Program guidelines for CWCA, a program supplying working capital to businesses negatively impacted by the COVID-19 pandemic, were approved by the PIDA (PA Industrial Development Authority) Board on March 23, 2020. Please contact your county’s Certified Economic Development Organization (CEDO) for where to submit the application. Some counties are set up to receive applications.

A list of county CEDO organizations can be found here: https://dced.pa.gov/cedo/

PROGRAM DETAILS

Eligible Businesses: Any for-profit businesses located in PA with 100 or fewer employees worldwide may qualify for disaster relief loans. Your application must be processed through the CEDO designated for the county where your business is physically located.

Loan Amount: The lesser of 3 months of working capital not to exceed a loan amount of $100,000

Interest Rate: 0% for all business types except Agriculture Producers

Amortization: 12 years

Term: 3 years

Repayment: No payment in the first 12 months, amortized payments monthly for the following 24 months, one balloon payment for the remaining balance in the 37th month

Collateral: A blanket lien on all current business assets and any acquired in the future in the first available lien position

Guarantors: All owners (individual or other business entities) owning 20% or more of the applicant's business must guarantee the loan.

Some credit criteria for approval (as evaluated by PIDA) may include

At least breakeven performance in the prior year

Acceptable personal credit history of the guarantors

Historical cash flow adequate to pay obligations

Some items you should prepare for your application when the program opens include (all available through your County CEDO or reach out to us and we can provide):

For the intended Borrower (Applicant Company, an Operating Company)

Company Profile Sheet

Signed W-9

Signed Business Entity Certification

Most recent year financials (accountant prepared or filed tax return)

Interim Financials (income statement at least) prepared by management from last full year statements (see bullet above) through current

Debt Schedule

For the Guarantors (any owner, individual, or business entity, with 20% or more interest in Borrower)

Signed Certification Sheet

For individuals

A signed and dated Personal Financial Statement dated within the last 12 months.

For business entities

Most recent year of financial statement