Other Sources of Funding for Philly Businesses Impacted by COVID-19
Written by: Natalie Klyashtorny
The Local Initiatives Support Corporation (LISC) is accepting applications for its Verizon Small Business Recovery Fund.
The fund provides grants of up to $10,000 to businesses facing immediate financial pressure due to COVID-19—especially entrepreneurs of color, women-owned businesses and other enterprises in historically underserved communities who do not have access to flexible, affordable capital.
The deadline to apply is April 4, 2020.
Loans and Lines of Credit Through PIDA
While the Pennsylvania Department of Community and Economic Development is no longer accepting application through its COVID-19 Working Capital Access Program due to overwhelming response, the Pennsylvania Industrial Development Authority (PIDA) offers low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities.
These loans may be used for land and building acquisitions, construction and renovation costs, machinery and equipment purchases, working capital and accounts receivable lines of credit, multi-tenant facility projects and Industrial park projects.
A variety of different industry sectors are eligible for PIDA financing including manufacturing, industrial, research and development, hospitality, defense conversion, recycling, construction, child day-care, retail and service, export, and computer-related service enterprises. The PIDA program finances a portion of total eligible project costs.
The maximum participation amount is determined by a variety of factors such as the proposed use of the funds, the business type applying for financing, the amount of matching financing from sources outside of PIDA, and the number of full-time jobs to be retained or created.
The terms of the loans are up to 15 years for land and building acquisitions and construction/renovation projects and up to 10 years for machinery and equipment purchases.
Working capital and accounts receivable lines of credit have a term of 1 year and can be renewed.
Interest rates for the program are based on current market conditions.
Loans and Lines of Credit Through PIDC
Loans and lines of credit are also available through the Philadelphia Industrial Development Corporation (PIDC).
In particular, PIDC offers a Working Capital & Equipment Loan Program which provides for loans between $50,000 and $750,000 to businesses and non-profit organizations which employ 4 or more employees and are located in the City of Philadelphia.
Loans under this program can be used for working capital, equipment, or leasehold improvements to support growth. To qualify, a business must have revenue between $150,000 and $10 million and have been in operation for at least 2 years.
To learn more about other financing options with PIDC, click here.
If you have any question about any of these governmental loan and grant programs or other sources of funding for your small business, please feel free to contact us at contact@nochumson.com and an attorney at Nochumson P.C. will immediately reach out to you to schedule a free consultation.
