special CDBG-CV funds were appropriated through the CARES Act of 2020 and awarded to the city by the Department of Housing and Urban Development (HUD).The city is intending to provide grants of up to $10,000 to eligible, for-profit businesses.
SBA Economic Injury Disaster Loans
With the passage of the latest stimulus bill, Congress provided additional Economic Injury Disaster Grants to small businesses in Pennsylvania. Beginning January 17, businesses can apply for $10,000 in grants through the SBA’s online portal. Businesses who didn’t receive the full $10,000 during the first round of the EIDL program are eligible to receive the difference up to $10,000 for the second round.
Paycheck Protection Program
With the passage of the latest stimulus bill on December 27, 2020, Congress reauthorized a second round of Payroll Protection Program loans to eligible small businesses that were not able to receive a PPP loan in the first round and those that previously received a PPP loan if the business has used the full amount of its first round PPP funds on eligible expenses. Businesses (including, sole-proprietors, independent contractors, and other self-employed individuals) with fewer than 300 employees are eligible for the Paycheck Protection Program.
With the second round of PPP loans, eligible expenses include payroll, rent, utilities, interest on mortgages, and additional expenses such as personal protective equipment for employees, costs associated with outdoor dining, supplier costs, costs associated with software, cloud computing and other human resources and accounting needs.
The deadline to apply for the new round of the Paycheck Protection Program loan is March 31, 2021.
We encourage you to contact your local bank or credit union for more information about filing.
Pennsylvania Industry Development Authority (PIDA) Loans
PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs.
▪ Up to 50% of eligible project costs
▪ Fixed Interest Rates (5-15 years)
▪ Up to 100% financing in conjunction with a willing financial institution and satisfactory credit criteria
▪ Eligible costs include real estate acquisitions, construction and renovation, machinery and equipment, also including many related application, underwriting, and closing costs
SBA 504 Loans
The SBA 504 Loan program is a powerful economic development loan program that offers small businesses another avenue for business financing, while promoting business growth, and job creation.
▪ Up to 40% of eligible costs
▪ Fixed interest rates for up to 25 years
▪ Up to 90% financing in conjunction with a willing financial institution
▪ Eligible costs include real estate, fixed assets and refinancing, including many related application, underwriting, and closing costs
Minority Business Development Agency (MBDA) Grants
The Minority Business Development Agency (MBDA), a bureau of the U.S. Department of Commerce, will provide Federal assistance to support innovative projects that promote and seek to ensure the growth and resolve the challenges faced by minority business enterprises. The MBDA Business Center’s primary drivers are business development and capacity building (see additional details on pages 4-5 of NOFO).
The Minority Business Development Agency (MBDA) is seeking proposals to open and operate an MBDA Business Center to provide technical and business development services to minority business enterprises. The 5-year grant will expand the Agency’s national network to 36 locations in 29 states. Learn more about the application process, eligible locations, and deadlines by viewing the Notice of Funding Opportunity.
Deadline: Applications must be submitted to Grants.gov no later than March 17, 2021 at 11:59 PM EST
As the Certified Economic Development Organization for Cumberland, Dauphin & Perry Counties, CREDC has achieved the Commonwealth’s recognition as a superior and experienced lending organization, approved as your access point to Commonwealth programs. By partnering with a highly regarded Certified Development Corporation, CREDC also facilitates your access to the U.S. Small Business Administration’s 504 Direct Loan Program and PIDA Loans in the Capital Region. Contact Us today to learn more about these financing options.