The state will move $40 million under the Commonwealth Financing Authority (CFA) to a small business loan program to help businesses impacted by the coronavirus pandemic.
An additional $21 million was already available for this purpose.
The funding will be used to provide capital loans of up to $100,000 to businesses that employ 100 or fewer people at an interest rate of 3 percent. The Pennsylvania Industrial Development Authority board will have the authority to adjust the rate.
The board also will have the authority to move money from the Machinery and Equipment Loan Fund to the Small Business First (SBF) program. The SBF is already structured to help small businesses.
“In the wake of the unprecedented coronavirus pandemic, it’s important that state government is trying to respond to all manner of its impacts, and that includes providing support to our small business community,” Senate Democratic Leader Jay Costa, Jr said. “Today, the CFA took necessary and swift action to provide low-interest loans to small businesses to help keep them afloat during these difficult times.”
Small businesses must apply for assistance by completing an application and meeting specific requirements.
SBF staff will do the approvals and turn around time is expected to be quick.