Update on Resources for Small Businesses Impacted by COVID-19
The following 2 programs are being offered through the U.S. Small Business Administration. For further information and application forms, go to:
1. FEDERAL PAYCHECK PROTECTION PROGRAM
The Coronavirus Aid, Relief, and Economic Security (CARES) Act establishes a new $349 billion Paycheck Protection Program, which will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
Eligible businesses can begin applying TODAY. Note: This program requires the applicant to go through a participating financial institutuion, such as Banks, Credit Unions, FDIC institutions. Please check with your individual Bank or financial institution to see if they are participating and what their requirements and process will be.
2. SBA ECONOMIC INJURY DISASTER LOANS
Businesses are encouraged to apply for for the Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL). The program offers up to $2 million of financial assistance to small businesses or private, non-profit organizations that suffer substantial economic injury.
Small business owners can apply for an Economic Injury Disaster Loan advance of up to $10,000 that does not have to be repaid. Funds will be made available within three days of a successful application.
LISC’s VERIZON SMALL BUSINESS RECOVERY FUND
The Local Initiatives Support Corporation (LISC) is accepting applications for its Verizon Small Business Recovery Fund. The deadline to apply is April 4. The fund provides grants of up to $10,000 to businesses facing immediate financial pressure due to COVID-19—especially entrepreneurs of color, women-owned businesses and other enterprises in historically underserved communities who don’t have access to flexible, affordable capital.
UPDATE ON PHILADELPHIA COVID-19 SMALL BUSINESS RELIEF FUND
Due to extraordinary demand and limited resources, as of 5 p.m. on March 30, applications will only be accepted and reviewed from businesses applying for Micr-Enterprise Grants of $5,000. Applications received at this time will be considered in a second round of funding, timeline TBD. https://www.phila.gov/programs/philadelphia-covid-19-small-business-relief-fund/application-for-relief-programs/
UPDATE ON PA’S COVID-19 WORKING CAPITAL ACCESS PROGRAM
Due to an overwhelming response, as of 7 p.m. on March 31, the Pennsylvania Department of Community and Economic Development (DCED) is no longer accepting applications for this program. PIDA staff is in the process of reviewing submitted applications for approval.
SMALL BUSINESS OWNERS’ GUIDE TO THE FEDERAL CARES ACT
The Pennsylvania Small Business Development Centers offers information about the major programs and initiatives that will soon be available from the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act. Access the information here: https://www.pasbdc.org
TAX FILING EXTENSIONS & GUIDANCE FROM THE CITY OF PHILADELPHIA
The City of Philadelphia asks that taxpayers who can file and pay their taxes electronically by the regularly scheduled deadlines to do so. This will help ensure continuity of City operations.
For businesses that need additional relief, the City has extended the filing and payment date for Real Estate Tax and some business taxes, including the Business Income & Receipts Tax (BIRT) and Net Profits Tax (NPT). Find more information on these changes and further guidance on School Income, Use & Occupancy, and Wage Tax at Revenue’s https://www.phila.gov/documents/coronavirus-tax-guidance/
RELIABLE ADDITIONAL RESOURCES FOR BUSINESSES
You are likely getting information and emails from a variety of lenders or hearing rumors about requirements of assistance programs. We recommend that you refer to these reliable sources: U.S. Small Business Administration, City Commerce Department, PIDC, DCED, or SBDC. We will only forward information from sources that legitimate and official. Please contact us at any time for assistance in completing applications or clarifying any questions.
More information regarding local and national resources for businesses will continue to be updated at the City of Philadelphia site https://www.phila.gov/2020-03-20-information-and-resources-for-businesses-impacted-by-covid-19/
In addition, the PA Department of Community and Economic Development (DCED) has a useful set of resources for impacted businesses: https://dced.pa.gov/resources/
Temple University’s Small Business Development Center (SBDC) is offering resources, webinars, and recordings at: https://www.fox.temple.edu/institutes-centers/small-business-development-center/
On March 17, 2020, Mayor Jim Kenney and Dr. Thomas A. Farley, Health Commissioner of the City of Philadelphia issued an order temporarily prohibiting the operation of non-essential businesses in Philadelphia to prevent the spread of novel coronavirus (COVID-19). Detailed guidance on essential vs. non-essential businesses is included here: