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Summary of Financial Programs and Incentives for Philadelphia Retailers
The following list highlights key financing and incentive programs that may be suitable for your specific retail business type. For additional information on these programs or other programs that may be applicable, contact Michelle Shannon at the Center City District michelle@centercityphila.org or by phone at (215) 440.5515.
| Gap Financing: This program enables development projects that have already assembled a majority of their financing to move forward by providing "last in" funding. (City of Philadelphia, PIDC) |
Funds must be used for the acquisition of property, new construction, substantial rehabilitation or expansion, or
predevelopment costs (architectural, engineering, and environmental services). Program guidelines: PDF | 161KB. |
| Greenworks Loan Fund: It offers low cost capital to support energy efficient rehabilitation and new construction projects. (City of Philadelphia, PIDC, TRF) |
Restricted to construction loans, term loans, and lease financing. Program guidelines: PDF | 177KB. |
| Storefront Improvement Program: Grant for façade improvements to existing structures for new or existing retail businesses. (City of Philadelphia, Department of Commerce) |
Eligibility defined to specific commercial corridors. List of corridors: PDF | 99KB. Competitive application process. Grants to individual businesses up to $8,000. Grants to commercial corridors based on RFP process. Program guidelines: PDF | 84KB. |
| Economic Opportunities Fund: Provides start-up loans, lines of credit, expansion loans, credit repair, business assistance and services. (Women's Opportunities Resource Center) |
Targeted towards minorities and women looking to start or expand a businesses . Loans range from $250 to $35,000. |
| SBA 7A: Loan guarantee for land or building acquisition, construction, equipment, and working capital. (Small Business Administration) |
Small business loans up to $2 million are provided by commercial lenders, but backed by the authority of SBA. Loan obtained from lender with a 7(a) structure, while SBA provides guarantee on a portion of the loan. For more program information, click here. |
| SBA 504: Provides long-term, fixed-rate financing for major fixed assets, such as land and buildings. (Small Business Administration) |
Business must create or retain one job for every $50,000 provided by the SBA. Maximum loan is $2 million. For more program information, click here. |
| Small Business Energy Efficiency Improvement Grant: Grant for the purchase of energy efficient capital equipment. (Commonwealth of Pennsylvania, Department of Environmental Protection) |
Provides a 25% reimbursement grant, up to a maximum of $25,000. |
| Job Creation Tax Credit : Credit against City of Philadelphia Business Privilege Tax. (City of Philadelphia) |
Eligible businesses may claim a credit of an amount equal to $3,000 or $1,000 or 2% of the annual wages paid, whichever is higher, for each qualified new full-time job created in 2010 or 2011 in the City of Philadelphia. To qualify, a business must demonstrate the ability to create at least 25 new full-time jobs or increase full-time workforce by at least 20% within the required 5 year period. Download PDF | 99KB |
| Growth Loan: Used to fund capital equipment purchases, typically up to 40% of costs. Interest rates are typically below market rate. (PIDC) |
Intended to finance job-creating activities and is funded from a variety of federal and local sources. Can be used for property acquisition, construction/building, environmental and energy-related costs, soft costs, and others. Download PDF | 110KB |
| Retail Grant: Provides working capital for sustaining, emergency, and loan matching needs. (The Merchants Fund) |
Competitive application process, with grants ranging from $1,000 up to $20,000. For more information on The Merchants Fund grants, click here. |
| Small Business First: Used to fund capital equipment purchases, typically up to 40% of costs. Interest rates are typically below market rate. (Commonwealth of Pennsylvania / PIDC) |
Restaurants that have been in operation for at least 5 years are eligible to apply for funding. The maximum loan amount is $200,000 and requires at least 1 new job to be created for every $25,000. Download PDF | 110KB |
| New Market Tax Credits: Federal tax credit program. (PIDC, The Reinvestment Fund - TRF) |
PIDC and TRF offer New Markets Tax Credits for projects in qualified census tracts. Eligible projects would include the opening of full-service supermarkets. Program provides credit against federal income taxes for qualified equity investment. Download PDF | 114KB |
| Fresh Food Financing Initiative: Provides financing for grocery and other food-related stores. (The Reinvestment Fund – TRF) |
Program is targeted towards businesses that plan to operate in underserved communities where infrastructure costs and credit needs cannot be filled solely by conventional financial institutions. Note: All grant and loan funds for the Fresh Food Financing Initiative have been fully committed at this time but you are encouraged to provide information about your project to TRF. For more program information, click here. |
| Real Estate Tax Abatement: Ten (10) year abatement of real estate taxes for new construction and substantial renovations. (City of Philadelphia) |
Provides abatement of real estate taxes on new construction and substantial improvements. Credit is for 100% of value added. Download PDF | 116KB |
| Green Roof Tax Credit: Credit against City of Philadelphia business taxes for portion of costs associated with installation of a green roof. (City of Philadelphia) |
Provides tax credit of 25% of the cost of installing a green roof (up to $100,000) against City of Philadelphia business taxes. Green roof must cover at least 50% of the building’s rooftop or 75% of eligible roof top area. Download PDF | 113KB |
| HUD 108 Loan: Federally guaranteed loans for land/building acquisition, construction, and equipment. (Administered by PIDC) |
Loan amounts between $250,000 and $5,000,000, with a maximum of $35,000 per job created. Targeted towards projects which create jobs available to low and moderate income persons. Download PDF | 113KB |
Michelle Shannon, SCMD
Center City District
660 Chestnut Street
Philadelphia, PA 19106
Phone: 215.440.5515
E-mail: michelle@centercityphila.org
