State Funds $61 Million in Low-Interest Loans for Pa. Small Businesses

Some help will soon be available to Pennsylvania small businesses impacted by the far-reaching effects of the COVID-19 pandemic.

The Pennsylvania Industrial Development Authority on Monday approved funding to provide $61 million in low-interest loans to small employers in the state, according to state Senate Majority Leader Jake Corman, R-Benner Township.

“This program will be vital to helping our communities and the small employers that are suffering due to mandatory closures or a decline in customers due to measures being taken to slow the spread of COVID-19,” Corman said in a news release.

Loans of up to $100,000 will be available through the Commonwealth Financing Authority for small businesses with 100 or fewer full-time employees to use as working capital. No application fees will be require, and the terms will include no payments and no interest for the first year of the loan. 

Corman said that when the application period opens, the turnaround time for loan approval could be ‘a matter of days.’ More details will be released soon.

Funding for the program was made by possible by CFA’s transfer of $40 million in funding to PIDA, and it will be combined with existing funds in PIDA’s Small Business First Program.

Low-interest loans for small businesses and eligible non-profits in Pennsylvania are also available through the U.S. Small Business Administration. SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.