|At a glance — There are several local small business loan options around for entrepreneurs in Pennsylvania. You should also look into the benefits you may qualify for if you have a unique situation. Many institutions are keen to help people with a good backstory. So if you're a woman struggling to make ends meet and your entrepreneurial spirit lifted yourself and your family out of poverty, it will be worth mentioning. So do some research on the possible benefits you can get.|
Pennsylvania, the Best State to Get a Business Loan
Small businesses loan amounts in Pennsylvania range from as little as $1,200 to as much as $250,000. Pennsylvania boasts over one million small business entrepreneurs, which means the state makes up more than 3% of small business owners in the country. Its small businesses form a staggering 99% of Pennsylvania’s business economy. In other words, Pennsylvania is known for treating its entrepreneurs with the utmost respect and value. As you can see, small businesses are key to Pennsylvania’s economic well-being.
Top Pennsylvania Small Business Loan Options
Here’s a list of each local loan provider in some of the states 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.
Community First Fund is another NGO. It’ll 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.
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.
Some of the benefits of FINANTA include that interest rates are fixed, and there are no penalty fees or minimum credit score needed. While rates are only 3.75% for small business owners the loan amount ranges from $1,200 to $250,000. A very useful feature includes the training that FINANTA provides to run your business more efficiently.
Summary of Best Business Loan Options in Pennsylvania
You can get up to15 years for construction projects, and interest rates depend on the ever-changing market.
CFF and FINANTA have been recently working together, and they’re changing some methods to increase the impact they make on communities. Many newer features will come out of this collaboration.
Certified Economic Development Organizations will help you step-by-step through the application process and give you useful tips on how to proceed.
Unions like these have higher approval rates than bigger banks. They’re also more geared for the local market.
Mid Penn Bank makes credit available for businesses that can’t attain traditional financing. You have the option to receive this loan in a lump sum or arrears.
FINANTA is excellent for aspiring entrepreneurs since they give you different services and products at each development stage, for example, IT and different training services.