COVID-19 Relief Statewide Small Business Assistance Is Live

By Salene Mazur Kraemer, Esq.
Partner, Bernstein-Burkley

James M. Berent, Esq.
Bernstein-Burkley

The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program aims to provide grants of up to $50,000 to small businesses that have been affected by the pandemic. The grants will be allocated through a series of application windows and are not on a first-come, first-served basis, like the PPP (Paycheck Protection Program) loans were. Ideally this program works for businesses who make less than $1 million and have fewer than 25 full-time employees.

Note: In Pennsylvania, you must work with one of the Commonwealth’s Community Development Financial Institutions (CDFI) to do the application.

How can the funding be used?

The funding will be distributed three ways, through:

  • Main Street Business Revitalization Program ($100 million)
  • Historically Disadvantaged Business Revitalization Program ($100 million)
  • Loan payment deferment and loss reserve ($25 million)

In the form of:

  • Grants to cover operating expenses for the span of the shutdown, help with reopening, and technical assistance in stabilizing or relaunching their business
  • Debt payment relief for CDFI Pennsylvania borrowers
  • Loan loss reserves for CDFIs

With 50% of the grants going to Historically Disadvantaged businesses, who are at least 51% owned and operated by persons that are:

  • Black
  • Hispanic
  • Native American
  • Asian American
  • Pacific Islander

With special consideration given to:

  • Women-owned businesses
  • Communities targeted for business investment by state government programs like Main Street and Elm Street
  • Rural communities

Eligibility

  • At least 51% of business revenue must be generated in Pennsylvania
  • Annual revenue of at least $1 million or less prior to COVID-19
  • Have 25 or fewer employees
  • Was in operation on February 15, 2020 and paid income taxes to state/federal government
  • Has had business severely impacted by pandemic
  • Must use grant to cover COVID-19-related costs
  • Cannot receive another grant between June 1, 2020 and December 31, 2020.

Items Needed to Apply

Gather the following items to prepare your application:

  • Photo ID or passport
  • Recent federal tax return (2019 or 2018), revenue from March 1 to May 31 for 2019 and 2020, (for startups) Internal Profit & Loss Statement January 1 to February 15, 2020
  • Proof of Business Registration with PA Department of State, including Articles of Incorporation, Fictitious Name Registration/”Doing Business As” or Business License
  • Bank account information

CDFIs Serving Pittsburgh

These are the CDFIs serving the Pittsburgh area:

Contact Bernstein-Burkley, P.C.

The Bernstein-Burkley team is fully equipped to discuss your options and the application process regarding CDFI. For more information, call us at (412) 456-8100 or email us at info@bernsteinlaw.com. 

 

 

Written by Bernstein- Burkley, P.C. on July 8, 2020

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