The Pennsylvania Industrial Development Authority (PIDA) approved $61 million in low-interest loans Tuesday for small businesses negatively impacted by the COVID-19 public health emergency, Senate Majority Leader Jake Corman (R-Centre, Mifflin, and Juniata counties) announced.
Loans will be available through the Pennsylvania Commonwealth Financing Authority (CFA). Businesses must have 100 or fewer full-time employees to use as working capital to qualify for a loan of up to $100,000.
Loans will not have an application fee and will have a low-interest rate. There will be no payments and no interest during the first year of the loan.
“This program will be vital to helping our communities and the small employers that are suffering due to mandatory closures or a decline in customers due to measures being taken to slow the spread of COVID-19,” Corman said.
Funds in PIDA’s Small Business First Program were combined with a $40 million CFA transfer to PIDA to make the loans possible.
When the application period is opened and businesses can begin to apply, PIDA’s priority will be to ensure the turnaround time for loan approvals will be only days, Corman said.
When more information is available about the loans, more details will be released, Corman said.