$3.5M in grant funding to be available to county hospitality businesses

WILKES-BARRE — Luzerne County Manager C. David Pedri on Thursday said until the pandemic subsides, helping to stabilize local businesses is a top priority.

Pedri participated in a new conference Thursday at the CAN DO Renaissance Center in Hazleton to announce that more than $3.5 million in competitive grant funding — in amounts ranging from $5,000 to $50,000 — will soon be available to Luzerne County hospitality businesses.

The online application process will open on March 15, and run through April 5.

“These businesses are such a vital part of the community,” Pedri said. “I am proud to partner with the Greater Wilkes-Barre Industrial Fund and CAN DO to provide much needed relief to Luzerne County businesses that were impacted most severely by this pandemic.”

Funds can be used for eligible operating expenses, including payroll and non-payroll expenses that are both “ordinary and necessary.”

An ordinary expense is one that is common and accepted in an eligible applicant’s industry.

A necessary expense is one that is helpful and appropriate for an eligible applicant’s trade or business.

For the purpose of determining an eligible operating expense, the following limitation shall apply:

• The operating expense must have been incurred between March 1, 2020, and June 15, 2021, or prior to submission of an application, whichever occurs first.

• Mortgage obligation, rent and utility costs must have been in forced before Feb. 15, 2020.

• Examples of eligible operating expenses include, but are not limited to, rent, mortgage, supplies, inventory and other operating expenses (which can include costs associated with public health related retrofit) needed to help the entity serve or produce goods relevant in today’s economy.

• Grant awards may not be used to pay the same eligible operating expenses for which an eligible business received payment, reimbursement, or loan forgiveness from the CARES Act of 2020, Consolidated Appropriations Act of 2021, or the COVID-19 Emergency Supplement to the General Appropriations Act of 2019. Receipt of a prior Federal Government or Commonwealth grant does not disqualify an applicant.

On Feb. 5, 2021, Gov. Tom Wolf signed into law legislation — Act 1 of 2021 — that set aside $145 million in funds to aid hospitality industry businesses most adversely affected by the COVID-19 pandemic.

For Luzerne County, $3,595,181 in competitive funding is available to Luzerne County hospitality businesses and to cover costs of operating the program.

Act 1 of 2021 requires that counties establish grant programs for eligible businesses through a Certified Economic Development Organization (CEDO) or Community Development Financial Institution (CDFI). Luzerne County has approved CAN DO, Inc. and Greater Wilkes Barre Industrial Fund, the designated CEDO’s for Luzerne County, to administer this grant program.

Entities must have sustained a minimum quarterly revenue loss of 25% or greater in any quarter when comparing between 2019-2020. Businesses must have fewer than 300 employees and a maximum tangible net worth of no more than $15 million. Passive businesses, such as commercial and residential landlords, are ineligible to apply. Available funds are limited, and high demand is anticipated. An eligible business may only apply once for the grant program and may only receive funding from one county.

“CAN DO is honored and excited for this opportunity to serve the hospitality businesses throughout Luzerne County,” said Mark Minnig, CAN DO Business Development Specialist. “CAN DO has been assisting businesses throughout the pandemic with applying for grant and loan programs like this. We are ready to do everything we can to help the hospitality businesses throughout Luzerne County get the funding they need to continue running their operations.”

Wico van Genderen, Greater Wyoming Valley Chamber of Commerce President and CEO, said COVID-19 has affected every segment and every facet of business, but certainly among the hardest hit is the hospitality sector.

“It has disproportionately impacted them in lost revenues, a furloughed workforce with lost wages, added expense and supply constraints due to safety restrictions and protocols, and crimped demand with their customer base,” Van Genderen said. “In addition, recovery will likely take longer than other industries, and will vary across segments. The $3.5 million County COVID 19 Hospitality Industry Recovery Program is crucial in providing much needed funding to the hospitality sector and the Chamber and CAN DO are in lockstep with the County in getting these recovery grants to this critical and most vulnerable business sector.”

For more information on this program and to access resources to begin preparing your application, visit www.luzernehospitalitygrants.org.

For questions regarding this program in Luzerne County, contact your local Chamber of Commerce, Small Business Development Center or email [email protected].