What is Philadelphia COVID-19 Small Business Relief Fund?
The City of Philadelphia’s Department of Commerce and the Philadelphia IndustrialDevelopment Corporation (PIDC) have partnered to generate THE COVID-19 Small Business Relief Fund to help small businesses survive the public health crisis. The Small Business Relief Fund has an online application, is aiming to provide financial relief, prevent the layoff of employees, help businesses prevent predatory lenders, and maintain the provision of goods and services for the City.
What purposes are assisting in the Small Business Relief Fund?
The goal of the relief fund includes:
- Assisting small businesses to survive the COVID-19 crisis
- Retaining employment and helping small businesses continue to pay employees
- Helping businesses avoid predatory lenders
- Maintaining the provision of goods and services for Philadelphia’s residents
More Details about Three Programs in the Small Business Relief Fund
What priorities should the Review Committee consider when awarding grants and loans?
- The number of jobs that the business sustains during a normal business cycle (pre-COVID-19 levels).
- The business demonstrates that it has lost a significant share (50% or more ) of revenue due to the COVID-19 pandemic.
- The business demonstrates a strong chance of remaining open post-COVID-19.
- The business has experienced a loss of revenue from other situations in addition to COVID-19, such as recent public works projects (i.e. water main breaks, utility repairs, street closure).
- The business provides jobs to low-income individuals and /or is located in a zip code with high poverty.
- The business has operated consistently for two years or more.
- For sole proprietors/independent contractors, priority will be given to those who are located in zip codes with high poverty and/or those that sustain multiple sub-contractors during normal business (pre-COVID-19 level).
The SBA Disaster Loan
What is the SBA Disaster Loan?
The U.S. Small Business Administration (SBA) is aiming to help businesses in starting, building and growing. The SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA offers disaster assistance in the form of low-interest loans to businesses, renters, and homeowners located in regions affected by declared disasters, such as COVID-19. Moreover, the SBA Disaster Loan includes four loan plans: Home and Personal Property Loans, Business Physical Disaster Loans, Economic Injury Disaster Loans, and Military Reservists Economic Injury Disaster loans.
What is SBA’s Economic Injury Disaster Loan Program?
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for a long term low-interest loan due to Coronavirus (COVID-19).
Application Form: https://disasterloan.sba.gov/apply-for-disaster-loan/index.html
What are the interest rates for assisting small businesses?
Eligibility for Economic Injury Disaster Loans is based on the financial impact of COVID-19. The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are
available to entities without the financial ability to offset the adverse impact without hardship.
What are the requirements to be eligible for applying for business loans?
- Good character
- Acceptable Credit History
- Repayment Ability
The Three Steps Process for Application:
- Log in the website: https://disasterloan.sba.gov/ela
- Fill in the application form
- SBA Form 5 or 5C
- SBA Form 413D
- SBA Form 2202
- IRS Form 4506 T
3. Review your application status
Application Portal: https://disasterloan.sba.gov/ela/
Pennsylvania State Small Business Loan
Pennsylvania Industrial Development Authority Overview
The PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of certified economic development organizations (CEDO) that partner with PIDA to administer the program.
What can the Small Business Loan be used for?
- Land and building acquisitions
- Construction and renovation costs
- Machinery and equipment purchases
- Working capital and accounts receivable lines of credit
- Multi-tenant facility projects
- Industrial park projects
What will be eligible for applying for funding?
The PIDA program finances a portion of total eligible project costs. The maximum participation amount is determined by a variety of factors such as the proposed use of the PIDA funds, the business enterprise type applying for financing, the amount of matching financing from sources outside of PIDA, and the number of full-time jobs to be retained or created. Loan approval is contingent upon meeting the program underwriting and collateral requirements.
A variety of different industry sectors are eligible for PIDA financing including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child day-care, retail and service, export, and computer-related service enterprises.
How do you apply for Small Business Funding?
Loan applications are packaged by a CEDO that services the county your business is or will be located in. The CEDO will work with you to determine whether or not the PIDA loan program can assist with financing the needs of your business and will discuss with you in detail how the application process works.
Check if you are eligible: https://dced.pa.gov/cedo/
Application Portal: https://dced.pa.gov/business-assistance/small-business-assistance/