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STARTING A BUSINESS

"Now because you have so many different places, you have so many choices, people are trying things that are totally different, that they've never even thought they would try, and they're loving it."

KeVen Parker
Owner, Ms. Tootsie's


Financial Assistance for Retailers in Philadelphia
Through a combination of loan, grant, tax credit, and non-financial programs, the City of Philadelphia and cooperating partners offer a wide variety of economic development financing, incentives, and support for new and expanding retail businesses.
FINANCING & INCENTIVES
retail

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.


ENERGY & ENVIRONMENT
EnergyWorks Loan Fund:
It offers low cost capital to support energy efficient rehabilitation projects and equipment purchases. (City of Philadelphia, PIDC, TRF)
Restricted to construction loans, term loans, and lease financing.
PDF | 333KB
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.
PDF | 113KB
Stormwater Management Incentives Program:
This program offers low-interest loans and grants to stimulate investment in and utilization of stormwater best management practices. (City of Philadelphia)
Restricted to loans and grants which support the design and construction of stormwater mitigation measures. Loans range from $75,000 to $1,000,000.
PDF | 1.6MB


GRANT PROGRAMS
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.


TAX CREDITS & ABATEMENTS
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 $5,000 for each qualified new full-time job created by the end of 2013 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. All businesses new to the City of Philadelphia are eligible for the credit.
PDF | 99KB
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.
PDF | 116KB
Sustainable Business Tax Credit :
(B Corporations) located in Philadelphia.
Credit of $4,000 for certified sustainable businesses.


WORKING CAPITAL & STARTUP LOANS
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.
Working Capital & Equipment Loan
PIDC supports established small and midsize businesses and nonprofits with fixed-rate term loan financing for working capital, equipment, or leasehold improvements to support their growth. (PIDC)
Loan amounts range from $50,000 to $750,000, including flexible terms and equity requirements.
PDF | 363KB
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LOANS FOR CAPITAL PROJECTS & ESTABLISHED BUSINESSES
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.
Capital Project Loan:
PIDC supports businesses and non-profits undertaking capital projects such as building acquisition, renovation, leasehold improvements or equipment purchases and need additional term loan financing to complete the project. (PIDC)
Loan amounts range from $50,000 to $750,000, and one full-time time equivalent job must be created for every $35,000 lent. PIDC can fund up to 40% of total project costs, including soft costs related to the project.
PDF | 385KB
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.
PDF | 110KB
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.
Subordinate Term Loan:
PIDC provides subordinate financing to experienced developers of commercial and industrial projects of all sizes. (PIDC)
Loan amounts range from $50,000 to $5,000,000, and one full-time equivalent job must be created for every $35,000 lent. Funding is available for 10% to 40% of total project costs with a 10% minimum equity contribution. PIDC seeks to fill funding gaps in projects which will create jobs for low and moderate income people, spur investment in underserved areas, and/or improve building energy efficiency.
PDF | 190KB


CONTACT INFORMATION
Michelle Shannon, SCMD
Center City District
660 Chestnut Street
Philadelphia, PA 19106
Phone: 215.440.5515
E-mail: michelle@centercityphila.org