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Small Business Loans Pennsylvania

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AdvancePoint Capital Supports Small Business Loans in the Commonwealth of Pennsylvania.

Small businesses face an array of challenges getting business loans. Traditional lending outlets such as banks or credit unions have stringent guidelines, strict requirements, and mountains of paperwork for their limited small business loan options. That’s where AdvancePoint can come in to help Pennsylvania small businesses find the appropriate alternative lending option for their enterprise.

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How To Get Small Business Loans in Pennsylvania?

AdvancePoint is an excellent resource for Pennsylvania businesses in search of funding. We offer an extensive marketplace of alternative loan options to help small businesses in Pennsylvania fulfill their business needs. AdvancePoint Capital has a marketplace of small business loans specializing in industries across the state to serve the small business community’s needs. Let’s explore the eight most popular small business funding options in Pennsylvania.

The 8 Best Small Business Financing Options in Pennsylvania in 2021

1. Long Term Business Loans in Pennsylvania

Long term business loans are loans with terms greater than 2 years length of repayment. The main benefits of long term business loans are the length of repayment, access to more capital than short term business loans, affordable monthly payments, and funds to expand a business or large long term projects.

Product Overview

Rates: Interest rates starting Treasury index plus 1% to 2.5 (currently 5.5% as of 2020)
Terms: 2 to 10 years
Fees: 0% to 3% origination fees
Payments: Monthly or bi-weekly payments
Credit Standards: All credit considered. Good to excellent credit preferred
Paperwork: Application, bank statements, tax returns, and other financial statements may be required
Processing Times: 3 days to a couple of weeks depending on lender

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Long-Term Business Loans

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2. Small Business Line of Credit in Pennsylvania

A small business line of credit is an open revolving line of credit that allows small business owners to draw funds when needed on-demand or make purchases up to a certain credit limit. It requires renewal to be extended by lenders either semi-annually or annually. The most significant benefit of a small business line of credit over term loans is flexibility. PA businesses use this product primarily for working capital.

Product Overview

Rates: Interest rates start at treasury index plus 1% to 2.5%
Terms: Open revolving line of credit
Fees: Origination fees 0% to 3%
Payments: Monthly, bi-weekly or weekly payments
Credit Standards: All credit considered. Good to excellent credit preferred.
Paperwork: Bank Statements, tax returns, and other financial statements may be required.
Processing Times: Same day to up to a week depending on lender  

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Business Line of Credit

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3. Small Business Administration Loans in Pennsylvania

The Small Business Administration (SBA) office is a Federal government agency that provides programs, guidelines, and loan guarantees to approved lenders for business loans. Since its founding, the SBA’s mission has been to deliver millions of loans, loan guarantees, contracts, counseling sessions, and other forms of assistance to small businesses. The SBA is not a lender but merely provides a guarantee that gives approved lenders the ability to take on the risk of small business lending with attractive rates and terms that could not normally be afforded to small businesses. Without the SBA guarantee, the approved lender would not be comfortable lending these loans under the SBA terms. Through the Small Business Administration’s SBA 7(a) loan program and the Small Business Administration’s SBA’s 504 programs, Pennsylvania businesses raised over 400 million dollars in business loan volume to support their businesses. Due to the Coronavirus crisis, the SBA has developed a new program called the SBA Paycheck Protection Plan (PPP), a loan to help small businesses affected by the crisis. PPP loans may be forgiven under certain circumstances. The PPP application window closed on August 8, 2020. Contact one of our business finance specialists at AdvancePoint Capital about SBA loans for more information. We can efficiently guide your Pennsylvania small business through the process to have the best likelihood of approval.

Product Overview

Rates: Rates starting at treasury index plus 1% to 2.5%
Terms: 3 to 25 years
Fees: Origination fees from 0% to 3%
Payments: Fixed monthly payments
Credit Standards: Good to excellent credit preferred, but all credit considered.
Processing Time: One week to one month, depending on application volumes, SBA loan selection, or other economic conditions.

Small Business Administration (SBA) COVID-19 Economic Injury Disaster Loans (EIDL) – In response to the COVID-19 pandemic, small business owners, including agricultural businesses and non-profit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan. The SBA EIDL Federal government program is designed to provide economic relief to all eligible businesses currently experiencing a temporary loss of revenue due to COVID-19 and its impact on the economy. 

Consult with our business finance specialists at AdvancePoint Capital about Small Business Administration (SBA) loans to determine what products are available and how much you qualify for.

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Small Business Administration (SBA) Loans

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4. Short Term Small Business Loans in Pennsylvania

Short term small business loans are defined as loans with terms from 3 to 18 months. Short term small business loans charge a factor rate or simple interest and not a principal & interest rate. This option is popular with PA small businesses that cannot get approved through traditional means because of documentation requirements or credit concerns.

Product Overview

Rates: Factor rates from 1.09% up to 1.45% of the funding amount
Terms: 6 to 18 months in duration (typically 12 months or less)
Fees: Origination fees 0% to 5%
Payments: Weekly, bi-weekly, and in some cases daily Monday-Friday
Credit Standards: All credit types considered
Processing Times: Same day, 24 hours, or 48 hours

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Short Term Business Loans

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5. Small Business Cash Advance in Pennsylvania

Small Business Cash Advance (BCA) is also known as a Purchase of Future Sales Agreement that advances future sales at a discount to a small business. BCA’s charge a “Factor Rate,” a fixed cost, and is the difference between the advance amount and the payback amount. A fixed percentage of future overall sales deposits called the specified fixed percentage is used for repayment. The payments are collected by an ACH fixed daily or weekly payment deducted from a business bank account based on the specified percentage of future sales. Reconciliation can occur at the end of every month. There is no term limit with advances. Business Cash Advances are not loans but advances off of future sales. PA Businesses use this product primarily for working capital.

Product Overview

Rates: Factor rates from 1.09% up to 1.45%
Terms: No term limits. Payments are based on a specified fixed percentage collection method and are dependent on future sales
Fees: Origination fees from 0% to 5%
Payments: Weekly or daily Monday-Friday fixed ACH payments
Credit Standards: Poor to excellent credit accepted. All credit considered.
Processing Time: Same day, 24 hours, or 48 hours

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Business Cash Advance

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6. Merchant Cash Advance in Pennsylvania

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement that operates very similarly to a Business Cash Advance. Still, the most significant difference is the repayment process, which is connected to the future credit card sales instead of overall sales. No fixed payment is deducted from the business bank account. The set percentage of future credit card sales is used. Advances have no term limit and are connected to future credit card sales. Merchant Cash Advances are not loans but advances off of future sales of the business. PA Businesses use this product primarily for working capital.

Product Overview

Rates: Factor rates 1.09% up to 1.45%
Terms: No term limits (payoff depends on future credit card sales)
Fees: Origination fees range from 0% to 3%
Payments: Fixed percentage of future credit card sales as payment
Credit Standards: All credit considered from poor, fair, good to excellent.
Processing Time: Same day to 24 to 48 hours

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Merchant Cash Advance

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7. Equipment Financing in Pennsylvania

Equipment financing is an option that secures the equipment as collateral for purchase. Good to excellent credit is required, and the type of equipment needs to be approved by the equipment financing company to acquire financing. This product is popular with equipment-heavy industries like manufacturing and construction. 

Product Overview

Rates: Factor rates 1.09% up to 1.45% or interest rates 4.5%-28%
Terms: 2 to 10 years
Fees: Origination fees range from 0% to 3%
Payments: Monthly fixed payments
Credit Standards: Good to excellent required.
Processing Time: Instant funding, same day up to 3 days depending on the lender

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Equipment Loans

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8. Invoice Financing in Pennsylvania

Invoice financing allows small business owners to get an advance on their client invoices before the invoice is paid. Invoice finance companies advance the invoice once it is submitted to them for a nominal fee. The invoice finance company, not the business owner, is responsible for collections of the invoice advanced. This small business funding product is an excellent solution for businesses with cash flow crunches without having to wait for 30, 60, 90 days, or more for invoice terms to be paid by clients. Invoice financing is not a loan but an advance off of specific invoices. PA Businesses use this product primarily for working capital.

Product Overview

Rates: None
Terms: No term limits because it is not a loan.
Fees: 1% to 2.5% fee based on invoice. Monthly service fees may apply depending on the volume of invoices factored
Credit Standards: Client credit must be favorable, not the business owner advancing off invoices
Processing Times: It takes 1 to 2 weeks to fund invoices daily.

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Invoice Factoring

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U.S. Small Business Administration

How to Grow Your Business in Eastern Pennsylvania
View the Eastern Pennsylvania Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.

The fast, convenient, and straightforward way to get the help and loans you need for your PA business – now!

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Why Does Your Pennsylvania Business Need a Business Loan?

The most common reasons Pennsylvania small businesses acquire capital for their business:

  • Working Capital   
  • Business Expansion
  • Equipment Purchases
  • Advertising/Marketing costs
  • Emergencies

Frequently Asked Questions

It is not difficult to obtain a small business loan in PA. There are many online and local small business loans available to Pennsylvania small businesses.

The Pennsylvania economy is diverse and thriving. PA businesses do not have any unique challenges to operate a business.

PA small businesses turn to the Small Business Administration SBA loan for help when it comes to pre-revenue stage small businesses.

Despite bad credit, there are many business financing alternatives available for PA small businesses. Small Business loan terms will vary depending on the product and are linked with risk, so expect terms, pricing, and costs to be impacted if you have bad credit.

PA Small Business Assistance, PA State Government Programs, PA and Federal Grants, Information and Other Opportunities for Pennsylvania Businesses

Pennsylvania Department of Community and Economic Development(DCED) – The PA Department of Community and Economic Development is a PA government agency whose mission is to encourage all Pennsylvanians’ shared prosperity by supporting good stewardship and sustainable development initiatives across our commonwealth. The Pennsylvania DCED acts as an advisor and advocate, providing strategic technical assistance, training, and financial resources to help our communities and industries flourish. 

Pennsylvania Department of Community and Economic Development (DCED) Small Business Assistance – Pennsylvania DCED Small Business Assistance is a one-stop-shop for small business assistance resources like planning, registering, operating, and growing a business. This allows business owners to work smart and live happily in Pennsylvania. 

Pennsylvania Department of Community and Economic Development (DCED) Business One-Stop-Shop Fact Sheet – The fact sheet has an abundance of information and resources that outline small business assistance for everything from planning, development, and start-up to operating and expanding your small business.

Entrepreneur’s Guide Starting and Growing a Business in Pennsylvania – Download PA’s comprehensive small business assistance resource guide to help businesses launch in Pennsylvania. Here you’ll find expert small business assistance regarding building a business plan, registration, funding advice, and more information. Our e-guide is printer-friendly and eco-friendly!

Business Resources for Veterans – Download the Veterans Resources Fact Sheet to learn how to start or grow your business in Pennsylvania. From technical and registration help to securing funding for businesses, the DCED team can help with valuable information.

The Pennsylvania Diverse Business Financing Initiative – This initiative is the Pennsylvania state government’s programs committed to promoting diversity, inclusion, and small business opportunities. The Diverse Financing Initiative consists of capitalizing revolving loan funds managed by local economic development service providers, including Certified Economic Development organizations (CEDOs) and Community Development Financing Institutions (CDFIs).

The Pennsylvania Coronavirus COVID-19 Relief Statewide Small Business Assistance – COVID-19 Small Business Grants  – The COVID-19 public health crisis has impacted every Pennsylvanian in every community. The newly implemented state budget includes $2.6 billion in federal stimulus funds through the Coronavirus Aid, Relief, and Economic Security Act (CARES). The COVID-19 small business assistance program’s mission is to help small businesses impacted by COVID-19. The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program provides grants ranging from $5,000 to $50,000 to small businesses that have been impacted by COVID-19. This is not a first-come, first-served program. The second application window will be the final opportunity to apply for the program to get funds to businesses in need as quickly as possible.

Within this allocation, the Department of Community and Economic Development has been allocated $225 million in COVID-19 relief funds. These funds will go to small businesses through distribution by Community Development Financial Institutions (CDFIs) through the Pennsylvania CDFI network. 

Pennsylvania Small Business Development Centers (SBDC) – While the PA SBDC does not provide government financing or loans, they provide you with the information and tools to finance your small business. It also provides information on SBA disaster loans available to small businesses in PA. 

Pennsylvania Association of Non-Profit Organizations (PANO) – Information on COVID-19 Funding Sources for Non-Profits

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