Lehigh & Northampton Added to Stay Home Order, $60 million PA Small Business COVID Relief Announced
HARRISBURG (MAR 25 2020) -- Saying that Pennsylvania's "hospital beds are starting to fill up," and that if the current rate of COVID-19 infection continues, "our hospitals will soon be overwhelmed, so we need to buy time," Governor Wolf today expanded the stay-at-home order to Lehigh and Northampton Counties as of 8 o'clock this evening. Secretary of Health Dr. Rachel Levine said that the confirmed community spread in Lehigh County and three deaths in Northampton County are the major factors which led the secretary and governor to expand the stay-at-home order to the two additional counties. Governor Wolf also announced a small business financial support plan for businesses impacted by the coronavirus outbreak and shutdowns, available to small for-profit businesses with fewer than 100 employees. Under the program, called the COVID-19 Working Capital Assistance Fund (CWC), the Pennsylvania Industrial Development Authority (PIDA) is making $60 million in favorable working capital loans available to vulnerable, impacted businesses. PIDA loans are delivered throughout the Commonwealth of Pennsylvania through a network of Certified Economic Development Organizations (CEDO). Monroe County’s designated CEDO is the Pocono Mountains Economic Development Corporation (PMEDC). Applications must be submitted by PMEDC as the Certified Economic Development Organization (CEDO) in Monroe County, PA The highlights of the PIDA Working Capital Loan are: -Businesses with less than 100 full-time employees are eligible to apply. -Up to a $100,000 loan request to each small business to help them overcome temporary loss of revenue Applicants will need to verify that over the past 3 months they have spent an amount equal to their loan request on direct business expenses (payroll, utilities, rent, debt payments, inventory, etc.) up to the maximum $100,000 loan amount;
-Retail and certain service-based businesses will need to show a 1:1 match on expenses over the past 6 months, meaning such businesses need to verify they spent at least $200,000 on direct business expenses in order to maximize the $100,000 loan amount; -Term: 3-year term; 12-year amortization; no payments for the initial 12 month payment deferral; regular monthly payments year 2 and 3 with balloon payment at the end of year 3. -Interest Rate: 0.00% fixed for businesses / 2.00% fixed for production agriculture; -Collateral: Subordinate UCC filing on all business assets of the company behind any existing UCC filings; -Guarantees: Personal or corporate guarantees are required for all 20%+ business owners; Interested businesses should review the Program Guidelines, and the PMEDC website for more information. Eligible businesses should gather the following information in preparation for when the application becomes available: Summary of adverse impacts to the business, including date closed if applicable; W-9 forms completed for the borrowing company; Most recent 2 years of filed federal tax returns or accountant financial statements. If you have not filed your 2019 tax return yet, please also include an internal or Quickbooks type balance sheet and profit/loss statement for 2019; A summary of existing business debt, current balances, and required monthly payments; Personal financial information of business owners including personal assets and liabilities. This afternoon's press conference can be viewed at www.pacast.com.