PA Small Business Loans Available During Coronavirus Shutdown

HARRISBURG, PA — Pennsylvania businesses struggling during the shutdown caused by the new coronavirus outbreak could get a little help in the form of a government-backed, low-interest loan.

Gov. Tom Wolf announced the loans on Thursday. They are for small businesses and eligible nonprofits in all 67 Pennsylvania counties through the U.S. Small Business Administration.

"We are incredibly grateful that the SBA recognized the urgency of this situation and granted our request so quickly," Wolf said. "I encourage our businesses and nonprofits to look at the SBA resources available to them and take advantage of this opportunity for financial assistance during this time of uncertainty."

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On Sunday, Wolf mandated that all bars and restaurants in five counties close due to the spread. Schools statewide were shut down Friday, and will remain closed for at least two weeks.

Non-essential businesses in Pennsylvania also have been closed, as well as state parks and liquor stores.

Regionally, some businesses already have started showing the strains of the coronavirus shutdown.

At Philadelphia International Airport, between 600-1,000 employees — including wheelchair attendants, baggage handlers and cabin cleaners — are expected to be laid off starting this week.

Harvest, the regional restaurant chain, laid off 700 workers, including 70 in Newtown. There are nine Harvest Seasonal Grill & Wine Bar locations, including in Newtown, North Wales, and Radnor. Owners said the layoffs are hopefully temporary.

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The Small Business Administration's Economic Injury Disaster Loans offer up to $2 million in help to struggling employers. The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.

The interest rate on the is 3.7 percent for small businesses without credit available elsewhere. Businesses with credit available elsewhere are not eligible. The interest rate for nonprofits is 2.75 percent.

The loans may be for a maximum of 30 years.

Businesses may get information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 or by e-mailing disastercustomerservice@sba.gov.

Applications also may be downloaded online or completed on the administration's website.

The deadline to return economic injury disaster loan applications is Dec. 21, 2020.

>>> The latest developments on coronavirus in Pennsylvania