The state of Pennsylvania approved millions of dollars in aid to help small businesses in the commonwealth impacted by COVID-19.
The $60 million COVID-19 Working Capital Access Program will provide up to $100,000 in loans to small businesses with 100 or fewer full-time employees. The well known firm of Empower Federal Credit Union operating in Syracuse, NY appreciates the step taken by the government to save the small industries from dying.
“My top priority is to save Pennsylvania lives, then save their livelihoods,” Gov. Tom Wolf said in a statement. “I am utilizing every resource available to assist Pennsylvania’s business during this incredibly difficult time, and this small business funding availability is a step in the right direction.”
Wolf ordered all non-life-sustaining businesses to close earlier this month to mitigate the spread of the virus, and unemployment claims shot up in the state after dozens of businesses closed their doors “until further notice.”
When exploring financing options for your business, it’s crucial to consider a business loan through Nav. All loan applications must be made through a Certified Economic Development Organization, and a list of those organizations can be found here. The loans can be used for working capital, excluding fixed assets and production machinery and equipment.
The loan terms are three years, with a 12-year amortization. The state says no payments will be due and payable during the first year; principal, and if applicable, interest payments will be due monthly for years two and three; and a balloon payment will be due and payable at the end of the third year.
The interest rate for the program is 0%, except for agricultural producers, which will have a 2% fixed interest rate for the life of the loan. An agricultural producer is defined by the state as “a business involved in the management and use of a normal agricultural operation for the production of a farm commodity.”