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Lebanon City Small Business Recovery Assistance Program

The Lebanon City Small Business Recovery Assistance Program is a new loan fund developed to provide emergency relief to small businesses struggling under the financial impact of COVID-19. The Emergency Fund is designed to help small businesses within the City of Lebanon, PA.

Over the past month, the fund was developed by the Administration of Mayor Sherry Capello with assistance from Community First Fund in response to the urgent needs of the Lebanon business community in the midst of the dramatic economic downturn sparked by the pandemic. Federal resources provided through the CARES Act offer important resources, but due to the overwhelming need, they will likely be insufficient and will not reach the most vulnerable small businesses in our community.

The June 24 launch of the Lebanon City Small Business Recovery Assistance Program will open with $350,000 available in highly flexible, low-interest loans administered by Community First Fund. This new forgivable loan program is funded entirely by the City of Lebanon: all of the $350,000 is from the city’s Community Development Block Grant funds. The funds are expected to assist approximately 50-100 city-based small businesses.

Business Qualifications and Eligibility Requirements

PurposeThis fund is intended to support an inclusive and diverse small business environment within Lebanon City. Businesses with up to $1 million in annual revenue may apply.
Business QualificationsThis is NOT a first-come, first-served fund. All applications will be equally considered based on the following criteria.

All borrowers will need to meet these two requirements:
• Business MUST be located in the City of Lebanon
• Businesses must have $1 million or less in annual revenue to apply

Note: The Review Committee reserves the right to add further priorities or change eligibility criteria based upon applicant pool.
Eligible Use of FundsWorking capital to restart non-essential business or sustain essential business operations, rent, utilities, payroll and other defined use in accordance with CDBG guidelines.

Loan Program Details

Loan Limits• Businesses applying for a loan are encouraged to consider cash needs and ability to take on more debt.*
• Businesses with annual revenue less than $250,000 may apply for a loan up to $2,500
• Businesses with annual revenue between $250,001 and $500,000 may apply for a loan up to $5,000
• Businesses with annual revenue between $500,001 and $1,000,000 may apply for a loan up to $7,500

* Final loan amounts determined by review committee
Loan Terms• 3-year loan
• 0% interest and no payments for the 6 months
• 4% interest years 1.5 - 3
Loan ForgivenessLoans will be eligible for forgiveness pending documented proof that funds were used as agreed and that they re-opened (or remained open) for a minimum of 90 days once COVID-19 restrictions are lifted. Businesses will be required to certify that were open for operations for a period of at least 90 days. Community First Fund will review each loan’s forgiveness eligibility by December 31, 2020.
What You'll Need To Apply:• Most recent tax return (2018 or 2019)
• 2019 financial statement
• A description of the impact of COVID-19 on your business and your recovery plan (entered into application directly)
• Completion of online loan application form and online personal financial statement form

Note: We will pull credit reports and conduct lien searches on businesses

Application Information

The application will be available from June 24, 9 a.m. to July 8, 5 p.m. The loan application window is open now. You can find the application at the bottom of this page.

This is NOT a first-come, first-served fund. Once the application window closes on July 8 at 5 p.m., all applications will be equally considered.

We’re committed to a simple, low-barrier process. All cumbersome and non-essential steps have been removed. Businesses applying for a loan are encouraged to consider cash needs and ability to take on more debt.

NOTE: Owners of multiple businesses can only apply for funding for ONE of their businesses.

Management and Distribution of Funds

Community First Fund – a PA 501(c)(3) nonprofit and certified Community Development Financial Institution – will be managing and distributing all funding in an equitable, timely, and structured manner.

Once applications close on July 8, all applications will be equally considered.

  • July 8 – Application closes
  • July 22 – Loan decisions completed
  • July 27 – Loan disbursements begin


  • Process & Eligibility Fact Sheet – English / Spanish
  • FAQ’s – English / Spanish
  • If you need assistance completing the application or have questions as you prepare, contact: Angel Rosario, Senior Community Lender: (717) 875-3393

• The Pennsylvania $225 Million Grant Program for Small Businesses Impacted by COVID-19 announced by Governor Wolf on June 8 is expected to be available for application at the end of June. Grants will be limited to $50,000 based on revenue size. To be eligible, small businesses must have less than $1.0 million in revenues and fewer than 25 FTE employees. Applications will not be accepted on a first come, first served basis. Go to this page to learn more about the program and access the online application, please click here. Please DO NOT apply for this PA State Grant Program using our online loan application below.