Main Street Lending Program

On May 29, 2020, the COVID-19 Emergency Supplement to the General Appropriation Act of 2019 came into effect. This provides up to $225 million worth of COVID-19 relief payments to small businesses in the Commonwealth of Pennsylvania that experienced losses as a result of the March 19, 2020 order relating to the closure of all non-life-sustaining businesses. Small businesses are also eligible if they have had or will incur costs to adapt to new business operations related to COVID-19.

Funds are to be used to cover operating expenses for the duration of the shutdown and the transition period to re-opening, along with any technical assistance for business owners as they stabilize and relaunch their businesses. Debt payment relief for Pennsylvania Community Development Financial Institutions (CDFI) borrowers is also a permitted use of these funds.


Businesses must have 25 or fewer employees and may request up to $50,000 in grant award funds. An additional administrative fee request may be made on each transaction not to exceed 5% or $2,500, whichever is less. In order to receive funds, the business must certify that:

  • The business was in operation on February 15, 2020 and had paid income taxes to the state and federal government.
  • COVID-19 has had an adverse economic impact on the business and makes this grant request necessary for continued operation.
  • The grant will only be used to cover COVID-19 related costs.
  • During the period June 1, 2020 through December 31, 2020, the business has not and will not receive another grant under this state program.
  • The business has and continues to comply with all relevant laws, orders and regulations during the COVID-19 disaster emergency under the Governor’s proclamation dated March 6, 2020 and any and all subsequent renewals. Noncompliant businesses will be ineligible for funding under this program and may be required to return all or a portion of the funds awarded.

Application Process

Applicants must submit all funding requests through the PA Department of Community and Economic Development (DCED) Single Application for Assistance (ESA) via a CDFI. More information regarding CDFI’s to apply through can be found here.

Required supplemental information must be attached on the Addenda tab. For additional reporting requirements needed for the application, please see the DCED website.

Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our Firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.