State and Local COVID-19 Business Relief Programs

In addition to programs enacted at the federal level to provide financial relief to struggling businesses impacted by COVID-19, many state and local governments have made loan and other assistance programs available to businesses.

Below are several such programs available in our region.

Pennsylvania

Philadelphia COVID-19 Small Business Fund – This fund is designed to provide immediate relief to Philadelphia businesses in the form of grants and zero-interest loans.

Due to limited resources and funds, Philadelphia is currently only accepting applications for its Microenterprise Grant which provides up to $5,000 in grants to Philadelphia businesses with annual revenues less than $500,000.

In order to apply, businesses will need to provide:

  • signed tax return to confirm annual revenue
  • description of the impact COVID-19 had on the business as well as a recovery plan

COVID-19 Working Capital Access Program (CWCA) – This program is administered by the Pennsylvania Industrial Development Authority and provides critical working capital financing to small businesses located within the Commonwealth. Unfortunately, due to overwhelming demand, this program has closed. We would encourage Pennsylvania businesses in need of COVID-19 relief funds to see out one of the federal programs, such as the CARES Act Paycheck Protection Program.

New Jersey

A package of initiatives from the New Jersey Economic Development Authority includes a grant program for small businesses, a zero-interest loan program for mid-size companies, support for private-sector lenders and Community Development Financial Institutions (CDFIs), funding for entrepreneurs, and a variety of resources providing technical support and marketplace information.

Taken together, these initiatives will provide more than $75 million of state and private financial support, with the opportunity to grow to more than $100 million if additional philanthropic, state, and federal resources become available. The initiatives will support between 3,000 and 5,000 small and mid-size enterprises and are meant to complement federal economic recovery initiatives.

Applications opened the week of March 30. To see which of these programs you are eligible for, use the NJ COVID-19 Business Support Eligibility Wizard.

New Jersey programs include:

Small Business Emergency Assistance Grant Program – A $5 million program that will provide grants up to $5,000 to small and medium sized businesses as well as non-profits. $3 million of the $5 million will be reserved for small and medium-sized businesses with 5 of fewer full time employees. The goal of the program is to allow these businesses to support and maintain their workforce during the containment period related to COVID-19. The grant is based on full-time equivalent employees and is issued in $1,000 increments.

Qualifying businesses must have/be:

  • between 1 and 10 full time employees
  • a physical commercial location in the State of New Jersey
  • be classified as a Retail, Accommodation & Food Service, or other service with a NAICS code starting with 811 or 812
  • registered to do business in New Jersey, and in good tax standing with the state and the Department of Labor and Workforce Development.

Small Business Emergency Assistance Loan Program – A $10 million program that is designed to provide a direct loan of up to $100,000 to NJ- based small businesses and non-profits. Loans made through the program will have a ten-year term with 0 percent interest for the first five years followed by NJEDA’s prevailing interest rate floor, not to exceed 3 percent, for the final five years of the loan.

Qualifying businesses must have:

  • a physical location in the State of New Jersey
  • have been in business for at least one year
  • have less than $5 million in annual revenue

Small Business Emergency Assistance Guarantee Program – A $10 million program that will provide 50 percent guarantees, not to exceed $100,000, on working capital loans made through institutions participating in the NJEDA’s existing Premier Lender or Premier CDFI programs.

Qualifying businesses must have/be:

  • a physical presence in the State of New Jersey
  • have been in existence for at least one full year
  • have $5 million or less in annual revenue
  • registered to do business in New Jersey, and in good tax standing with the state and the Department of Labor and Workforce Development

NJ Entrepreneur Support Program – A $5 million program that encourages private sector investors to provide additional working capital loans made after March 9, 2020, to NJ-based entrepreneurial businesses in which the investor is already an equity holder. The program provides an 80 percent loan guarantee, not to exceed $200,000 for working capital loans to entrepreneurs.

Qualifying entrepreneurial businesses must have/be:

  • a minimum of 50 percent of employees in New Jersey
  • have less than 25 total employees at the time of application
  • under $5 million in revenues
  • have a corporate headquarters in New Jersey (including at least one C suite member with a principal office in New Jersey)
  • registered to do business in New Jersey and in good tax standing with the State and with the Department of Labor and Workforce Development.

We will continue to provide updates as additional COVID-19 related developments emerge. We are also regularly updating our COVID-19 Resource Center, which you can access here. In the meantime, if you have any questions about these or any other matters, please do not hesitate to contact your Kreischer Miller professional or any member of our team.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.