Pennsylvania is home to bustling industrial centers that produce steel and coal. While large conglomerates do a tremendous amount of business within state borders, the Keystone State isn’t known for being very friendly to small businesses. High tax rates may discourage some entrepreneurs, but on the other hand, the state is geographically desirable and has a vibrant population. If you choose to run a business in Pennsylvania, you may need funding. And here’s where you’ll find it. The loans and grants detailed below are only available to Pennsylvania-based companies. Check them out and start applying!
In addition to grants and loans, business owners in Pennsylvania can check out the Pennsylvania Department of Community and Economic Development webpage for updates on grant and loan programs as well as tax incentives.
Department or Agency: Ben Franklin Technology Partners, in coordination with the Pennsylvania Department of Community and Economic Development
Loan or Grant title: The Ben Franklin Partners Challenge Grant
The Ben Franklin Partners Challenge Grant aims to promote the advancement of technology, business innovation, and the development of alternative and renewable energy. Assistance comes in three forms: cash, counsel, and connections—all of which help Pennsylvania businesses drive growth and create jobs. Total awards vary annually based on appropriations from the Commonwealth’s annual budget and are distributed via four state regional partners: Central and Northern PA, Northeastern PA, Southeastern PA, and Southwestern PA. Pennsylvania entrepreneurs, startups, companies, investors, and research institutions are encouraged to apply.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: First Industries Loan Guarantee Program
The First Industries Fund provides loan guarantees to nonprofit and for-profit entities for the promotion of eligible activities in agriculture and tourism. Agricultural examples include the production and sale of farm commodities, agribusiness, energy-related activities related to agriculture, and agricultural waste management. Tourism activities include destination sites, hospitality businesses, tour companies, and other projects related to promoting travel to Pennsylvania. Applicants who own businesses must have at least a 20% stake to apply. Also, the project must have at least $500,000 of private funds invested. Loan guarantees can’t exceed 50% of any outstanding principal loans or $2.5 million, whichever is less. Pennsylvania lending institutions are also permitted to apply on behalf of an applicant.
Department or Agency: Pennsylvania Office of International Business Development (OIBD)
Loan or Grant title: Global Access Program (GAP)
The Global Access Program was created to help small and medium-sized businesses in Pennsylvania develop capabilities to increase export sales. Grants up to $10,000 per qualifying award period can be used to reimburse up to 75% of eligible costs spent to enhance and promote either overseas or domestic exports. Allowable activities include trade missions, foreign sales trips, translator/interpreter fees, shipping, compliance, and more. Pennsylvania companies must be in good standing and ready to undertake exports.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: High Performance Building Program (HPB)
The High Performance Building Program offers grants and loans to small businesses (100 or fewer full-time employees) and individuals residing or operating within the state of Pennsylvania. Funds are limited to the construction or renovation of buildings with the intent to elevate energy performance and promote the use of environmentally sustainable building materials. Permitted use also extends to the purchase and clearing of lands, and the planning and design work needed to construct an environmentally conscious structure. The guidelines provide more details about permitted projects, as well as descriptions of available loans and guarantees. All grants have a dollar-for-dollar matching requirement, with business awards not to exceed $2 million per business.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: Pennsylvania First Program
The Pennsylvania First program aims to equip Pennsylvania businesses, municipalities, and other eligible organizations to participate in the global economy more effectively. Projects eligible for funding include job training, property purchase or renovation, equipment upgrades or acquisition, operating funds, and more. A full list can be found on the program guidelines, but each awardee must offer a significant positive economic impact for the state or community where the business will operate or expand. Competitive applications will include a higher percentage of private funds when compared to the requested award amount. Total awards depend on project needs, but maximum assistance is capped at $5,000 per job created, and program assistance can’t surpass two consecutive years.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: Pennsylvania Minority Business Development Authority
The Pennsylvania Minority Business Development Authority Loan Program (PMBDA) was created to promote economic growth and job creation of minority-owned businesses in Pennsylvania. For-profit companies owned or controlled by socially or economically disadvantaged people are eligible to apply, including sole proprietorships, partnerships, and corporations. Costs covered include land, building, and machinery costs, as well as operating funds. PMBDA loans can cover up to 90% of an applicant’s project costs up to $250,000. The project must have at least 10% of costs covered by other sources, and the loan interest rate will be capped at 2%.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: Pipeline Investment Program
The Pipeline Investment Program (PIPE) offers grants to cover costs associated with extending natural gas pipelines the last few miles to reach business parks and manufacturing businesses. The goal is to create new economic activity and create jobs. Eligible entities include businesses, economic development organizations, and municipalities. Grant awards are up to $1.5 million or 50% of total project costs, whichever is less.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: Foundations in Industry Training (FIT) Grant
The Foundations in Industry Training (FIT) Grant is designed to increase the availability of apprenticeships in Pennsylvania, help employers fill open roles, and provide needed talent development resources. A variety of businesses, workforce development boards, employer consortiums, and labor and education institutions are eligible to apply. Applicants can request up to three years of funding, for $3,000 per apprentice per year.
Department or Agency: Pennsylvania Department of Community & Economic Development, Department of Community, and the Department of Environmental Protection, directed by the Commonwealth Financing Authority
Loan or Grant title: Renewable Energy Program (REP)
The Renewable Energy Program offers grants and loans to encourage the use of renewable energy sources in Pennsylvania. Specifically, the program awards grants, loans, and guarantees for geothermal and wind energy projects. Businesses, individuals, and local municipalities are eligible to apply for grants of up to $1 million for wind energy generation or distribution, five-year guarantees of up to $5 million, and loans up to $5 million or 50% of project costs—whichever is less.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: WEDnetPA
The Workforce and Economic Development Network of Pennsylvania (WEDnetPA) offers business grants to fund training for new or existing employees. Skill development must apply to a worker’s current job or prepare them to advance toward a promotion. Eligible workers must be residents of and work in Pennsylvania, earn at least the federal minimum wage, and be permanent, full-time workers eligible for associated benefits. The guidelines state company eligibility is capped at two consecutive years, or three out of the last five years, with awardees receiving $2,000 per individual worker and up to $100,000 per company.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Abandoned Mine Drainage Abatement and Treatment Program (AMDATP)
Pennsylvania businesses can get grants for projects that involve reclaiming abandoned mine wells and constructing new sites. Only projects that cost less than $1 million are eligible for grants. Business owners have to match the grant amount by 15%.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Alternative and Clean Energy (ACE) Program
Through the Alternative and Clean Energy (ACE) Program, Pennsylvania businesses can get grants and loans for projects that require clean energy, develop the use of alternative energy, or increase energy efficiency and promote energy conservation. Companies can get loans of $40,000 for every new job they create as part of their ACE project, up to $5 million or 50% of the total project cost, whichever is less. Grants are $10,000 for every job the business creates, up to $2 million or 30% of the total project cost, whichever is less.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Baseline Water Quality Data Program
This program is geared toward municipalities and businesses collecting and analyzing water samples to document existing groundwater quality conditions on private water supplies. Grants are only available to projects with total costs of less than $250,000. Businesses need to match their grant amount by 15%.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Broadband Equity, Access, and Deployment (BEAD) Program
This program is available to eligible Pennsylvania businesses to improve their high-speed broadband service infrastructure. Companies can use the funds to upgrade their broadband network facilities, collect data, conduct broadband mapping, and more. There’s no minimum or maximum grant amount, but businesses do have to match their grant funds by 25%.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Flood Mitigation Program
This program awards grants to eligible Pennsylvania businesses investing in flood mitigation practices and projects. The maximum grant amount is $500,000, with a 15% total match required. Only projects authorized by a local government, flood protection authority, the Department of Environmental Protection (DEP), the U.S. Army Corps of Engineers (Corps), or the U.S. The Department of Agriculture’s Natural Resources Conservation Service (NRCS) are eligible to apply.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Greenways, Trails, and Recreation Program
This program awards grants to eligible Pennsylvania businesses investing in developing, rehabilitating, or improving public parks, recreation areas, greenways, trails, and river conservation. The maximum grant amount is $250,000, with a 15% total match required.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Marketing to Attract Tourists
The Marketing to Attract Tourists Program supports tourism-related businesses in Pennsylvania by giving them grant money. Businesses can use the funds to develop marketing and sales assets, create multi-channel marketing campaigns, and support event operations.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Mixed-Use Revitalization Program
The Mixed-Use Revitalization Program is available to Pennsylvania developers working on community revitalization projects that promote economic growth. Eligible projects must be situated on at least 15 acres of land, contain at least 200,000 square feet of proposed development, and be zoned for the planned end use. The maximum grant amount is $3 million.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Multimodal Transportation Fund
The Multimodal Transportation Fund gives grants to businesses developing, rehabilitating, or enhancing transportation assets for existing communities. That includes streetscape, lighting, sidewalk enhancement, pedestrian safety, and more. The maximum grant amount is $3 million; projects must cost at least $100,000 to qualify.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Orphaned or Abandoned Well Plugging Program
Pennsylvania businesses can get grants for projects that involve cleaning out and plugging abandoned and orphaned oil and gas wells, and stray gas mitigation systems. The maximum grant is $1 million per project.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Solar Energy Program
Under the Solar Energy Program, Pennsylvania businesses can get grants and loans to cover the cost of solar energy or solar equipment installation. Component manufacturers of solar energy generation equipment can get grants of up to $5,000 for every new job created during the project; the maximum grant is $1 million. Loans for component manufacturers of solar energy generation equipment are up to $40,000 for every new job created, not to exceed $5 million or $3.00 per watt, whichever is less.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Watershed Restoration and Protection Program
Pennsylvania businesses can get grants for projects that involve the construction, improvement, expansion, repair, maintenance, or rehabilitation of new or existing watershed protection best management practices. The maximum grant amount is $300,000, and businesses must match the amount by 15%.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Business Opportunities Fund
The Business Opportunities Fund gives Installment loans, lines of credit, and technical assistance to minority business enterprises, women-owned businesses, and small businesses. There are no minimum and maximum loan sizes; amounts vary.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Next Generation Farmer Loan Program
The Next Generation Farmer Loan Program helps reduce a Pennsylvania farmer’s interest rate for major purchases like land and agricultural machinery and equipment. The maximum loan amount is $649,000, with no more than $62,500 being allocated toward the purchase of used equipment.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Pennsylvania Minority Business Development Authority
This program gives low-interest loans to minority-owned businesses. Businesses can use the funds to acquire land and buildings, take on construction and renovation projects, purchase machinery and equipment, and cover working capital. The program can finance up to 90% of a project’s total costs, up to $250,000.
Department or Agency: Department of Community & Economic Development
Loan or Grant title: Pennsylvania Minority Business Development Authority – Revolving Loan Fund Capitalization Program (PMBDA-RLFCP)
Under this program, minority-owned businesses can get low-interest loans (at 1.5%) of up to $400,000 to acquire land and buildings, take on construction and renovation projects, purchase machinery and equipment, and cover working capital.
Department or Agency: Urban Redevelopment Authority of Pittsburgh
Loan or Grant title: Fast Facts Loans
The Urban Redevelopment Authority of Pittsburgh offers loans to local businesses from $5,000 to $500,000. Businesses can use the funds to make leasehold improvements, cover working capital, purchase furniture and fixtures, buy equipment and machinery, and acquire inventory and property.
Department or Agency: Urban Redevelopment Authority of Pittsburgh
Loan or Grant title: Small Contractor Line of Credit Program
This program is geared toward city-based operating construction, architectural, and engineering companies in Pittsburgh. Businesses can get financing for up to 90% of invoices from $25,000 to $100,000.
Department or Agency: Invest PGH
Loan or Grant title: Startup and Mini Advancement Loan
Invest PGH is a certified Community Development Financial Institution (CDFI) that offers small business loans to minority-owned businesses and women-owned businesses in Pittsburgh. Loan amounts range from $5,000 to $30,000.
Department or Agency: Invest PGH
Loan or Grant title: Accelerated Business Expansion Loan Program
This program serves businesses in Pittsburgh that have struggled to obtain financing from traditional financial institutions, especially minority-owned and women-owned businesses in Pittsburgh. Loan amounts range from $30,000 to $200,000.
Department or Agency: Invest PGH
Loan or Grant title: Childcare Reinvestment Business Fund
The Childcare Reinvestment Business Fund gives childcare businesses in Pittsburgh forgivable loans to expand their operations. Loan amounts range from $5,000 to $20,000 and can be used on software, payroll, supplies, leasehold improvements, staff training, and more.
Department or Agency: The City of Erie
Loan or Grant title: Commodore Fund
The City of Erie offers 1:1 matching grants to businesses in the city that are creating new jobs and investing in real estate development, equipment, or business expansion. Businesses requesting grants of $10,000 must create at least five new jobs, and businesses requesting $25,000 must create at least 10 new jobs. All companies must pay these new jobs at least 150% of the Pennsylvania minimum wage.
Department or Agency: Rising Tide Community Loan Fund
Loan or Grant title: Bethlehem Small Business Loan Fund
The Bethlehem Small Business Loan Fund provides loans from $25,000 to $100,000 to businesses in Bethlehem. Businesses can use the funds to acquire property, take on a construction or renovation project, and purchase equipment. Businesses must create one full-time equivalent position for each $35,000 borrowed within one year of the loan.
Department or Agency: Rising Tide Community Loan Fund
Loan or Grant title: Microloans
The Rising Tide Community Loan Fund also offers microloans to eligible businesses that need help opening their doors or expanding. Microloans can be up to $50,000, though the average amount is $26,000. Businesses can use the funds to buy equipment, supplies, inventory, and more. Businesses in the following areas are eligible to apply: Carbon, Lehigh, Monroe, Northampton, and Upper Bucks.
Department or Agency: Rising Tide Community Loan Fund
Loan or Grant title: Small Business Opportunity Loan Fund
This fund gives locally-owned businesses up to $150,000 in loans to purchase equipment and supplies, acquire inventory, cover working capital, and expand operations. Businesses in the following areas are eligible to apply: Carbon, Lehigh, Monroe, Northampton, and Upper Bucks.
Department or Agency: Rising Tide Community Loan Fund
Loan or Grant title: Creative Businesses Loan
The Rising Tide Community Loan Fund offers special funding for businesses specializing in creative services and products. That can include businesses involved in craft manufacturing, media, visual and performing arts, graphic and fashion design, architecture, design, and fabrication.
