Find Funding

How to find business funding in the City of Philadelphia

Welcome!

What To Expect From This Pathway

Find Funding For Your PhillyBiz®

This pathway is developed to assist Philadelphia’s entrepreneurs and small businesses at any stage of their journey, from starting out to growing and expanding, in finding funding within the PhillyBizHub® ecosystem.

This pathway helps you learn about different types of funding, connect with resources and organizations, apply for opportunities, and create a personalized list of support options—all easily accessible through your PhillyBizHub® Quicklink Dashboard on your PhillyBizHub® User Page.

  •  Familiarize Yourself With The Available Funding Options for Your PhillyBiz®
  •  Learn how to Find Funding for your PhillyBiz®
  •  Learn How To Prepare and Apply for Funding
  •  Learn How to Pitch Your PhillyBiz® to Potential Funders
  •  Connect with Funding Resources, and Organizations
  •  Receive Business Support to Meet Your Needs
  •  Register and Build Your Personalized PhillyBizHub® User Page.

PREPARATION and PLANNING | Quick Checklists

Research Your Business Funding Needs Before Starting Your Pathway To Find Funding

Evaluating Your Readiness To Seek Funding

For a smoother process, when seeking funding for your business, ensure you are prepared and able to provide potential lenders with confirmation that you are PhillyBiz Official® – completed all the necessary foundational legal formation and compliance requirements of starting a business and doing business in Philadelphia.

UNDERSTAND YOUR FUNDING OPTIONS

Funding Options At A Glance

 Become familiar with available funding options that work best for you and your business

Funding Options at a Glance

Become familiar with available funding options that work best for you and your business

Funding Types For Your Business

  • Angel and Private Investments
  • Accelerators and Incubators
  • Business Loans
  • Crowdfunding
  • Private Grants
  • Public Grants
  • Self-funding
  • Strategic Partnerships
  • Traditional Bank Loans
  • Venture Capital

Funding Types

General Funding Types and Options

There are numerous funding types and options available for businesses, that are generally organized under one of the broad categories below:

Zero Interest or Zero Debt Funding / Financing (0% APR – zero percent interest)

This type of funding, which is highly desirable and limited in supply, does not require repayment, fixed payment schedules, and the payment of any interest. Instead, other terms and conditions that preserve cash flow by not creating new financial obligations, may be agreed upon by the funding source. In addition, you, the entrepreneur and business do not have to dilute ownership by giving up ownership and control in exchange for receiving funding.   

Examples of zero debt include – self-funding, family, friends and relationships, grants, and crowdfunding.

Debt Based Funding / Financing

This type of funding is a loan that requires repayment, fixed repayment schedules, and payment of interest. Giving up a share of ownership and control in exchange for receiving funding is not a requirement in exchange for debt-based funding.

Examples of debt financing – bank loans, small business loans, collateral loans (using property or equipment to secure funds), and lines of credit.

Equity Based Funding / Financing

In equity-based funding, entrepreneurs raise capital by selling ownership stakes or shares in their business. Instead of repaying a loan, the obligation is to deliver a return on investment (ROI) to the investors. Common examples include angel investors, venture capital firms, and private equity firms.

Angel investors are often individuals who provide early-stage funding to startups, typically in exchange for equity and the opportunity to support innovative ideas. Venture capital firms usually invest larger amounts in high-growth companies with significant scale potential, often taking an active role in advising and shaping the business. Private equity firms generally invest in more established businesses, providing capital to expand operations, restructure, or pursue acquisitions, with the goal of increasing the company’s value before exiting. Together, these sources represent key avenues for entrepreneurs to access capital without taking on debt, though they require giving up a portion of ownership and control.

Grant Funding

Grants provide non-repayable funds from government agencies, corporations, and nonprofits to support specific initiatives. However, they are highly competitive and often come with strict guidelines.

Examples of grant funding – research grants, community development grants, program and initiative based grants, technology and innovation grants, training and workforce development grants.

FUNDERS and INVESTOR OPTIONS

Conventional or Commercial Banks

Banks offer traditional loans such as lines of credit, term loans, asset-based loans, and construction loans. These are ideal for stable businesses with strong financials.

Traditional Loans

  • Commercial Banks
  • Government loans (i.e. SBA) 

Community-Centered Lenders

  • Community Development Finance Institutions (CDFIs)
  • Community Banks and Credit Unions

Online Lenders

  • Online Community Development Finance Institutions (CDFIs) 
  • Crowdfunding

Private Equity Funds 

  • Angel investors
  • Venture capital

 Grants and Rebates

  • Government grants 
  • Philanthropic grants
  • Corporate grants 

Other

  • Business Plan Contests

ALTERNATIVE FUNDING OPTIONS

Bootstrapping

Many entrepreneurs start by funding their business themselves, using personal savings or contributions from founding partners—often called “having skin in the game.” Another common path is raising money from friends and family who believe in your vision and have the means to support you. Finally, your own business revenue—money earned from selling products or services—can be reinvested to cover expenses like rent, payroll, or supplies. Relying on revenue to sustain operations is a strong sign of a healthy business.

Funding Sources

Funding sources, amounts, criteria and flexibility vary according to where the business is in the business life cycle. 

CDFI’s | Community Development Financial Institutions

CDFIs are US Department of Treasury- certified financial institutions, such as a bank, credit union, or loan fund, with a mission to provide financial services to underserved communities and individuals who lack access to mainstream financial services

  •  Typical Funding Amount – $5,000 – $250,000
  •  Mission-driven to support local economic development
  •  Funding Fit: Small businesses, often from underserved communities, that are seeking a business loan and may not qualify for a commercial bank. 
  • Average / typical credit score: 580–640+
  • Flexibility: High – more willing to lend to less experienced, conventional borrowers
  •  Risk/Cons: May require personal guarantees; can take longer than online lenders

Community Banks or Credit Unions

Local and community-centered financial institutions with a hyper-local focus that prioritizes personal relationships.

  • Typical Funding Amount: $10,000 – $350,000
  •  Support local neighborhood economic growth. 
  • Funding Fit: Often supports newer and smaller businesses. 
  • Average/typical credit score: 650–680+
  •  Flexibility: Moderate to high – relationship-driven
  • Risk/Cons: Limited reach and capital; slower to fund

 Conventional or Commercial Banks

Large, well-established banks that operate nationally or globally, offering a wide range of financial products.

Typical Funding Amount: $50,000 – several million dollars

  • Access to significant capital and established financial services infrastructure
  • Funding Fit: Best suited for established businesses with strong financial records, collateral, and credit history. 
  • Average/typical credit score: 700–720+
  • Flexibility: Low – decisions are policy- and criteria-driven, less relationship-based
  • Risk/Cons: Lengthy application processes; strict requirements; often less accessible for startups or businesses with weak credit

Crowdfunding Online

Raising small amounts of money from a large number of people, typically via online platforms. Typically, the entrepreneur or business posts their idea or venture online for people to pledge and contribute money toward reaching a set goal.

  • Typical Funding Amount – $1,000 – $100,000 (depending on campaign)
  • Contributors may receive rewards, early access, or a sense of involvement.
  •   Appealing concept/product; strong marketing
  •  Flexibility: Depends on platform rules
  • Risk/Cons  skills and expertise to promote significantly; outcome not guaranteed; platform rules and fees vary

Friends, Family and Relationship Based Funding

Raising money from people you know personally.

  • Typical Funding Amount – $100 – $50,000
  •  Support for your vision; possible repayment or equity
  • Personal relationships; informal terms
  •  Flexibility: High – can structure terms freely
  •  Risks/Cons: Risk to personal relationships; Often lacks formal agreements

Grants and Incentive Programs

Non-repayable funds awarded by government or private sources for specific business activities.

  • Typical Funding Amount – $500 – $25,000
  •  Advance a mission or economic initiative
  •  Criteria: Highly specific – varies by grant program
  •  Flexibility: Low – strict use guidelines and reporting
  • Risk/Cons Limited options; Highly competitive; Restricted use; slow payout

Philadelphia Business Lending Network

The Philadelphia Business Lending Network is a partnership of nonprofit lenders, for-profit lenders, and other funders working with the Philadelphia Department of Commerce to expand small business access to capital. By using a single common inquiry form, the Network streamlines the first step in applying for loans or funding. Through this process, businesses can connect with multiple lenders at once—both nonprofit and for-profit—who offer loans, grants, and technical assistance to help entrepreneurs start, sustain, and grow their businesses.

  • Typical Funding Amount – Up to $35,000 grant
  • Advance a mission or economic initiative
  • Criteria: You must have a small business in Philadelphia or have plans to move or expand to the city of Philadelphia
  • Flexibility: One common inquiry form. Lenders review inquiries regularly and reach out to prospective borrower if there is a match.
  • Risk/Cons: Not guaranteed a match will exist. Once a borrower approaches, same risks as those outlined for each category above.

Submit An Inquiry Form: Complete Financing Interest Form

The Philadelphia Business Lending Network simplifies the process of applying for loans. This service provides access to nonprofit and for-profit lenders with one form.

Additional eligibility requirements:

  • Earn an annual revenue of $350,000 or less 
  • Be a Micro-enterprise (5 or less employees, including owner) 
  • Be up to date on City taxes or have an approved tax payment agreement.
  • Be registered and licensed with the City of Philadelphia. – review placement 

Self-Funding

  • Using your own personal savings, assets, or income to fund the business
  • Typical Funding Amount – Varies whatever the owner can afford
  • Criteria: Any stage; no formal criteria
  •  Flexibility: Very high – you’re in full control
  • Risk/ Cons: High personal financial risk; Limited by your own resources

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Equity Funding

 Seed Funding

  • What it is: The earliest stage of funding for a startup, used to prove a concept, build an initial product, or enter the market.
  • Where it comes from: Can come from personal savings, friends and family, crowdfunding, or early investors (like angels or seed-stage venture funds).

  • Typical size: Tens of thousands to a couple of million dollars, depending on the industry.

Angel Investors 

Wealthy individuals or accredited investors who are known to meet high income or net-worth requirements

  • Typical Investment Funding Amount: $25,000 – $500,000
  • Invest in startups for ownership, equity or convertible debt. High-risk, high-reward investment opportunities.
  • Criteria: Scalable business with experienced founders
  • Flexibility: Moderate -depends on investor
  • Risk/Cons: May want significant equity or influence in the business

Venture Capital 

Raising funds in exchange for partial ownership of the business.

  • Typical Investment Funding Amount: $50,000 – $5M+
  • WIFF: Ownership and share in business profits/growth
  •  Funding Fit: High-growth potential businesses
  • Flexibility: Low. Investors expect control/input
  • Risk/Cons: Loss of ownership/control; long-term obligations

STEP 1: KNOW WHAT YOU NEED TO BE READY FOR FUNDING

FUNDABILITY ACROSS BUSINESS STAGES

Entrepreneurs and businesses have different funding needs depending on where they are in their life cycle—from launching a first venture, to scaling an existing business, to staying afloat, or even planning an exit. At each stage, financial needs, eligibility, and available funding resources vary. For example, some businesses may require capital to test the viability of an idea, while others may need funds for equipment, inventory, or expansion.

Because of this, funding sources, criteria, amounts, and terms change depending on the stage of development and the specific situation of the business. While every business is unique, there are also standard requirements—such as basic financial documentation and credit considerations—that apply across the board.

Idea Stage: This stage is generally not optimized for funding, as the business model and formalization are still in process, but it is a good time to prepare for fundability.

Start Up Stage: New Business / New Venture.  Also referred to as pre-revenue  businesses might rely on self-funding, grants, or alternative lenders. These early revenue stage businesses may seek loans or equity investment. 

Growth Stage: Existing Business / Venture, includes more experienced, stable businesses with a track record of seeking to scale. 

End Stage: Decline or exit. Struggling businesses seeking stabilizing funds or exit options through merging, acquisition or dissolving the business entirely. 

By understanding these different funding sources, business owners can make informed decisions about where to seek capital and what trade-offs they are willing to accept.

Learn How To Prepare and Apply for Funding

Learn how to prepare financials, compare loan types, and connect with local lenders, grants, and investors. Whether you’re seeking a loan, grant, or equity investment, this pathway provides you the tools to navigate your next financial step with confidence.

Know and Understand Your Funding Options

Knowledge and understanding of the funding landscape is tremendous preparation for finding the right funding option for your business, helping you make more informed, targeted, strategic, and sustainable funding decisions, while navigating any challenges and complexities with greater confidence. 

Funding Concerns

Even well-established businesses can run into obstacles when seeking funding. Lenders need to minimize their risk, so they carefully assess a business’s financial health, track record, and owner commitment before approving a loan. Here are some of the most common reasons loans get denied:

  • Poor Credit History and Financials

A low credit score or history of missed payments can raise red flags for lenders, making them hesitant to extend credit. Strong personal and business credit scores improve your chances of approval.

  • Unlicensed Businesses Seeking Funds

If your business isn’t properly registered or lacks the necessary licenses, lenders may be unwilling to provide financing. Make sure all your paperwork is in order before applying.

  • Undocumented Cash Flow

Stating, “I earn more than I report on my tax return,” is considered a deal-breaker for lenders. If your financial records do not accurately represent your business’s true earnings, it becomes difficult to demonstrate repayment capacity. Maintaining transparent, accurate, and well-documented financial records is essential for securing funding.

  • Unwillingness to Take Personal Financial Risk

Lenders want to see that business owners are willing to invest in their own success. This could mean putting in personal savings or guaranteeing part of a loan. If you aren’t willing to share the risk, funders may doubt your commitment. Showing some “skin in the game” builds trust and improves your chances of getting funding.

  • Lack of Equity & Over-Reliance on Debt

Relying too heavily on loans without building equity can put a business in a risky position. Too much debt increases financial pressure and may limit flexibility, while a lack of equity signals to funders that owners and investors have little stake in the business. A healthy balance of equity and debt shows commitment, reduces risk, and makes a business more attractive to lenders and investors. Lenders also review the debt-to-income ratio to ensure that a business has the capacity to take on and repay additional debt responsibly.

  • Limited Industry or Business Experience

Lenders and investors want to see that business owners have the knowledge and skills needed to succeed in their industry. When entrepreneurs lack direct experience or a proven track record, it can raise concerns about their ability to manage operations, handle challenges, and deliver results. While passion and vision are important, funders often look for evidence of industry expertise, strong management teams, or advisors who can fill in gaps. 

Understanding these common concerns which may act as roadblocks can help you prepare a stronger loan application and position your business as a reliable investment for lenders.

Addressing funder concerns and enhancing fundability.

Here are some ways to enhance your fundability:

Prove Your Experience & Industry Knowledge

A strong track record gives lenders confidence that you can adapt to changing market conditions and manage industry ups and downs. Ideally, five or more years of experience demonstrates the resilience to withstand at least one economic or industry cycle. If you don’t yet have that depth of experience, you can build credibility by surrounding yourself with experienced advisors, forming partnerships, highlighting transferable skills, and showing a clear plan for how you’ll navigate challenges. Demonstrating that you’ve prepared for gaps in experience reassures lenders of your commitment and capability.

Invest Your Own Capital (Minimum 20% Equity)

Lenders want to see that you have skin in the game. A minimum of 20% equity—meaning your own cash investment into the project—demonstrates your commitment and reduces the lender’s risk. The more you invest, the more confidence a lender will have in your ability to succeed.

Prepare Strong Financial Statements & Cash Flow Projections

Well-organized, up-to-date financial statements are key to proving your business’s financial health. Lenders will scrutinize your balance sheet, profit and loss statement, and projected cash flow to assess whether your business can handle the additional debt.

Offer Sufficient Collateral—or Secure an SBA Guarantee

Banks often require collateral to secure loans, which can be real estate, equipment, or other business assets. If your collateral falls short of the bank’s preferred amount, an SBA loan guarantee can help bridge the gap, making your loan more appealing to lenders.

By focusing on these key factors, you can strengthen your loan application and position your business as a lower-risk, high-potential borrower.