Recovery Lancaster Funding Opens for Businesses Under 100 Employees

July 21, 2020
Nichole M. Baer

Phase 2 of the Lancaster Small Business Recovery & Sustainability Fund opens on Monday, July 20, 2020 at 8:00 a.m. and will remain open until Friday, July 24, 2020 at 5:00 p.m.  Recovery Lancaster is a grant program that is not awarded on a first-come, first-serve basis.  The Phase 2 funding cycle consists of $14,962,092 that the federal CARES Act distributed to Lancaster County.

Who qualifies?

In order to apply, the applicant must be a business that operates in Lancaster County and employ 100 or fewer employees.  The determination of employees is based on a “headcount” and not on FTE equivalents. Part-time employees are each considered one employee for this calculation.

The headcount does include the owner of a business if the owner works in the business, but it does not include independent contractors.

What are the restrictions or disqualifications?

Applicants may receive funding assistance even if the business has received other grants and loans from other sources. However, an applicant is not permitted to apply for this grant if they received a grant in Phase 1 of the Lancaster Small Business Recovery & Sustainability Fund.

Applicants are also not permitted to use these grant funds against costs that were used with another grant or loan program that provided forgiveness (i.e., no double-dipping). Additionally, passive income businesses, such as landlords, are ineligible to apply.

Moreover, a business may be ineligible if an owner has been charged, arrested, or incarcerated for a felony.  If an applicant may be disqualified for these reasons, you should check the program for specific restrictions.

How can I apply?

The application will be located at, and applicants are strongly encouraged by the Fund to fill out the application online.

Paper applications are only accepted for businesses with fewer than 20 employees, and they must be submitted before the end of business on Thursday, July 16, 2020.  Businesses can pick up paper applications at Trout CPA at 1705 Oregon Pike, Lancaster during normal business hours beginning Monday, July 20, 2020.

In order to apply, the applicants must provide documentation, including but not limited to:

  • EIN or SSN (if reporting as a sole proprietor)
  • NAISC Code
  • Entity name
  • Summary of Goods and/or Services produced
  • Summary of Proposed Use of Working Capital
  • March 1-May 30, 2019 Revenue Statement
  • March 1-May 30, 2020 Revenue Statement
  • 2019 Gross Revenue
  • 2019 Net Profit (or Loss)
  • Copies of the business’s last submitted federal tax return
  • Information regarding the year the business was established, how COVID-19 has impacted the business, and employee headcount from March 1-7, 2020.
  • Payroll report for March 1-7, 2020 if the employer has more than 21 employees.
  • For retrofit, retrofit receipts or estimates

Is there anything else I should know?

Recipients can use the funds to cover working capital costs or for retrofitting expenses incurred or to be incurred after April 15, 2020.  Those costs include payroll, rent, mortgage, supplies, and operating expenses.  The funds may not be used to pay owner compensation or to pay back loans to related parties such as shareholders, partners, or family members.

The maximum cap on the amount awarded to a business shall be based on the business’s number of employees.  The maximum caps are:

1-20 Employees $20,000.00
21-50 Employees $50,000.00
50-100 Employees $80,000.00

Some information will be publicly released, including legal name and d/b/a name of the applicant, municipality the applicant is located, the funding amount requested, and the score result given by the funding committee.   Revenue amounts, operating expenses, and the purpose of the funding will not be publicly released.

Laws and regulations remain a moving target for COVID-19-related relief.  As such, the laws and regulations discussed today may change soon.  Please consult with a legal professional regarding the Lancaster Small Business Recovery & Sustainability Fund if you have any legal concerns.

Nichole Baer is an attorney at Russell, Krafft & Gruber, LLP, in Lancaster, Pennsylvania. She received her law degree from Stetson University, College of Law and practices in several areas, including BusinessCommercial Real EstateEstate Planning, and Estate Administration.