Pittsburgh, Pa. − June 8, 2020 − Senator Lindsey M. Williams announced that the Pennsylvania Department of Community and Economic Development (DCED) will be administering $225 million in grant funding to support the economic recovery of small businesses. This money comes from federal CARES Act funding and was allocated to small businesses in conjunction with the passage of the interim 2020-2021 budget.
“Our small businesses and family-run businesses have made enormous sacrifices to protect the health and safety of our communities as we flattened the curve of COVID-19,” said Senator Williams. “Now we have to focus on supporting their economic recovery. This grant funding, which provides direct relief to businesses that were closed because of COVID-19 mitigation measures, is the first step supporting that recovery process.”
These grants will be administered through the DCED and distributed through Community Development Financial Institutions (CDFI). Funding 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 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.
The Wolf Administration and DCED are finalizing guidelines and anticipates the opening of applications this week.