access to capital
Loan Programs through the Commercial & Business Lending unit
Commercial & Business Lending offers a variety of financing products for commercial real estate development and small- and medium-sized business development. These are gap financing products that work in conjunction with private equity and private debt to help your business close the financing for your business growth and expansion.
Commercial & Business Lending also works with a large network of technical assistance providers and partners to help your business start, improve, and grow. No matter what your business needs, we are here to help.
Minority Business Recovery & Growth Loan Fund
Made possible by PNC and the City of Pittsburgh, The Minority Business Recovery & Growth Loan Fund provides access to capital for existing minority-owned businesses inside the City of Pittsburgh that are recovering from COVID-19 or growing.
Program Details
- Loan Amount: Up to $100,000.00
- Interest Rate: 0% for first year, 2% for balance of loan term
- Deferral Period: 1 year
- Length of Loan: 7 years
- Fees: None
Micro-Enterprise Loan Program
Financing for startup and small businesses that need capital to launch or grow a business. This program provides loans of up to $30,000 for working capital, equipment, inventory, and leasehold improvements.
Program Details
- Loan Amount: $5,000 - $30,000.00
- Interest Rate: 2%
- Length of Loan: 3 years for working capital, 5 years for equipment, and 7 years for leasehold improvements
- Fees:
- Application fee #1: $50 is due a time of application submission
- Application fee #2: $100 is due upon loan approval and signed commitment letter
- Due Diligence: 2% of the total URA loan
View our current borrowers here.
Watch our How to Apply for a URA Micro Loan Webinar here
PIDA Loan Program
Administered by the Pennsylvania Industrial Development Authority (PIDA), the PIDA loan program provides low-cost loans and lines of credit to Pennsylvania businesses that commit to creating and retaining full-time jobs within Pennsylvania. Businesses located in the City of Pittsburgh can access the PIDA loan program through the URA.
Program Details
- Loan Amounts: up to $2,500,000 for real estate; up to $1,500,000 for machinery & equipment; up to $100,000 for working capital
- Interest Rates: interest rates are typically 1-2 percent below industry-standard; fixed or variable rates for real estate loans; fixed rate for machinery & equipment and working capital loans
- Length of Loan/Maturity & Renewals: up to 15 years for land/building acquisitions and construction/renovation costs; up to 10 years for machinery & equipment purchases; up to 3 years for working capital term loans; up to 12 months on lines of credit with annual renewal up to a maximum of 6 years
- Collateral: collateral is determined based on the asset being financed; personal guarantees are required by the principal owner(s)
- Fees
- Application fee: $350
- URA Commitment & closing fee: 3% of the loan amount
- PIDA commitment fee: 1% of the loan amount (only applicable to loans over $400,000
Small Diverse Business Capital Access Program
Administered by the PIDA, the Small Diverse Business Capital Access (SDBCA) loan program provides low-interest loans and lines of credit to small, diverse businesses that commit to creating and retaining full-time jobs within Pennsylvania. Businesses located in the City of Pittsburgh can access the SDBCA loan program through the URA.
Program Details
- Diverse businesses: Minority-, woman-, veteran-, or service-disabled-veteran- owned
- Loan Amounts: up to $200,000 for term loans; up to $100,000 for lines of credit
- Interest Rates: interest rates fixed and based on market conditions
- Length of Loans/Maturity & Renewals: up to 15 years for land/building acquisition, construction, or renovation loans; up to 10 years for machinery & equipment loans; up to 12 months for lines of credit; lines of credit can be renewed on an annual basis up to a maximum of six years
- Collateral: collateral is determined by the asset being financed; personal guarantees are required by the principal owners
- Fees
- Application fee: $350
- Commitment & closing fee: 3% of the loan amount
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Pittsburgh Business Fund (PBF)
Financing up to $500,000 for small- and medium-sized businesses for working capital, real estate, equipment, and leasehold improvements.
Program Details
- Loan Amount: $30,000 - $500,000.00
- Interest Rate: 5.5%
- Length of Loan: 5 years for working capital, 7 years for equipment,10 years for leasehold improvements, and up to 20 years for real estate
- Fees:
- Application fee: $350
- Due Diligence: 3% of the total URA loan
- Loan Servicing: .5% of the total URA loan
- Construction Inspection: .5% of the total URA loan if URA financing is applied towards construction costs. If the construction inspection is provided by a private lender, no URA construction inspection fee is required.
- Filing with Commonwealth of PA and County: All filing fees will be the responsibility of the applicant (i.e., Mortgages, UCCs, Assignment of Leases and Rents).
- Misc. Closing: If the URA is acting as a primary lender, additional fees for items such as appraisals, title insurance, etc., may be charged at closing.
Pittsburgh Entrepreneur Fund (PEF)
*This program is currently on hold and is not accepting applications.
This fund provides financing for new and growing emerging technology-based firms, including Technology, Life Sciences, Sustainable/Green and other emerging industry clusters for working capital, laboratory, computer and scientific equipment, leasehold improvements, real estate and investments to lower energy usage.
Program Details
- Loan Amount: $50,000 - $200,000.00 (not to exceed 40% of round/amount being raised)
- Interest Rate: 8%
- Length of Loan: 3 years
- Fees:
- Application fee: $350
- Due Diligence: 2% of the total URA loan
View our investment portfolio here.
Business Energy Savings Program
As an incentive to help your small- or medium-sized business become more energy-efficient, the URA offers the Business Energy Savings Loan Program. Under this program, you can receive a $400 grant toward an Energy Audit of your business and low-interest financing up to $50,000. Most importantly, this will help you lower your utility bills and save money.
Program Details
- Loan Amount: Up to $50,000.00
- Interest Rate: 3%
- Length of Loan: 7 years
- Fees:
- Application fee: $350
- Due Diligence: 2% of the total URA loan
- Loan Servicing: .5% of the total URA loan
FAQs
What are the sources of funds for the Commercial & Business Lending loan programs?
Typically, our products are funded by Revolving Loan Fund (RLF) programs that were initially seeded by Federal Community Development Block Grants or funds from the Pennsylvania Department of Community and Economic Development. By utilizing RLFs, Commercial & Business Lending can re-lend its limited dollars several times to many different borrowers.
Why doesn't Commercial & Business Lending have grant programs?
Commercial & Business Lending has extremely limited dollars for unlimited business and community needs. In order to sustain our programs, we must utilize loan programs that will be re-paid in order to re-lend the funds to other borrowers. Additional funding resources can be found on launchpgh.com.
How do I start the application process?
Contact a lending analyst at 412.255.6669.
How long is the application, underwriting, and closing process?
The length of the process depends on the project. However, the Commercial & Business Lending is committed to working as quickly as the borrower and private lender are able to package, underwrite and close the financing. Typically, the process will take 30-90 days.
What is Commercial & Business Lending's capacity to carry out these programs?
The Commercial & Business Lending staff includes professional loan officers that have the same professional credentials as private lenders, engineers, legal staff, finance professionals, and professional management staff. We are uniquely qualified to handle your project professionally and responsibly.
Success Stories
In 2018, the URA worked with businesses to accomplish the following:
- Provided 38 URA loans
- Invested $4.1M
- Financed 60% MWBE businesses
- Created/retained a minimum 400 jobs
Smallman Galley
The URA provided a $150,000 loan to help fund the Strip District food hall and restaurant incubator to bring valuable business experience to aspiring chefs and restaurateurs.
Proud Company
The Proud Company provides manufacturers, utility companies and other industrial technology users with complete industrial automation services. It utilized $1.92 million in New Market Tax Credits, provided by the URA through Pittsburgh Urban Initiatives, to help finance its renovation of a 23,000-square foot facility in the West End.
Thread
Thread was established to engage in the circular economy, taking waste and recreating it into new, usable, wearable fabrics. The company has created jobs in Haiti, Honduras, and Pittsburgh. Thread received a Pittsburgh Entrepreneur Fund loan from the URA to assist in operations, including the creation of five new full time jobs in East Liberty.
TravelWits
TravelWits helps vacation-goers plan trips based on budget, transit options, parking rates, and hotel and flight costs by searching hundreds of options to provide a menu of trip packages that can be booked with limited planning and research. Based in Oakland, TravelWits received a Pittsburgh Entrepreneur Fund loan to hire three new software developers and a customer service representative.