Economic Relief for Small Businesses
As part of the Commonwealth's response to the spread of COVID-19, Governor Wolf has announced the availability of low-interest loans of up to $2 million for small businesses and non-profits to provide relief from temporary loss of revenue. The loans, backed by the U.S. Small Business Administration, may be used to pay fixed debts, payroll, accounts payable and other bills. In order to keep payments affordable, the SBA offers terms up to a maximum of 30 years, at 2.75% for non-profits, and 3.75% for small businesses without credit available elsewhere; businesses with credit available are not eligible. Additional information may be found on the SBA's website, at www.sba.gov/disaster .
On March 23, the Philadelphia Department of Commerce and Philadelphia Industrial Development Corporation (PIDC) announced a $9 million "Philadelphia COVID-19 Small Business Relief Fund" to aid small businesses in the City through a combination of grants and loans. Businesses can apply for these relief programs immediately. Additional information can be found on the Department of Commerce's website, at www.phila.gov/programs/philadelphia-covid-19-small-business-relief-fund/
PIDC also continues to make its existing small business and working capital loan programs available. Similarly, the Pennsylvania Department of Community and Economic Development (DCED) offers working capital loans which may be of assistance to businesses. DCED, the City of Philadelphia's Commerce Department and PIDC are working on a COVID-19 continue to provide economic relief and are asking for local businesses to provide input by completing a brief survey . Businesses in the surrounding counties (Bucks, Montgomery, Chester and Delaware) may complete a similar survey .
Negotiations continue in Washington on the revised Coronavirus Aid, Relief and Economic Security (CARES) Act, including a new $349 billion SBA "Paycheck Protection Program," guaranteed 100% by the federal government. These loans, intended to cover approximately 2.5 months' of payroll obligations, are available for small businesses and non-profits with up to 500 employees (1,500 in certain sectors). Eligibility is not subject to the SBA's standard "no credit elsewhere test" and loans are subject to forgiveness based in part on employee retention and rehiring of employees previously furloughed. As the debate in the Senate continues, changes to the proposed Paycheck Protection Program may follow.
At this stage we continue to monitor all avenues, including the programs offered through the SBA, DCED and PIDC. Please contact the firm for guidance as this develops.
Anya Morrison Davis to discuss these programs and any
other small business related questions:

Ken Fleisher ( kjfleisher@zarwin.com)
Gary Zlotnick ( gazlotnick@zarwin.com)
Scott Goldstein ( segoldstein@zarwin.com)
Anya Morrison Davis ( amdavis@zarwin.com)