There are several local small business loan options around for entrepreneurs in Pennsylvania, with loan amounts ranging from $1,200 to $250,000. Many local lenders are keen to help people with special circumstances, so make sure to do some research on possible benefits available to you. For example, if you are a woman struggling financially and looking to start a business to lift your family out of poverty, consider mentioning your background when applying for a small business loan in Pennsylvania.
Top Pennsylvania Small Business Loan Options
Below, you will find a list of local loan providers within Pennsylvania, along with the benefits of each loan, the loan amounts, rates, and any other useful features. These include banks, NGOs, and government institutions.
PIDA offers low-interest business loans that are less expensive than bank loans. PIDA’s terms and loan amount ranges from less than $100,000 for capital purposes, and the loan amounts get bigger if the purpose is for machinery (up to $1.5 million) or construction (up to $2.25 million). The repayment period goes from three years to 15 years for the respective fields. PIDA can be a bit strict when it comes to giving out loans, so you’ll need sufficient collateral to qualify. PIDA has a 2% fixed interest rate for fifteen years or a 1% fixed rate for seven years.
The Small Diverse Business Capital Access Program (SDBCA) target market is entrepreneurs from minority groups. You can have less than 100 employees to qualify.
The maximum loan amount depends on what loan you're applying for. If you're applying for a line of credit, the amount will be up to $100,000, whereas if you're applying for a term loan, the amount will be up to $200,000. To start, you’ll have to get certified via the Pennsylvania Department of General Services as a minority group. SDBCA’s interest rate is 2% for the duration of the loan of small business owners.
Freedom Credit Union has been around for quite a while. Credit unions offer better rates, fees, and extra services than banks do. The catch is that you’ll have to be a member of the Freedom Credit Union.
Freedom Credit Union gives you three options, including term loans, business credit cards, lines of credit, real estate, as well as business vehicle loans. Freedom Credit Unions are easy since they don’t reject your application so sternly as many banks would. Credit cards for business purposes hold a high value so that you can make the kind of purchases that your business needs to succeed.
Mid Penn Bank is great at working with smaller businesses to accompany their needs.
Mid Penn Bank specializes in agricultural loans, which means that if you're a farmer in Pennsylvania, you're in luck! The maximum loan is $2 million, and the interest rate is 3.75% for business owners or 2.79% for NGOs. The repayment is for two years, and no collateral is needed for PPP members.
In 2020, FINANTA merged with Community First Fund, a Pennsylvania CDFI or Community Development Financial Institution. Community First Fund is an NGO dedicated to supporting development of affordable housing, creating educational opportunities, and providing financial assistance to job-creating businesses.
Applying for a loan from the Community First Fund will be highly beneficial for you if you're from a certain previously disadvantaged group, since most of their loans are given to finance these groups. If you’re investing in your community, there are also programs you can use. Loan amounts are less than $50,000 for startups. The interest rate is merely 1%, and there are no payments necessary for the first 10 months. This renowned NGO also provides training for entrepreneurs.
Top Online Pennsylvania Small Business Loan Options
Online business loans have become more popular over the last decade as banks have receded from giving out loans to small businesses. Online lenders often provide easier and faster access to small business loans than banks do but at higher rates. Businesses should consider online loans if they get stuck at the bank. Here are the top providers of online business loans and why.