PA Department of Community and Economic Development
The mission of the Department of Community and Economic Development (DCED) is to foster opportunities for businesses to grow and for communities to succeed and thrive in a global economy. Our mission is to improve the quality of life for Pennsylvania citizens while assuring transparency and accountability in the expenditure of public funds.
400 North Street Harrisburg Pennsylvania 17120 United States
To help navigate through the potential financial impact the COVID-19 pandemic has had on Pennsylvania businesses, both the state and federal government are offering loans to help offset the revenue lost. We recommend that you continue to routinely check back on this webpage as additional information is added.
Financing Programs for COVID-19 Impacted Businesses
State Programs Available
Community Development Block Grant – CARES (CDBG-CV)
The Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act) provided for a supplemental appropriation of Community Development Block Grants – CARES as authorized by the Housing and Community Development Act of 1974 as amended. Eligible municipalities can apply for grants and technical assistance for community development activities that are COVID-19 relief related activities that prevent, prepare for and respond to the coronavirus. Such activities may include: rehabilitation, public services, community facilities, infrastructure improvement, development and planning that prevent, prepare for, and respond to the coronavirus.
Emergency Solutions Grant – CARES Act (ESG-CV)
The Emergency Solutions Grant – CARES (ESG-CV) provided an appropriation of Homeless Assistance Grants under the Emergency Solutions Grant. The CARES Act provides for three allocations of homeless assistance funds to prevent, prepare for, and respond to coronavirus, among individuals and families who are homeless or receiving homeless assistance and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts created by coronavirus.
DCED will accept applications from any general-purpose unit of local government, including cities, boroughs, and townships, towns, counties, home rule municipalities, and communities that desire to apply “on behalf of” other municipalities. Local governments may apply “on behalf of” nonprofit organizations. Non-profit organizations are eligible to apply only for a regional project as long as it demonstrates a regional need and serving multiple counties. (DCED defines “regional” as more than one county.)
The SBA’s Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities. Eligible businesses include those with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), 501(c)(3) non-profit organization, 501(c)(19) veterans organizations, or Tribal business concern (sec. 31) (b)(2)(C) affected by COVID-19. Any business with NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location.
Borrowers may be eligible for PPP loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement. A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender. Have a question? Learn more from the SBA’s Frequently Asked Questions.
SBA Economic Injury Disaster Loan
The Economic Injury Disaster Loans can provide vital economic support to eligible small businesses and agricultural businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). Small businesses include those businesses with no more than 500 employees. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.