|Posted:||April 7, 2020 10:30 AM|
|From:||Representative Peter Schweyer and Rep. Michael H. Schlossberg|
|To:||All House members|
|Subject:||COVID-19 Working Capital Access Loan Program|
|The COVID-19 pandemic has severely impacted Pennsylvania’s employers, many of them nonprofits serving the most vulnerable residents. We have heard from many nonprofit organizations who need financial assistance to keep their employees working or who have had to close but need help bringing their employees back to work when the pandemic subsides.
At the start of Pennsylvania’s mitigation measures, the state opened the COVID-19 Working Capital Access loan program for small businesses. Up to $61 million was made available to small businesses through no-interest working capital loans of up to $100,000. Unfortunately, nonprofit organizations were not included in the initial program. Moreover, the number of applications far exceeded the amount of funding available.
The federal loan programs for small businesses and nonprofits are also quickly becoming over-subscribed, and Pennsylvania employers are still in need of assistance.
That is why we are introducing legislation to transfer $100 million from the Rainy Day Fund to re-open the state’s COVID-19 Working Capital Access loan program to additional small businesses. Our legislation would also open the loan program to nonprofit organizations with employees of 100 or less and that provide critical services, such as domestic violence and rape crisis services, health and counseling services, homeless shelters, hunger-relief services, education services, and more.
Please join us in co-sponsoring this important legislation.
Introduced as HB2515