top of page
Writer's pictureJohn Hart

“Maximizing Grant Opportunities for Your New Business: A Pennsylvania Legal Perspective”

Starting a business in Pennsylvania can be both exciting and challenging. Fortunately, the state offers various grants and financial assistance programs designed to help entrepreneurs. Whether you’re located in Lackawanna County or elsewhere in the state, understanding available grant programs is essential. In this article, we will explore several key grant opportunities, including the Local Share Account (LSA) grants, the Redevelopment Assistance Capital Program (RACP), and Community Development Block Grants (CDBG) through local municipalities. We’ll also explain how working with an attorney can help you maximize these resources to build your business.

 

Local Share Account (LSA) Grants: Statewide and Monroe County

The Local Share Account (LSA) program, established under the PA Race Horse Development and Gaming Act, allocates gaming revenues through the Commonwealth Financing Authority (CFA) to support projects that benefit the public. These grants are available statewide, with specific programs tailored to regions like Monroe County and its neighboring areas, which include Lackawanna County.

  • LSA – Statewide: This program provides funding for projects of public interest across the Commonwealth of Pennsylvania. The grants focus on infrastructure, economic development, job creation, and public safety projects. Eligible applicants include municipalities, counties, and economic development organizations, but businesses can benefit indirectly by partnering with these entities on projects that spur economic growth.

  • LSA – Monroe County: Under the Act, Monroe County and its five contiguous counties—Carbon, Lackawanna, Northampton, Pike, and Wayne—are eligible for LSA funding. The grants can be used to support a variety of public interest projects, including community improvement, economic development, and roadway enhancements. For businesses in Lackawanna County, this means you can access funding for projects that directly improve infrastructure and economic opportunities in your local area.

 

Benefits for New Businesses:Although LSA grants are typically awarded to government and non-profit entities, new businesses can partner with these organizations to benefit from infrastructure improvements or community projects that enhance the local economy. These grants provide opportunities for indirect funding or access to enhanced services that will help your business thrive in a well-supported environment.

 

Redevelopment Assistance Capital Program (RACP)

The Redevelopment Assistance Capital Program (RACP) is a Commonwealth grant program that provides financial support for large-scale projects with substantial economic impact. These projects often include real estate development, infrastructure improvements, and job creation. New businesses looking to establish facilities, develop commercial properties, or create large numbers of jobs can apply for RACP grants through a competitive process.

 

Benefits for New Businesses:RACP funding is ideal for businesses involved in real estate or infrastructure development. The capital provided can cover significant costs that would otherwise require private funding. Additionally, businesses that contribute to community revitalization or job creation have a higher chance of securing RACP funding, making it a powerful tool for businesses aiming to make a substantial local impact.

 

Community Development Block Grants (CDBG) and Local Programs

The Community Development Block Grant (CDBG) program, funded by the federal government and administered locally, supports economic development in low- and moderate-income communities. Businesses opening in these areas may qualify for grants that fund infrastructure improvements or help create jobs.

  • City of Scranton Micro-Grants: The City of Scranton offers micro-grants to small businesses for startup expenses. These grants are often used for equipment purchases, marketing, or other essential early-stage costs.

  • Loan-to-Grant Programs: Some local municipalities, including Scranton, offer loan-to-grant conversion programs. These programs provide businesses with initial loans that can convert into grants after meeting specific conditions, such as maintaining business operations or creating jobs for a certain period.

 

Benefits for New Businesses:CDBG and local municipal programs are particularly useful for startups in underserved communities. Micro-grants help cover initial costs, and loan-to-grant programs reduce the long-term financial burden by converting loans into non-repayable grants. These programs provide flexible, accessible funding for businesses looking to establish themselves in areas that need economic stimulation.

 

How a Lawyer Can Help You Leverage These Grants

Navigating the grant application process, understanding eligibility requirements, and forming your business can be complex. This is where working with an attorney can be invaluable. Here’s how legal counsel can assist you:

  1. Business Formation: An attorney will help you choose the right legal structure for your business, whether that’s a sole proprietorship, LLC, or corporation. Each entity type has implications for taxes, liability, and eligibility for certain grants.

  2. Grant Application and Documentation: Many grant programs require detailed documentation, including business plans, financial projections, and proof of economic impact. An attorney can help ensure your grant application is complete, accurate, and competitive.

  3. Compliance and Contracts: Grant funding often comes with conditions—such as creating jobs, staying operational for a certain period, or reporting financials. A lawyer can help you navigate these obligations and ensure compliance with local, state, and federal requirements.

  4. Partnership and Contract Negotiation: In programs like LSA, where grants are often awarded to municipalities or non-profit organizations, businesses can benefit by partnering with these entities. An attorney can assist in structuring partnership agreements or contracts to ensure your business secures a share of the benefits.

  5. Long-Term Strategy: Beyond immediate funding, an attorney can help develop a long-term legal and financial strategy that maximizes growth while leveraging available grants and other financial resources.

 

 

In Pennsylvania, there are numerous grant opportunities available to new businesses, ranging from statewide programs like LSA and RACP to local funding through CDBG and micro-grant programs. Understanding how to access and leverage these resources can provide the financial foundation you need to start and grow your business. However, navigating the complexities of grant applications, business formation, and legal compliance requires expert guidance.

Partnering with an attorney ensures your business is well-positioned to take advantage of these opportunities while minimizing risk. Whether you need help forming your business, applying for grants, or ensuring compliance, a lawyer can provide essential support at every stage of the process.

If you’re ready to get your business started with the help of Pennsylvania’s grant programs, consider consulting an attorney at Hart Law to guide you through the process and set you on the path to success.

 



1 view0 comments

留言


bottom of page