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Make Small Business Loans in Pennsylvania the Keystone of Your Funding Strategy

November 9, 2023
Small Business Loans in Pennsylvania Credit Suite

Pennsylvania business owners from Bucks County to Erie have a wide range of choices for small business loans in Pennsylvania. Get grants, franchise financing, forgivable PA30 Fund loans, financing through Empowerment Zones, and more.

More small business loans in Pennsylvania include options like lines of credit, SBA lending, and cash advances. 

Check out our Credit Suite Credit Line Hybrid, where you can get up to $150,000 to help your business thrive.

Top Small Business Loan Options In Pennsylvania

Option 1 – Small Business Administration Loans from Pursuit

SBA lender Pursuit offers every type of SBA loan except for the SBA Express Loan and, evidently, the Economic Injury Disaster Loan and Paycheck Protection Program Loan.

As per SBA requirements, an SBA Microloan is a loan for up to $50,000 with a term of up to 6 years. 

Small Business Loans in Pennsylvania Credit SuiteIn addition to regular SBA small business loans, a small business owner can get an SBA 504 refinance loan. You can use an SBA 504 loan to refinance debt previously incurred for commercial real estate and fixed-asset projects at below-market rates. 

Get up to $5.5 million with terms of ten, twenty, or 25 years. Pursuit will finance half of the project. The other half will come from a bank.

Option 2 – Get a Forgivable Loan from the PA30 Fund

The PA30 Fund is a nonprofit organization that supplies small business assistance in the form of $3,000 Pennsylvania small business loans that never need to be paid back.

To qualify for a loan, Pennsylvania small businesses must:

  • Employ three to 30 people;
  • Be based in Pennsylvania and operating for at least one year;
  • Be owned and operated by a Pennsylvania resident.

To apply for these Pennsylvania small business loans, you must fill out a one-page application form and submit a brief video (up to three minutes) about the business and its employees.

Pennsylvania business owners only have until December 31, 2023, to apply for this loan program. 

Option 3 – Apply for Small Business Grants via USGrants.org

USGrants.org covers business grants around the country. Funding opportunities change, so be sure to check. Many grants are specific to certain counties, so it’s not just assistance for Chester County, Erie, and Pittsburgh.

Small businesses which work in the childcare or conservation sectors will likely have the most options for this kind of business financing. 

Always keep in mind that this type of business financing is extremely competitive and the amount may not be too high. There may also be restrictions on usage, so be sure to check on what are eligible project costs.

Also, look into grants from state and local government, and the Pennsylvania Department of Community and Economic Development to spur economic development. Creative businesses can look into the Creative Business Loan Fund.

Option 4 – Empowerment Zone Funding In Philadelphia

Small business owners in the greater Philadelphia area (Berks County and Perry County are too far) can check out grants in the empowerment zones in West Philadelphia, American Street, and North Central to incentivize economic development.

In the West Philadelphia Empowerment Zone (for example), you can get up to $10,000. This loan fund is for equipment, fit-outs, storefront improvements, marketing, and professional services for small business owners.  

To avail themselves of this Pennsylvania business financing option, applicants have to fill out a form that outlines the full budget and the jobs expected to be created. This application then goes to the PA Department of Commerce.

Option 5 – Business Credit Cards for Citadel Credit Union

The Citadel Credit Union has a business rewards MasterCard available. Establish business credit, track your business spending, and preserve cash flow while earning rewards. 

When it comes to Pennsylvania small business loans, Citadel also offers owner-occupied and investor real estate loans and business vehicle and equipment loans. 

Borrow up to $20 million with their commercial real estate mortgages. These are term loans with terms of up to 120 months with amortization of up to 25 years.

To help with your business development, get assistance with buying business vehicles with a loan amount going up to $100,000 and terms of up to 84 months. 

Option 6 – Business Loans and Lines of Credit from PNC BankSmall Business Loans in Pennsylvania Credit Suite

One of the top lenders in the country, PNC Bank has numerous locations in the Keystone State. Get a loan for up to $100,000 and a fixed rate with two or five-year terms and no needed collateral. Use it for working capital for your business.

For one-time expenses like machinery (versus working capital), a secured small business loan may be better. Get up to $3 million with terms between two and seven years.

They also offer vehicle loans for up to $250,000 to pay for the vehicles your business uses every day. Get a fixed rate with a term of between two and seven years.

Check out our Credit Suite Credit Line Hybrid, where you can get up to $150,000 to help your business thrive.

Online Loan Options

Provider 1 – Business Cash Advances and Equipment Financing via Lendio

Lendio is one of the older online lenders out there. They also offer short and long-term loans, a business line of credit, and SBA loans. 

Get a cash advance of up to $1 million in as little as 24 hours. Interest rates go as low as 18%. Terms go up to two years. Business owners with bad credit can still get approved. In fact, they probably won’t even check your credit.

For a cash advance, the lending institutions in Lendio’s marketplace will want to see four to six months of past bank statements or receivables. 

Use it for quick working capital for your business.

Provider 2 – Franchise Financing Through Balboa Capital

Among other options, Balboa Capital offers franchise financing of up to $350,000. If approved, same-day financing is available.

They offer one-hour approval decisions during regular business hours. 24 to 72-month terms available. They will lend to first-time franchise operators who qualify. 

You can also get small business loans for up to $250,000. Or get equipment financing for up to $500,000 for hard collateral and $350,000 for soft collateral. Both offer same-day funding if approved, making them fast business loans.

Balboa also has good business resources (particularly their loan calculators), which can dovetail well with the technical assistance and other help offered by places like the Pennsylvania Small Business Development Center.

Provider 3 – Business Lines of Credit from Bluevine

Bluevine can provide a small business with up to $250,000, with rates as low as 6.2%. You can get a very fast decision (in just 5 minutes). There are no monthly fees to pay.

Eligible businesses can get lending from Bluevine if they have:

  • 625 or better FICO score
  • 6 or more months in business
  • $10,000 or more in monthly revenue
  • Business is operating or incorporated in an eligible US state

Ohio is included on their list of eligible states. 

To apply, you must provide basic details about you and your business, a bank connection or bank statements for the past 3 months, and your business must be in good standing.

Provider 4 – MCAs Via FastCapital360

Among its other offerings, FastCapital360 has merchant cash advances for business owners with bad personal credit scores. 

You are most likely to qualify if you have been in business for at least four months and have a personal credit score of 500 or better. Your small business should have a minimum annual revenue of $100,000.

Factor rates start at 1.10. Some lenders in their marketplace can provide same-day financing. FastCapital360 offers a fixed payback rate which does not tie to sales. 

Small businesses with $150,000 or more in annual revenue and one year in business may also qualify for invoice factoring. The difference is MCAs are based on future revenue whereas invoice factoring is based on outstanding business invoices.

Check out our Credit Suite Credit Line Hybrid, where you can get up to $150,000 to help your business thrive.

How to Qualify for a Business Loan in Pennsylvania

Have a Good Credit Score

A good personal credit score helps you get financing anywhere. Business leaders (particularly for startup business loans) and credit issuers want to see objective proof you pay back credit cards and other debts on time.

Since your FICO score makes up some of your Experian and FICO SBSS scores, it always helps to keep this score high. And since the SBA uses FICO SBSS scores when determining eligibility for its loans, a good personal FICO score is even more vital.

Keep a good personal FICO score by paying your bills on time. Don’t apply for too much credit all at once, keep older accounts open, keep utilization under 30%, and have a few different types of credit accounts.

Have a Proper Business Plan

You should never skimp on your business plan! Here is where, if you do not have experience creating such a plan, it makes sense to call in a professional. A good business plan will help you get the best business loans.

A business plan is just that—a roadmap of how you want your company to go from startup to success. 

Lenders are not the only entities that will want to see your business plan. Small business credit providers, including starter vendors, are likely to want you to be able to produce your business plan before they will extend credit to you at all.

Business Revenues

Proven business revenue will always help you get business funding. This also means existing businesses must be in business for at least 6 months. Both metrics, together, assure lenders and credit issuers that your business is on the right track.

While past results are no guarantee of future success, they do show you can do this. Business revenues are also what separates successful businesses from the rest of the herd. A business with proven past revenues is far less likely to fail.

Even profitable businesses can go under. But a lender will be more inclined to lend to you if your New York small business can show it is bringing in revenue. This means your advertising and marketing efforts are working.

It also means that you at least in part understand your market and are fulfilling their needs with your product or service.

Takeaways

Small businesses in Pennsylvania have a wide range of choices in financing available to them. From MCAs for business owners with poor credit to forgivable loans and grants to franchise financing, even a new business in Pennsylvania will be able to get money.

Contact us today to learn more about business financing options in Pennsylvania and how Credit Suite can help you get the money you need to grow your business.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the seasoned Finance Writer and a former content manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

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