Philadelphia is home to a diverse and growing business community—from corner cafés and tech startups to logistics firms and retail shops. Navigating the right funding can unlock growth, stabilize operations, and build long-term success. This guide explores loan options for Philadelphia companies, including SBA loans, local CDFIs, microloans, and city-backed programs.
Local businesses in Philly often encounter:
High rent and real estate costs
Capital demands for equipment and renovation
Marketing expenses to stay competitive
Cash flow delays from seasonal or B2B payment cycles
Compliance and licensing costs
Philadelphia entrepreneurs need capital that matches their size, growth phase, and industry challenges.
Loans up to $5 million
Use for working capital, equipment, expansion, or real estate
Terms up to 10 years (working capital) or 25 years (real estate)
Competitive interest rates and partial SBA guarantees
Targeted for long-term assets like property and heavy machinery
Funded through Certified Development Companies (CDCs) in partnership with banks
Fixed-rate loans ideal for building purchases and renovations
Loans up to $50,000
Perfect for small businesses or startups needing funds for equipment, supplies, or marketing
Delivered through local nonprofit intermediaries with business support
Community Development Financial Institutions (CDFIs) provide capital and technical support to underserved businesses. In Philadelphia, they offer:
Microloans and small business loans
Real estate and equipment financing
Business coaching, financial education, and grant matchmaking
Support for BIPOC, immigrant, and women-owned businesses
Examples of local CDFIs include organizations formerly known as Finanta, PIDC Community Capital, and other mission-driven lenders.
A shared application that connects businesses with multiple lenders
Some programs offer grant matches for up to 50% of the approved loan
Offer forgivable loans for storefront improvements, signage, and ADA compliance
Focused on revitalizing key commercial corridors
Organizations like the Merchant’s Fund provide hardship-based grants or emergency funding
Interest-free loan options are available through community-based financial groups
In addition to banks, Philadelphia-area businesses can explore:
Local credit unions that provide fast-turnaround small business loans and lines of credit
Online lenders offering term loans, merchant cash advances, and invoice financing
Options for businesses with shorter operating histories or non-traditional credit
While these options are faster, they may come with higher interest rates or shorter terms.
Define your funding needs: working capital, equipment, expansion, etc.
Choose a source: SBA loan, CDFI, city grant, or credit union
Gather financial statements, business plan, and vendor quotes
Prequalify with 2–3 lenders or programs
Complete and submit your applications
Close on funding and deploy capital as planned
Monitor financial performance and ensure timely repayment
| Loan Type | Pros | Cons |
|---|---|---|
| SBA 7(a) | Large loan sizes, flexible use, low interest | Lengthy application and underwriting process |
| SBA 504 | Great for property and expansion, fixed rates | Slower approval, requires a CDC partner |
| SBA Microloan | Easier access, startup-friendly, business support | Loan amounts capped at $50,000 |
| CDFI Loans | Local expertise, inclusive access, coaching included | Smaller loan amounts than traditional banks |
| City Grant Programs | Non-repayable or forgivable capital | Limited availability, competitive selection |
| Online/Credit Union Loans | Fast access, lower documentation | Higher costs or tighter repayment timelines |
A café in West Philadelphia sought to expand its kitchen and outdoor seating:
Secured a $200,000 SBA 7(a) loan through a local SBA lender
Received a $15,000 forgivable storefront improvement loan
Added a $15,000 interest-free community loan for kitchen equipment
Result: 30% increase in revenue within 6 months and 3 new staff hires
To improve your chances of loan approval:
Maintain a credit score of 650 or higher
Provide at least two years of financial records, if available
Include a strong business plan with a clear use-of-funds section
Get quotes or invoices for all project costs
Work with SBDCs, SCORE mentors, or loan preparation workshops
Prequalify with multiple lenders to compare terms
Philadelphia entrepreneurs can also take advantage of:
Small Business Development Centers (SBDCs) for business planning and loan prep
SCORE Philadelphia for free mentoring and financial modeling
Chambers of commerce and business improvement districts for networking and grant alerts
The Office of Business Services for city permits and licensing
Nonprofit incubators and coworking hubs that offer pitch competitions and startup capital
Philadelphia business owners don’t have to navigate financing alone. With a combination of SBA loans, microloans, local grants, and community-driven capital, the funding ecosystem is rich with options tailored to the needs of small and growing companies.
Identify your immediate financing goals (e.g., location, equipment, payroll)
Match your need with the right loan product or program
Gather your business plan, financials, and quotes
Connect with at least two lenders or city programs to compare options
Apply, secure funding, and execute your growth plan