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COVID-19 Relief Fund Created to Assist Philadelphia’s Small Businesses

March 23, 2020


City officials announced today that they have partnered with the Philadelphia Industrial Development Corporation (PIDC) to create a fund for relief for small businesses in the city impacted by COVID-19 closures, aptly titled the “Philadelphia COVID-19 Small Business Relief Fund.”

The $9 million fund created by the City and PIDC will provide grants and zero interest loans to businesses with less than $5 million in annual revenue. The Philadelphia COVID-19 Small Business Fund includes the following three programs:

RELIEF PROGRAM ELIGIBLE BUSINESSES AMOUNT AVAILABLE PER BUSINESS WHAT YOU’LL NEED TO APPLY
Microenterprise Grant Annual revenue under $500K

$5,000 Grant

– Signed Tax Return to confirm annual revenue.

– A description of the impact of COVID-19 on your business, and your recovery plan.

Small Biz Grant

Annual revenue between $500K and $3M

Up to $25,000 Grant

– Signed Tax Return.

– 2019 Financial Statements.

– Verification of cash flow needs.

– Proof of insurance.

– A description of the impact of COVID-19 on your business, and your recovery plan.

Small Biz Zero-Interest Loan

Annual revenue between $3M and $5M

$25,000 – $100,000 Loan

– Signed Tax Return.

– 2019 Financial Statements.

– Verification of cash flow needs.

– Proof of insurance.

– A description of the impact of COVID-19 on your business, and your recovery plan.

– No collateral requirements.

According to City officials, those reviewing applications (available here), will consider the following priorities when awarding grants and loans:

  • The number of jobs that the business sustains during a normal business cycle (pre-COVID-19 levels).
  • The business demonstrates that it has lost a significant share (50% or more) of revenue due to the COVID-19 pandemic.
  • The business demonstrates a strong chance of remaining open post COVID-19.
  • The business has experienced loss of revenue from other situations in addition to COVID-19, such as recent public works projects (i.e. water main breaks, utility repairs, street closures).
  • The business provides jobs to low-income individuals and/or is located in a zip code with high poverty.
  • The business has operated consistently for two years or more.
  • For sole proprietors/independent contractors, priority will be given to those who are located in zip codes with high poverty and/or those that sustain multiple sub-contractors during normal business (pre-COVID-19 levels).

Applications will be reviewed on a rolling basis.

We encourage our clients and members of the business community to share this information with small business owners whose operations have been affected by the COVID-19 pandemic.

Montgomery McCracken attorneys are available to assist with applications and have been assisting clients with numerous issues related to COVID-19.  Montgomery McCracken’s COVID-19 Resource Center is available here.