Small Diverse Business Capital Access Program (SDBCA)

Small Diverse Business Capital Access Program Overview

The Small Diverse Business Capital Access Program is administered by the Pennsylvania Industrial Development Authority (PIDA) and provides low-interest loans and lines of credit to small diverse businesses that commit to creating and retaining full-time jobs within the Commonwealth. Loan applications are packaged and underwritten by a network of certified economic development organizations (CEDOs) that partner with PIDA to administer the program.

Uses

Land and building acquisitions; Construction and renovation costs; Machinery and equipment purchases; Working capital and accounts receivable lines of credit.

Eligibility

A variety of different industry sectors are eligible for SDBCA financing including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child day-care, retail and service, export, and computer-related service enterprises. The business must be certified by the PA Department of General Services (DGS) as a minority-owned, woman owned, veteran-owned, or service-disabled veteran-owned business with 100 or fewer employees worldwide. Questions regarding the Small Diverse Business Verification Program can be directed to:

Funding

The SDBCA program finances a portion of total eligible project costs. The maximum participation amount is determined by a variety of factors such as the proposed use of the SDBCA funds, the amount of matching financing from sources outside of SDBCA, and the number of full-time jobs to be retained or created. The maximum term loan amount is $200,000. The maximum line of credit amount is $100,000.

Loan approval is contingent upon meeting the program underwriting and collateral requirements.

Terms

Up to 15 years for land and building acquisitions and construction / renovation projects; Up to 10 years for machinery and equipment purchases; Working capital and accounts receivable lines of credit have a term of 1 year and can be renewed.

Interest rates for the program are based on current market conditions. Please contact the PIDA Office or the CEDO in the county your business is located for the current interest rate.

How to Apply

Loan applications are packaged by a CEDO that services the county your business is or will be located in. The CEDO will work with you to determine whether or not the SDBCA loan program can assist with financing the needs of your business and will discuss with you in detail how the application process works. Below is a link that provides a complete listing of CEDOs by county.

Certified Economic Development Organizations

Questions about the program can also be directed to the PIDA Office at  717.783.5046.

Additional Information

Small Diverse Business Capital Access Program Fact Sheet

Listing of Eligible Distressed Areas

DEP Determination of Eligibility Application