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.