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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.
Business grants are effectively free money – there’s no need to repay the funds if you use them as you said you would – and they’re a great way for Pennsylvania entrepreneurs to launch or finance a business or create opportunities to support their community.
If you’re looking for a small business grant and you’re based in the Keystone State, you’re in luck. There are many grant programs to choose from. Here are just a few to get you started:
The Pennsylvania Small Business Advantage Grant provides reimbursement grants ranging from 50% to 80% of eligible project costs to Pennsylvania small businesses to improve energy efficiency or reduce pollution or waste. Funds can be used to upgrade or replace equipment or supplies, improve processes, or reduce runoff into affected waterways. Maximum grant award amounts vary from $5,000 to up to $8,000, based on the environmental impact of the project and whether the project location is in an Environmental Justice Area within Pennsylvania.
US Grants is a one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, state and federal government agencies. Available Pennsylvania small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc.
MORE: Grants for farmers.
Pennsylvania Grantwatch operates a directory of current grant opportunities, although not all may be specific to Pennsylvania-based organizations. Up to 2,000 grants may be available at any one time, with award values and qualifying criteria varying by category and mission goal.
MORE: Grants for women, black women, disabled business owners, minorities and veterans.
The PA Global Access Program (GAP) is designed to enhance the capability of small to mid-sized Pennsylvania companies to increase their export sales. GAP is administered by the Pennsylvania Office of International Business Development (OIBD) and provides up to $10,000 per award period to qualifying PA companies. Awards can reimburse up to 75% of eligible expenses associated with specific export promotion activities. This program is part-funded by the US Small Business Administration.
The City of Philadelphia offers the Fair Chance Hiring Initiative (FCHI) – a program that supports local businesses by referring Philadelphia job seekers returning from incarceration for open positions and providing financial incentives to businesses in the form of wage reimbursements and employment retention grants.
Approved employers are eligible to receive the following benefits:
MORE: Grants for felons
The PA Department of Community & Economic Development (DCED) oversees the State Small Business Credit Initiative (SSBCI) in Pennsylvania. Although they do not offer small business grants, the PA-SSBCI does offer other financing programs to support small businesses:
To find available financing in your area, visit the SSBCI Program Administrator landing page and search by county or funding type.
Need professional help to start or expand your business? Pennsylvania Small Business Development Centers (SBDC) are a nationally accredited program that provides educational training, business resources, and experienced no-cost, confidential consulting to small business owners and entrepreneurs. The Pennsylvania SBDC offers a statewide network of centers dedicated to supporting small businesses.
Ideal for technology companies seeking capital, the Commonwealth Financing Authority (CFA) offers funding opportunities designed specifically for innovation-driven enterprises. These initiatives aim to propel technology businesses forward, providing them with the resources necessary to make impactful advances in their respective fields.
Small business owners and entrepreneurs in Pennsylvania can improve their chances of winning a business grant by preparing in advance. Key tasks to take care of include:
Business loans may provide an alternative source of funding for your business or new venture. Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:
You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required.
A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.
Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.
Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.
Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.
Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.
Although eligibility requirements will vary from one start-up grant to another, most programs will require proof that you are a start-up (which usually means in your first year of operation), plus a solid business plan and a feasibility study. You may also need to show the potential for job creation or economic development in your area.
Most business grants are tied to a specific purpose, with tight timelines and strict qualifying rules. You will need to fully comply with the grant requirements to stand a chance of obtaining the funds you need. Although you may need to explore niche resources for some types of grant, a good place to start your general search are grant consolidators such as Pennsylvania Grantwatch or US Grants.
Yes, and they are usually earmarked for businesses located within the Philly city limits. Contact the City and County Economic Development offices to see available programs.
Pennsylvania's government supports small businesses through a combination of loans, grant programs, and technical assistance. The PA Department of Community & Economic Development offers various funding programs and resources detailing the type of support available.
Pennsylvania-based small businesses can obtain funding in the shape of grants, reimbursements, equity injections and loans from state, local and private sources. Some of the best sources are listed in this article. You can also try the US Small Business Administration or contact online lenders to learn more about start-up, working capital and specialized business loans.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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