Governor Tom Wolf announced that $145 million in funding will be distributed to all 67 Pennsylvania counties through the COVID-19 Hospitality Industry Recovery Program to help support the commonwealth’s hospitality industry. Funding will be provided in the form of block grants to each county based on population and will be allocated by February 28.
“The commonwealth’s hospitality industry is critical to the lives and livelihoods of so many Pennsylvanians, and it’s undeniable that it has been disproportionately impacted by the COVID-19 pandemic,” said Gov. Wolf. “After months of calling for support for our hospitality establishments and their employees, I am pleased that the General Assembly have allocated millions of dollars in resources to protect and preserve this industry.”
Grants will be awarded in $5,000 increments with a $50,000 maximum.
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.
A business is eligible if:
- It has 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.
- It has fewer than 300 full-time equivalent employees.
- It has a maximum tangible net worth of not more than $15 million.
- It was in operation on February 15, 2020 and remains in operation and does 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 applicant which makes the grant request necessary to support the ongoing operations of the eligible applicant.
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.