Loans, Grants, & Tax Credits

ARPA Small Business Grants

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

CDBG Small Business Micro-Grant Program

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.

Interested businesses may contact Tricia Zilaitis, in the Office of Economic and Community Development at tzilaitis@scrantonpa.gov to discuss a project and potential funding. The guidelines and application are found below.

Loan-to-Grant Program (HUD)

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.

Revolving Loan Fund (EDA-RLF)

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.

LERTA (10-Year, 100% Tax Abatement)

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.

Contact Ann Marie Jason at anjason@scrantonpa.gov for more information.

To apply for a LERTA, click on this link.

Keystone Innovation Zone (KIZ)

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.

Keystone Opportunity Zone (KOZ)

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.

Veteran’s Grant Application

The City of Scranton has opened Grant Applications for 2023 for non-profit organizations located within the city of Scranton that continually serve Military Veterans and their families. Applications will be accepted online at the City Website through March 31, 2023, with awards of up to $25,000.00 being made on April 10, 2023. All proceeds must be used in this calendar year.

Applications with details may be found at the online portal:  https://scrantonpa.viewpointcloud.com/ ,  Economic and Community Development, Veterans Organization Grant. For further information only, please email anjason@scrantonpa.gov