HARRISBURG, PA — Governor Josh Shapiro has kick-started a new initiative to support small diverse businesses across Pennsylvania with a total of $10.5 million in federal funding via the American Rescue Plan Act (ARPA). The grant program, which began accepting applications on Monday, is aimed at historically disadvantaged businesses impacted economically by the COVID-19 pandemic.
The governor’s initiative will award grants ranging from $2,500 to $10,000 to eligible businesses that were in operation on or before March 17, 2020. Applications will be accepted from February 5 through February 23, 2024.
“Since day one, I have advocated for long-overdue funding for women and minority-owned businesses across this Commonwealth, to support their growth and open new doors of opportunity. Today, we make good on that promise,” said Governor Shapiro.
The Pennsylvania Community Development Financial Institutions (CDFI) Network will manage the grant awards. The program defines historically disadvantaged small businesses as minority businesses generating annual revenues of $1 million or less and employing fewer than 25 full-time equivalent employees.
The grant program also gives priority to small businesses located within low-income census tracts, high-crime municipalities, and designated areas including Philadelphia’s Commercial Corridors, Pittsburgh’s Neighborhood Business Districts, Allegheny Together Communities in Allegheny County, and active Main Street Program areas statewide.
Department of Community and Economic Development Secretary Rick Siger emphasized the importance of supporting small, minority-owned businesses. “When they succeed, communities thrive, and Pennsylvania’s economy grows,” he said.
The grant funds can be used for various business needs, including working capital, inventory, equipment, safety and security equipment, marketing, and other operational costs. An additional $8.5 million in ARPA funding will be provided for technical assistance and business development through the CDFIs and other partner organizations.
Governor Shapiro’s initiative builds on previous federal funding programs like ARPA, which have traditionally provided funding for historically disadvantaged businesses in Pennsylvania. The governor secured first-time state funding for the Historically Disadvantaged Business program in the 2023-24 budget, marking a significant step towards investing in small minority-, women-, and veteran-owned businesses in the state.
Potential applicants are encouraged to visit the PA CDFI Network’s program landing page to review the program guidelines, connect with technical assistance partners, access Frequently Asked Questions (FAQ), and submit an application.
With this new initiative, Governor Shapiro continues his commitment to fostering a diverse and inclusive business environment across Pennsylvania, ensuring all businesses have the opportunity to grow and thrive.
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