PIDA Loans Available for Small Business COVID-19 Disaster Relief
The Pennsylvania Industrial Development Authority (PIDA) has opened the application process for working capital loans up to $100,000 to assist small businesses in navigating through the COVID-19 emergency.
It is anticipated that numerous companies will be applying for these loans and the process is expected to be competitive, North Central encourages companies interested in applying for these loans to do so as quickly as possible.
PIDA’s Small Business First Fund will provide $61 million to assist businesses through Covid-19 emergency. Under PIDA’s COVID-19 Working Capital Access Program (CWCA), for-profit small businesses with 100 or fewer employees worldwide could be eligible for working capital loans up to $100,000.
Please click here for a detailed list of items required and forms that must be filled out as part of the application process along with other details about the program.
Below are key additional facts about eligibility and other details related to the loans. Any questions should be directed to firstname.lastname@example.org. Inquires will be responded to as they are received. Thank you for your patience.
What You Need to Know COVID-19 Loan Application Process
- Eligible Businesses: For-profit businesses located in Cameron, Clearfield, Elk, Jefferson, McKean and Potter Counties with 100 or fewer employees may qualify for disaster relief loans.
- Loan Amount: The maximum loan amount is $100,000.
- Eligible Costs: Eligible costs include operating costs incurred 3 months prior to the submission of the application. Retail/service enterprises are eligible for up to 50% of working capital costs incurred up to six months prior to submission of the application. Working capital are costs used for operations excluding fixed assets and production machinery and equipment.
- Interest Rates: Interest rates are 0% for eligible businesses and 2% for agricultural producers.
- Amortization: 12 years
- Term: 3 years
- Repayment: No payment in first year, with amortized payments monthly for the following 24 months, and one balloon payment due at the end of the third year
- Guarantors: Each individual or other business entities owning 20% or more of applicant business must guarantee the loan.
- Collateral: The loan shall be secured by a blanket lien on all business assets currently owned or acquired in the future at the highest lien position available.