The Shapiro administration is sending $15 million in micro-grants to small businesses across Pennsylvania, betting that smaller checks and on-the-ground guidance can make a big dent for Main Street. The awards will flow through ten regional partners, including community lenders, economic development groups and universities, to help historically disadvantaged entrepreneurs cover startup and expansion costs. Officials say the point is to get capital and hands-on help to firms that often hit a wall with traditional bank loans.
According to the PA Department of Community and Economic Development, the money is moving through the Historically Disadvantaged Business Assistance (HDBA) Program and is split among ten micro-grant efforts. The biggest slice, $8.45 million, goes to the Pennsylvania CDFI Network for work across the state. Other grants include $1.1 million each to the Chester County Economic Development Council and Seton Hill University, $1 million apiece to the Greater Erie Economic Development Corporation and the Northeastern Pennsylvania Alliance, $700,000 to Lehigh University, $500,000 each to Greenline Access Capital and the Women’s Opportunities Resource Center, $400,000 to the Pittsburgh Metropolitan Area Hispanic Chamber of Commerce and $250,000 to the North Side Industrial Development Company.
“Small businesses are the backbone of our economy and create vibrant, healthy communities,” Secretary Rick Siger said in announcing the awards. The department added that the micro-grants will be deployed “hand-in-hand with trusted community partners who understand their unique challenges and opportunities,” according to the PA Department of Community and Economic Development.
Where the money will go
The Pennsylvania CDFI Network will manage the largest share and is expected to steer capital and technical assistance into every county by working through local community development financial institutions and mission-driven lenders. The CDFI model pairs relatively small loans with coaching and bookkeeping support, an approach the network has used in recent years to reach businesses shut out of conventional finance. For background on that track record and how the network operates, see PA CDFI Network materials.
Why this matters for Main Street
State officials point to recent gains in state contracting as part of the case for putting more money into small business support. Reporting notes that spending with Black- and Latino-owned firms has climbed roughly 45 percent over the past two years and that the Commonwealth recently crossed the $1 billion mark in contracts with small and diverse businesses. Local business outlets have tracked how the administration pairs grant dollars with technical support to try to turn one-time awards into lasting growth, according to the Central Penn Business Journal. Observers also point to a recent Axios analysis that flagged Pennsylvania as one of the few Northeastern states showing steady economic growth, a benchmark the governor’s office has highlighted.
What small businesses should know
The HDBA program first opened to applicants in December 2024 under the administration’s 2024–25 budget, and this latest micro-grant round builds on a separate $21 million award that funded 11 Business Assistance Service Centers last fall. Those centers were created to provide one-on-one counseling, bilingual services and help with procurement. That earlier round and the new micro-grants are meant to work in tandem: service centers focus on technical assistance while the micro-grants tackle immediate capital gaps. Small-business owners are urged to keep an eye on local economic development partners and statewide networks for application windows and detailed program rules, with reporting on the initial rollout appearing in statewide outlets.
The grants will be disbursed and managed by the named partners over the coming months. For the full list of awardees and the state’s announcement, business owners can review the PA Department of Community and Economic Development release and check partner organization pages for timing and eligibility specifics.
