UPDATE: Applications are now being accepted for loan program, called the COVID-19 Working Capital Access Program. For Lancaster County businesses, application information and forms can now be found on EDC’s website at edclancaster.com/covid-19/.
Pennsylvania’s Industrial Development Authority is putting up $60 million in no-interest loans for small businesses crushed by the spread of coronavirus.
The loans, of up to $100,000 each, are available to businesses with 100 or fewer full-time employees. The new program is designed to shore up the hardest hit sector of the economy and will allow small businesses to defer payments for a year.
The loans are required by statute to be applied for through the state’s certified economic development organizations at the local level, such as EDC Finance Corporation, a sister organization to the Economic Development Company of Lancaster County.
There are no application fees and the terms will include no payments or interest during the first year of the loans.
Applications are now being accepted for loan program, called the COVID-19 Working Capital Access Program. For Lancaster County businesses, application information and forms can now be found on EDC’s website at edclancaster.com/covid-19/.
The Industrial Development Authority typically provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs, but it is waiving all job requirements in its $60 million loan program.
The $60 million fund includes $40 million from the Commonwealth Financing Authority, an agency of the Department of Community and Economic Development that administers Pennsylvania's economic stimulus packages.