Pennsylvania businesses have one of the deepest benches of lenders in the country: national banks, strong regional and community banks, two SBA district offices, active Certified Development Companies and some of the oldest CDFIs in the US. The state also lends directly through PIDA, which pairs with your bank loan to lower the cost of real estate and equipment.
Banks across the Commonwealth
PNC is headquartered in Pittsburgh and is one of the largest small business and SBA lenders in the state. Citizens, Truist, Wells Fargo, Bank of America, JPMorgan Chase and M&T all run business banking teams in Philadelphia, Pittsburgh and the larger metro areas.
Regional and community banks carry much of the lending outside the two big cities. F.N.B. Corporation is based in Pittsburgh, Fulton Bank in Lancaster, S&T Bank in Indiana County, Univest in Souderton and Mid Penn Bank in the Harrisburg area. Dozens of smaller community banks serve single counties, and they often know local commercial real estate and family businesses better than any national lender.
Banks are the right first call for established businesses with steady cash flow, collateral and two or more years of tax returns. Regional banks tend to be more flexible on structure and quicker to reach a decision maker. Browse banks on the register to see who is active in your county.
SBA lending in Pennsylvania
Pennsylvania is split between two SBA district offices. The Philadelphia District Office, located in King of Prussia, covers the 40 eastern counties, including Philadelphia, the Lehigh Valley, Harrisburg, Lancaster, Scranton and Wilkes-Barre. The Pittsburgh District Office covers the 27 western counties, including Allegheny, Erie, Westmoreland and Centre. Neither office lends directly. They support the banks and nonbank lenders that make SBA loans and can point you to active lenders in your area.
SBA 7(a) loans are made by banks and SBA licensed lenders for working capital, equipment, business acquisitions and real estate. National SBA specialists lend here alongside local banks. See SBA 7(a) loans.
SBA 504 loans finance owner occupied real estate and major equipment through a bank paired with a Certified Development Company. Pennsylvania has many active CDCs. Seedcopa is a leading 504 lender in eastern Pennsylvania, the Pennsylvania Community Development and Finance Corporation in Reading serves Berks and surrounding counties, and the Altoona-Blair County Development Corporation serves the central part of the state. Many county economic development organizations also act as CDCs. See SBA 504 loans.
CDFIs and community lenders
Pennsylvania has a strong network of community development financial institutions that lend to businesses banks pass on: startups, owners rebuilding credit and businesses in underserved neighborhoods and small towns.
- Reinvestment Fund is based in Philadelphia and finances businesses, real estate and community projects across the state and beyond.
- Bridgeway Capital lends to small businesses throughout western Pennsylvania from its base in Pittsburgh.
- Community First Fund lends across central and eastern Pennsylvania from Lancaster.
- PIDC, Philadelphia's public private economic development corporation, makes business and real estate loans within the city.
CDFIs often pair a loan with advice and can be the step between no bank and a bank. See CDFIs on the register.
Credit unions such as Members 1st and Clearview also lend to businesses in their fields of membership. Online lenders, equipment lessors and factors serve Pennsylvania businesses statewide when speed matters more than cost.
| Lender type | Best fit in Pennsylvania | Typical speed | What they look for |
|---|---|---|---|
| National or regional bank | Established businesses, real estate, lines of credit | Weeks | Two or more years of returns, collateral, guarantee |
| SBA 7(a) lender | Acquisitions, working capital, thinner collateral | Weeks to a few months | Cash flow, owner equity, guarantee |
| CDC with a bank (504) | Owner occupied buildings, major equipment | A few months | Job impact, occupancy, down payment |
| CDFI | Startups, rebuilding credit, underserved areas | Weeks | Sound plan, owner commitment |
| Online lender | Short term working capital | Days | Bank deposits, monthly sales |
State programs
The Pennsylvania Department of Community and Economic Development runs several financing programs that sit alongside a private loan.
PIDA, the Pennsylvania Industrial Development Authority, makes low interest, fixed rate loans for land, buildings and machinery. PIDA covers part of the project, usually up to half, and your bank covers the rest. Its Small Business First track serves businesses with 100 or fewer full time employees, with real estate loans now up to $1 million and machinery and equipment loans up to $400,000. Larger manufacturing, industrial and research projects can qualify for traditional PIDA real estate loans up to $2 million. Every PIDA application goes through a Certified Economic Development Organization, usually your county or regional development group, which packages the application with your bank.
PennCAP, the Pennsylvania Capital Access Program, guarantees loans of up to $75,000 made by participating lenders, which helps a smaller business qualify for a term loan or line of credit.
The Second Stage Loan Program, run by the Commonwealth Financing Authority, guarantees part of a bank loan to life science, advanced technology and manufacturing companies that are two to eight years old.
Philadelphia, Pittsburgh and many counties run their own loan funds as well, usually through the local economic development corporation.
How to choose among them
Start with the purpose of the loan and the strength of your file.
- Buying or building your own space. Talk to your bank about an SBA 504 loan with a local CDC, and ask your county development organization whether PIDA can take part of the project. Combining a bank loan with PIDA or 504 lowers your down payment and fixes much of the rate. See commercial real estate.
- Buying a business. An SBA 7(a) lender is the usual route, because 7(a) allows longer terms and lower equity than a conventional loan. See business acquisition.
- Buying equipment. Your bank, an equipment lessor or PIDA's machinery and equipment loan can all work. PIDA suits larger purchases that support jobs.
- Working capital for a younger business. A CDFI, a PennCAP backed loan or an SBA 7(a) small loan is more realistic than a conventional bank line.
- Short gaps. A line of credit is cheapest if you have one. If not, factoring or an online lender bridges the gap, but keep it short.
Before you apply, gather two to three years of business and personal tax returns, year to date financials, a debt schedule, recent bank statements and a written use of funds. If a state program is in play, call your county development organization early, because PIDA timelines run on the authority's board schedule. Browse Pennsylvania lenders on the register to compare your options.
Need help choosing a lender? Sign up through BusinessLoanBroker.ai to share your financing needs and get help with your next steps. You can also explore financing guides and tools before you apply.