For companies with annual revenues under $500,000.00, microenterprise grants of $5,000.00 per business are available upon provision of relatively minimal documentation.
For businesses with revenues between $500,000.00 and $3M, grants of up to $25,000.00 are available. The required documentation is more in depth than with respect to the micro-grants, but the required materials are likely documents that most businesses already have or can easily generate with the assistance of their accountants (who remain open for business).
Finally, for businesses with annual revenues between $3M and $5M, small business, zero-interest loans of between $25,000.00 and $100,000.00 are available without the necessity of collateral.
There is a single application for all three programs which you can access here.
There are a few key issues to consider as you fill out your applications. First, this program is intended largely to enable small business to avoid layoffs. As you describe your use of the funds for which you are applying, be sure to identify the portions of the grant or loan that will be used to pay staff even amid widespread, mandated closures. To the extent you can tie the amounts being provided to staff as reflective of certain basic, critical needs – say rent or groceries – this would produce a more compelling application. Job preservation is a top priority, and enabling employees to meet their most basic needs is a compelling basis for relief.
A second key consideration is post-pandemic continuity. The City wants to help businesses that will operate after this pandemic passes. Be specific in detailing your plans to continue those aspects of operations permitted by law now, and carefully explain your business continuity plan once restrictions are lifted or lightened. The City wants to invest in long-term viable businesses that have clear plans and strategies to survive this pandemic and thrive afterwards.
Finally, be specific about how COVID-19 has impacted your business. This includes not only quantifying your revenue losses, but also identifying supply chain issues, employment issues, lender problems, rent obligations and anything else that impacts the continued viability of your enterprise.
There are a number of other important considerations to think through as you fill out your application. While these grants and loans are not a panacea, collecting this information will also be helpful in exploring Commonwealth and Federal programs offering similar, and in some cases more expansive, assistance. And as always, we’re here to help.
Please note, on April 5, 2020, the Pennsylvania Secretary of Health issued an Order mandating enhanced cleaning and disinfecting requirements for owners of large buildings. The Cleaning Order applies to owners of buildings of at least 50,000 square feet used for commercial, industrial or other enterprises, including but not limited to facilities for warehouses, manufacturing, commercial offices, airports, grocery stores, universities, colleges, government, hotels, and residential buildings with at least 50 units.
The Coronavirus Task Force at Klehr Harrison stands ready to assist you in your business and legal needs. We will continue to provide additional information and guidance as the COVID-19 situation develops.
Author Jordan Rand is a partner in the Litigation Department at Klehr Harrison.