What Types of Business Grants Are Offered in Pennsylvania (PA)?

Image of the Pennsylvania state flag, symbolizing Pennsylvania as a great state for business grants

By: Micki Vandeloo, President, Lakeview Consulting

Pennsylvania is known for a lot of things, as Google will tell you:

  • The famous groundhog Punxsutawney Phil and his (sometimes) accurate weather predictions
  • The first electronic general-purpose computer, ENIAC, was built at the University of Pennsylvania in 1946.
  • The Philadelphia Zoo was the nation’s first zoo, opened in 1946.
  • And, perhaps best of all, the state is home to the “sweetest place on earth”, Hershey, Pennsylvania. It is said that sometimes the air even smells like chocolate!

Pennsylvania also happens to be a fantastic state for business grants. Here are some examples of grants offered by the state of Pennsylvania to support manufacturing and other business investments:

Agricultural Grants in Pennsylvania

Pennsylvania is also a well-known agricultural state, and, as such, gears many grants to the dairy and general agriculture industry.  Here are a few of the grants offered for ag companies in the state of Pennsylvania:

  • Agriculture Innovation Grant – This fund aims to support projects that address agriculture challenges in a new, novel, or more efficient ways than from the standard. Planning grants range from $7,500–$50,000 and require a 30% non-state match. Implementation grant awards are up to $100,000 with a 50% match.  The 2025-2026 fiscal year grant program closed on 4/18/26, but there is a proposed increase for 2026-2027 so another round is very likely.
  • Farm Vitality Planning Grant Program Agricultural Business Development Center – The Program’s objective is to provide grants to eligible farmers, prospective farmers and others to further the objectives of the act. These objectives relate to enhancing the long-term vitality of farms in this Commonwealth through sound business planning, efficient transitions of farm ownership, strategic farm expansion, diversification of agricultural production and building a team of financial and technical expertise as a resource for farmers in the state. Grants of up to $15,000 to fund professional services with a required 25% match are offered. Grants are offered until funds are exhausted.

Pennsylvania Energy Efficiency/Clean Energy Grants

There is also a very strong push in Pennsylvania for clean energy and energy efficiency projects and the state incentivizes these projects as a result.  Here are some grants to fund energy savings:

  • Alternative and Clean Energy Program (ACE) – The Alternative and Clean Energy Program (ACE) provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in the state. Grants for manufacturers of alternative and/or clean energy generation equipment or components shall not exceed $10,000 for every job projected to be created by the business within three years after approval of the grant. Grants for any alternative energy production or clean energy project shall not exceed $2 million or 30 percent of the total project cost, whichever is less. Grants are accepted on a continuous basis until funding is depleted.
  • Alternative Fuels Incentive Grant (AFIG) – PA DEP program (Act 166 of 1992) funded about $5M/yr from the utilities gross receipts tax to build alternative fuel markets; favors commercialization and PA company expansion. Eligible activities include alternative fuel vehicles/fleets, refueling infrastructure, and advanced fuel/vehicle technologies (electricity, CNG, LNG, propane, hydrogen, biodiesel, ethanol, methanol, advanced biofuels). There is about $5M available through the current funding round. The maximum award across all applications is $500,000. The individual company cap is $300,000 and the cap on Class 1 and 2 vehicle projects is a maximum of $7,500/vehicle (min two vehicles).  The deadline for applications for this funding round is October 7, 2026.  There are two rounds per year (spring and fall).
  • High Performance Building Program (HPB) – The High-Performance Building Program (HPB) provides financial assistance in the forms of grants and loan funds to underwrite the cost premiums associated with the design and construction or major renovation of high-performance buildings in the state. Grants for high performance building projects shall not exceed $500,000 or 10% of the total eligible building construction/renovation costs, whichever is less. Applications are accepted on an ongoing basis.
  • Solar Energy Program (SEP) – The Solar Energy Program (SEP) provides financial assistance in the form of grant and loan funds to promote the use of solar energy in Pennsylvania. Grants are up to $5,000 for every new job created.  Grants for solar energy generation or distribution projects shall not exceed $1 million or $1.50 per watt, whichever is less. Applications are accepted on an ongoing basis.

PA Workforce Development/Training

As is the case with many states, the state of Pennsylvania has several grant programs to fund workforce development and employee upskilling.  Here are some examples:

  • Foundations in Industry Training (FIIT Program) – The Department of Community and Economic Development (DCED) Foundations in Industry Training (program) is a statewide program aiding Registered Apprenticeship Programs which foster high quality training. The overall program goal is to increase apprenticeship availability to Pennsylvania employers to help support them with their talent recruitment and development needs. The program assists with the related instruction that complements on the job training to deliver the technical and academic competencies that apply to the job. Total funding cannot exceed the DCED mandated employer cap of $3,000 per apprentice per year. Administrative support of 10% can be requested in addition to the max of $3,000 per apprentice. Each employer may not request funding for more than five apprentices per year, for up to three years. Group model apprenticeship programs may request funding for up to 30 apprentices; however, no more than five apprentices may be placed with a single employer. Applications are accepted on an ongoing basis.
  • WedNetPA – WEDnetPA is improving the skill level and productivity of Pennsylvania’s workforce to strengthen the business environment of the Commonwealth. Maximum grant funding is $2,000 per employee and up to $100,000 per company. Fiscal-year program (July 1–June 30); applications open around August 1 each year; training must start and complete within the fiscal year.

While this is not a complete list of grants, I think you can see that Pennsylvania is truly a “sweet” state for manufacturing and other businesses!  If you need any help accessing these grants, please contact me!

 

Frequently Asked Questions About Pennsylvania Business Grants

Why does Pennsylvania offer a strong selection of manufacturing grants?

It is likely that these grants are generated through political policy surrounding manufacturing and agricultural growth in the state.

Will Pennsylvania’s grant offerings change with political party changes?

While there is a risk of that happening, I feel that support for manufacturing, agriculture and business growth is bipartisan in most states.

What do I need to apply for these grants?

It is important to be grant ready!  Each opportunity requires different information, but it is recommended that you register for state and federal portals and keep information such as your training plans, EIN number, organizational chart and brief bios on key staff members on file and updated to be able to quickly provide this for grants.

Many grants are offered on an ongoing basis. Is there a better time to apply for ongoing funding to be assured of an award?

We always recommend, where possible, to apply for ongoing grants as early in the state’s fiscal year as possible.  Some grant programs are ongoing until funding is depleted, which is more likely to have at the end of a fiscal year.