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’ll need funding. And, here’s where you’ll find it. The loans and grants detailed below are only available to Pennsylvania-based businesses. Check them out and start applying!
In addition to grants and loans, business owners in Pennsylvania should 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 alternate 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 $2,500,000, 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 individual awards not to exceed $2,500,000.
Department or Agency: Pennsylvania Department of Community & Economic Development and the Pennsylvania Department of Agriculture
Loan or Grant title: Pennsylvania Dairy Investment Program
The Pennsylvania Dairy Investment Program exists to support the state’s dairy industry, with funds to promote research and development, value-added processing, marketing, and more. Eligibility is open to for-profit businesses, as well as nonprofits, schools, and higher education institutions in Pennsylvania. Additionally, projects must incorporate at least 75% of Pennsylvania-sourced milk. A 15% matching requirement applies to all grant funds. Grant awards vary by intended activity, ranging from $50,000 to $500,000, in accordance with the published grant guidelines.
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 more effectively participate in the global economy. 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 businesses 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%. View the guidelines for a full list of ineligible activities, program requirements, and loan repayment terms under this program.
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 grow jobs. Eligible entities include businesses, economic development organizations, and municipalities. Grant awards are up to $1,500,000 or 50% of total project costs, whichever is less. See the guidelines for complete information.
Department or Agency: Pennsylvania Department of Community & Economic Development
Loan or Grant title: Pre-Apprentice and Apprenticeship Grant Program
The Pre-Apprenticeship and Apprenticeship Program 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. Review the full guidelines for more information.
10. Department or Agency: Pennsylvania Department of Community & Economic Development and 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. See guidelines for full funding details, which include grants of up to $1,000,000 for wind energy generation or distribution, five-year guarantees of up to $5,000,000, and loans up to $5,000,000 or 50% of project costs—whichever is less.
Department or Agency: Pennsylvania Industrial Development Authority
Loan or Grant title: Small Diverse Business Capital Access Program (SDBCA)
The Small Diverse Business Capital Access Program supports small diverse businesses with low-interest loans and lines of credit to create or retain full-time jobs in Pennsylvania. See the guidelines for a full list of eligible sectors. All businesses must be certified by the Pennsylvania Department of General Services as a minority-owned, women-owned, veteran-owned, or service-disabled veteran-owned business with under 100 employees worldwide. Appropriate projects include property purchase, construction or renovation, machinery or equipment purchase, and operating funds or lines of credit. Awards vary by eligible project costs, with maximum loans being $200,000 and the cap for a line of credit being $100,000.
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.
