Pennsylvania Industrial Development Authority (PIDA): COVID-19 Working Capital Assistance Fund (CWC
March 24, 2020
Pennsylvania Industrial Development Authority (PIDA): COVID-19 Working Capital Assistance Fund (CWCA)
Carbon County, PA – In response to the economic environment brought on by the COVID-19 pandemic, the Pennsylvania Industrial Development Authority (PIDA) is making $60 million in favorable working capital loans available to vulnerable, impacted businesses. PIDA loans are delivered throughout the Commonwealth of Pennsylvania through a network of Certified Economic Development Organizations (CEDO). Carbon County’s designated CEDO is Carbon Chamber and Economic Development Corp. (CCEDC).
The highlights of the PIDA Working Capital Loan are:
- Businesses with less than 100 full-time employees are eligible to apply.
- Up to a $100,000 loan request to each small business to help them overcome temporary loss of revenue
- Applicants will need to verify that over the past 3 months they have spent an amount equal to their loan request on direct business expenses (payroll, utilities, rent, debt payments, inventory, etc.) up to the maximum $100,000 loan amount;
- Retail and certain service-based businesses will need to show a 1:1 match on expenses over the past 6 months, meaning such businesses need to verify they spent at least $200,000 on direct business expenses in order to maximize the $100,000 loan amount;
- Term: 3-year term; 12-year amortization; no payments for the initial 12 month payment deferral; regular monthly payments year 2 and 3 with balloon payment at the end of year 3.
- Interest Rate: 0.00% fixed for businesses / 2.00% fixed for production agriculture;
- Collateral: Subordinate UCC filing on all business assets of the company behind any existing UCC filings;
- Guarantees: Personal or corporate guarantees are required for all 20%+ business owners;
Costs and Fees: The Carbon Chamber and Economic Development Corp. (CCEDC) is a not-for-profit organization serving Carbon County. We are working to minimize our costs as much as possible to help impacted small businesses. Please stay tuned for further updates and guidance.
How To Apply: As of March 24, 2020, the application process is not yet open. The guidelines have been drafted, but the mechanics of applying and approving loans are a few days away. Information circulating to date is tied to actions taken by the state to make these funds available. Stay tuned to EDC updates and the CCEDC website at www.CarbonCountyChamber.org
In the interim, eligible businesses should gather the following information in preparation for when the application becomes available:
- Summary of adverse impacts to the business, including date closed if applicable;
- W-9 forms completed for the borrowing company;
- Most recent 2 years of filed federal tax returns or accountant financial statements. If you have not filed your 2019 tax return yet, please also include an internal or Quickbooks type balance sheet and profit/loss statement for 2019;
- A summary of existing business debt, current balances, and required monthly payments;
- Personal financial information of business owners including personal assets and liabilities;
If you have a question regarding the COVID-19 Working Capital Assistance Fund, please contact the CCEDC office at 610-379-5000.
About the Carbon Chamber and Economic Development Corporation:
The members of the Carbon Chamber and Economic Development Corp. are a catalyst for continuously creating cooperative and prosperous businesses to enhance our community.
Kathy Henderson, Director of Economic Development, CCEDC