HARRISBURG – Today the Commonwealth Financing Authority (CFA) took the first step in providing relief to Pennsylvania small businesses that have been impacted by COVID-19 by authorizing the transfer of $40 million to the Pennsylvania Industrial Development Authority (PIDA), according to Senator Bob Mensch (R-24).
The approved funding transfer will ultimately be combined with existing funds in PIDA’s Small Business First Program, and will be used to supply zero interest loans to small businesses. Over $60 million for loans will be available to businesses with 10 or fewer full-time employees.
“During this time where businesses across the Commonwealth are being significantly affected by the COVID-19 pandemic, it is essential to provide assistance to them,” Mensch said. “This funding will help our local businesses endure the results of this public health crisis.”
Loans of up to $100,000 will be available to small businesses to use as working capital. Interest rates are being dropped from an estimated 3% to a 0%. Comprehensive guidelines for the program are still being worked on at this time. Along with a 0% interest rate, there will be no application fees and the terms will include no payments and no interest for the first year of the loan.
More details regarding this program and instructions for how small businesses can apply will be available as soon as they are established by PIDA.
The Commonwealth Financing Authority (CFA) was established as an independent agency of the Commonwealth to administer Pennsylvania’s economic stimulus packages. The CFA holds fiduciary responsibility over the funding of programs and investments in Pennsylvania’s economic growth. More information regarding programs administered by the CFA can be found on the Pennsylvania Department of Community & Economic Development website: https://dced.pa.gov/programs-funding/commonwealth-financing-authority-cfa/
For more information on Senator Mensch’s legislation, visit www.senatormensch.com. State updates can also be found on Senator Mensch’s Facebook at facebook.com/PASenatorBobMensch/ or Twitter @SenatorMensch.
CONTACT: Madison Scarfaro firstname.lastname@example.org (215) 541-2388