The coronavirus crisis has left many businesses asking fundamental questions, such as “How do I meet my payroll?” and “How will I pay my vendors?” These questions were unthinkable just a few weeks ago, and are (hopefully) short-term obstacles. To help businesses survive these challenging times, a number of new emergency options have emerged and existing programs have been expanded at both the federal and state level. Professional services firm RKL LLP offers the latest details on these financing tools and what to keep in mind when evaluating them.
Short-Term Financing Options
PA financing and loan programs available now and in development
On Wednesday, March 18, the Commonwealth Financing Authority transferred $40 million to the Pennsylvania Industrial Development Authority (PIDA). Combined with existing funds in PIDA’s Small Business First Program, this new COVID-19 Working Capital Assistance Fund (CWCA) will make more than $60 million in loans available to businesses with fewer than 100 full-time employees. CWCA will provide loans of up to $100,000 with zero percent interest (in most cases), no application fees and no payments during the first year. Applications for CWCA are now open. Businesses should contact their local certified development company to apply (statewide directory and central/eastern PA CDCs can be found by clicking the full post link below).
As with any financing or loan option, small business owners must be sure to thoroughly review all the terms and fully understand the ramifications of different tools, especially any requirements related to a personal financial guarantee.
Read the full post on RKL’s blog for more details on the short-term financing options and contact links for local certified development companies throughout Central and Eastern PA.