Pennsylvania Gov. Tom Wolf called on the federal government Wednesday for help sustaining small businesses and nonprofits during the novel coronavirus outbreak.
He asked the federal Small Business Administration to implement a disaster declaration and begin providing Economic Injury Disaster loans to help organizations overcome the losses associated with statewide shutdowns. The program offers loans up to $2 million with a 3.75 percent interest rate for small businesses and a 2.75 interest rate for nonprofits.
“The impact of financial losses related to COVID-19 will be felt for years to come,” he said. “But these low-interest loans can help bridge the gap between economic losses now and economic recovery in the future.”
The plea comes 48 hours after Wolf recommended all nonessential businesses shut down for two weeks to mitigate the spread of the virus and lessen the demand on health care as caseload grows. The strategy, known as “flattening the curve,” also relies on self-imposed social distancing for the state’s 12 million residents.
Wolf said he is working with legislators to leverage more state aid and encouraged businesses impacted by the virus apply for assistance through the Pennsylvania Industrial Development Authority.
The SBA said Tuesday its relaxing qualifications for the disaster loan program, including allowing businesses to apply once the state has declared “economic injury.”
“Our goal is to ensure that credit is available to any and all small businesses that need credit but are unable to access it on reasonable terms through traditional lending channels,” SBA Administrator Jovita Carranza said. “To that end, the SBA is relaxing the criteria through which states or territories may formally request an economic injury declaration, effective immediately. Furthermore, once an economic injury declaration has been made in a state or territory, the new rules allow the affected small businesses within the state or territory to apply for a disaster assistance loan.”
The relaxed rules come as part of the Trump administration’s response to the outbreak’s stranglehold on the U.S. economy. On Wednesday, the Senate approved a coronavirus relief package on a 90-8 vote. The measures will provide two weeks paid emergency leave and free testing for COVID-19, which has sickened more than 7,000 Americans and killed more than 100.
Pennsylvania reported its first death related to the novel coronavirus in Northampton County later the same day. The Department of Health said the adult was hospitalized, but declined to release any further information.
“With the knowledge of how quickly this virus spreads, I’m urging all Pennsylvanians stay home,” Wolf said. “Today’s death is the first of many.”
Some 133 residents have tested positive for COVID-19 across the state, Secretary of Health Dr. Rachel Levine said. The outbreak has not reached the level of sustained community spread, though officials expect to cross that threshold soon.
“We need to prepare for the possible and likely surge of COVID-19 patients over the next few weeks,” she said. “At this time we are seeing that exponential curve of new cases that is being seen globally, across the country and now in Pennsylvania.”
