Corman: Low-Interest Loan Program to Help Small Businesses

The Pennsylvania Industrial Development Authority (PIDA) approved funding today to provide $61 million in low-interest loans to Pennsylvania’s small employers impacted by the COVID-19 public health emergency, according to Senate Majority Leader Jake Corman (R-34).

“This program will be vital to helping our communities and the small employers that are suffering due to mandatory closures or a decline in customers due to measures being taken to slow the spread of COVID-19,” Senator Corman said.

Loans of up to $100,000 will be available through the Pennsylvania Commonwealth Financing Authority (CFA) for small businesses with 100 or fewer full-time employees to use as working capital.  In addition to a low interest rate, there will be no application fees, and the terms will include no payments and no interest during the first year of the loan. 

Funding for the program was made possible by the CFA’s transfer of $40 million in funding to PIDA. That money will be combined with existing funds in PIDA’s Small Business First Program to provide low-interest loans to small businesses. 

Senator Corman  said PIDA’s priority is to ensure that when the application period is opened and businesses start to apply, the turnaround time for loan approval can be a matter of days.  He said more details will follow as soon as the information is available.