HARRISBURG — On Wednesday, the Commonwealth Financing Authority took the first step in providing relief to Pennsylvania small businesses impacted by COVID-19 by authorizing the transfer of $40 million to the Pennsylvania Industrial Development Authority, announced Sen. Joe Scarnati, R-Brockway.
The funding transfer will ultimately be combined with existing funds in PIDA’s Small Business First Program, and will be used to provide zero interest loans to small businesses. Over $60 million for loans will be available to businesses with 100 or fewer full time employees.
“Small businesses are the lifeblood of our communities and of our Commonwealth,” Scarnati said. “The current public health emergency resulting from COVID-19 has left many businesses facing hardship. It is imperative that we do all that we can to help these establishments weather this storm.”
Scarnati explained that based on the actions taken by the CFA Wednesday, as early as next week, PIDA will have the ability to launch the expanded loan program.
Loans of up to $100,000 will be available to small businesses to use as working capital. Interest rates are being dropped from approximately 3% to 0%. Detailed guidelines for the program are still being developed at this time. In addition to a 0% interest rate, there will be no application fees and the terms will include no payments and no interest during the first year of the loan.
Scarnati noted that more details about this program and instructions for how small businesses can apply will be forthcoming as soon as they are established by PIDA.
