On March 23, 2020, most storefronts along Main Street and Broad Street in Lititz were dark. A week earlier, Gov. Tom Wolf had ordered non-essential businesses across Pennsylvania to close to slow the spread of the coronavirus, and restaurants were limited to takeout and delivery.
That day, during a virtual press conference, the governor announced a $60 million loan program to help small businesses survive the shutdown.
“So far much of the burden and responsibility has been borne by business owners,” Wolf said, acknowledging that closing bars, restaurants and stores had cost employees their income and left owners wondering whether they would survive.
What the program offered
The program, called COVID-19 Working Capital Access, was run through the Pennsylvania Industrial Development Authority, a state agency that normally finances economic development projects. It was aimed at small businesses with 100 or fewer full-time employees and offered working capital loans of up to $100,000 at very low interest, intended to cover payroll, rent and other operating costs while revenue was frozen.
Applications were not made directly to the state. Instead, businesses applied through Pennsylvania’s network of Certified Economic Development Organizations, regional nonprofits that partner with the state on business lending. In Lancaster County, owners were pointed to the local economic development organizations that serve the county.
Demand far outran the money
Demand was immediate. Thousands of businesses applied within days, and the available funds were quickly committed. For many owners, the state program was the first sign of relief, but it was soon overshadowed by much larger federal programs. The Paycheck Protection Program, created by the CARES Act at the end of March 2020, offered forgivable loans through banks, and the U.S. Small Business Administration’s Economic Injury Disaster Loans provided long-term, low-interest financing.
Later in 2020, Pennsylvania distributed federal relief money through county-run grant programs, including a Lancaster County program for small businesses that had been hit hardest.
For Lititz merchants, the gap between announcement and money was the hardest part. Rent and payroll came due on schedule, while relief arrived in weeks or months, if at all.
What owners learned
For small business owners in Lititz and across the state, the spring of 2020 offered hard lessons that still apply:
- Cash reserves matter. Businesses with even a few months of operating expenses in the bank had more time to wait for relief.
- Records matter. Owners whose payroll, tax filings and financial statements were organized could apply quickly when programs opened, often the difference between getting funds and missing out.
- Banking relationships matter. Many PPP loans went first to businesses with existing relationships at participating banks.
- Read the terms. Loans must be repaid. Grants and forgivable loans had rules about how funds were used and how forgiveness was documented.
- Local organizations help. Economic development groups, chambers of commerce and small business development centers walked owners through applications at no cost.
Where to get help now
Pennsylvania still offers small business financing through state programs, and the Pennsylvania Small Business Development Centers provide free one-on-one consulting. The U.S. Small Business Administration has a district office serving central Pennsylvania. Locally, the Lititz Chamber of Commerce and the Lancaster Chamber connect businesses with resources and peers.
Main Street came back
Many of the shops that were dark that March reopened as restrictions eased, though not all. The businesses that survived often did so by combining every source of help available, cutting costs and changing how they served customers, from curbside pickup to online ordering.
For more on how Lititz businesses weathered that period, see our restored story When Penn Cinema in Lititz Went Dark for the Pandemic, and follow money news in our Finance section.