Dear Middle Smithfield Business Owners,
Today Governor Wolf a
nnounced that a new funding is available to help small businesses impacted by the novel coronavirus, COVID-19, through a new program under the Pennsylvania Industrial Development Authority’s (PIDA) Small Business First Fund, the COVID-19 Working Capital Access Program (CWCA).
Below please find more details regarding the COVID-19 Working Capital Access Program (CWCA) :
Overview
: The COVID-19 Working Capital Access (CWCA) Program is administered by the Pennsylvania Industrial Development Authority (PIDA) and provides critical working capital financing to small businesses located within the Commonwealth that are adversely impacted by the COVID-19 outbreak.
Eligible Businesses
: Any for-profit businesses located in PA and with 100 or fewer employees worldwide may qualify for disaster relief loans. Your application must be processed through the CEDO designated for the county where your business is physically located.
Loan Amount
: The lesser of 3 months of working capital not to exceed a loan amount of $100,000
Interest Rate
: 0% for all business types except Agriculture Producers
Amortization
: 12 years
Term
: 3 years
Repayment
: No payment in first 12 months, amortized payments monthly for the following 24 months, one balloon payment for the remaining balance in the 37th month
Collateral
: Blanket lien on all current business assets and any acquired in the future in first available lien position
Guarantors
: All owners (individual or other business entities) owning 20% or more of applicant business must guarantee the loan.
So
me credit criteria for approval (as evaluated by PIDA) may include
:
- At least breakeven performance in the prior year
- Acceptable personal credit history of the guarantors
- Historical cash flow adequate to pay obligations
Please feel free to contact me with any questions.
Sincerely,
Patrice Dume
Economic Development Manager
570-269-2857
