(WETM) – Small businesses impacted by the spread of coronavirus and subsequent efforts to contain it may now apply for 0% interest loans from the Commonwealth, Rep. Clint Owlett announced on Wednesday.
“While the health and safety of our citizens must come first during these difficult times, we also recognize the extreme hardship being placed on our small employers who really are the drivers of our economy,” Owlett said. “These loans should be a big help to many of our small business owners.”
The COVID-19 Working Capital Access (CWCA) Program is being administered through the Pennsylvania Industrial Development Authority (PIDA). Funds are limited and will be awarded on a first-come, first-served basis to qualified businesses employing 100 or fewer full-time employees. This includes businesses in the agricultural, service and hospitality sectors.
The maximum loan amount is $100,000 for working capital with a 0% interest rate, subject to the statutory requirement for the agriculture sector, and a term of three years.
All PIDA loan applications must be submitted through a Certified Economic Development Organization (CEDO). Local CEDOs include The Progress Fund and North Central Pennsylvania Regional Planning and Development Commission (NCPRPDC), which serve all three counties in the 68th Legislative District. Additionally, in Tioga County, businesses can apply through Tioga County Development Corporation (TCDC)/Develop Tioga and in Bradford County, businesses can apply through the Central Bradford Industrial Development Corporation (CBIDC). For the full list of CEDO’s operating within Pennsylvania and contact information, please refer to www.dced.pa.gov/CEDO
More information about the CWCA Program is available at https://dced.pa.gov/programs/covid-19-working-capital-access-program-cwca/.
In addition, the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible.
The interest rate for nonprofits is 2.75%. Businesses may obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing impaired), or by emailing firstname.lastname@example.org. Loan applications can also be downloaded at www.sba.gov/disaster.