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Hospitality Industry Relief Grants on the Way

Published on

March 1, 2021

Pennsylvania counties soon will be receiving millions in state dollars to help boost the hospitality industry, one of the groups the global pandemic has hit hardest.

Gov. Tom Wolf signed into law the COVID-19 Hospitality Industry Recovery Program earlier this month, allowing owners of hospitality businesses that fit the qualifications of the grant to apply for their share of $145 million in funding to keep their businesses afloat.

The funds are being sent to each of Pennsylvania’s 67 counties’ economic development organizations or community development financial institutions to distribute to businesses within that county, based on where the business is physically headquartered.

You can find a full list of the state’s rules and qualifications for funding here. Your business must have an NAICS code of 721 or 722 to be eligible.

To receive any possible funding, businesses must apply directly to those county departments, not to the state. The maximum grant will be $50,000, and the minimum will be $5,000.

Counties will receive different amounts of funding based on population, according to the program’s parameters. Each county is preparing its own system of distribution methods.

The EDC of Lancaster County, for example, hopes to open its application process on March 8 and close it on March 19. The county has received about $6.2 million in funding. Cumberland County, which according to its website has received about $2.9 million in funding, hopes to start the application process by March 15. Berks County, which will receive about $4.7 million, also plans a March 15 opening, and said the program will stay open until the funds have been exhausted.

The parameters of the programs in each county could be subject to change prior to each opening the application period. However, it is imperative, especially if believe you are in a county where there could be especially high demand, that you apply as close to the opening of the program as soon as possible. While the state closes the program June 15, it is likely that all funding will be exhausted by then. The sooner you have your application ready and submitted, the better.

If you are a hospitality business and have any questions about the application process, please contact me or any member of the Barley Snyder Hospitality Industry Group.

DISCLAIMER: The information in this alert should not be construed as legal advice to be relied upon nor to create an attorney/client relationship. Please note that the reader’s or an industry’s specific situation or circumstances will vary and, thus, for example, an approach that is advisable in one industry may not be appropriate in another industry. If you have questions about your situation or about how to apply information contained in this alert to your situation or industry, you should reach out to an attorney.

The views expressed in this alert are those of the individual author and do not necessarily reflect the views of the firm or the firm’s clients. The response to the COVID-19 pandemic is particularly challenging, evolving and, in many cases, can be controversial. Any views expressed in this alert are not intended to advocate for or endorse a particular governmental response to the pandemic.

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