The CWCA program offers up to $100,000 in loans to small for-profit businesses with fewer than 100 full-time employees. Most of the loans are interest-free with no payments due during the first year. The first round of funding announced on March 25, 2020, saw the Commonwealth Financing Authority (CFA) authorize the transfer of $40 million to the Small Business First Fund to support the CWCA program.
The DCED also released a partial list of the initial funding awards through April 2020. The list documents the names of recipients, amounts, and locations for the first $23,635,531 awarded through the program.
Applications are submitted through the local Certified Economic Development Organizations (CEDOs). It remains unclear whether new applications are currently being accepted, but according to the DCED website, the program currently remains closed to new participants. The program reportedly received an extraordinary number of applications.
According to the DCED working capital includes, but is not limited to, payroll, fringe benefits, payroll taxes, P&I on loans that are current, inventory and raw materials, pharmaceutical supplies, personal protective equipment (PPE), rent expenses, contract staffing costs, insurance expenses, utilities, business telephone and cell phone expenses, information technology expenses, accounting expenses, licenses and permits, facility, repair, and maintenance expenses, office supplies, and company vehicle expenses.
Businesses seeking further guidance and clarification can reach out to their local CEDO or contact DCED through their customer service resource account at firstname.lastname@example.org.
The SBA Focus Group of the COVID-19 Task Force at Klehr Harrison stands ready to assist you in your business and legal needs. We will continue to provide additional information and guidance as the PPP loan program is implemented.
Author Matthew McDonald is a partner in the Corporate & Securities Department at Klehr Harrison.