Loans, Grants, & Tax Credits
Economic Development programs can be found here.
In accordance with the Scranton ARPA mission, the city is seeking applications for Small Business grant funding. Awards are available to businesses that have not received pandemic-related funding from other sources and were in business prior to March 3, 2020.
Funding may be applied for and used to support eligible small businesses impacted by the pandemic to mitigate financial hardships including, but not limited to:
- decreased revenue or gross receipts
- increased costs
- financial insecurity
- capacity to withstand future financial hardship
- challenges covering other costs
- ability to retain employees
- mortgage, rent or utilities, and other operating costs
- mitigation for social distancing, cleaning, barriers, and other health and safety investment/upgrades
The Local Economic Revitalization Tax Assistance Program (LERTA) offers incentives to residents, investors, developers and business owners considering investing in new construction or building improvements located within the City of Scranton.
Designed to encourage economic development and community growth, the LERTA program allows local government taxing entities to extend a tax abatement period to property owners. This tax abatement is for improvements to real estate within the designated LERTA area. The terms of the abatement vary per site, building and location. LERTA abatements are directed and approved by the county, school district and City.
The City of Scranton, in conjunction with the Scranton School District and Lackawanna County, passed a LERTA abatement on all residential, commercial and industrial properties located within the City. LERTA approved projects will receive a 10-Year, 100% Tax Abatement on owner improvements to properties within the confines of the city. Tax exemption applies to the improvements to the land or building only and is subject to standard tax rates and terms.
Designed to foster innovation and create entrepreneurial opportunities the Keystone Innovation Zone (KIZ) Tax Credit Program is part of the Commonwealth of Pennsylvania’s economic stimulus package. This incentive program is available to for-profit companies that are less than eight years old, operating within a specific targeted industry and within the boundaries of the KIZ, which encompases the entire City of Scranton.
Companies that locate within a Keystone Opportunity Zone (KOZ) will enjoy tax exempt benefits.
Designated by the City, school district and county and approved by the Commonwealth of Pennsylvania, KOZ-eligible tenants may be exempt from state and local business taxes through a designated period.
The Federal Opportunity Zone is a program launched as a component of the Federal Tax Cuts and Jobs Act issued through the U.S. Treasury. Designated zones are designed to spur economic development by providing tax benefits to investors. A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is in a Qualified Opportunity Zone. Several locations in Central Scranton are designated as a FOZ.
The City of Scranton is an eligible applicant for the Local Share Account-Monroe County funds made available by the PA Race Horse Development and Gaming Act for the purpose of distributing the 2% of gross terminal revenues from Mount Airy Casino Resort. These guidelines were established to provide information and guidance to project managers interested in applying for funding.
OECD has funding under the Redevelopment Assistance Capital Program (RACP), which is administered by the Commonwealth of Pennsylvania, Office of the Budget. The RACP projects are state-funded projects that cannot obtain primary funding under other state programs.
Eligible Uses of Funds
- Economic development projects that have a regional or multi-jurisdictional impact and generate substantial increases in employment, tax revenues, or other measures of economic activity.
- Included are projects with cultural, historic, or civic significance.
- Projects with total costs no less than $1,000,000
Revolving loan funds (RLFs) make loans to businesses that cannot otherwise obtain traditional bank financing. Applicants must be private, for profit businesses. Borrowers must demonstrate that credit is not otherwise available on terms and conditions that permit the completion or successful operation of the activity to be financed. The maximum EDA loan amount will be $250,000 however loan can be no more than 30% of the total project costs
This federally funded gap loan program was developed to enhance job creation by providing assistance to existing businesses looking to expand, for starting up a new business, or for businesses looking to relocate to Scranton. As per the U.S. Department of Housing and Urban Development (HUD) guidelines, borrowers must create one full time equivalent job for every $35,000 borrowed. If job creation and guidelines are met, the loan can transfer to a grant, with no repayment necessary.
The CDBG Small Business Micro-Grant Program for new or early-stage businesses located in Scranton’s low-moderate-income demographic areas (LMA) will supply funds ranging from $2,500 to $5,000 per business through the 2022 year to assist with start-up costs, thus contributing to their initial success and continued revitalization of our community. Businesses must be in a qualifying Low-to-Moderate service area within the City of Scranton. New and newly established is defined as businesses opened for business within the last 12 months or planning to open within 9 months of application. Final applications must include a referral form from the SBDC at The University of Scranton, available after completing the required educational program series and/or business consulting and demonstrating appropriate business planning in accordance with program guidelines.