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Small Business Help during COVID19 Pandemic
Posted by Upper Milford Jessi in COVID19 INFORMATION on March 26, 2020
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PIDA Loans Available for Small Business COVID-19 Disaster Relief

The Pennsylvania Industrial Development Authority (PIDA) has opened the application process for working capital loans up to $100,000 to help small businesses through the COVID-19 emergency.

Many companies will be applying for loans and the process is expected to be competitive, so the Lehigh Valley Economic Development Corporation (LVEDC) urges any Lehigh Valley companies interested in applying for these loans to do so as quickly as possible.

PIDA’s Small Business First Fund will provide $61 million to help businesses through the emergency. Under PIDA’s COVID-19 Working Capital Access Program (CWCA), for-profit small businesses with 100 or fewer employees worldwide could be eligible for working capital loans up to $100,000.

A detailed list of items required and forms that must be filled out as part of the application can be found on lehighvalley.org/covid19-pida, along with other details about the program.

Additional information can be found at this fact sheet and these program guidelines provided by the state.

Below are additional facts about eligibility and other details related to the loans. Any questions should be directed to covid-19cwcaloan@lehighvalley.org. We will respond to inquiries as they are received. Thank you for your patience.

What You Need to Know:

  • Eligible Businesses: For-profit businesses located in Lehigh and Northampton counties with 100 or fewer employees may qualify for disaster relief loans.
  • Loan Amount: The maximum loan amount is $100,000.
  • Eligible Costs: Eligible costs include operating costs incurred 3 months prior to the submission of the application. Retail/service enterprises are eligible for up to 50% of working capital costs incurred up to six months prior to submission of the application. Working capital are costs used for operations excluding fixed assets and production machinery and equipment.
  • Interest Rates: Interest rates are 0% for eligible businesses and 2% for agricultural producers.
  • Amortization: 12 years
  • Term: 3 years
  • Repayment: No payment in first year, with amortized payments monthly for the following 24 months, and one balloon payment due at the end of the third year
  • Guarantors: Each individual or other business entities owning 20% or more of applicant business must guarantee the loan.
  • Collateral: The loan shall be secured by a blanket lien on all business assets currently owned or acquired in the future at the highest lien position available.
  • Fees: $750 non-refundable application fee payable at the time of application, and 1.5% of the loan amount.

Additional resources and regional information related to the COVID-19 crisis can be found at lehighvalley.org/covid19

 

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