COVID-19 Relief Fund Created to Assist Philadelphia’s Small Businesses
March 23, 2020
Categories : Coronavirus
Types : Alerts
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.