Pennsylvania small businesses can begin applying for federal relief grants

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Small businesses statewide can now apply for the COVID-19 Relief Statewide Small Business Assistance program grants, which opened applications on Tuesday.

Funding for the program is through the federal Coronavirus Aid, Relief, and Economic Security Act.

The program will provide $225 million in grants ranging from $5,000 to $50,000. The Department of Community and Economic Development will distribute funds to Community Development Financial Institutions (CDFIs) to distribute in the form of grants.

Grants will be available through three programs.

The Main Street Business Revitalization Program received $100 million. Grants are available to small businesses that experienced financial losses related to Gov. Tom Wolf’s emergency declaration or have or will incur costs adapting business operations to COVID-19.

The Historically Disadvantaged Business Revitalization Program received $100 million. Grants are available for small businesses where socially and economically disadvantaged people own at least 51 percent of the business and also control management and daily business operations.

The Loan Payment Deferment and Loss Reserve Program received $25 million for CDFIs. Funding allows the institutions to offer forbearance and payment relief for existing portfolio businesses and supports CDFIs experiencing significantly increased defaults on loans.

Applications will be accepted for 10 days. Any application received after the 10 days will be considered for future rounds of funding.