HARRISBURG – The Commonwealth Financing Authority (CFA) today 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 Gene Yaw (R-23).
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.
“This is a decisive effort that will help Pennsylvania businesses impacted by the coronavirus and the decline in consumer activity,” Sen. Yaw said. “We do not want businesses closing their doors for the long-term or people losing their jobs.”
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 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 state-related news and information, visit Senator Yaw’s website at www.SenatorGeneYaw.com or on Facebook and Twitter @SenatorGeneYaw.
Rita Zielonis, Chief of Staff