When starting a new business in Pennsylvania or anywhere else, one of the most important elements you need is capital. Money is essential for covering startup costs and for 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 for businesses with 100 or fewer full-time employees. 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- Upgrading outdated or energy-inefficient equipment.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
Applications for the 2026-2027 round opened September 11, 2026 and close March 19, 2027, or sooner if funding runs out. Project work must take place between July 1, 2026 and June 30, 2027. Applications are considered on a first-come, first-served basis until funding is exhausted, so apply as early as possible.
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. 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. GAP reimburses up to 75% of eligible export marketing costs, up to $10,000 per award year. Eligible costs include overseas and domestic trade shows, trade missions, foreign sales trips, translation, website internationalization and shipping samples.
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. Apply before the activity takes place. Your company must be export-ready and in good standing.
3. Ben Franklin Technology Partners (investment program)
Ben Franklin Technology Partners is a Pennsylvania-funded initiative that has supported the state’s technology economy for over 40 years. Ben Franklin works through four regional partners: Central and Northern PA, Northeastern PA, Southeastern PA, and Innovation Works in Southwestern PA. It provides early-stage funding to Pennsylvania technology companies.
Ben Franklin funding is usually structured as investments that are repaid if the company succeeds, so it isn’t a grant. This makes it more accessible than traditional loans for early-stage companies with unproven revenue. Ben Franklin says it has invested in more than 4,500 technology-based companies.
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.
4. Historically Disadvantaged Business Assistance (HDBA) micro-grants
Pennsylvania’s Department of Community and Economic Development (DCED) announced on February 24, 2026 that it 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. Each partner runs its own application window, and some rounds may already be closed. Because grants are distributed through regional partners with limited pools of funding per region, applying early is strongly recommended.
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. Eleven federal agencies participate in the SBIR program, including the Departments of Agriculture, Education and Energy.
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 on April 13, 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. STEP is SBA funding awarded to states to help small businesses start or grow exports. Pennsylvania businesses get STEP money through the Global Access Program (GAP), above.
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. 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. The application fee is $19.
Conclusion
As you can see, there are more options for funding your small business than many owners expect. 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!