News & Blog

March 27, 2020

State of Pennsylvania Business Updates

Important Information for Pennsylvania Businesses

“Non-life sustaining” Businesses

Businesses deemed to be “non-life-sustaining” by the Wolf administration are to remain closed until further notice. Representative Mike Turzai for Pennsylvania’s 28th Legislative District, recently stated in a recent webinar that the PA Legislature is trying to appeal to Governor Wolf to restart construction projects for infrastructure, residential housing, and petrochemical that are in process. Gun stores have recently been permitted to reopen. Please see this link for “essential businesses” according to the State of Pennsylvania.

Waivers to stay open

If you believe you are an essential business, Representative Turzai encourages all “closed” businesses to apply for a waiver to keep your business open. He stated that you should list everything you are doing in terms of mitigation to have a safe working environment according to CDC standards. Detail how your business is crucial to the supply chain. Supposedly the estimate turn-around time is 24 hours.

Manufacturers to be part of the solution

The state has put out a request for protective gear/equipment to local manufacturers and businesses. If you believe you can manufacture needed protective equipment – goggles, masks, gowns, caps, shoe covers, sanitizers, etc. Please click here for the Pennsylvania Manufacturing Portal.

PA Emergency Assistance CWCA Loans

According to the Representative for Pennsylvania’s 46th Legislative District, Jason Ortitay’s Facebook page. “The Pennsylvania Industrial Development Authority (PIDA) board met to approve the guidelines for the emergency response funding made available to the Small Business First Program. The new program, called the COVID-19 Working Capital Access (CWCA) Program, will be administered through PIDA.

Loan applications will be available later today to small for-profit businesses that employ 100 or fewer full-time employees, including businesses in the agricultural, service and hospitality sectors. The maximum loan amount will be $100,000 for working capital based on the last 6 months. These relief loans have a 0% interest rate with a 3-year repayment schedule, subject to the statutory requirement for the agriculture sector, and a term of three years. They will be awarded on a first-come, first-serve basis.

Basic Eligibility includes: Collateral is required and this program.  The state is willing to take a 2nd or 3rd collateral position. The State is also requiring a personal guarantee from a shareholder with at least a 20% stake in the organization. Your company’s debt service ratio must be 1:1 or better for basic eligibility. Credit reports are required.

All PIDA loan applications must be submitted through a Certified Economic Development Organization (CEDO). Click here for the list of CEDO’s operating within Pennsylvania.

Pennsylvania Extends Personal Income Tax Return Filing Deadline to July 15, 2020

According to the PA Department of Revenue website “The Department of Revenue announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file from the original deadline of April 15.

The Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.”
Click here to read more about the extension

Consider leaning on your CPA for cash flow guidance, tax deadlines, and help in completing SBA loan and the new CWCA loan applications. Our CPAs are available, and we have the knowledge, skill, and information that you need right now to properly address your financial needs in a timely fashion.

By Greg DeFeo

Greg DeFeo is a consulting manager with the advisory services division of Wilke & Associates, CPAs & Business Advisors. Greg has over twenty years of executive leadership experience.  Greg helps businesses with funding, strategic planning, mergers & acquisitions, and ownership transitions.

Creating a Lasting Legacy for Your Small Business
The Rise of Fractional CFOs in Small Businesses
Commonly Missed Tax Deductions for Business Owners
Choosing the Right Business Structure
Understanding EV Tax Credits for 2024