Today the Commonwealth Financing Authority (CFA) took the first step in providing relief to Pennsylvania small businesses impacted by COVID-19 by authorizing the transfer of $40 million to the Pennsylvania Industrial Development Authority (PIDA), announced Senator Mike Regan (R-31).
The funding transfer approved today will ultimately be combined with existing funds in PIDA’s Small Business First Program and will be used to provide zero-interest loans to small businesses. Over $60 million for loans will be available to businesses with 100 or fewer full-time employees.
“Today our Senate leaders informed us of steps that are being taken to aid small businesses in this time of economic difficulty,” said Regan. “As elected officials we need to do all that we can to help these establishments and keep people on the job.”
According to Regan, loans of up to $100,000 will be available to small businesses to use as working capital, and interest rates are being dropped from approximately 3% to 0%. Additionally, there will be no application fees and no payments during the first year of the loan.
“The current public health crisis resulting from COVID-19 has left many small businesses facing tough obstacles,” stated Regan. “I have heard from many small businesses in the 31st District that are facing hardships. They are the backbone of communities and our Commonwealth, and I hope this will help bridge the gap.”
Regan explained that based on the actions taken by the CFA today, as early as next week, PIDA will have the ability to launch the expanded loan program. More details about the program and instructions for how small businesses can apply will be forthcoming as soon as they are established by PIDA.
The Commonwealth Financing Authority (CFA) was established as an independent agency of the Commonwealth to administer Pennsylvania’s economic stimulus packages.
The CFA holds fiduciary responsibility over the funding of programs and investments in Pennsylvania’s economic growth. More information regarding programs administered by the CFA can be found on the Pennsylvania Department of Community & Economic Development website: https://dced.pa.gov/programs-funding/commonwealth-financing-authority-cfa/