Public Financing Programs
Pennsylvania's Business Financing Programs (pdf) – This quick reference guide takes you through the basics of the Commonwealth's business financing programs, which can often help fund fixed assets – land, building, machinery and equipment. Pennsylvania has some fo the best-funded low interest loan programs in the United States.
U.S. Small Business Administration Loan Guaranty – This is a link to the SBA. The SBA offers a variety of loan programs to eligible small businesses that cannot borrow on reasonable terms from conventional lenders in the amount needed without government help. Most of the SBA's business loans are made by private lenders and then guaranteed by the agency. While it may not necessarily be easier to be approved for an SBA guaranteed loan, the guarantee will allow you to obtain a loan with a longer maturity at better repayment terms and interest rates, thereby reducing your monthly payments.
Tax Incentives
Job Creation Tax Credit Program (pdf) – These program guidelines explain Pennsylvania's eligibility requirements. A $1,000 tax credit per new job created is available to eligible businesses that create 25 or more jobs or increase employment by 20%. Tax credits may be used to offset other Pennsylvania business tax liabilities.
Keystone Opportunity Zones – This is a link to Pennsylvania's KOZ information. KOZs are defined parcels, specific areas with greatly reduced or no tax burden. Designated locally and approved by the state, KOZs provide exemptions, deductions, abatements and credits for state and local taxes. The Navy Yard in South Philadelphia and several parcels of land near the Northeast Philadelphia Airport are among a number of KOZs in the City. The Keystone Industrial Port Complex in Falls Township, Bucks County is a KOZ. The Wharf at Rivertown and the University Technolgoy Park in Chester, Delaware County are each KOZs.
Local Economic Revitalization Tax Assistance (pdf) is a tool that local governments can use to help eliminate blight and increase job opportunities. It enables local taxing authorities to exempt improvements to deteriorated business property from property tax increases for a limited period of time. Municipalities, school districts and counties can offer abatements on property taxes up to 10 years.
Tax Increment Financing - This is a link to the Philadelphia Industrial Development Corporation's tax increment financing information. TIF is a development tool designed to help finance certain eligible improvements to property in designated redevelopment areas called TIF districts- by utilizing the new, or incremental, tax revenues generated by the project after completion to repay the loan.
Contact your local economic development organization for details and for application assistance. They can be instrumental in facilitating communications with local taxing authorities, and they can help design loan packages that incorporate State and Federal programs with private financing.