State’s small biz loan fund overwhelmed with applications
Ed Mahon
Last week, Pennsylvania Gov. Tom Wolf rolled out a $60 million loan program to help businesses hurt by the coronavirus outbreak. The program offered small businesses with 100 or fewer full-time employees up to $100,000 in loans.
By 6 p.m. Tuesday, the state had received more than 900 applications that, if all were approved, would total more than $75 million in loans. Given the overwhelming demand, the state was forced to close the application process — one more sign of how businesses and workers are struggling across the state (For other signs, read PA Post reporter Emily Previti’s explanation of why there are so many unemployment claims in Pa., or Spotlight PA reporter Charlotte Keith’s story about an expected drop in state tax revenue.)
Meanwhile, Republican leaders in the General Assembly are urging the governor to allow more businesses to reopen their physical locations.
“We no longer can ignore the economic impact of this virus,” the Senate Republican Caucus said in an April 1 letter to the governor. “We have stood with you to protect Pennsylvanians from COVID-19, and we ask that you stand with us to expedite opening as many businesses as possible at this time.”
In the letter, the Republican legislators say that a small business with two employees and a handful of customers is less of a public health risk than “big box stores with a hundred employees and numerous customers shopping for lawn furniture.”
They sent the letter the same day that Gov. Wolf expanded his stay-at-home order to all Pennsylvania counties.
The Wolf administration has already modified the list of businesses required to close and appears to make regular adjustments, such as loosening restrictions on some dental procedures.
But Wolf has also warned about the risks of ending mitigation efforts too soon, noting that the state has already recorded 74 deaths from COVID-19.
“If we don’t do everything in our power to stop the spread of this disease, we could easily have a death toll in the thousands,” he said during a Wednesday afternoon news conference.
With the debate ongoing, Stateline has this great look at how states are defining essential workers.
“At least three states — New York, Pennsylvania and Washington — halted almost all construction,” writes Elaine S. Povich, noting that national building unions are pushing to allow construction to continue.
In Pennsylvania, the state guidelines limit most construction to emergency repairs and work on health care facilities. A spokesperson for the state Department of Community and Economic Development told me on Tuesday that residential construction projects that are “substantially complete” — ones where a final occupancy permit has been issued — can continue to completion. PennDOT recently announced it was restarting certain projects.
That debate over opening up more construction is one of many topics I’ll be keeping an eye on. Another compelling take on the shutdown order and businesses from PennLive’s John Baer: How Gov. Wolf’s business shutdown bit him where it hurts.
As for the status of applications to the state’s special COVID-19 business loan program, Department of Community and Economic Development spokesperson Rachel Wrigley said staff members with the Pennsylvania Industrial Development Authority are reviewing them. Wrigley said small businesses and eligible nonprofits are also encouraged to apply for low-interest loans through the U.S. Small Business Administration (SBA). More information is available here.
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