A Greensburg-based small business commercial lender has decided to forgo collecting payments from its borrowers in April to give them a break during the economic downturn caused by the shutdown over the spread of the coronavirus.

The Progress Fund, a nonprofit community development financial institution, is giving all of its current 65 borrowers a one-month “holiday” from making a payment because their cash flow has been reduced, said President and CEO David A. Kahley.

“We gave it to them all to be quick and fair,” Kahley said.

About 80% of the Progress Fund’s borrowers have been hurt by the shutdown and this will allow them to “muster their cash for other immediate expenses,” Kahley stated. The other 20% have sufficient cash flow or are not businesses hurt by the shutdown, Kahley said.

Many of The Progress Fund’s borrowers, such as bed-and-breakfasts, entertainment venues, restaurants, outdoor recreation, bicycle shops and retail outlets, rely upon the tourist industry for their business, Kahley said.

“This (shutdown) happened during a period of slow business for the tourist industry,” Kahley said of Gov. Wolf’s March 19 order closing non life-sustaining businesses.

“It’s hurting everyone around Southwestern Pennsylvania,” he added.

The Progress Fund will continue to evaluate the situation and consider other possible actions, such as extending the postponement of the monthly payments to May, Kahley said. Also under consideration is the creation of an emergency fund to help more businesses with cash-flow issues, Kahley said.

“You got to stop your client from bleeding because the ambulance will take awhile to get there,” Kahley said, referring to the $349 billion Small Business Administration lending program in the U.S. Senate version of the coronavirus relief bill. The House of Representatives plans to vote on the bill this week.

Obtaining any money approved through the bill, however, will require going through layers of bureaucracy, Kahley said.

“It’s going to be a process,” he noted.

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