When starting a new business in Pennsylvania or anywhere else, one of the most important elements you need is capital. Money is essential for starting, operating, or expanding your business. However, getting a loan can sometimes stretch your budget too thin, putting you and your business in a financial bind.
One suitable alternative is a small business grant. Unlike a loan, you don’t have to pay a grant back, and it can help you achieve various goals with your company. For Pennsylvania entrepreneurs, a grant can be a lifeline that enables you to strengthen your bottom line and achieve new heights of success. So, to help you find the money you need, we’ve compiled a list of various Pennsylvania small business grants for 2025.
A small business grant is a financial reward for smaller companies that doesn’t have to be repaid like a loan. Typically, a grant is broken down into three phases: pre-award, award, and post-award phase. The application and approval process for a grant is often strict and time-consuming. Some grants are available only to a specific type of business, while others may be designed for a specific purpose, such as hiring more workers.
As long as you qualify for the grant and use the money as designated, you shouldn’t have to pay it back. However, if you break the terms of the grant, you’ll likely have to repay it, possibly with interest. So, it’s imperative to read the rules and restrictions of a grant program before applying to ensure it aligns with your business goals.
The Small Business Advantage Grant pays between 50 to 80 percent ($7,500 to $12,000) of business projects that help reduce waste and improve environmental efficiency with your business. The goal of this grant is to help Pennsylvania small businesses operate with a more sustainable model to protect the local environment into the future.
Some examples of these projects include:
The application period for this grant began on September 20th, 2024 and runs until March 21st, 2025. Eligible businesses must be based in Pennsylvania and have 100 or fewer full-time employees (FTEs). You can read through the grant guidelines online and see specifically what kinds of projects the DEP will approve.
As with any grant, the DEP wants to invest in projects that can yield the most benefits. For example, if you want to upgrade some old electronics or lights in your building, you probably won’t get approved. However, if you want to buy a waste reclamation system that prevents all pollution and runoff from your business, you have a much better chance.
If you’re a small business owner looking to expand your market share, you may be able to take advantage of the PA SITES grant program. The Governor’s office recently approved this program, and its goal is to make Pennsylvania more economically competitive for new and existing businesses.
Reading through the program’s mission statement, it sounds like it’s designed to attract established businesses to set up shop in Pennsylvania. However, small companies that are looking to expand may be able to qualify for a piece of the funding. The fund is divided into two grant programs: site planning and construction.
Since the goal of this project is to make Pennsylvania more economically competitive, it will focus on businesses that can create jobs and opportunities for Pennsylvania residents. So, if you’re trying to grow your business and hire more employees, you may be able to qualify for a construction grant for new development.
Also, because the grant is tied to construction, don’t apply if you don’t want or need to build a new site for your business. This grant is designed for projects like office buildings, mixed-use properties, and other strategic developments.
If you export items overseas, you can take advantage of the Global Access Program. GAP is designed to help make small and mid-sized businesses in Pennsylvania be more competitive on the global stage. Recipients can get up to $10,000 to invest in technology or infrastructure that helps them export to countries overseas.
The money can also help you establish relationships with overseas partners. For example, if you need funds to participate in a trade show in another country, you can use GAP money to do so.
First, you must apply to a Regional Export Network (REN), which will then forward your application to the Global Access Program. As long as you have a good standing and can illustrate your need to expand your export share, you can qualify for GAP funding.
Because the modern world runs on technology, Pennsylvania businesses can take advantage of a BFTP grant to invest in high-tech business solutions. This program offers both loans and grants depending on the scope of your project. You can see the full guidelines online.
There are literally thousands of federal grants available to businesses across all sectors. If you have the time, you can conduct an exhaustive search for each grant online and learn more about how to apply for them. However, while most of those grants are highly specialized, here are three options that have broad applications to small businesses in Pennsylvania and beyond.
The Small Business Innovation Research program started in 1982 with the goal of helping businesses invest in the research and development of new products and ideas. The purpose of the SBIR is to keep America at the forefront of modern technological innovation through grants. Although the SBIR is overseen by the Small Business Administration (SBA), funds come from different agencies within the federal government.
This program is divided into three phases: proof of concept, technology development, and commercialization. Each phase lasts a specific period (e.g., 12 to 24 months) and has certain funding limits. Each grant is designed specifically for R&D of new technology, not for expanding or improving your business.
To apply, you have to watch for agency solicitations. Because funding doesn’t come from the SBA directly, you have to apply to a specific agency when an opportunity arises. Virtually all federal agencies participate in the SBIR program, including the Department of Agriculture, the Department of Education, and the Department of the Interior.
The STTR program works very similarly to SBIR (the same agency oversees it), but you must have a formal relationship with a nonprofit research institution (e.g., a science lab or university). The goal of this program is to take research ideas from the nonprofit and transfer them to the small business for commercialization purposes.
The application process for the STTR Program is the same as it is for STTR, but not all federal agencies participate in the program. For example, the Department of Commerce only provides SBIR funding, while the Department of Defense provides both types of funding.
The purpose of STEP is to help small businesses be more competitive within the international landscape. These grants are designed to help companies invest in infrastructure and supply networks to bring products to foreign markets. In Pennsylvania, the Global Access Program (GAP) is the local arm of the national STEP network.
Many companies and private foundations offer their own small business grant programs. These can be for small or large amounts, and focus on almost anything (e.g. tech innovation, environment, economic development, etc.).
FedEx conducts an annual grant contest open to U.S.-based small businesses with fewer than 100 employees. 2024 grants included one of $50,000 and nine of $20,000.
The Visa Everywhere Initiative is a global competition for fintech startups focusing on commerce or payment processing.
The Freed Fellowship offers a $500 micro grant each month to a U.S.-based small or micro business. Monthly winners are also eligible for a year-end grant of $2,500.
As you can see, finding funds for your small business is much easier than you might think. While these grants can be highly competitive, they’re a valuable funding resource that offers flexibility and stability when you need them most.
The best way to ensure you get approved for a grant is to create a captivating pitch and outline the specific goals or objectives you want to achieve with the money. Grants are designed to push your company forward, not just to help fill in financial gaps. Now that you know what kinds of funding options are out there, good luck on getting grant money for your business!
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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