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PA Small Businesses of 25 employees or Less: COVID-19 Assistance Program Available Now

Pennsylvania has now opened the first application window for the “COVID-10 Relief Pennsylvania Statewide Small Business Assistance Program” which will provide $225 million in grants ranging from $5,000 to $50,000 to small businesses that have been economically impacted by COVID-19. Here are the key points:

Eligibility:

  • Be physically located, certified to do business, and generate at least 51% of their revenues in Pennsylvania;
  • Have annual revenue of $1 million or less prior to the impact of COVID-19; and
  • Have 25 or fewer full-time equivalent employees prior to February 15, 2020

NOT First Come, First Serve! Priorities will be given to businesses that are:

  • Owned and operated by low & moderate-income people; or
  • Located in areas of need including areas with population having incomes significantly below the median income level, high levels of poverty, higher than average unemployment rates, or significant population loss.
  • Types of businesses that were most impacted by the economic shutdown and experienced the greatest revenue losses.
  • At least 50% of grants will go to historically disadvantaged businesses that have traditionally experienced discrimination when seeking financial services and financial products. These businesses are at least 51% owned by persons who are Black, Hispanic, Native American, Asian American, or Pacific Islander.
  • Women-owned businesses will also be given priority.

Funds can be used for:

  • Payroll costs
  • Mortgage interest payments
  • Working capital for the purpose of covering the costs of re-opening business operations after being fully or partially closed due to the state-mandated business closure period commencing March 2020, as long as the expense was incurred due to COVID-19.
  • Any expenses related to the expense of implementing COVID-19, including but not limited to specialized equipment, barriers, PDE’s, and employee training expenses to ensure compliance with state and federal CDC guidelines for reopening.
  • Grant funds cannot be used for expenses or losses that were already covered by the Payroll Protection Program, Economic Injury Disaster Loan (EIDL) or other emergency funding.  

Grant Amounts: Based on the eligible business’ annual revenues as documented in their most recent tax return:

  • Up to $50,000: Grant Amount = $5,000
  • $50,001- $75,000: Grant Amount = $10,000
  • $75,001- $100,000: Grant Amount = $15,000
  • $100,001- $250,000: Grant Amount = $20,000
  • $250,001- $500,000: Grant Amount = $25,000
  • $500,001- $750,000: Grant Amount = $35,000
  • $750,001- $850,000: Grant Amount = $40,000
  • $850,001 – $1,000,000: Grant Amount = $50,000

Additional FAQs:

  • The 1st application round is June 30th to July 14th
    • Awards granted will be known within 27 business days of the close of the application window
    • There will be four application rounds – applications will carry over from one round to the other

For full program details and the application link visit: https://pabusinessgrants.com/

Samantha Musser, CPA Outsourced Accounting Manager smusser@stephanoslack.comĀ 

Jenn Crawford, CPA Tax Manager jcrawford@stephanoslack.comĀ 

July 2, 2020