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Inward Investment Guides

Pennsylvania Direct Financial Incentives 2012

Pennsylvania's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include Building PA, the New Pennsylvania Venture Guarantee Program, and Keystone Opportunity Zones.

Area Development Online Research Desk (2012)
Governor's Action Team (GAT)
The Governor's Action Team is a single point of contact for businesses that are considering Pennsylvania as a site for a facility location or expansion. The team works with domestic and international businesses, as well as professional site consultants, on projects involving significant investment and job creation opportunities.

International Business Development (OIBD)
The PA DCED Office of International Business Development (OIBD) is responsible for Pennsylvania businesses' export promotion activity into overseas markets (Center for Trade Development) and the attraction of foreign direct investment to the Commonwealth (Center for Direct Investment), in addition to assisting in the maintenance of Pennsylvania's three active ports (PennPorts). Currently, OIBD has (31) authorized international representatives located throughout the world to assist in the promotion of Pennsylvania's trade and investment activities around the globe.

Act 47
Grants and loans for financially distressed local governments 
Uses of Funds or Service
Financial and technical assistance for financial recovery Development of financial recovery plans
Contact Office
Governor's Center for Local Government Services 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Must meet certain fiscal indicators referenced in program guidelines

Alternative and Clean Energy 
Alternative and Clean Energy Program provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in the Commonwealth. 
Uses of Funds or Service
Funding for businesses and consumers to look for and use alternative sources of fuel and energy
Contact Office
Center for Business Financing, Site Development 
Amounts (If Financing)
Loans vary dependent on job creation.  Grants shall not exceed $5 million and have a term of not more than five years.
Misc.Info
Financing Terms/Conditions
Program administered through CFA  

Appalachian Regional Commission (ARC)
Economic Development organizations, Non-profit entities, Local government in Appalachia PA
Uses of Funds or Service
Skill and knowledge, physical infrastructure, community capacity building, dynamic local economies, and health care
Contact Office
Center for Appalachian Development 
Amounts (If Financing)
Grants vary depending upon project costs

Ben Franklin Technology Development Authority (BFTDA) - Venture Investment Program 
BFTDA initiative to address the financing needs of technology-oriented businesses by increasing the amount of risk capital available in the Commonwealth
Uses of Funds or Service
Loans to venture capital firms or regional angel investor groups that invest the financial capital of third-party investors in private technology startup enterprises
Contact Office
Technology Investment Office 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
BFTDA investment not to exceed 20% of total investment. A  3:1 match is required

Ben Franklin Technology Partner's Challenge Grant and Alternative Energy Development Program (AEDP)
Provides funds to businesses through the four Ben Franklin Technology Partners for access to capital, business expertise, technology commercialization services to advance the development of new technologies and for the generation, conservation, and transportation of alternative and clean energy.
Uses of Funds or Service
Direct company investments, business and technical support, technology and entrepreneurial infrastructure, and administrative expenses.
Contact Office
Technology Investment Office 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
The BFTDA Centers receive funding to award to entrepreneurs, start-up & early-stage companies, established companies, investors, higher education & research and BFTP alumni companies.

Ben Franklin Technology Development Authority (BFTDA) -University Research Funding
Grants designed to promote stronger synergy between university-based research and development and the transfer of technology as it relates to economic and work force development
Colleges or universities
Non-profit organizations partnering with colleges/universities
Uses of Funds or Service
Research and Development Technology transfer approved course of study
Contact Office
Technology Investment Office 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Conforms with university criteria. Supporting large-scale projects identified within research agenda. Financial return to BFTDA

Building PA
Provides mezzanine capital for developers for real estate assets in small to mid-sized Pennsylvania communities.  Professional Investment Fund Managers through a Request for Qualification (RFQ)
Uses of Funds or Service
Real estate development in small to mid-sized PA communities
Contact Office
Center for Business Financing, Site Development 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Demonstrated capacity, for serving the PA marketplace, including specific geographic areas and/or market segments. Expertise in the proposed real estate sector. Expertise in range of investments demonstrated by experience and success with previous investments. Demonstrated capacity to attract additional investment for projects. 

Business in Our Sites (BOS) 
Empowers communities to attract growing and expanding businesses by helping them build an inventory of ready sites
Municipalities 
Municipal Authorities
Redevelopment Authorities
Industrial Development Agencies Private Developers
Uses of Funds or Service
All site development activities required to make a site "shovel ready" For speculative projects only
Uses of Funds or Service
Center for Business Financing, Site Development
Amounts (If Financing)
No maximum or minimum, except that the maximum amount of the funding for projects located within a single city, borough, town or township may not exceed 15% of the funds available for the program. Grants may not exceed 50% of the total amount of the financing provided, or $5 million, whichever is less. 
Misc.Info
Financing Terms/Conditions
Loans will be "patient" no repayment until property is sold or leased. Site must be previously utilized property or undeveloped property that is planned and zoned for development. Counties/municipalities must be notified Substantial likelihood of site use following development, not for primary residential or recreational purposes. Private developers not eligible for grants. Interest rate set by the CFA

Community Development Block Grant (CDBG)
Grants and technical assistance for federal designated municipalities for any type of community development.  Two components: 
Entitlement program provides annual funding to designated municipalities.                                                     
Competitive program is available to all non-federal entitlement municipalities
Uses of Funds or Service
Housing rehabilitation, public services, community facilities, infrastructure improvement, development and planning
Contact Office
Center for Community Financing 
Amounts (If Financing)
Entitlement funding is set by formula                                        
Competitive Program - $500,000 maximum
Misc.Info
Financing Terms/Conditions
70% of each grant must be used for activities that benefit low- and moderate-income persons. Refer to program guidelines

Community Economic Development Loan Program (CED)
Low-interest loans for projects in distressed communities, stimulating self-help initiatives and helping people build assets at the individual, family and community levels
Uses of Funds or Service
Land and building acquisition                                           
Building, construction and renovation                                        
Machinery and equipment acquisition and installation                                   
Working Capital 
Contact Office
Center for Business Financing, Loans II Division 
Amounts (If Financing)
Loans up to $100,000 or 50% of total eligible project cost, whichever is less
Misc.Info
Financing Terms/Conditions
2% interest rate                                    
Flexible terms                                          
Must apply through ALO

Cummunity Financing Authority (CFA)
The Commonwealth Financing Authority (CFA) was established as an independent agency of the Commonwealth to administer Pennsylvania's economic stimulus packages. The CFA holds fiduciary responsibility over the funding of programs and investments in Pennsylvania's economic growth.

Community Services Block Grant (CSBG)
Federal grant funds to support programs that promote economic self-sufficiency of low-income individuals.                                                           
Designated Community Action Agencies servicing individuals whose income is at 125% of the federal poverty level.  (Entitlement & Discretionary)
Uses of Funds or Service
Case management, job training, food and nutrition, transportation, education, housing, drug and alcohol, and economic development
Contact Office
Center for Community Empowerment 
Amounts (If Financing)
Entitlement: Annual allocations determined by formula                                                 
Discretionary 5% of total allocation
Misc.Info
Financing Terms/Conditions
CAAs must provide breakdown of applicant's board of Directors by public officials, private sector and low-income.  Also must provide a total agency budget 

Customized Job Training Program (CJT)   PA FIRST
Grants for specialized job training to existing or newly hired employees.                                                          
Manufacturing/Industrial                                                           
Agricultural enterprises                                                             
Research & development                                                           
Advanced Technology                                                          
Business service firms (no point of sale/retail)
Uses of Funds or Service
Instructional costs                                               
Supplies                                   
Consumable materials                                          
Contracted services                                           
Relevant travel costs for local education agency project coordinators
Contact Office
Center for Business Financing, Grants Division
Amounts (If Financing)
Grants up to 75% of the eligible costs for new job creation, retention, upgrade training
Misc.Info
Financing Terms/Conditions
Must be for actual training                                         
Trainees must be residents of PA and be employed in PA                                
Participating trainees must earn more than 150% of current minimum wage.                                          
Training must be guaranteed.

Discovered in PA, Developed in PA (D2PA)
The Discovered in PA, Developed in PA (D2PA) program was established to build capacity to better support Pennsylvania businesses and to spur creativity and innovation in the provision of economic development services, from business incubating, to mentoring, to marketing and beyond
Uses of Funds or Service
Reasonable salary/personnel expenses; Consultant fees relating to approved programmatic activities; land/building/equipment improvements; Meeting/travel expenses; Costs associated with preparation and publishing of educational/marketing materials
Contact Office
Innovation & Investment

Early Intervention Program (EIP)
Grant funds to assist municipalities addressing financial management fiscal difficulties. 
Uses of Funds or Service
Development and implementation of multi-year financial management programs and strategies
Contact Office
Governor's Center for Local Government Services 
Amounts (If Financing)
Grants up to $100,000 for 50% of the total project costs.
Misc.Info
Financing Terms/Conditions
50% match required by applicant.  Refer to Program Guidelines for details.

Educational Improvement Tax Credit Program (EITC)
Tax credits to eligible businesses contributing to a scholarship organization, an education improvement organization, or a pre-kindergarten scholarship organization.
Businesses authorized to do business in PA who are subject to one or more of the following taxes:  Corporate Net Income Tax; Capital Stock Franchise Tax, Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; or Mutual Thrift Institution Tax
Uses of Funds or Service
Tax Credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Contact Office
Center for Business Financing, Tax Credit Division
Amounts (If Financing)
Tax credits equal to 75% of its contribution up to a maximum of $100,000 per taxable year.
Can be increased to 90% of the contribution, if business agrees to provide same amount for two consecutive tax years
For contribution to Pre-kindergarten scholarship organizations, a business may receive a tax credit equal to100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $100,000 annually. 
Misc.Info
Financing Terms/Conditions
Applications processed on a first-come-first-served basis by day submitted.
Must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter 
Tax credit not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.
NOTE:  This program is not in ESA.

Emergency Shelter Grant (ESG)

Federal grants funding to assist in creating or rehabilitating shelter space for the homeless.
Local Governments                         
Uses of Funds or Service
Creation or rehab of shelter space for the homeless, the purchase of machinery, equipment, furniture and appliances for homeless shelters, the provision of new social services, or the development or upgrade of shelter space
Contact Office
Center for Community Financing 
Amounts (If Financing)
$50,000 minimum and no maximum 
Misc.Info
Financing Terms/Conditions
Refer to program guidelines

Film Tax Credit Grant Program
Tax Credits to film companies who film in PA
Uses of Funds or Service
To support general operations and related expenditures 
Contact Office
Film Office
Misc.Info
Financing Terms/Conditions
FAQ - Janice Collier

First Industries Fund (Tourism or Agriculture and MELF or SBF)
Planning grants, loans and loan guarantees for the agriculture and tourism industries. 
Uses of Funds or Service
Agriculture & Tourism - Loans:
Land and building acquisition and construction
Machinery and equipment purchase and upgrades
Working capital
Operation of Revolving Loan Funds (RLFs) by Regional organizations
Grants:
Planning and redevelopment 
Loan Guarantees: 
Large-scale projects that demonstrate regional impact; deploy new or innovative technologies; demonstration of significant job creation
Contact Office
Loans: 
Center for  Business Financing, Loans II Division
Planning Grants:  Center for Business Financing, Grants Division
Loan Guarantees: Private Capital Financing Centers
Amounts (If Financing)
Loans:
Loans up to $200,000 or 50% of total eligible project costs, whichever is less  
Maximum loan amount for working capital is $100,000 or 50% of total eligible project costs, whichever is less  
Grants: variable
Loan Guarantees: variable
Misc.Info
Financing Terms/Conditions
Refer to Program Guidelines

Growing Greener II
Grant funding for downtown development of blighted properties, redevelopment of industrial sites, and redevelopment projects part of county initiatives
Uses of Funds or Service
Capital improvement costs for building improvements
Contact Office
Housing Projects:  Center for Community Financing
Industries Development: Center for Business Financing, Site Development
Misc.Info
Financing Terms/Conditions
FAQ - Jackie Parker, Aldona Kartorie, or Melissa Williams

Guaranteed Free Training Program (GFT-WEDnetPA)
Manufacturing businesses 
Technology-based businesses
Information technology 
PA businesses other than point of sale retail 
Uses of Funds or Service
Basic Skill - Basic and entry level skills training
Information Technology - Advanced information technology training.  Introductory level training, such as word processing, etc is not eligible. 
Contact Office
Works cooperatively with DCED 
WednetPA 
14 state universities and S.W. Center  
15 PA community colleges 
Penn College of Technology 
N.C. Industrial Tech Education Center 
University of Pittsburgh at Bradford 
Gtr. Altoona and Lancaster County Career/Tech Centers 
Internal contact: Center for Business Financing
Amounts (If Financing)
Basic:
Up to $450 per trainee and $100,000 per company 
Information Technology: 
Up to $700 per trainee and $50,000 per company
Trainees must be residents of PA and be employed in PA
Basic skill
Participating trainees must earn more than 150% of current minimum wage
Information technology
Misc.Info
Financing Terms/Conditions
Trainees must earn at least 150% of current minimum wage
Training for existing information technology employees

H20 PA - Flood Control Projects
Legislation passed July 2009 for grants and loans to provide funding for flood control projects
Uses of Funds or Service
Flood Control Projects 
Contact Office
Center for Business Financing, Site Development 
Amounts (If Financing)
Loans & Grants
Misc.Info
Financing Terms/Conditions
Program administered through CFA

H20 PA - High Hazard Unsafe Dam Projects
Legislation passed July 2009 for grants and loans to provide funding for high hazard unsafe dam projects
Uses of Funds or Service
High hazard Unsafe Dam Projects
Contact Office
Center for Business Financing, Site Development
Amounts (If Financing)
Loans & Grants
Misc.Info
Financing Terms/Conditions
Program administered through CFA


H20 PA - Water, Sanitary Sewer and Storm Sewer Projects
Legislation passed July 2009 for grants and loans to provide funding for sanitary sewer and storm sewer projects
Uses of Funds or Service
Water, Sanitary Sewer and Storm Sewer Projects
Contact Office
Center for Business Financing, Site Development
Amounts (If Financing)
Loans
Grants
Misc.Info
Financing Terms/Conditions
Program administered through CFA

High Performance Building Program
Provides loan funds to underwrite the cost premiums associated with the design and construction or major renovation of high performance buildings.
Uses of Funds or Service
Activities to assist with construction or renovation associated with a high performance building
Contact Office
Center for Business Financing, Loans II Division
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Program administered through CFA

HOME
Federally funded program that provides municipalities with loan assistance and technical assistance to expand the supply of decent and affordable housing for low and very low-income Pennsylvanians. Local governments that are not HUD participating jurisdictions. Local government on behalf of private, non-profit and for-profit housing development corporations.
Uses of Funds or Service
New construction, rehabilitation, acquisition of rental or sales housing and rental assistance for low- and moderate-income families
Contact Office
Regional Office
Center for Community Financing
Amounts (If Financing)
Maximum grant is $500,000
Misc.Info
Financing Terms/Conditions
A 25% local match on project costs from non-federal resources for existing housing is required. 30% local match is required for new construction. Refer to the Program Guidelines

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