Auditor General Eugene DePasquale is urging banks licensed in the state to help small businesses facing financial challenges that are the result of the coronavirus pandemic.
There is a lack of clear guidance from the federal government concerning the federal Paycheck Protection Program, and this has discouraged some banks from immediately participating. Some banks did not receive guidance until hours before the program opened, DePasquale said.
The program has made $349 billion in loans available through the Small Business Administration. It allows small businesses with fewer than 500 employees to borrow up to 2.5 times their total monthly payroll. Funds would ensure employees have a job to return to after the pandemic passes, DePasquale said.
“Small businesses are struggling to find ways to keep paying their employees,” DePasquale said. “I hope financial institutions across Pennsylvania will do whatever is necessary to help preserve millions of jobs – their customers are counting on them.”
DePasquale also will be following up with the Pennsylvania Public Utility Commission to ensure there are no customer utility shut-offs during the pandemic.
Last month, the commission issued an emergency order halting service shut-offs for as long as Gov. Tom Wolf’s emergency declaration remains in effect.