Philly Leader

Gov. Tom Wolf has continued his push for the immediate use of $1.7 billion in unspent American Rescue Plan Act (ARPA) funds to help small businesses and families across the state as inflation rates reach historic highs.

Wolf was joined by Rep. Joseph Hohenstein, Sen. Tina Tartaglione, Philadelphia City Councilman Allan Domb and restaurant owner Nemi Jesus Garcia in calling for the General Assembly to take action and approve the funding, a recent press release from the governor's office said. The General Assembly is Republican-led, and Wolf has been making the rounds at local businesses and through press conferences to urge state legislators to make moves. He has been joined by members of the community and legislature in the process. 

Wolf's plan, proposed in February, includes $225 million in funds that would support small business by recapitalizing the Small Business Assistance Program, which provides grants of $5,000 to $50,000 for businesses.

"Families and businesses all across Pennsylvania are facing economic challenges as inflation goes up and prices rise right along with it," Wolf said in the release. "People all across Pennsylvania are hurting, but we have the money to help, and we need to spend it now. I am calling on the General Assembly to use Pennsylvania's unspent American Rescue Plan Act dollars to help Pennsylvanians get back on their feet."

The Small Business Assistance Program was created as relief for businesses affected by the COVID-19 pandemic. Funds can be used for operating expenses, training, guidance to relaunch a business and more. It also prioritizes women- and minority-owned businesses, as well as those in rural communities. In 2020 the program provided $192 million to more than 10,000 businesses, and if recapitalized it would help approximately 11,000 more.

The plan would also help with $500 million for direct payments to residents in need; $204 million for direct property tax relief for approximately 466,000 residents, giving each an extra tax rebate averaging $475; $325 million for the health care system, including $250 million for long-term care recruitment and retention incentives, $40 million for mental health programs and $35 million for student loan forgiveness; and $450 million for conservation, preservation and revitalization of the state's communities. Due to historic flooding and rainfall, the plan would also include a study on climate change as well as funds for Growing Greener conservation programs.

Tartaglione noted that the economic recovery cannot come at the expense of small businesses, but rather it should be led by them.

"Small businesses are the economic drivers of our communities, from small corner stores to hair salons and local restaurants," she said in the release. "If we want to ensure we are putting Pennsylvania on the strongest footing possible, we need to support the true economic backbone of our commonwealth."

Hohenstein said he supports Wolf's efforts to use the ARPA funds to help revive the economy and suggested his fellow Philadelphians have been enduring rainfall for two years, making an analogy referring to struggles from the pandemic.

"The governor's proposal to increase funding to the Small Business Assistance Program, the PA Opportunity Program and other funding for low-income families addresses the fact that so many of us are underwater and need a working-class bailout," he said in the release.