Businesses in the hard-hit hospitality industry — including restaurants, food trucks, catering companies, and small hotels — will now have until April 12 to apply for the $17 million grant program
PHILADELPHIA — The City of Philadelphia and PIDC today announced that the application for the Pennsylvania COVID-19 Hospitality Industry Recovery Program (CHIRP) will be extended for one additional week; the new application deadline is 11:59 p.m. on April 12.
CHIRP is a new $145 million statewide program created by the Commonwealth of Pennsylvania to alleviate revenue losses and pay eligible operating expenses for certain businesses in the hospitality industry, which has been severely impacted by the COVID-19 pandemic. Through the Commonwealth’s Department of Economic and Community Development (DCED), Philadelphia County is receiving over $17 million in funding to provide grants to eligible businesses through this program.
The application is available at PIDCphila.com/CHIRP; more than 600 businesses have applied as of March 29. All applications will be reviewed after April 12. The program is not first-come, first-served; applications will be awarded based on eligibility and alignment with program priorities. Grant awards are estimated to range from $5,000 to $50,000 per business. CHIRP is a program distinct from the City of Philadelphia’s COVID-19 Restaurant and Gym Relief Program (RGRP), originally announced in January and awards from that program were announced earlier in March.
“By extending the application deadline for CHIRP, we hope that all eligible businesses in the hard-hit hospitality industry will apply for funding from this program made possible by the Commonwealth,” said Mayor Jim Kenney. “Hospitality businesses play a critical role in Philadelphia’s economy and—given the burdens faced throughout this pandemic—we want to make sure businesses are aware of and apply for this significant source of financial relief.”
What Businesses are Eligible
- Be physically located in Philadelphia County, in operation as of February 15, 2020, and intend to continue operating within one year of the date of application.
- Have a NAICS designation within the Accommodation subsector (721) or Food Services and Drinking Places subsector (722) as its primary activity.
- Have a documented 25 percent reduction in gross receipts between 2019 and 2020 (calculated annually or quarterly) due to financial impact from COVID-19.
- Be a for-profit business and not a publicly traded entity.
- Have fewer than 300 full-time equivalent employees entity-wide as of February 15, 2020.
- Have a maximum tangible net worth not more than $15 million as of February 15, 2020.
- Be in compliance with all local, state, and federal taxes, or be on an approved payment plan or can prove they are in the process of getting on a payment plan.
- The Philadelphia Department of Revenue is offering flexible payment plans.
- Have the required federal, state, and local licenses and permits to legally operate and be in good standing with the City of Philadelphia.
- Apply for only one CHIRP grant per Philadelphia County business location (per unique EINs).
What Businesses Will Need to Apply
Business owners should gather basic information about their business, including:
- Type and structure of business
- Employer Identification Number (EIN), social security number, or Individual Taxpayer Identification Number (ITIN) of business owner
- NAICS Code (6-digit number used to identify the type of business you are operating can be found on the first page of most business tax returns)
- Annual and quarterly gross receipts from 2019 and 2020
- Number of full-time and part-time employees pre-COVID and currently
- 2019 Tax Return, if in operation in 2019
- 2019 Profit and Loss statements on a quarterly or monthly basis, if in operation in 2019
- 2020 Profit and Loss statements on a quarterly or monthly basis
- A Profit and Loss statement template can be downloaded on the application page, so that businesses only have to fill in their numbers.
- Signed, dated, and completed W9 form (the October 2018 version must be used; a blank W-9 for completion can be obtained online)
Flyers describing the program, and how businesses can receive assistance applying, are available in multiple languages here. More information about this new program is also available at phila.gov/CHIRP.
What Funds May Be Used For
If approved for a grant, businesses may use the funds for eligible expenses incurred between March 1, 2020 up to the date of application. Eligible expenses are defined as an operating expense, including a payroll and non-payroll expense, that is both ordinary and necessary. If using grant funds to cover expenses related to mortgage, rent, or utilities then those services must have begun before February 15, 2020. Grant funds cannot be used for expenses or losses that were already covered by any public sector funding received by businesses due to COVID-19 between March 1, 2020 through the date of application for this program.