Updated: April 1, 2020 at 3:15 PM
According to the Pennsylvania Department of Community and Economic Development (DCED) website, the COVID-19 Working Capital Access Program is now closed.
In response to the economic hardships brought on by the COVID-19 outbreak, the Pennsylvania Industrial Development Authority (PIDA) has allocated $60 million to the COVID-19 Working Capital Assistance Fund (CWCA) to provide working capital loans to small, vulnerable businesses in Pennsylvania. Loans of up to $100,000 can be requested to help small businesses overcome the temporary loss of revenue.
CWCA loans are available to Pennsylvania for-profit businesses with less than 100 full-time employees worldwide.
Applicants will be asked to prove that they have spent the requested loan amount in the past three months on direct business expenses such as payroll, utilities, rent, inventory, etc. Additionally, retail and specific service-based organizations will be asked to demonstrate a 1:1 match on business expenses over the past six months – i.e., such businesses will need to verify they spent at least $200,000 on direct business expenses in order to request the maximum $100,000 loan amount.
CWCA Loan Highlights
- $100,000 maximum loan per business
- 3-year term; 12-year amortization
- No payments for initial 12 months; monthly amortized payments for the following 24 months; one lump sum payment for the remaining balance in the 37th month
- 00% fixed interest rate for businesses; 2.00% fixed interest rate for production agriculture
- Subordinate Uniform Commercial Code (UCC) filing on all business assets behind any existing UCC filings as collateral
- Personal or corporate guarantees are required for all individual and/or corporate business owners owning greater than or equal to 20% of the applicant business
Preparing to Apply
Applications are now open. We have listed the Certified Economic Development Organizations below that you can apply for your loan through. Please visit their website to find the specific applications needed.
Businesses should note that CWCA loans will be allocated on a first come, first served basis state-wide. Demand is expected to far exceed supply and many businesses seeking assistance may be turned away once the funds are exhausted.
Be prepared with the following documentation:
For the applicant business:
- A company profile sheet.
- A summary of the economic hardships experienced by the business, including the business closure date (if applicable).
- A signed W-9 form for the applicant business.
- A signed business entity certification.
- Most recent year financials (accountant prepared or filed tax returns).
- Interim financials (an income statement at a minimum) from last full year statements through current.
- A debt schedule summarizing existing business debt and required monthly payments.
For the guarantors (individual and/or corporate business owners owning 20% or more of the applicant business):
- A signed certification sheet
- For individual guarantors
- For corporate guarantors
- Individual guarantors: a signed Personal Financial Statement dated within the last 12 months
- Corporate guarantors: most recent year of financial statements
Certified Economic Development Organizations for Loan Delivery
CWCA loans will be delivered throughout the Commonwealth through a network of Certified Economic Development Organizations (CEDO). These organizations will act as the gateway to CWCA loans and will be able to pre-screen and accept applications on PIDA’s behalf once the application process opens.
This means that your application must be filed through the CEDO designated for the county where your business is physically located. A map of the CEDO designed for each county throughout the Commonwealth can be found here.