When starting a new business in Pennsylvania or anywhere else, one of the most important elements you need is capital. Money is essential for starting, operating, or expanding your business. However, getting a loan can sometimes stretch your budget too thin, putting you and your business in a financial bind.
One suitable alternative is a small business grant. Unlike a loan, you don’t have to pay a grant back, and it can help you achieve various goals with your company. For Pennsylvania entrepreneurs, a grant can be a lifeline that enables you to strengthen your bottom line and achieve new heights of success. So, to help you find the money you need, we’ve compiled a list of various Pennsylvania small business grants for 2026.
What are small business grants?
A small business grant is a financial reward for smaller companies that doesn’t have to be repaid like a loan. Typically, a grant is broken down into three phases: pre-award, award, and post-award phase. The application and approval process for a grant is often strict and time-consuming. Some grants are available only to a specific type of business, while others may be designed for a specific purpose, such as hiring more workers.
As long as you qualify for the grant and use the money as designated, you shouldn’t have to pay it back. However, if you break the terms of the grant, you’ll likely have to repay it, possibly with interest. So, it’s imperative to read the rules and restrictions of a grant program before applying to ensure it aligns with your business goals.
Pennsylvania state-specific grants for 2026
1. Small Business Advantage Grant from the Department of Environmental Protection (DEP)
The Small Business Advantage Grant pays between 50 to 80 percent ($7,500 to $12,000) of business projects that help reduce waste and improve environmental efficiency with your business. The goal of this grant is to help Pennsylvania small businesses operate with a more sustainable model to protect the local environment into the future.
Some examples of these projects include:
- Upgrading outdated or energy-inefficient equipment.
- Improving operational efficiency to reduce waste.
- Investing in waste recovery systems to prevent pollution.
Application process: best practices and tips
The 2025-2026 application period opened August 1, 2025 and closed March 13, 2026. This is an annual program — the next cycle is expected to open around August 1, 2026. Applications are considered on a first-come, first-served basis until funding is exhausted, so apply as early as possible once the new cycle opens.
The grant uses a tiered funding structure based on environmental impact and project location:
- Up to 50% of eligible costs or $7,500 (whichever is less) for standard projects.
- Up to 65% or $9,750 for projects located in an Environmental Justice area or those achieving significant environmental savings.
- Up to 80% or $12,000 for projects meeting both criteria.
Your project must save your business at least $500 annually and reduce energy or pollution-related costs by at least 20%. This is a reimbursement grant, you pay for the project upfront and are reimbursed after completion. Applications are submitted through Pennsylvania’s Electronic Single Application system.
2. Pennsylvania Strategic Investments to Enhance Sites Program (PA SITES)
The Pennsylvania Strategic Investments to Enhance Sites (PA SITES) Program provides grant funding to municipalities, townships, and authorities to develop competitive, shovel-ready sites that can attract and retain businesses in Pennsylvania. It’s important to note that PA SITES is not a grant that individual small businesses can apply for directly, eligible applicants are local governments and public entities only.
The program has two categories: Planning Grants, which fund feasibility studies and real estate plans for prospective development sites, and Construction Grants and Loans, which provide gap financing for transportation access improvements, utility extensions, and site grading.
If your business is considering relocating to or expanding in Pennsylvania, the most relevant way to benefit from PA SITES is through your local economic development organization or municipality, which may be preparing a PA SITES-funded site that could accommodate your project.
Application process: best practices and tips
Since the goal of this project is to make Pennsylvania more economically competitive, it will focus on businesses that can create jobs and opportunities for Pennsylvania residents. So, if you’re trying to grow your business and hire more employees, you may be able to qualify for a construction grant for new development.
Also, because the grant is tied to construction, don’t apply if you don’t want or need to build a new site for your business. This grant is designed for projects like office buildings, mixed-use properties, and other strategic developments.
3. Global Access Program (GAP)
If you export items overseas, you can take advantage of the Global Access Program. GAP is designed to help make small and mid-sized businesses in Pennsylvania be more competitive on the global stage. Recipients can get up to $10,000 to invest in technology or infrastructure that helps them export to countries overseas.
The money can also help you establish relationships with overseas partners. For example, if you need funds to participate in a trade show in another country, you can use GAP money to do so.
Application process: best practices and tips
First, you must apply to a Regional Export Network (REN), which will then forward your application to the Global Access Program. As long as you have a good standing and can illustrate your need to expand your export share, you can qualify for GAP funding.
Ben Franklin Technology Partners
Ben Franklin Technology Partners is a Pennsylvania-funded initiative that has supported the state’s technology economy for over 40 years. Operating through four regional centers across the state, Ben Franklin Technology Partners of Central and Northern PA, Northeastern PA, Southeastern PA, and the Ben Franklin Technology Center of Western PA, the program provides direct investment of $50,000 to $500,000 to early-stage Pennsylvania technology companies.
Ben Franklin investments are structured as conditionally repayable grants or forgivable loans, if your company succeeds and grows, a portion is repaid; if the venture doesn’t succeed, repayment is typically forgiven. This makes them far more accessible than traditional loans for early-stage companies with unproven revenue. Since its founding, Ben Franklin has invested over $800 million in more than 1,800 companies, which have collectively created tens of thousands of jobs across Pennsylvania.
Application process: best practices and tips
Each of the four regional centers has its own application process. Start by identifying your regional center at benfranklin.org and reaching out to a local program manager before applying formally, they will assess your company’s fit for the program and guide you through the application. Priority is given to companies in advanced manufacturing, life sciences, information technology, and other technology-driven industries with strong potential for commercialization and job creation in Pennsylvania.
Federal grants available to Pennsylvania businesses
There are literally thousands of federal grants available to businesses across all sectors. If you have the time, you can conduct an exhaustive search for each grant online and learn more about how to apply for them. However, while most of those grants are highly specialized, here are three options that have broad applications to small businesses in Pennsylvania and beyond.
1. Small Business Innovation Research (SBIR) Grant
The Small Business Innovation Research program started in 1982 with the goal of helping businesses invest in the research and development of new products and ideas. The purpose of the SBIR is to keep America at the forefront of modern technological innovation through grants. Although the SBIR is overseen by the Small Business Administration (SBA), funds come from different agencies within the federal government.
This program is divided into three phases: proof of concept, technology development, and commercialization. Each phase lasts a specific period (e.g., 12 to 24 months) and has certain funding limits. Each grant is designed specifically for R&D of new technology, not for expanding or improving your business.
Application process: best practices and tips
To apply, you have to watch for agency solicitations. Because funding doesn’t come from the SBA directly, you have to apply to a specific agency when an opportunity arises. Virtually all federal agencies participate in the SBIR program, including the Department of Agriculture, the Department of Education, and the Department of the Interior.
2. Small Business Technology Transfer (STTR) Program
The STTR program works very similarly to SBIR (the same agency oversees it), but you must have a formal relationship with a nonprofit research institution (e.g., a science lab or university). The goal of this program is to take research ideas from the nonprofit and transfer them to the small business for commercialization purposes.
Application process: best practices and tips
The application process for the STTR Program is the same as it is for SBIR, but not all federal agencies participate in the program. For example, the Department of Commerce only provides SBIR funding, while the Department of Defense provides both types of funding.
Note: The SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized in March 2026 and are now active through September 30, 2031.
3. State Trade Expansion Program (STEP)
The purpose of STEP is to help small businesses be more competitive within the international landscape. These grants are designed to help companies invest in infrastructure and supply networks to bring products to foreign markets. In Pennsylvania, the Global Access Program (GAP) is the local arm of the national STEP network.
Historically Disadvantaged Business Assistance (HDBA) Microgrant Program
Pennsylvania’s Department of Community and Economic Development (DCED) is investing $15 million to fund ten micro-grant programs across the state specifically for historically disadvantaged businesses. The program aims to remove barriers to capital access for businesses that have historically been underserved by traditional financing — including minority-owned, women-owned, and veteran-owned businesses.
Micro-grants are distributed through a network of ten community-based organizations and economic development partners across Pennsylvania, each serving their own geographic area and running their own application process. Grant amounts and eligibility requirements vary by partner organization.
Application process: best practices and tips
To access HDBA microgrant funding, find the partner organization serving your region through DCED’s website at dced.pa.gov. Contact your regional partner directly — they will guide you through the eligibility assessment and application process. Because grants are distributed through regional partners with limited pools of funding per region, applying early is strongly recommended.
Corporate and private foundation small business grants for 2026
Many companies and private foundations offer their own small business grant programs. These can be for small or large amounts, and focus on almost anything (e.g. tech innovation, environment, economic development, etc.).
1. FedEx Small Business Grant Contest (CLOSED)
FedEx conducted an annual grant contest open to U.S.-based small businesses with fewer than 100 employees. 2024 grants included one of $50,000 and nine of $20,000.
The FedEx Small Business Grant Contest ran from 2012 through 2024 and is no longer accepting applications.
FedEx E-Commerce Learning Lab
FedEx, in partnership with Accion Opportunity Fund and e-commerce experts at 37 Oaks, runs a four-month hands-on program designed to help small business owners strengthen their e-commerce strategy and grow their online sales. The program includes practical courses, interactive workshops, expert guidance, and order fulfillment support through the holiday season. Participants who graduate receive a $5,000 grant to reinvest back into their business.
Application and eligibility process:
The Fall 2026 cohort application deadline has closed. Learn more on their website for future cohort announcements.
2. Freed Fellowship Grant
The Freed Fellowship offers a $500 micro grant each month to a U.S.-based small or micro business. Monthly winners are also eligible for a year-end grant of $2,500.
Application and eligibility requirements
To apply, visit the Freed Fellowship Grant page. The application deadline for each month is the last day of that month.
Conclusion
As you can see, finding funds for your small business is much easier than you might think. While these grants can be highly competitive, they’re a valuable funding resource that offers flexibility and stability when you need them most.
The best way to ensure you get approved for a grant is to create a captivating pitch and outline the specific goals or objectives you want to achieve with the money. Grants are designed to push your company forward, not just to help fill in financial gaps. Now that you know what kinds of funding options are out there, good luck on getting grant money for your business!