(e)Definitions.--The following words and phrases when used in this section shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "CDFI." A community development financial institution that is certified by the United States Department of the Treasury, is headquartered in this Commonwealth, is part of the 17-member Pennsylvania CDFI network and primarily provides business loans to low-to-moderate income individuals and business owners.
"Certified economic development organization" or "CEDO." An economic development organization that has been certified by the Pennsylvania Industrial Development Authority or an economic development organization that serves more than one county and is accredited by the International Economic Development Council.
"Consolidated Appropriations Act, 2021." The Consolidated Appropriations Act, 2021 (Public Law 116-260, 134 Stat. 1182).
"Department." The Department of Community and Economic Development of the Commonwealth.
"Economic development organization." A local development district, an industrial development agency, industrial resource center, redevelopment authority, community development financial institution or any other nonprofit economic development organization that is certified to participate in the Pennsylvania Industrial Development Authority loan program.
"Eligible applicant." A for-profit entity that meets each of the following:
(1) Is not publicly traded.(2) Experienced a reduction in revenue in calendar year 2020, measured as follows: (i) the applicant had gross receipts during the first, second, third or fourth quarter in calendar year 2020 that demonstrate at least a 25% reduction from the applicant's gross receipts during the same quarter in calendar year 2019;(ii) if the applicant was not in business during the first or second quarter of calendar year 2019, but was in business during the third and fourth quarters of calendar year 2019, the applicant had gross receipts during the first, second, third or fourth quarter of calendar year 2020 that demonstrate at least a 25% reduction from the applicant's gross receipts during the third or fourth quarter of calendar year 2019;(iii) if the applicant was not in business during the first, second or third quarter of calendar year 2019, but was in business during the fourth quarter of calendar year 2019, the applicant had gross receipts during the first, second, third or fourth quarter of calendar year 2020 that demonstrate at least a 25% reduction from the fourth quarter of calendar year 2019;(iv) if the applicant was not in business during calendar year 2019, but was in operation on February 15, 2020, the applicant had gross receipts during the second, third or fourth quarter of calendar year 2020 that demonstrate at least a 25% reduction from the gross receipts of the entity during the first quarter of calendar year 2020; or(v) an applicant that was in operation in all four quarters of calendar year 2019 is deemed to have experienced the revenue reduction in subparagraph (i) if the applicant experienced a reduction in annual receipts of at least 25% in 2020 compared to 2019 and the applicant provides copies of its annual Federal tax forms substantiating the revenue decline.(vi) If an applicant changed ownership or control in calendar year 2020, the applicant may measure its reduction in revenue in calendar year 2020 under subparagraphs (i), (ii), (iii), (iv) or (v) using the gross receipts of the entity for 2019.(3) Meets each of the following conditions as of February 15, 2020:(i) Operates a place of business within this Commonwealth having a NAICS designation within the Accommodation subsector (721) or Food Services and Drinking Places subsector (722) and where accommodations, food or drink is served to or provided for the public, with or without charge.(ii) Has fewer than 300 full-time equivalent employees. For purposes of determining the number of full-time equivalent employees under this subparagraph, the calculation shall include each employee of the eligible applicant notwithstanding whether the eligible applicant has employees at multiple locations.(iii) Has a maximum tangible net worth of not more than $15,000,000 computed in accordance with generally accepted accounting principles."Eligible operating expense." An operating expense, including a payroll and nonpayroll expense, that is both ordinary and necessary. An ordinary expense is one that is common and accepted in an eligible applicant's industry. A necessary expense is one that is helpful and appropriate for an eligible applicant's trade or business. For purposes of determining an eligible operating expense, the following limitations shall apply:
(1) The operating expense must have been incurred between March 1, 2020, and June 15, 2021, or prior to submission of an application under subsection (b), whichever occurs first.(2) For a mortgage obligation, the mortgage must have been in force before February 15, 2020.(3) For rent, under lease agreements, the lease agreement must have been in force before February 15, 2020.(4) For utility costs, service must have begun before February 15, 2020.(5) If an existing mortgage obligation or lease agreement in force before February 15, 2020, is refinanced or restructured after February 15, 2020, the mortgage obligation or lease agreement is deemed to have been in force before February 15, 2020."Full-time equivalent employee." The quotient obtained by dividing the total number of hours for which employees were compensated for employment over the preceding 12-month period by 2,080.
"Gross receipts." Revenue in whatever form received or accrued, in accordance with the entity's accounting method, from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees or commissions, reduced by returns and allowances. The term does not include the following:
(1) taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees;(2) proceeds from transactions between a concern and its domestic or foreign affiliates; and(3) amounts collected for another by a travel agent, real estate agent, advertising agent or conference management service provider."NAICS." A classification within the North American Industry Classification System developed for use by Federal statistical agencies for the collection, analysis and publication of statistical data related to the United States economy.
"Program." The County Block Grant--Hospitality Industry Recovery Program established under subsection (b).