Steve Letavic
Susquehanna River
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Posted Monday, February 1, 2021

Hospitality Industry Recovery Program

  • $145 million transfer of state funds from the Workers’ Compensation Security Fund to the Department of Community and Economic Development (DCED). 
  • DCED will distribute funding to counties, based on population, in the form of block grants by February 28, 2021. 
  • Counties must partner with Certified Economic Development Organizations (CEDO) to distribute the funding. For Dauphin County, this would be the Capital Region Economic Development Corporation (CREDC). 
  • CEDOs must begin accepting applications by March 15, 2021. 
  • CEDOs must make funding decisions by July 15, 2021. 
  • CEDOs must award funding to selected applicants by July 31, 2021. 
  • Hospitality Industry Recovery Program Block Grant funds not awarded by August 1, 2021 must be returned to the Commonwealth. 
  • CEDOs may charge an application fee of up to $750/application and may retain up to 1% of the total grant award for administrative purposes. 
  • Maximum grant award: $50,000.  Grants will be awarded n $5,000 increments.

 Eligible applicants/use of funds: 

  • Businesses that experience a revenue reduction of at least 25%. 
  • Has been in operation since February 15, 2020 and meetings the following North American Industry Classification System (NAICS) business designation categories: 
  • Accommodation Subsector: 721 NAICS designation. 
  • Food Services and Drinking Places Subsector: 722 NAICS designation. 
  • Has fewer than 500 full-time employees. 
  • Has a maximum tangible net work of not more than $15 million. 
  • Funding may be used for ordinary operating expenses, such as payroll and nonpayroll expenses with the following limitations: 
  • Operating expenses must have incurred between March 1, 2020 and June 15, 2021 or prior to the submission of the application. 
  • Mortgage Payments: The mortgage must have been in force prior to February 15, 2020. 
  • Rental Payments: The lease agreement must have been in force before February 15, 2020. 
  • Utility Costs: Utility service must have commenced prior to February 15, 2020. 
  • Ineligible applicants/use of funds: 
  • For expenses for which an eligible applicant previously received federal or state funding or CARES Act funding that does not need to be repaid to the federal government. 
  • Publicly traded companies. 
  • Prioritization of applications: The following applicants will be provided priority in funding considerations: 
  • Have not received grant or loan funding through federal or state programs under the state appropriations act or the federal CARES Act. 
  • Were subject to closure under the Governor’s Disaster Emergency Proclamation. 
  • A 50% reduction in revenues between 2019 and 2020. For those businesses that were not open in 2019, priority consideration is provided if the applicant can show a 50% reduction in monthly revenues from a 2020 pre-pandemic period and through Pennsylvania’s pandemic response.