Some more financial assistance will be on the way for Centre County hospitality businesses impacted by the COVID-19 pandemic and related shutdowns.
The Centre County Board of Commissioners on Thursday approved the application for the county’s designated $1,839,232 from Pennsylvania’s COVID-19 Hospitality Industry Recovery Program.
Gov. Tom Wolf on Friday signed into law the bill creating the $145 million program to provide relief grants for lodging, food and drink establishments. On Wednesday he announced the funds would be distributed to all 67 counties in the form of block grants based on population.
Counties had until 5 p.m. on Thursday to submit the formal application to the Department of Community and Economic Development signifying their interest in receiving the block grants.
Funds will be disbursed to counties by Feb. 28 and they must have an application available to eligible businesses by March 15.
“We definitely want to help our firms in the hospitality field and we’ll work on getting the money out as quickly as we can according to state guidelines,” Commissioner Mark Higgins said.
County Administrator Margaret Gray said program details and implementation will be announced later.
Commissioners also approved in advance receipt of the grant, pending review by the county solicitor.
“That way we have a totally clear runway to get this across the finish line so there’s no other hangups,” Board Chair Michael Pipe said.
Program guidelines call for grants to be awarded to be awarded to businesses in increments of $5,000 with a maximum of $50,000.
According to a release from Wolf’s office a business is eligible if:
- It has a North American Industry Classification System (NAICS) designation within the Accommodation subsector (721) or Food Services and Drinking Places subsector (722) and where accommodations, food or drink is served to or provided for the public, with or without charge.
- It has fewer than 300 full-time equivalent employees.
- It has a maximum tangible net worth of not more than $15 million.
- It was in operation on Feb. 15, 2020 and remains in operation and does not intend to permanently cease operations within one year of the date of application.
- COVID-19 has had an adverse economic impact on the eligible applicant which makes the grant request necessary to support the ongoing operations of the eligible applicant.
Priority is to be given to businesses that have not already received a state or federal loan or grant; were subject to closure by Wolf’s emergency declaration; or had a reduction in gross receipts of 50% or more for the period of March 31-Dec. 31, 2020, compared to the same time in 2019.
“The commonwealth’s hospitality industry is critical to the lives and livelihoods of so many Pennsylvanians, and it’s undeniable that it has been disproportionately impacted by the COVID-19 pandemic,” Wolf said in a statement on Wednesday. “After months of calling for support for our hospitality establishments and their employees, I am pleased that the General Assembly have allocated millions of dollars in resources to protect and preserve this industry.”
“While we all have been trying to support our local employers by shopping and eating locally, restaurants, bars and taverns continue to struggle to survive under the mitigation standards that limit their in-person services,” state Senate President Pro Tempore Jake Corman, R-Benner Township, said in a statement following passage of the bill establishing the program. “Using money that is available will help these employers during these dire times.”
The CHIRP funds mark the second time the county will be allocating COVID-19 relief money to local businesses, albeit in a more targeted fashion this time. Last fall, $5.5 million in grants were distributed to 437 local businesses. That money came from the county’s $14.7 million County Relief Block Grant, allocated from Pennsylvania’s share of federal CARES Act funds, which also distributed money to nonprofit organizations, local governments and educational institutions and health and safety measures.
