Pennsylvania Business Loans  

As the fifth most populous state in the nation, Pennsylvania has a lot to offer. With robust industries in manufacturing, life sciences, and healthcare, Pennsylvania plays an important role in the nation’s economy. Yet no matter the industry, small businesses need to stay competitive, invest in advertising, and pay for general business expenses like insurance. Sometimes that requires a flexible financing solution to help a business stay soluble. Here are some of the top industries in Pennsylvania and their unique funding needs.

Healthcare: An essential service like healthcare comes with many unique costs in order to provide the best care for your patients. Hiring and maintaining top employees, paying for the latest technology or medical advancements, and paying for business insurance are all costs that came come with a high price tag for your medical practice. A business loan can help offset those costs so you can focus on what really matters.

Construction: From single-family homes to commercial buildings, the construction industry is what gives Pennsylvania its unique character. Construction businesses can be faced with high production costs, heavy machinery or equipment purchases, and purchasing or leasing land. Small business financing solutions can help pay for these expensive items.

Restaurants: A local restaurant is what brings local flavor to its community. Yet restaurants can often be faced with high costs such as inventory, kitchen equipment, and lease payments. A small business loan can help a restauranteur pay for these things and give some breathing room to cash flow shortages.

Every industry is faced with its own unique set of challenges, and that’s even more true for small businesses. Small business owners are often short on time and navigating responsibilities like tax codes or business insurance, in addition to running their small business. SmallBusinessLoans makes it easy for entrepreneurs to find solutions that work for their business needs. Here’s the most popular loan types available for Pennsylvania business owners.

Business bridge loan: This loan is designed to “bridge” the gap in funds for major purchases like a lease payment or large inventory order. A business bridge loan provides needed funds for a business on a temporary basis to help cover costs between invoices.

Short-term business loan: This loan is for any business need in the immediate future, whether it’s to fulfill a large purchase order, hire and train new employees, or simply provide funds to maintain operations in a slow period. Short-term business loans are ideally suited for businesses who need access to capital on a temporary, short-term basis.

Working capital loan: Small businesses face high rent prices, increasing utility bills, and rising labor expenses – all of which are crucial expenses needed to run your business. A working capital loan provides funds to offset any costs needed to maintain operations for a business.

Just like there’s many loan types to suit every business need, there’s a variety of lenders to choose from, each with their own pros and cons. It’s important to understand the differences between lenders and how these differences can suit your business needs.

Small Business Administration (SBA)

The SBA is a government organization that provides support in the form of mentorship, training, and financial assistance to small businesses across the nation. The SBA offers loans with a lower interest rate and longer repayment terms compared to traditional bank loans, however there are strict qualification requirements and the application process can take several months before approval.

Traditional Banks

Banks offer business loans, but without a guarantee from the SBA, banks have a very low approval rate for small businesses. Small businesses are seen as a high lending risk, which is why only around 14% of loans are approved.

Alternative Lenders

When the SBA or a conventional loan don’t fit your needs, alternative lenders step in to fill the financing gap left by these institutions. Alternative lenders offer more flexible requirements and a streamlined application so small business owners can access capital more quickly – often in as little as 24 hours¹ upon approval.

Small Business Grants

Grants for Pennsylvania small businesses aim to support economic development and job creation. Eligibility requirements vary but typically the business must be located in Pennsylvania and registered with the Secretary of State. The state offers a variety of loans for specific industries and for varying funding amounts.

Qualifications vary by lender, but for most alternative lenders – and especially our partners at SmallBusinessLoans – requirements are flexible. Typically, you can expect the following criteria to be approved for a loan with an alternative lender:

• At least six months in business
• Minimum $250,000 in annual gross sales ($21,000/month)
• Fair to excellent credit

Now that you have an idea of what type of loan and lender may work for your business, let’s outline the steps you’ll take to secure extra capital for your business. Being prepared with all the necessary documentation can help streamline the entire process even more – and knowing what to expect provides peace of mind for the busy entrepreneur.

1. First, you’ll determine the loan you can afford and check if you meet the lender’s minimum qualifications. Most alternative lenders we partner with require a business to be in operation for six months and a minimum of $250,000 in annual gross sales.
2. After that, you’ll fill out an application and provide the necessary materials. This typically includes bank statements and both personal and business credit scores.
3. The lender will review your application, credit history, and other qualifications. At SmallBusinessLoans.com, we’ll pair you with a lender who quickly reviews and responds to applications.
4. The lender will then determine the loan amount, interest rate, and repayment terms. If you accept the loan terms, the funds will be transferred to your business.
5. Finally, you’ll repay the loan according to the agreement’s terms.

For an important decision like finding a trusted financing partner, you want to find the best lender to meet your needs. We know small business owners often have limited time on their hands, which is why we made it easy to find a lender by sourcing trusted partners. Here you’ll get matched with a lender quickly and with a streamlined application process, you can receive up to $500,000 in as little as 24 hours¹. Finding additional capital for your business shouldn’t be stressful or cumbersome – discover how easy it can be with SmallBusinessLoans.