More financial support is on the horizon for small businesses.
Gov. Tom Wolf announced at a press conference Monday that $225 million in grants will be dispersed to small businesses “to cover operating expenses during the shutdown and to help them in their transition to reopening.
“The grants will also cover technical assistance including training and guidance for business owners as they stabilize and relaunch their businesses,” said Wolf. The funding “will provide debt payment relief for qualified borrowers while helping institutions shore up their lending portfolios,” too.
The funding will be broken down in three ways, according to the governor.
For one, there will be a Main Street Business Revitalization program that will receive $100 million. This program will help businesses with losses incurred during the shutdown.
Another $100 million will be used for a Historically Disadvantaged Business Revitalization Program, which will focus on “socially and economically disadvantaged” business owners — “businesses that are too often left behind,” said Wolf.
The last $25 million will go toward “loan deferrals and losses to those who have been lending,” he said.
Wolf called the development of the grants a “bipartisan effort” that included help from legislators and the Pennsylvania Department of Community and Economic Development.
“If we fail to assist small businesses we rely on — the landmarks of our main streets — we are going to walk toward empty windows, leaving the fabric of our communities behind,” said Wolf.
The Department of Community and Economic Development will oversee the program. However, the grants will be distributed through local community organizations rather than the Department of Community and Economic Development.
Information wasn’t available on Monday as to what organizations will be distributing the funds.
Wolf is hopeful to have grants available as soon as the end of the week.
“We’re trying to move as quickly and as comprehensively as possible,” he said.
Federal funding from the CARES Act will fund the grants, according to Wolf.
Wolf said the funding is intended for businesses who did not receive funding through the Paycheck Protection Program earlier this year.
The Paycheck Protection Program launched this spring to provide forgivable loans to eligible small businesses with the intent to keep American workers on the payroll during the COVID-19 pandemic.
Also regarding the pandemic efforts in Pennsylvania, Wolf answered a question about the current guidance around wearing masks.
While he said they are not required, he added, “We really ought to be wearing masks.” He explained they protect other people. “You’re actually doing them a favor by wearing a mask.”
Wolf said stores should be requiring masks, too, and compared such a requirement to stores that require customers to wear shirts and shoes.
