Small Business Loans in Pennsylvania

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Financing for Companies in Pennsylvania

Pennsylvania, famous for steel manufacturing, has diversified its economy over the last half-century. The state is home to major cities such as Pittsburgh and Philadelphia that offer great opportunities for small businesses to thrive. Pennsylvania also has some of the finest universities in the world, most notably The University of Pennsylvania, which provides Pennsylvania small businesses the opportunity to choose from a strong pool of applicants. 

SMB Compass offers small business loans for Pennsylvania-based businesses operating in a wide range of industries to help them grow, scale, and flourish.  

Manufacturing Loans for Pennsylvania Companies

Although the manufacturing industry has slowed in recent years it is still a massive part of Pennsylvania’s economy - with over 560,000 employees active in the industry. The manufacturing industry in the Keystone State is diverse, and it is not reliant on one single product. 

The state produces mass amounts of paper, machinery, plastics, metal, and pharmaceuticals. The manufacturing industry relies on Pennsylvania small business loans to cover inventory and overhead expenses. 

Equipment financing in Pennsylvania is especially critical for small business owners to purchase new equipment and machinery as more opportunities arise.

Agriculture Loans in Pennsylvania

Agriculture has always been influential in Pennsylvania’s economy, and this still rings true today. With a rise in agricultural costs over the years, Pennsylvania has adjusted its farming industry by focusing more on fruits, corn, and mushrooms. Livestock is crucial to the state’s economy and produces almost 70% of the state’s agricultural revenue. Businesses in this industry rely on Pennsylvania small business loans to maximize their revenue on a yearly basis.

Natural Gas and Tourism Loans in Pennsylvania

The Keystone State has seen an increase in the demand for natural gas, which had seeped into other growing industries. The state is home to some of the largest public and private companies in the country. Large companies are attracted to the state due to its talented workforce and both its rural and populated areas. With major cities and outdoor attractions outside the city limits, the tourism and hospitality industries also play an immense role in the state’s economy. The tourism and hospitality industries use small business loans Pennsylvania and hotel loans to accommodate millions of visitors per year.

Small Business Loans in Pennsylvania

  • Business Line of Credit Pennsylvania

    • Business lines of credit in Pennsylvania are one of the best. Unlike bank loans, small businesses are not obliged to use the entire amount granted. Instead, they can draw money in increments as needed. Once approved, Pennsylvania small businesses can get a credit line with a limit of $5 million. It’s a revolving credit, so a business’ credit limit goes up as they repay what they owe and goes down as they draw money. 

      A business line of credit can be secured or unsecured. Secured business lines of credit require collateral or downpayment. An unsecured business line of credit doesn’t require borrowers to pledge an asset, but it could be more expensive than secured lines of credit. 

  • SBA Loans in Pennsylvania

    • The Small Business Administration (SBA) offers loan programs to small businesses in Pennsylvania. SBA Loans are the best Pennsylvania business loans simply because they offer high loan amounts, low-interest rates, and longer repayment terms. However, they’re also notorious for their lengthy loan application and documentation process. 

      Pennsylvania small business owners can choose among a variety of SBA loan programs offered by the United States government. The most popular programs include SBA 7(a), SBA CDC/504, and SBA Express loan. 


      Both SBA 7(a) and SBA Express Loan can be used for any business purposes, including working capital, equipment purchase, real estate, inventory, etc. The SBA CDC/504 loan program is limited to hard-asset purchases. In other words, you can only use the SBA loan towards real estate acquisitions and development, or equipment purchases. 


      The CDC/504 loan also has the goal of community and economic development, and the Small Business Administration works with Certified Economic Development Organizations to enforce change and improve the economy within a community. With that, the Small Business Administration (SBA) may also impose more  requirements small businesses have to follow to qualify.

  • Factoring for Pennsylvania Businesses

    • Factoring for Pennsylvania small businesses entails selling your customer’s outstanding invoices so you can advance the cash needed to cover certain business initiatives. With invoice financing, you won’t have to pledge additional collateral. Your customer’s outstanding invoices will act as the security for the loan. Know that with invoice factoring, the lenders will take over the payment collection. This is perfect for small businesses that don’t have the resources to carry out the payment collection themselves. 

      It’s also worth mentioning that the business’ customers might be aware that the borrowing company is using invoice factoring. At SMB Compass, we will do our best to do the payment collection discreetly, so that our relationship with the small business (borrower) remains confidential. 

  • Business Term Loan Pennsylvania

    • Business Term Loans are traditional small business loans that offer lump sums to companies, which are then repaid in fixed increments over a specific period, or ‘term’. Eligible businesses can get up to $5 million in cash, which they can use towards a variety of purposes. This includes working capital, equipment purchase, real estate, inventory, and others. Term loans can be classified as short-term, medium-term, and long-term loans - each classified according to their repayment period. Short-term loans aren’t usually offered by banks but are available through online lenders. Long-term loans can be obtained from banks, credit unions, and alternative lenders, and they usually have low-interest rates compared to the other two types. 
  • Business Equipment Financing Pennsylvania

    • Equipment financing in Pennsylvania is dedicated to financing expensive equipment purchases. The equipment in the loan program will serve as the collateral, which means that it can be used to pay for the loan in the event of a default. An equipment small business loan is helpful, especially if the business relies mostly on equipment to operate. With that, it offers financial protection since companies won’t have to dig into their cash reserves to pay for the equipment upfront and risk cash flow gaps. 
  • Purchase Order Financing Pennsylvania

    • Purchase order financing allows Pennsylvania businesses to sell their customer’s purchase orders to lenders for cash. This is particularly helpful in times when a business receives an influx of projects or one large project, but doesn’t have enough capital to cover it. Purchase order financing gives them the working capital they need, so they won’t have to turn down a big (and profitable) project. One important thing to stress with purchase order financing is that the money will be given directly to the supplier. For business owners to qualify for the loan, they have to meet specific requirements. For instance, they must sell finished products - not raw materials. 
  • Inventory Financing Pennsylvania

    • The Inventory Financing Pennsylvania financing option entails using a business’ inventory to obtain additional working capital. In this arrangement, the lenders tie up the loan to the company’s (borrower) unsold stocks. This means that the inventory can be used to repay the loan in the event of a default. Once approved, eligible businesses can get up to 60% of their inventory financed. It’s also important to make sure that the inventory pledged is not considered perishables or has a limited shelf life for you to be considered an ideal candidate for the small business loan. 
  • Commercial Real Estate Loan Pennsylvania

    • If you need financial assistance to cover commercial real estate investments, Commercial Real Estate Loan Pennsylvania is for you. With the small business funding, you can acquire, renovate, and develop an existing commercial space and turn it into another small business or an extension of your existing one.  However, it’s worth noting that commercial real estate loans are ideal for established businesses. To qualify, one of the eligibility requirements is 2-year business history. That said, if you’re a new business, it might be harder to qualify.
  • Asset-Based Lending in Pennsylvania

    • Asset-based loans are small business financing that focuses on the value of your assets. This includes real estate, equipment, inventory, or invoices that your business owns. While cash flow would still be a consideration, with asset-based loans, your qualification will depend primarily on the asset you can pledge. Talk to one of our loan managers now to know more about how an asset-based financing option can help you in growing your company. 


Here are the many ways to use Pennsylvania small business loans

If you’re thinking of how Pennsylvania business financing can help your business, we’ve outlined the most important uses of Pennsylvania business financing below:

  • Acquire small business loans
  • Refinance existing loans and credit card debt
  • Purchase or refinance commercial real estate
  • Buy or lease machinery and equipment
  • Purchase inventory and raw materials
  • Improve cash flow
  • Marketing and advertising campaigns
  • Upgrade technology and business software
  • Renovate existing office space
  • Day-to-day operating expenses

Ready to apply for a Business Loan?

Small business loans available in every city in Pennsylvania