COVID-19 Relief Pennsylvania Statewide
Small Business Assistance Program

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
July 1, 2020

A new program from the Commonwealth of Pennsylvania called the COVID-19 Relief Pennsylvania Statewide Small Business Assistance Program will provide grants ranging from $5,000 to $50,000 to small businesses (under $1 million in annual revenue and 25 or fewer employees) that have been economically impacted by COVID-19. Small businesses must be physically located, certified to do business, and generate at least 51% of their revenues in Pennsylvania. 

The grants will be based on the small business’s annual revenue as follows:
   
  • 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

Applications —which will be available beginning tomorrow, June 30—will be accepted through the Pennsylvania CDFI Network. The network comprises 17 Community Development Financial Institutions (CDFIs) that will support small businesses throughout the Commonwealth to access the grant funds. This Project is financed by a grant from the federal Department of U.S. Treasury, under the administration of the Commonwealth of Pennsylvania and the Pennsylvania CDFI Network. Interested parties will need the following information to apply:

  • Government Issued Photo ID such as a Driver’s License or Passport
  • Business financial information:
  • Revenue from March 1st to May 31st for 2019 and 2020
  • Most recently submitted Federal Tax Return. 2018 or 2019 business and personal tax returns including Schedule C.
  • If startup between January 1-February 15, 2020, Internal Profit & Loss Statement
  • Proof of Business Registration with PA Department of State, as applicable:
  • Articles of Incorporation (for corporations and LLCs)
  • Fictitious Name Registration/“Doing Business As” (Sole Proprietors)
  • Business License (if applicable).
  • Bank Account Information

A new website set up for the grant program, pabusinessgrants.com , includes important details for prospective applicants including: 
  • Eligibility requirements for businesses, including priority criteria
  • Potential grant amounts based on business revenue
  • What business owners can prepare now for their application

The program will prioritize small businesses that are:
  • Owned and operated by low and moderate-income people.
  • Located in areas of need including areas with a 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.

The program will give additional consideration to the following factors: women-owned businesses, communities targeted for business investment by state government programs like Main Street and Elm Street, and rural communities. 

At least 50% of the grants to small businesses will be awarded to Historically Disadvantaged businesses. Historically Disadvantaged businesses are at least 51% owned and operated by persons who are Black, Hispanic, Native American, Asian American, or Pacific Islander because they have traditionally been discriminated against and disadvantaged when seeking financial services and financial products.

In addition, the program will ensure that grant funds are awarded to small businesses located across the Commonwealth of Pennsylvania.

Eligible businesses will be able to use the grants to cover operating expenses during the shutdown and transition to re-opening, as well as technical assistance including training and guidance for business owners as they stabilize and relaunch their businesses. More information is available in a blog post from the City’s Department of Commerce. 

We will continue to update you on new developments. Please visit our  COVID-19 Resource Page  for more alerts.

Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@MCC-CPAs.com . I can be reached at Marty.McCarthy@MCC-CPAs.com As always, we are happy to help.
 
Stay safe,
 
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).