Pennsylvania to provide $225M in grants to small businesses

Donna Eicher could be a poster child for the economically devastating impacts of the covid-19 restrictions on small businesses.

“Even though we’re considered essential because we’re lodging, we haven’t had any business since mid-March. All our bookings for March, April, May and June canceled,” said Eicher, who operates Seams Like Home, a bed-and-breakfast in Vanderbilt.

Eicher said Monday she plans to apply for funding through a state program that provides grants ranging from $5,000 to $50,000 to small businesses to cover losses from the covid-19 shutdowns and the cost of reopening their businesses.

“Some people wanted refunds, and that was hard. Others rescheduled for the fall,” said Eicher, who was not certain how much of a grant she will seek.

Eicher’s bed-and-breakfast was among businesses that Department of Community and Economic Development Secretary Dennis Davin said were “sacrificing their livelihood for the sake of the community.”

The businesses are able to apply for funding through the grant program beginning Tuesday. The money will come from the state’s allocation of federal CARES Act funding, Davin said Monday.

Businesses with up to 25 employees that generate no more than $1 million in annual revenue will be able to apply for the grants through the state’s 17 community development financial institutions, including The Progress Fund in Greensburg and Bridgeway Capital and the Northside Community Development Fund, both in Pittsburgh.

“The intention of the grants is to reach down to the smallest of the small businesses that were not able to get the federal (Paycheck Protection Program),” said David Kahley, executive director of The Progress Fund.

Mark Masterson, executive director of the Northside Community Development Fund, said he is expecting a large pool of applicants seeking the funds. About 100,000 small businesses in Allegheny County are eligible to apply for the grants, he said.

“It’s going to the small businesses that really need it,” Masterson said.

The first application period will be for 10 days, and three other rounds of funding are planned. Applications not meeting the 10-day deadline will be considered in the later rounds.

Of the $225 million allocated for the program, $100 million will be funneled through the Main Street Business Revitalization Program to cover shutdown losses and reopening costs of adapting to new business operations and another $100 million for what are deemed historically disadvantaged businesses — ones owned by socially and economically disadvantaged individuals. Another $25 million has been set aside for the community financial institutions to defer loan payments for businesses that are struggling because of covid-19 restrictions.