businesses are at risk of closing permanently and nearly 80% saw
their revenues decrease by more than 50%; and
WHEREAS, As a key driver of economic growth and employment,
successful small businesses play an important role in the
economic recovery of this Commonwealth and the entire United
States; and
WHEREAS, This Commonwealth received $2.6 billion in Federal
funding under the Coronavirus Aid, Relief, and Economic Security
Act (CARES Act); and
WHEREAS, Two hundred twenty-five million dollars of the CARES
Act funding was allocated to the Department of Community and
Economic Development for the purpose of the COVID-19 Relief
Pennsylvania Statewide Small Business Assistance program, which
is a program that distributes grants ranging from $5,000 to
$50,000 to small businesses that have been financially impacted
by the COVID-19 pandemic; and
WHEREAS, Thousands of these grants have been distributed
across this Commonwealth, and at least 50% of the grants were
awarded to historically disadvantaged small businesses, which
are small businesses that are at least 51% owned and operated by
individuals who are African American, Hispanic or Latino
American, Native American, Asian American or Pacific Islander
American; and
WHEREAS, This Federal funding has been essential in helping
small businesses survive during the COVID-19 pandemic by
assisting with operating expenses, technical assistance and debt
relief; and
WHEREAS, However, the Internal Revenue Service has announced
that Federal grants to a small business under the CARES Act will
be included in the business's gross income and subject to
20200HR1089PN4609 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30