Countless local businesses were left reeling last month when Gov. Tom Wolf announced a stay-at-home order for the entire state to help mitigate the spread of COVID-19.
In an effort to support area owners and staff who have been immediately and severely impacted by the coronavirus pandemic, the Redevelopment Authority of the County of Bucks and Bucks County Commissioners announced the launch of the COVID-19 Emergency Economic Rapid Response Loan Program.
The commissioners are committing $600,000 in Municipal Grant Program funds to establish the loan program, which is targeted toward businesses in the tourism and hospitality industry. The program is funded by the gross terminal revenue generated from Bensalem’s Parx Casino, and administered by the Redevelopment Authority under Pennsylvania Gaming legislation introduced by Sen. Tommy Tomlinson.
“When crafting the legislation that created the Municipal Grant Program, it was always my intention to see this money used to benefit the taxpayers in our communities,” said Tomlinson. “Now that we are facing the COVID-19 outbreak, I’m grateful our government organizations came together to help address this crisis. These critical funds will help businesses survive and sustain while we work to defeat the coronavirus.”
The zero-interest loans were made rapidly available to help infuse capital into Bucks County businesses and the local economy. The program was designed to immediately aid the cash flow position of these vulnerable businesses so that they can remain open and keep employees on the payroll. To facilitate this, an expedited electronic application process was developed by the Redevelopment Authority, which will oversee implementation of the program.
“This program is a great example of how the Redevelopment Authority can quickly and efficiently partner with the county government for the betterment of the residents of Bucks County,” said Sean Schafer, chairman of the Redevelopment Authority. “I’m extremely proud of the work that has been done by Redevelopment Authority staff, along with county staff, for creating and implementing this program in less than a week. I’m also grateful for Sen. Tomlinson, who staunchly fought for local share dollars to come to Bucks County over the past decade, which makes this program possible. The Redevelopment Authority will continue to work tirelessly to meet the needs of the residents of Bucks County through the course of this pandemic.”
The first round of the program was for tourism and hospitality companies that have been in business for at least two years, are currently open for business, have a facility located in an MGP-eligible municipality and can demonstrate profitability.
MGP-eligible municipalities are: Bensalem Township, Bristol Borough, Bristol Township, Hulmeville Borough, Langhorne Borough, Langhorne Manor Borough, Lower Southampton Township, Middletown Township and Penndel Borough.
This round ran through April 3. Currently, depending on available funding, the requirement to be located in an MGP-eligible municipality no longer applies.
“We know the economic impact of the COVID-19 pandemic will be very serious, and that it has the potential to ruin the hard work and dreams of business owners and their employees in Bucks County,” said Commissioner Robert Harvie. “As the County Commissioners continue to develop other economic assistance initiatives, we hope this loan program we are launching with the Redevelopment Authority can provide some immediate relief to small businesses in our community.”
Eligible businesses can apply for a maximum loan amount of $8,000 and need to complete an application form at bcrda.com. The loan term will be 36 months, with no payments due for the first 120 days. The Redevelopment Authority anticipates loans to be processed, and funds disbursed, within approximately five business days.
Redevelopment Authority executive director Jeff Darwak noted that COVID-19 has touched every sector of the economy, and reiterated Harvie’s comments that the Redevelopment Authority is working determinedly with the County Commissioners and economic development agencies on developing additional programs.
Applicants should note that the Redevelopment Authority is closed (staff is working remotely), and should not call the office at this time.
Samantha Bambino can be reached at [email protected]
