LANCASTER COUNTY ECONOMIC RECOVERY PLAN

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NEW: Small Business Recovery and Sustainability Fund Phase 1 Closes

Lancaster County’s Economic Recovery Plan is a document that will serve to support Lancaster’s extraordinary business community in getting ready for the next chapter of life with COVID-19. It provides a framework on how we can move forward. 

The plan was created in partnership between the Economic Development Company of Lancaster County and the Lancaster Chamber. Stay tuned for a website dedicated to this plan.

Small Business Economic Resources

As of June 29, 2020

Recovery Lancaster 

For current funding resources and information on the Recovery Lancaster grant funding, please visit https://recoverylancaster.com/funding/.

PIDA COVID-19 Working Capital Access

The program has closed and funds are currently exhausted. If new funds become available all prior applicants would need to resubmit under any updated guidelines provided. NOTE – the recently announced funding from the State is a different program and information can be found here: https://dced.pa.gov/programs/covid-19-relief-statewide-small-business-assistance/.

Existing EDC Finance Corporation Borrowers

SBA 504 –  EDC Finance has been informed by our SBA 504 trade organization, under the CARES Act approved March 27, 2020, SBA will be paying all principal, interest, and fees that are owed on existing SBA 504 loans in a current regular servicing status beginning with the April payment and extending for a period of 6 months!

As a result, all SBA 504 borrowers through EDC Finance who were current on their payments through March, should not have incurred an ACH debit to your account on April 1.  You will be receiving 6 months of debt forgiveness, not a deferral.  Please visit this website for more details: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief.

PIDA –  UPDATE: The CFA, at a special meeting held on June 26, 2020, approved an additional three-month deferral for all CFA loans for July, August, and September.  This is in addition to the previously approved deferral for April, May and June.

The PIDA Board, at the June meeting, approved an additional three month extension of the existing deferral period to include a deferral on loan payments scheduled for the months of July, August, and September 2020.  Please note, this includes only PIDA-SBF Fund Loans (PIDA-SBF, PIDA-CED, PIDA-PPAA, and PIDA-FIF/SBF) and PIDA-MELF Fund (PIDA-MELF and PIDA-FIF/MELF) loans but does not include an additional three month deferral for traditional PIDA real estate loans.

For PIDA-SBF and PIDA-MELF Fund Loans & CFA Loans:

  1. The ACH electronic withdraw process will be suspended for the months of July, August and September.
  2. Borrowers who make monthly payments via check are not required to make their monthly payment for the months of July, August and September.
  3. If a borrower would like to make a payment during the deferral period, they are able to do so by issuing a check made payable to the Commonwealth of Pennsylvania and mailing the check to Attn: DCED Loan Accounting, P.O. Box 884, Harrisburg, PA  17108.  The check should include the loan number on the Memo line.
  4. No late fees will be assessed during the deferral period.
  5. No additional interest will accrue during the deferral period.
  6. The maturity date of all loans will be extended by three months.
  7. Regular scheduled ACH and check payments will resume on October 1, 2020

DCED is working with the Comptroller’s Office to have the amortization schedules updated in the loan accounting system.

For Traditional PIDA Real Estate Loans:

Due to covenants related to PIDA’s existing bond indenture, an additional blanket three month moratorium, unfortunately was unable to be extended at this time for all traditional PIDA loan borrowers.  However, if a traditional PIDA borrower is experiencing cash flow issues due to the COVID-19 pandemic and is unable to make the July, August, or September payment, the PIDA Office is still more than happy to work with borrowers on an individual basis.  For cases like this, feel free to email me a request directly to include; 1) The borrower name, 2) Loan number, 3) An outline of how the company’s financial position has been negatively impacted and 4) The number of months the business is requesting a deferral for.  If additional information is needed to act on the request, the PIDA Office will work with the CEDO to gather the information.  Otherwise, traditional PIDA real estate loan payments, including scheduled ACH payments will resume in July.