Allegheny, Westmoreland groups offer help to region’s small businesses during tough time
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For small businesses concerned about the economic impact of the coronavirus, help is on the way.
Several organizations in southwestern Pennsylvania said they plan to offer resources for small and medium-sized business affected by the coronavirus fallout, including those impacted by Gov. Tom Wolf’s order to close “nonessential” businesses.
The Wolf administration listed recreation centers, gyms, hair and nail salons, concert venues, theaters, bars, sporting event venues and retailers that don’t sell food or medicine among businesses considered nonessential.
The Greensburg-based Progress Fund said it is offering payment relief to its clients for April. The Progress Fund is a nonprofit Community Development Financial Institution that provides loans and business coaching to small businesses.
“We decided to be generous with all 121 of our borrowers by letting them keep their cash in April and pay us later,” said CEO David Kahley. “It’s all about the cash flow … and being able to pay the bills.”
Kahley said the Progress Fund first offered temporary relief on a case-by-case basis during the 2008-09 recession.
“In this case (with the coronavirus), it was obvious to us that our whole portfolio, and almost all small businesses, are suffering a cash-flow crisis in the short term because customers aren’t spending money,” he said.
The Progress Fund also is considering starting an emergency fund to help businesses with cash-flow issues, he said.
Swissvale-based Steel Valley Authority said it is offering assistance through its Strategic Early Warning Network, or SEWN, program. Its website includes articles, best practices, state-funded programs, links to video conferencing events and other resources.
“It’s really hard to give an estimate on what the impact will be,” said Carrie Mihalko, chief of staff. “It depends on how long the closings last.”
The authority was founded in 1986 in response to steel mill closings in the Pittsburgh area and is funded with federal money through the Workforce Innovation and Opportunity Act.
“We have been dedicated to helping companies during tough economic times for over 30 years, and this time is no exception,” the SVA said in an email alert.
Mihalko said the authority so far has been hearing more complaints from businesses in eastern Pennsylvania. For more information, call 1-866-SVA-8832 or email sewn@steelvalley.org.
The SEWN program is hosting a free webinar on “Workforce Contingency Planning During the Coronavirus Crisis” at 9 a.m. Friday.
The Pittsburgh-based Catalyst Connection said its response to the coronavirus will include a free virtual training curriculum.
“Our staff is available for free consultations to help your company address operational, supply chain and financial issues that may be arising as a result of the crisis,” CEO Petra Mitchell said in an alert.
Interested companies should contact Catalyst Connection by calling 412-918-4300 or through its website.
Honeycomb Credit, a Pittsburgh-based investment crowdfunding company, is offering loans to small businesses that are in need of working capital during the pandemic.
Each small business relief loan will include a 45-day payment-free period and will be interest-only for six months. Capital can typically be obtained in as little as 30 days.
“For the past few weeks, the coronavirus has caused massive disruption to our communities, the stock market and our daily lives,” said Honeycomb CEO George Cook. “We know that small businesses are facing unprecedented uncertainty. We also know that there are hundreds of people in every community, and in the Honeycomb network, that want to support them.”
Honeycomb operates a platform where a business’ loans are funded by local investors. Unlike Kickstarter and other crowdfunding sites, Honeycomb allows investors to make micro-loans to businesses they support and get their money back with interest.