Pennsylvania small business grants

Doing Business in Pennsylvania

Doing business in Pennsylvania can be quite favorable for startups and first-time entrepreneurs because the state provides the right platform for achieving stable growth and business expansion. The state of Pennsylvania boasts a strong economy with the Real Gross Domestic Product (GDP) of over $700 billion. The state has a pro-business climate driven by a wide variety of Pennsylvania state small business incentives and grants programs. The state is also home to several Fortune 500 and 1000 companies like Amerisource Bergen, PNC Financial Services Group, Lincoln National, Universal Health Services, Dick’s Sporting Goods, Hershey’s, and Comcast among others. Some of the cities in Pennsylvania have just the right infrastructure to enable startup growth and promote small businesses including Philadelphia, Allentown, Pittsburgh, Lancaster, and Scranton.

Why is Pennsylvania a good place to do business?

If you plan on doing business in Pennsylvania, you’ll find it to be a good decision because the state provides a strong business support infrastructure and robust supply chain management. As a new business, you can utilize the availability of Pennsylvania small business grants, which can help you fund your business during the initial formation and operational stages. Let’s take a look at some of the advantages of conducting business in this state.

• Strategic location – Location is the first and foremost advantage when it comes to establishing your business in this state. As the 5th most popular state in the nation, it shares borders with Delaware, Maryland, West Virginia, New Jersey, Ohio, New York, Lake Erie, and the Canadian province of Ontario. This means that a business can have immediate access to resources from the neighboring states and reach these markets with ease. The state also has six international airports and port access to the Atlantic Ocean, the Great Lakes, and the Gulf of Mexico, thus ensuring that doing business in Pennsylvania is simplified when it comes to transportation and logistics.
• Business Climate – The state of Pennsylvania has a pro-business climate. Several factors play a key role in keeping the business climate-friendly for budding entrepreneurs. Some of the key factors include:
  • Pennsylvania state small business incentives and grants
  • A skilled and committed workforce of 6.3 million that includes STEM
  • It’s known as one of America’s top 15 states for innovation and technology
  • Quick access to funds including the availability of venture capital
  • The state is home to eight foreign trade zones
  • The state has 120,000 miles of highway and well-connected transit systems
• Diverse Industries – Entrepreneurs prefer to start their businesses in Pennsylvania because the state offers a diverse spectrum of industries that they want to be part of. Not only does each industry attract venture capital, but some specific industries offer Pennsylvania grants for small businesses as well. Technology and innovation drive most industries including the distinctly promising Robotics and AI sector. World-class R&D institutions like Carnegie Mellon University provide the essential knowledge and support that help to cultivate the development of the future of technology. Some of the other top industries include the semiconductor sector, the aerospace ecosystem, space exploration, defense research, medical device manufacturing, the pharmaceutical sector, medical research and laboratory testing, advanced manufacturing, and food and beverages among others. The state also has a diverse and abundant energy portfolio and is ranked second in the country in terms of natural gas reserves.

Enjoy Pennsylvania advantages by registering your company today!

Small Business Incentive Programs and Grants in Pennsylvania

Choosing to form your start-up in Pennsylvania will enable you to utilize the many benefits that the state has to offer including a wide variety of Pennsylvania small business grants and incentives programs. These programs were specifically created to help small and medium-sized enterprises (SMEs) by allowing them to direct more focus toward business operations. Here’s a list of some of the most popular incentive programs in the state.

Small Business Advantage Grant

The Small Business Advantage Grant Program (SBAG) is available to small businesses that fulfill certain grant criteria such as upgrading their lighting, investing in equipment that helps to eliminate pollution or waste caused by business operations, and installing efficient HVAC systems. The program offers a grant maximum amount of $9,500 for purchasing pollution prevention equipment or energy-efficient systems. This grant is offered once each year and you will need to submit a Pennsylvania grant application for SBAG to apply. Information concerning this grant is available through the Small Business Ombudsman Office.

State Small Business Credit Initiative (SSBCI) in Pennsylvania

The Pennsylvania State Small Business Credit Initiative (PA-SSBCI) is a Pennsylvania state small business incentives This program facilitates funding to economic development partners and allows them to implement and administer capital programs for supporting small entities through loans and equity investments. This initiative is overseen by the PA Department of Community & Economic Development (DCED) and consists of three different programs, which include:

• Loans for small businesses in the state
• Equity investments in emerging and existing technology companies
• Loans for venture capital and general partners

Small Diverse Business Capital Access Program (SDBCA)

If you’re planning to start a small business (SB) or a small diverse business (SDB), then the Small Diverse Business Capital Access Program (SDBCA) can be quite helpful for you. The primary objective of this program is to provide low-interest loans and lines of credit to small businesses (SB) or small diverse businesses (SDB) that commit to the creation and retention of full-time jobs within this state.

Pennsylvania Minority Business Development Authority (PMBDA)

Pennsylvania has several small business grants and loan programs that they offer to provide critical financial support to small businesses. One program worth mentioning is the Pennsylvania Minority Business Development Authority (PMBDA) Program. The primary objective of this funding program is to provide incentives for the creation, retention, and expansion of minority-owned businesses, thus enabling the creation of jobs in Pennsylvania.

Business Opportunities Fund (BOF)

The Business Opportunities Fund (BOF) is a Pennsylvania small business grants and loans program that provides financial assistance to woman-owned small businesses, minority-owned contractors, and other small business owners. You can take advantage of this program if you lack access to small business loans or lines of credit from traditional financial institutions like banks. The funds from this program can be used for:

• Cash flow (working capital)
• New and used Equipment
• Leasehold improvements
• Acquisition of owner-occupied commercial real estate

Neighborhood Assistance Program, Enterprise Zone Tax Credit (NAP/EZP)

The Neighborhood Assistance Program, Enterprise Zone Tax Credit (NAP/EZP) is a Pennsylvania state small business incentives program that provides tax credits to private companies or businesses in the state. This program is administered by the Pennsylvania Department of Community and Economic Development (DCED). The EZP program’s main target is private for-profit companies that are operational or doing business in distressed areas, within a designated zone like an Enterprise Zone, or Keystone Communities Enterprise Zone. Once you submit the Pennsylvania grant application for this program, you can be eligible for a maximum of 25 percent tax credit with a maximum of $500,000 in tax credits for your EZP project.

Tax Incentives

Apart from the Pennsylvania grants for small businesses, there are several tax incentive programs that you can apply for. The objective of these programs is to reduce the overall tax burden for small companies through exemptions and tax credits. Some of the top programs that you can apply for include:

• Manufacturing Tax Credit (MTC)
• Research and Development Tax Credit
• PA EDGE Tax Credit
• Resource Manufacturing Tax Credit
• Local Resource Manufacturing (LRM) Tax Credit Program
• Qualified Manufacturing Innovation & Reinvestment Deduction
• Local Economic Revitalization Tax Assistance (LERTA)
• Blighted Property Tax Incentive
• Mixed-Use Development Tax Credit program
• Pennsylvania Resource Manufacturing Tax Credit (PRM)
• Innovate in PA program Tax Credit program

Ready to Start a Business in Pennsylvania?

All new small or medium-sized businesses require some form of financial assistance during their formation and operational stages. Financial assistance in the form of Pennsylvania small business grants or tax credit programs can help businesses to execute their professional objectives efficiently. The state offers several types of assistance through the Pennsylvania grants for small businesses and tax incentive programs across diverse industries. If you’re considering starting a new business, then you can take advantage of these incentive and financial assistance programs after you’ve registered or incorporated in this state.