Pennsylvania Industrial Development Authority (PIDA): COVID-19 Working Capital Assistance Fund (CWCA) Updated: 03/25/2020
Lending Tool Summary:
In response to the economic environment brought on by the COVID-19 pandemic, the Pennsylvania Industrial Development Authority (PIDA) is making $60 million in favorable working capital loans available to vulnerable, impacted businesses. PIDA loans are delivered throughout the Commonwealth of Pennsylvania through a network of Certified Economic Development Organizations (CEDO). York County’s designated CEDO is York County Economic Development Corporation (YCEDC), an affiliate of the York County Economic Alliance (YCEA).
PIDA Working Capital Loan Highlights:
For-profit businesses with less than 100 full-time employees are eligible to apply.
- Up to a $100,000 loan request to each small business to help them overcome temporary loss of revenue
- Applicants will need to verify that over the past 3 months they have spent an amount equal to their loan request on direct business expenses (payroll, utilities, rent, debt payments, inventory, etc.) up to the maximum $100,000 loan amount;
- Retail and certain service-based businesses will need to show a 1:1 match on expenses over the past 6 months, meaning such businesses needed to verify they spent at least $200,000 on direct business expenses in order to maximize the $100,000 loan amount;
- Term: 3 year term; 12 year amortization; no payments for an initial 12 month payment deferral;
- Interest Rate: 0.00% fixed for businesses / 2.00% fixed for production agriculture;
- Collateral: Subordinate UCC filing on all business assets of the company behind any existing UCC filings;
- Guarantees: Personal or corporate guarantees are required for all 20%+ business owners;
- Costs & Fees: YCEDC and YCEA are leading economic development not-for-profit organizations serving York County. We are working to minimize our costs as much as possible to help impacted small businesses. Please stay tuned for further updates and guidance.