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.
If your company is eligible for this program then you’ll need to submit the appropriate Pennsylvania grant application. The most commonly eligible projects include land and building acquisitions, construction and renovation costs, and machinery and equipment purchases among others. The maximum loan amount available through the SDBCA is $200,000 or 50% of the total cost of the eligible project while the maximum amount available through the line of credit option is $100,000.
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.
The PMBDA program provides small businesses with low-interest loans, allowing them to finance a portion of the expenses associated with building, land, machinery, equipment, and working capital. The maximum funding available through this Pennsylvania Grants for Small Businesses program cannot exceed 90% of the cost of an eligible project or $250,000. If you’re interested in information concerning the PMBDA, your queries should be directed to the Pennsylvania Department of Community and Economic Development (PDCED).
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
Currently, there are no maximum or minimum loan amounts.
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.
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: