Besides PPP, where small businesses in Pennsylvania, New Jersey, Delaware can get relief



Today, most small businesses are familiar with the economic assistance that the federal government offers us, such as the Paycheque protection and Operations on shuttered sites as well as the availability of long-term government-supported programs Economic disaster loans, throughout the Small business management.

But it’s not just the federal government that offers relief to small businesses. Qualifying businesses in Pennsylvania, New Jersey, and Delaware can also take advantage of grant and loan programs that provide critical funding to help us weather this severe economic downturn.

For example, last week the Pennsylvania Senate voted unanimously to approve a back-up plan that includes a fund of $ 145 million specifically for small businesses in the Commonwealth of Nations. The fund will provide grants of $ 50,000 to eligible businesses, primarily those in the hospitality industry with fewer than 500 employees and which have experienced a 25% drop in revenue during certain periods. The bill still requires approval from the State House of Representatives and Governor Tom Wolf.

Pending the signing of this bill, small businesses should also monitor the reopening of the PA Coronavirus Small Business Assistance Program, which was originally funded by the federal CARES Act and offers grants of up to $ 50,000 to qualifying small businesses. The program is currently not accepting new applications, but it is hoped that a new federal stimulus recently proposed by the Biden administration will provide more funds. So keep an eye out.

There is an open grant program if you are a female business owner in Pennsylvania (as well as New Jersey and Delaware). This permanent program is offered by WomensNet, a group of nonprofit entrepreneurs for women that offers monthly nationwide grants up to $ 10,000, with winners eligible for a separate annual grant of $ 25,000. Grants are awarded by a panel of judges who review applicants’ stories about their businesses.

that of Philadelphia COVID-19 relief program for restaurants and gyms is now also accepting applications. The program is designed to provide financial assistance in the form of grants of $ 15,000 to small businesses, particularly restaurants, gyms and others whose primary business is “indoor exercise.” They must be in town and have been impacted by the government restrictions of November 2020.

Across the river, the New Jersey Economic Development Authority’s loan program provides “creditworthy” minority or female-owned small businesses in the state with $ 500,000 in long-term, low-interest loans that can be used for working capital. Applicants must have been in business for at least one year (or nonprofits in business for three years) and have less than $ 3 million in total revenue, but could not otherwise secure traditional bank funding.

The New Jersey Economic Development Authority has a Support program for entrepreneurs which guarantees up to 80% of investments made by corporations and investors in New Jersey businesses. The program, which remains open to applicants, is aimed at investors who have previously supported a New Jersey company through equity financing completed before March 26, 2020, with the aim of encouraging those investors to provide additional funds.

The Atlantic County Improvement Authority of New Jersey also offers low interest forgivable loans up to $ 25,000 to help businesses affected by pandemic restrictions. Similar to the federal government’s Paycheck Protection Program, the proceeds of the sale can be used for out-of-pocket expenses that include payroll, rent, overhead, and the costs of certain equipment, materials and supplies. Personal guarantees are required and principal and interest are deferred for two years.

The State of Delaware, along with the County of New Castle, established a $ 200 million program targeted to provide relief to small local businesses and nonprofits affected by the pandemic. Special considerations are made for small businesses that have been disproportionately affected, such as those in the retail, arts and food industries, as well as others that have suffered a substantial loss of income from from 2019. Loans of up to $ 100,000 are available, with amounts written off if spent on payroll, rent, utilities and other charges.

The Delaware Division of Small Business is also offering emergency interest-free loans of up to $ 10,000 to some of the state’s businesses and nonprofits worst affected by the pandemic, particularly those in the hospitality industry.

Although this is not a relief measure, Delaware continues EDGE Grants Program is now accepting applications for its latest round of matching grants until the end of February. The program is for Delaware businesses that have been in existence for less than five years and employ less than 10 people. These businesses can receive matching grants of up to $ 100,000. Grant winners are selected by a panel of judges using specific criteria such as need, location and minority status and funds can be used for various activities including rent, marketing and infrastructure.

We are still in the dark days of this pandemic. But most economists expect a recovery by the middle of the year. Sadly, that’s little solace for a small business owner struggling to survive at this time. Hopefully the federal and state reliefs listed above will get us over this. Please note that many of these programs are affected by various federal stimulus programs and the availability of funds cannot be guaranteed. It is essential to act quickly and pay attention to the closing dates for applications.

Gene Marks is a Chartered Accountant and owner of Marks Group, a technology and financial management consulting firm in Bala Cynwyd.


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