Aug 12, 2024
Updated on August 12, 2024
Pennsylvania is a powerhouse in manufacturing, backed by many financing options to help businesses grow. It's home to over 1 million small firms, including manufacturers. They all have access to specialized loans and aid programs. This guide shows the financing choices for Pennsylvania's manufacturers, like loans from the Pennsylvania Industrial Development Authority and FINANTA's services.
There are also options from Community First Fund and the Small Diverse Business Capital Access Program. Freedom Credit Union and Mid Penn Bank are among the financial institutions ready to support manufacturing businesses. Moreover, grants like the Small Business Advantage Grant offer funds without the need to repay.
Private lenders play a big part in providing alternative financing. The Huntington National Bank is a top choice in the U.S. for SBA 7a loans1. TD Bank and M&T Bank offer specialized loans across the East Coast and to various sectors, respectively1. PNC Bank supports small businesses with diverse loans and credit card options1. Northwest Bank focuses on partner buyouts and franchise lending in Pennsylvania1.
Ben Franklin Technology Partners is key in the tech and manufacturing sectors within a 32-county area2. They invest up to $500,000 over three to four years, helping to keep 1,737 jobs in 20222. Their efforts promote growth and job creation in Pennsylvania's manufacturing scene.
Key Takeaways
- Pennsylvania provides a diverse range of financing alternatives tailored to support its manufacturing sector.
- Over 1 million small businesses in Pennsylvania can benefit from specialized loans and financial aid programs.
- The Huntington National Bank is the leading issuer of SBA 7a loans in the U.S1.
- TD Bank offers comprehensive small business financing options as an SBA Preferred Lender1.
- Ben Franklin Technology Partners has a notable impact, retaining 1,737 jobs in 2022 through phased investments2.
Introduction to Financing Options in Pennsylvania
In Pennsylvania, over 1 million small businesses highlight the state's commitment to economic growth. These businesses are vital to the economy, especially in manufacturing. Pennsylvania offers many financing options to help these businesses grow.
State-sponsored loans and grants are available to create jobs and support eco-friendly practices. Programs like the Ben Franklin Technology Development Authority COVID-19 Venture Loan Program focus on tech businesses3. The Community Development Block Grant – CARES helps municipalities hit by COVID-19, using CARES Act funds3.
Private financing is key in Pennsylvania. Banks and other financial institutions offer tailored solutions for businesses. For under-banked startups, fintech provides easy, fast access to funds4. Fintech products are often more affordable than traditional banking, benefiting consumers and businesses alike4.
Pennsylvania's economic support also targets industrial and community development. The Business in Our Sites Grants/Loans program funds site development to attract new businesses, but not for housing or fun projects3. The Building PA program helps with real estate development in smaller communities, ensuring they have the infrastructure needed3.
Pennsylvania offers various funding avenues to support business growth. It provides both state-funded programs and private financial services. This mix aims to create a thriving business scene, making Pennsylvania a top choice for entrepreneurs seeking support and funding.
Pennsylvania Industrial Development Authority (PIDA) Loans
PIDA loans help businesses grow by offering low-interest financing. They are for manufacturing, industrial, and other sectors that add jobs and boost the economy.
Loan Purposes and Amounts
PIDA loans can be used for buying or upgrading property, getting new machinery, or for working capital. Businesses can borrow up to $2.25 million for real estate and $1.5 million for machinery. For example, B&G Glass got a $1,000,000 loan for a $2 million project5. Fisher Farm Fresh Produce received a $375,000 loan for their $750,000 project5. The interest rates can be as low as 4.25%6.
Eligibility and Application Process
To qualify for a PIDA loan, a business must be in a job-creating industry. The application is handled by local economic development groups. They guide businesses through the application. Plum Creek Market's $3.4 million project got $1 million from PIDA and $1.38 million from an SBA 504 loan5.
PIDA is key to financing industrial park projects in PA. It helps businesses with their expansion plans. Learn more about PIDA loans and other financial options here5.
FINANTA: Financing and Technical Assistance in Pennsylvania
Based in the Philadelphia area, FINANTA helps businesses and individuals grow financially. It offers loans and credit-building help. These options are designed for different needs, ranging from new businesses to those looking to grow.
Types of Loans and Credit-Building Services
FINANTA has a variety of loans, starting with microloans PA for as low as $1,200, up to $250,000 for bigger needs. These loans cover real estate buys, working cash, and growing your business.
Alongside business loans, FINANTA offers special services to help build your credit. This company is key in supporting small business financing in Philadelphia7.
Financial Education and Planning Support
FINANTA goes beyond lending money by offering financial education and planning. Business owners can learn about bookkeeping, financial strategy, and managing projects. This support ensures businesses are not just funded but also ready for long-term success.
FINANTA's complete approach shows its dedication to creating a strong and lasting economic environment in Philadelphia. For more about financing options and support for Pennsylvania's makers, check out NerdWallet’s guide7.
Community First Fund in Pennsylvania
The Community First Fund helps businesses in areas where money is tight. They work in central and eastern Pennsylvania. Their goal is to uplift communities with financial help. They offer things like small loans, SBA loans, and loans to buy or fix up buildings. They focus on helping people of color and those living in poor areas. This makes them key in building up communities in Pennsylvania.
Microloans, Real Estate Loans, and SBA Loans
The Community First Fund offers different kinds of loans to boost the local economy. They have small loans for new businesses, SBA loans backed by the government, and loans for buying or improving real estate. For example, Leopoldo Sanchez got a loan that let him open Super Natural Produce, creating 20 local jobs8. Also, P & R Bakery & Café grew thanks to their support, showing how they help local businesses8.
Focus on Low- to Moderate-Income Communities
Many of the Community First Fund's loans go to less wealthy areas. More than half help businesses owned by people of color. This shows they want to include everyone. For instance, they used New Markets Tax Credits for "Shops at the Bridges" in Lebanon. This project brought in healthy food options, new stores, and 60 jobs8. Aaron and Jennifer Camara's company also got funding to grow, boosting the economy in several counties8. These efforts show the Fund's wide approach to helping Pennsylvania's communities.
The 2018-2019 Pennsylvania Grant & Resource Directory offers more info. It's put together by the Pennsylvania House of Representatives Democratic Caucus. This guide has lots of details on grants and resources in the state. It's a big help for businesses looking for financial backing8.
Small Diverse Business Capital Access Program in Pennsylvania
The Small Diverse Business Capital Access Program (SDBCA) in Pennsylvania helps minority, women, veteran, LGBT, and disabled-owned businesses. It's aimed at companies with up to 100 employees. Through Certified Economic Development Organizations (CEDOs) and Community Development Financing Institutions (CDFIs), it offers minority business loans in Pennsylvania.
Eligibility Criteria
To be eligible for the SDBCA, businesses must get a special certification from Pennsylvania's Department of General Services. This confirms they are a diverse business. Once certified, these companies can access various financial aids tailored to their specific needs. This helps them grow and be sustainable.
Loan Amounts and Interest Rates
Loan amounts under the SDBCA usually go from $100,000 to $200,000. This is a significant boost for businesses aiming to expand or cover operational costs. The terms, including interest rates, are agreed upon with the lenders. This ensures the loans meet the unique needs of minority businesses in Pennsylvania. For more details on funding opportunities, check the official website9.
This program is a part of a bigger movement in Pennsylvania to support diverse business funding. It matches other local, state, and federal efforts. Pennsylvania is dedicated to promoting diversity in business. It aims to help small enterprises succeed across the state10.
Freedom Credit Union Business Loans in Pennsylvania
Freedom Credit Union started in 1934. It supports Philly businesses with various loans like term loans, lines of credit, and more. It gives good rates and personalized service thanks to its member-based approach.
If you live in eligible areas, you can get these *Credit Union business loans PA*. It's a good deal for those looking for business credit in Philadelphia because of the great support.
Choosing this credit union means your business can grow with local support. This is a big part of the credit union community in the US, which includes over 4,600 credit unions11.
Mid Penn Bank Funding Options in Pennsylvania
Mid Penn Bank is a top choice for local businesses in Pennsylvania, thanks to its status as an SBA preferred lender. This status means they can offer efficient SBA loan approvals, making them key for companies needing loans. Their expertise and recognition by the SBA benefit businesses greatly.
SBA Loans and Agricultural Financing
Mid Penn Bank shines with its SBA loans, making borrowing easier for small and mid-sized firms. They're also experts in agricultural financing in PA, offering specialized financial help to farmers. This helps with buying land, updating equipment, and more vital farm needs.
Their focus ensures Pennsylvania's agricultural sector gets exactly what it needs. This support boosts not only farms but also strengthens community ties through the bank's dedicated services.
Real Estate and Machinery Loans
Mid Penn Bank's loan options also cover real estate and machinery purchases. These loans are key for businesses looking to grow or upgrade. Whether it's for new property or the latest machinery, the bank has tailored solutions.
Mid Penn Bank is committed to supporting Pennsylvania's entrepreneurs. Their financial products aim to create a strong foundation for business growth.
Grants for Pennsylvania Manufacturing Companies
Pennsylvania has great grants for manufacturers. These grants help businesses grow while they care for the environment. They offer money to support eco-friendly business actions. This helps with both saving money and being green.
Small Business Advantage Grant
The Small Business Advantage Grant helps small businesses. It gives money for buying green or pollution-stopping equipment. With this grant, businesses with fewer than 100 workers can get up to $7,000.
This makes it easier for many in Pennsylvania's manufacturing to go green. It supports small businesses in becoming more sustainable. This matches the state's green goals12.
Alternative Fuels Incentive Grant
This grant is run by two Pennsylvania departments. It backs the use of cleaner, alternative energy. By doing this, it cuts down on harmful emissions and increases energy independence.
It's a key part of Pennsylvania's push for greener manufacturing. This grant helps businesses cut costs and reduce pollution. This makes a big difference12.
If you're looking for grants, there's good news. The Upmetrics guide has all the info and tips. It can help you get these grants for your business.
Additional Private Lenders in Pennsylvania
In Pennsylvania, private business lenders offer unique options for small manufacturing businesses. They provide alternative financing options. These are in addition to state and federal programs.
Credit Suite
Credit Suite has financing solutions for businesses with poor or strong personal credit. They offer Cash Flow Financing for those having credit issues. For businesses with good personal credit, there's the Credit Line Hybrid. It offers flexible financing.
Huntington National Bank
Huntington National Bank is a top provider of SBA 7a loans across the country. It has services like equipment leasing and agricultural loans. These help Pennsylvania's small manufacturing companies get the financing they need. Their solutions support operational efficiency and growth.
TD Bank
TD Bank, an SBA Preferred Lender, has a wide range of finance products. Their network supports various business needs, including working capital and term loans. This ensures Pennsylvania manufacturing companies get the loans they need. It aids in sustainability and expansion.
These institutions offer Pennsylvania's small manufacturing businesses many financing options. With these lenders, companies can overcome financial challenges. This helps them secure the capital for growth and innovation.
List Of Financing Alternatives for Manufacturing Companies In Pennsylvania
Pennsylvania provides several financing options to help grow manufacturing companies. These include support for industrial site redevelopment, assistance for small businesses, and unique incentives for development zones.
Industrial Sites Reuse Program (ISRP)
The Industrial Sites Reuse Program (ISRP) helps in industrial redevelopment PA by funding the cleanup of old industrial sites. This makes these places ready for new businesses. The goal of ISRP is to remove reuse barriers, attracting more businesses to these revitalized spots.
PA Capital Access (PennCAP)
The PA Capital Access (PennCAP) program supports small businesses through loan guarantees. These guarantees make it easier to get loans which can be hard to secure otherwise. The capital access program Pennsylvania plays a big role in economic growth by helping these companies get the capital they need for growth and daily operations. Businesses can get loan guarantees up to $1 billion with a 40-year term max and a 3% fee13.
Keystone Special Development Zone (KSDZ)
The Keystone Special Development Zone (KSDZ) targets businesses in certain areas with unique financing offers. By giving out tax credits and grants, it aims to boost economic activity. These efforts are crucial for Pennsylvania's plan to create a diverse and prospering business environment in the state.
Conclusion
Pennsylvania shines as a leading place for manufacturers to grow. It offers many financial options to fit different business needs. The state has strong loan programs like those from the Pennsylvania Industrial Development Authority. It also supports through community funds like FINANTA and Community First Fund.
This help is crafted to boost companies in tapping into new markets, improving equipment, and running efficiently. An ifo survey found that 40% of companies see banks as very strict on loans14. This shows how crucial accessible financing options are.
In Pennsylvania, finance options also include programs for Small Diverse Business Capital Access. These programs are fair and offer lower interest rates. This approach is part of a bigger trend seen in cities like Philadelphia. In 2017, despite its 23,000 small and midsize businesses, it faced a low rate of new businesses15.
Grants like the Small Business Advantage Grant support the industrial scene. They show Pennsylvania's strong will to stay competitive in the industry. Understanding short-term financial planning is key for manufacturers here14. This means looking at money coming in and out in less than a year.
With help from government programs and private lenders, Pennsylvania aims to keep its industrial sector strong. These efforts point to a bright future for the state’s manufacturing growth. They highlight Pennsylvania's commitment to enhancing its industrial backbone.
FAQ
What financing alternatives are available for manufacturing companies in Pennsylvania?
Pennsylvania has many financing choices for manufacturers. These include loans from state funds, non-profits, credit unions, banks, and grants from private lenders. Groups like the Pennsylvania Industrial Development Authority, FINANTA, and Community First Fund give specific financial help. Banks such as Freedom Credit Union and Mid Penn Bank offer business loans designed for different needs.
What types of loans does the Pennsylvania Industrial Development Authority (PIDA) provide?
PIDA gives out low-interest loans. They help with buying or improving property, getting machinery, or for working capital. Loans range up to $2.25 million for real estate, $1.5 million for equipment, and $100,000 for daily operations.
How can businesses apply for PIDA loans?
Businesses can apply for PIDA loans with help from certified groups that guide the application. They also deal with the local paperwork. Applying needs matched funding and promises of collateral.
What types of financial support does FINANTA offer?
FINANTA has loans from as small as $1,200 to up to $250,000. These are for buying real estate, for working capital, or expanding your business. They also help improve credit and teach about money.
Who can benefit from Community First Fund’s loans?
Community First Fund helps businesses in poorer areas or owned by minority entrepreneurs in central and eastern Pennsylvania. They provide microloans, SBA loans, and property loans. Many aids are for underserved communities and businesses owned by minorities.
What is the Small Diverse Business Capital Access Program (SDBCA)?
The SDBCA supports minority, women, veterans, LGBT, and disabled-owned businesses in Pennsylvania. It offers loans with good interest rates, mostly between $100,000 to $200,000, through special economic groups and institutions.
What business loans does Freedom Credit Union offer?
Freedom Credit Union has various loans like term loans, credit lines, and loans for real estate, vehicles, and business credit cards. These loans meet diverse business needs and are for members in certain counties.
What are Mid Penn Bank’s key funding options?
Mid Penn Bank focuses on SBA loans, agricultural financing, property, and machinery loans. Their products are designed for small businesses, especially in farming, and they help with the SBA loan process.
What grants are available for manufacturing companies in Pennsylvania?
Manufacturers in Pennsylvania can get grants for buying energy-saving or pollution-reducing equipment up to $7,000. They also have the Alternative Fuels Incentive Grant for clean energy projects. These grants don't need to be paid back.
Which private lenders provide business financing in Pennsylvania?
Credit Suite, Huntington National Bank, and TD Bank offer financial solutions in Pennsylvania. Credit Suite has Cash Flow and Credit Line Hybrid solutions. Meanwhile, Huntington and TD Bank have SBA loans, equipment leasing, and farming loans.
How do the Industrial Sites Reuse Program (ISRP) and PA Capital Access (PennCAP) assist businesses in Pennsylvania?
The ISRP funds the cleanup and preparation of industrial sites for new development. PennCAP helps small businesses get loans easier with a guarantee strategy, increasing their access to vital funds.
What opportunities exist within Pennsylvania’s Keystone Special Development Zone (KSDZ)?
Businesses in the Keystone Special Development Zone get special financing perks to boost economic growth. These efforts support a varied and strong business environment in different Pennsylvania areas.
