Small business grants in Pennsylvania

    Add a header to begin generating the table of contents
    Chris Godfrey

    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. 

      Add a header to begin generating the table of contents

      Best small business grants in Pennsylvania

      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:

      Small Business Advantage Grant

      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 – 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.

      Grantwatch Pennsylvania

      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.

      Pennsylvania Global Access Program (GAP) Grant

      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.

      Philadelphia’s Fair Chance Hiring Initiative (FCHI)

      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:

      • Candidate referrals of qualifying job seekers for open positions from partner organizations
      • $6.00 per hour wage reimbursement for qualifying hours worked up to 960 hours within 180 calendar days of employment
      • One-time $500 employment retention grant for each FCHI employee that completes the new hire period
      • Best practice information on hiring and retaining returning citizens
      • Help with supporting qualifying employees during new hire period

      MORE: Grants for felons

      Pennsylvania State Small Business Credit Initiative (PA-SSBCI)

      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:

      • Loans for small businesses 
      • Equity investments in existing and emerging technologies
      • Loans for venture capital general partners of diverse status to invest in PA small businesses 

      To find available financing in your area, visit the SSBCI Program Administrator landing page and search by county or funding type.

      Pennsylvania Small Business Development Centers (SBDCs)

      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.

      Commonwealth Financing Authority

      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.

      How do I get a small business grant in Pennsylvania?

      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:

      • Identify your need for the grant. Why do you need the money? What will you use it for? You must present a strong case for funding to secure a business grant. No matter if you want to start a business, grow an existing company, conduct research or undertake a creative project, having a clear vision of what you wish to achieve with the grant money is crucial
      • Search for suitable grants. Once your goals are set, you can search for grants that fit your mission objectives. Identify the qualification rules, time limits and any restrictions that may apply. 
      • Prepare your application. Few grant programs are the same. As well as the application forms, grantors may also ask you to provide a presentation deck, submit endorsements, create a financial plan, or write a detailed grant proposal. Make sure your ambitions are clear. Point out the benefits that receiving an award will deliver for your business, your community and everyone your venture will engage with.  Be positive but maintain feasibility. This is your opportunity to present your case for funding in the best possible light.
      • Submit your application. Check the submission guidelines – online, hard copy, or both, and submit your grant application well in advance of the posted deadline in case there are last minute issues with receipt. 
      • Wait for a decision. Be patient. Grantors are often inundated with applications and the review process of all submissions can take time. However, you should at least follow up with the grantor to ensure your application was received and is being processed. You could also use this time to search for other funding options in case your application is not successful.

      What are the alternatives to grants?

      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:

      Term loans

      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.

      Business line of credit

      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.

      Invoice financing

      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 financing

      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 advance

      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

      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.

      SBA microloans 

      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.

      Get started with Swoop

      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.

      FAQs

      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 Godfrey

      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.

      Swoop promise

      At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

      Find out more about Swoop’s editorial principles by reading our editorial policy.

      G
      E
      T

      Q
      U
      O
      T
      E

      Create your free Swoop account to explore grant funding alternatives

      Clever finance tips and the latest news

      delivered to your inbox, every week

      Join the 70,000+ businesses just like yours getting the Swoop newsletter.

      Free. No spam. Opt out whenever you like.

      Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop