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Governor Wolf opens $60 million coronavirus small business loan fund

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Governor Tom Wolf announced on Wednesday the creation of a $60 million fund to lend money to small businesses that have been impacted by the COVID-19 pandemic.

Under the COVID-19 Working Capital Access Program, businesses with fewer than 100 employees worldwide can apply for loans of up to $100,000. The program is designed to pay operating expenses rather than investments in property and machinery.

Three-year loans are interest-free for all businesses except agricultural producers, who must pay 2% interest. No payment is required in the first year and a lump sum payment is due at the end of the term.

To be eligible, business owners must be current with all federal, state, and local taxes.

All inquiries must be made by local economic development authorities, such as the Philadelphia Industrial Development Corp. in Philadelphia. Loans should be available this week, Wolf said.

“The NFIB is grateful that the state is stepping up to help small businesses with critical cash flow issues now. Clearly, there is a shared recognition of the critical role that small businesses play in our economy and will play in our recovery,” said Rebecca K. Oyler, Pennsylvania Legislative Director for the National Federation of Independent Business.