In Pennsylvania, small businesses matter. In fact, they make up almost all total businesses in the state!
But every business needs capital to operate. If you’re short on cash or looking for working capital to grow your business, small business loans and financial solutions can help.
Overview of small business loans in Pennsylvania
While there is often a pink glow around the idea of starting a business, it often limits a business’s potential. If you are worried about having enough money to pay your employees each month, you certainly can’t think of the future to imagine how your business might grow.
Options for Small Business Loans in Pennsylvania
Whatever your financial or credit situation, there is a small business financing solution that meets your needs.
COVID-19 pandemic loans
It’s hard to find a small business in Pennsylvania that hasn’t suffered from the coronavirus pandemic. Fortunately, the federal government, along with local governments and private companies, have created loan programs to help small businesses get back to normal operations.
At the federal level, there is the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL). Check if they are still accepting applications. While the current version of PPP is complete, we’ll keep you posted if they decide to implement another round.
At the state level, there is the Pennsylvania Statewide Small Business Assistance Program who, although currently do not accept applications, may be open to them in the future.
For businesses (and business owners) with great credit scores, one of the best places to find low interest loans is banks, credit unions, and some online lenders. These loans may have some of the strictest requirements, but if you qualify, you will be rewarded with low rates and favorable terms.
Another option for low interest loans with long repayment periods is a loan offered by the US Small Business Administration. Some of them are specifically aimed at economic development in less favored areas, while others are available to any qualifying small business.
Don’t need all of your funds at once? Consider a line of credit that you can borrow and pay off whenever you want. You only pay interest on the funds you use and can repay and reuse as often as needed during the life of the line of credit.
Some banks will not lend below a certain amount, so if you only need a few thousand dollars and you are not eligible for an SBA microcredit, there are other microcredit lenders that will give you access to the cash you need.
Using business credit cards wisely can be a great financial initiative. Many cards offer 0% APR for the first year, and there are several rewards cards that will allow you to earn points that you can use for travel or for cash back. They’re also a great option for new businesses because they don’t need a long credit history and often only look at your personal credit score.
Short term loan
If you are running a startup in Pennsylvania, you may not have earned any business credit to qualify for these other options. You can still get what you need with a short term loan, but be aware that they can have higher interest rates. Depending on the needs of your business, they can be a good option, even if your credit history is far from perfect.
Uses for small business loans in Pennsylvania
There are so many things you can use your business financing for. Maybe you just want a little working capital so that you can take advantage of opportunities that arise that could grow your business. You can use the funds to expand your staff, place larger inventory orders, or open a second location.
Some loans are intended for specific purposes, such as an equipment loan or a commercial auto loan. Make sure the financing you are considering has no restrictions on how you use it.
Pennsylvania Small Business Loan Eligibility
Qualifying businesses can not only qualify for small business loans, but can also get lower rates and longer repayment terms. Check your business and personal credit to determine what type of financing you are eligible for.
If you don’t yet have an established business credit profile, learn how to build business credit so you qualify for better deals.
How to Apply for a Small Business Loan in Pennsylvania
Online lenders often have very short applications that require little more than your business details, time spent in business, and annual income. They are also usually able to respond to your loan request quickly, so if you need the capital right away, they can be a good option.
However, if you are applying for a bank loan or SBA loan, you may need to provide additional details, such as your tax returns, financial statements, and / or business plan. A bank loan often takes weeks to go through the approval process, but if you have the luxury of time, they will often have the lowest interest rates.
If you don’t have a business plan, there are business resources in the state that can provide small business assistance and help you create one. look at the Ministry of Community and Economic Development as well as your local small business development center for assistance.
Pennsylvania businesses need great financing options
From Harrisburg to Philadelphia, small businesses are the lifeblood of the state of Pennsylvania. Finding the right lender could be what takes your business to the next level and helps it remain a part of the foundation that makes this state so great.
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