Philadelphia COVID-19 Small Business Relief Fund

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The City of Philadelphia has launched the Philadelphia COVID-19 Small Business Relief Fund (the Fund) with approximately $9.25 million. Outlined below are the Fund's three different grant programs to assist small businesses that have been impacted by the COVID-19 pandemic. Priority will be given to businesses in industries that have been most negatively impacted, as well as businesses that will attempt to retain employees as long as possible with award funds. The Fund consists of the following programs:

Microenterprise Grants: Grants of up to $5,000 per business are available for qualifying businesses with less than $500,000 in annual revenue. Applicants will need to provide (i) a signed tax return confirming the annual revenue and (ii) a description of the impact caused by COVID-19 and a recovery plan for the business.

Small Business Grants: Grants of up to $25,000 per business are available for qualifying businesses with annual revenues between $500,000 and $3 million. Applicants will need to provide (i) a signed tax return confirming the annual revenue, (ii) financial statements for calendar year 2019, (ii) a verification of cash flow needs, (iv) proof of insurance and (v) a description of the impact caused by COVID-19 and a recovery plan for the business.

Small Business Zero Interest Loans: Loans between $25,000 to $100,000 per business are available for qualifying businesses with revenues between $3 million and $5 million. Applicants will need to provide (i) a signed tax return confirming the annual revenue, (ii) financial statements for calendar year 2019, (ii) a verification of cash flow needs, (iv) proof of insurance and (v) a description of the impact caused by COVID-19 and a recovery plan for the business.

While most tax compliant businesses with less than $5 million in annual revenues will be eligible to apply, real estate development or rental property businesses, financial businesses primarily engaged in the business of lending, life insurance companies, private clubs and religious institutions, among others, are not be eligible for the programs. Nonprofit businesses engaging in for-profit activity that file Business Income and Receipts Tax (BIRT) with the City are eligible to apply. Businesses with annual revenues over $5 million are not eligible, but will be considered for existing PIDC loan products and other loan programs.

Applicants are to apply online and applications will be reviewed on a rolling basis. Conveniently, a single application is used to apply for all three relief programs. The request will be directed to the applicable program based on the annual revenue of the business. Decisions are expected to take around 10 business days. Applicants may submit only one application per business entity, and the business must be physically located within the City limits.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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