213 small businesses awarded COVID-19 grants

WEST CHESTER » Some 213 small businesses in Chester County were awarded grant funding under the first of two rounds of the COVID-19 Relief Pennsylvania Statewide Small Business Assistance program.

The second and final round is now open and businesses can apply online at pabusinessgrants.com.

That funding comes as part of $96 million in grants awarded 4,933 small businesses across the Commonwealth under the program designed to support small businesses economically impacted by the pandemic. The average statewide grant size was about $20,000.

The COVID-19 Relief Statewide Small Business Assistance funding was developed in partnership with state lawmakers and allocated through the state budget, which included $2.6 billion in federal stimulus funds through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, of which $225 million was earmarked for relief for small businesses.

“Small businesses are the backbone of our economy and they have been some of the hardest hit by this pandemic and the resultant shutdown and economic crisis,” said state Sen. Andy Dinniman, D-19th, of West Whiteland. “This was a joint effort of the entire Chester County delegation, working together to help small and family-owned businesses manage costs, handle expenses, maintain operations and save jobs in the face of unprecedented challenges and difficult times. I want to thank every member of the Chester County state House and Senate delegation for coming together to support our small businesses.”

The program targeted getting grants to small businesses with the greatest need and to be eligible to apply businesses had to have less than $1 million in revenue and less than 25 employees. Grants ranged in size from $5,000 to $50,000 based on the revenue size of the business.

“The burden that COVID-19 has put on business owners, employees and families in southeast Pennsylvania gets heavier every day,” said state Rep. Chris Sappey, D-158th, of West Bradford. “At this point, when we talk about addressing the pandemic, we must not only fight it with masks and social distancing, but we also must equally and strongly support our business community, where this fight for our health and safety actually is taking place. Commerce and industry must survive this virus, as well. Pennsylvania needs this aid now, and my office is eager to work with any business that needs help applying.”

The first application round drew a strong response with nearly 24,000 applications.

Of the close to 5,000 small businesses approved in the first round of funding, 50 percent are historically disadvantaged businesses.

More than two-thirds of the approved awardees are women-owned businesses and 16 percent located in rural communities. The businesses represent industries that have been especially hard hit by the pandemic including retail, food and hospitality, health and wellness, and personal care.

Over 2,400 of the businesses are also in communities targeted for business investment by state government programs like Main Street and Elm Street.

“Our small business owners need our help and support,” said state Rep. Carolyn Comitta, D-156th, of West Chester. “After limited or even no sales due to the virus for almost five months, it would be unfair to let them suffer alone without any intervention. These grants give our small businesses hope and, I am here with my democratic colleagues to provide them whatever help they need to address this pandemic. Our business owners, their employees, and their families deserve our assistance.”

The Department of Community and Economic Development (DCED) distributed the funds to the Pennsylvania Community Development Financial Institutions (CDFIs), which are administering the grants through three programs: $100 million for the Main Street Business Revitalization Program, $100 million for the Historically Disadvantaged Business Revitalization Program, and $25 million for the Loan Payment Deferment and Loss Reserve Program.

The second and final round of the funding program is open through 11:59 p.m. on Friday, Aug. 28. Eligible applicants not awarded in the first round do not need to reapply and will be rolled into the next round for consideration.

In order to get funds to businesses in need as quickly as possible, the second application window will be the final opportunity to apply for the program. Qualified applicants not awarded in the first round do not need to reapply and will be rolled into the next round for consideration.

Eligible small businesses can apply online at pabusinessgrants.com or through any one of the 17 Community Development Financial Institutions (CDFIs) that are part of the Pennsylvania CDFI Network.