Hospitality establishments will get support from the $145 million funding announced by Governor Tom Wolf. According to the Pennsylvania Government website the funding will be distributed to all the Pennsylvania counties through the COVID-19 Hospitality Industry Recovery Program.
The funding, which is aimed to support the commonwealth’s hospitality industry will be provided in the form of block grants to each county based on population and will be allocated by February 28. Grants will be awarded in $5,000 increments with a $50,000 maximum.
“After months of calling for support for our hospitality establishments and their employees, I am pleased that the General Assembly has allocated millions of dollars in resources to protect and preserve this industry,” said Gov. Wolf
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Each county will administer the funding through one or more designated Certified Economic Development Organization (CEDO) or Community Development Financial Institution (CDFI), which will then process applications from businesses in each county. CEDOs or CDFIs must begin accepting applications from businesses by March 15. Program guidelines are available on the Department of Community and Economic Development’s (DCED) website.
Which businesses are eligible?
Businesses are eligible for the relief funding if:
- They have a North American Industry Classification System (NAICS) designation within the Accommodation subsector (721) or Food Services and Drinking Places subsector (722) and where accommodations, food or drink is served to or provided for the public, with or without charge.
- They have fewer than 300 full-time equivalent employees.
- They have a maximum tangible net worth of not more than $15 million.
- They were operative on February 15, 2020 and remains in operation and do not intend to permanently cease operations within one year of the date of application.
- COVID-19 has had an adverse economic impact on the eligible applicants which makes the grant request necessary to support the ongoing operations of the eligible applicants.
Priority will be given to applicants that:
- Have not received a loan or grant issued under the authority of the commonwealth or the commonwealth’s political subdivisions or by the federal government;
- Were subject to closure by the Governor’s disaster declaration; or
Can demonstrate one of the following:
- A reduction in gross receipts of 50 percent or more for the period beginning after March 31, 2020, and ending before December 31, 2020, in comparison to the period beginning after March 31, 2019, and ending before December 31, 2019.
- If the eligible applicant was not in operation during the entire comparison period, but was in operation on February 15, 2020, a monthly average reduction in gross receipts of 50 percent or more for the period beginning after March 31, 2020, and ending before December 31, 2020, in comparison to the period beginning after January 1, 2020, and ending before April 1, 2020.
Businesses with questions about the relief funding should contact their local county offices, CEDO, or CDFI for more information.
For the most up-to-date information on COVID-19, Pennsylvanians should follow www.governor.pa.gov and www.doh.pa.gov.
