In partnership with the Pennsylvania Department of Community and Economic Development, the Pennsylvania CDFI Network is pleased to announce the opening of grant applications for the Historically Disadvantaged Business Assistance (HDBA) Grant Program.
Donor Name: Pennsylvania CDFI Network
County: All Counties
Type of Grant: Grant
Size of the Grant: $1000 to $10,000
Grant Duration: Grant Duration Not Mentioned
The Historically Disadvantaged Business Assistance Program is a $10.5 million grant program funded by the American Rescue Plan Act financed in part by the Pennsylvania Department of Community and Economic Development, under the administration of the Commonwealth of Pennsylvania. The program intends to mitigate the negative economic impacts of COVID-19 on small businesses.
During the application process, businesses will request a grant amount of at least $2,500 and up to $10,000. The grant amount request should be based on past and anticipated costs associated with, but not limited to, the following:
- Working capital
- Safety and security Equipment
- Costs to support the ongoing operation of the business
Eligible businesses may not use the grant funds for expenses already paid for with other relief measures such as federal, state, or local grants and/or loan programs.
To be considered eligible for this grant program, a small business must:
- Be at least 51% owned and operated by individuals that identify as African American, Black, Hispanic, Native American, Asian American, or Pacific Islander. This target population is based on the U.S. Treasury Department’s definition of disadvantaged individuals that historically lack access to financial services,
- Generate annual revenues of less than $1 million,
- Generate 51% or more of revenues in Pennsylvania,
- Employ 25 or fewer full-time equivalent employees,
- Have been negatively impacted by COVID-19,
- Be in operation on or before March 17, 2020,
- Be in operation when they apply for and receive HDBA grant funding,
- File a Pennsylvania tax return, and
- Be current on federal, state, and local taxes.
Ineligible businesses include:
- Businesses that are not physically based in Pennsylvania
- Nonprofit, churches, and other religious institutions
- Passive real estate firms
- Real estate businesses in which greater than 51% of their income is rental income
- Businesses engaged in illegal activity per federal, state, or local laws
- Businesses in active default with taxes or fees owed to the federal, state, or local government
- Businesses that are delinquent or in active default on other federal loans through agencies such as SBA, HUD, or USDA.
- Private clubs and businesses that limit the number of memberships for reasons other than capacity
- Businesses engaged in any illegal activity, socially undesirable, or those that may be considered predatory in nature, such as pawnshops, rent to own, check cashing businesses, erotic massage businesses, and adult bookstores.
- Businesses primarily engaged in political or lobbying activities
- Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors
- Life insurance companies
- An owner of 20 percent or more of the equity of the applicant is incarcerated, on probation, on parole; presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years or any other felony within the last year.
For more information, visit PA CDFI Network.