Forgivable Loans to Be Available to Philadelphia Businesses This Summer

Twenty “historically disadvantaged” Philadelphia businesses will be selected to receive $50,000 zero-interest loans to help them create new jobs and increase revenue.

The funding comes from the second round of Boost Your Business financing, provided by the Philadelphia Department of Commerce and PIDC, a public-private economic development partner.

To be eligible, companies must be considered “historically disadvantaged,” meaning they are “at least 51 percent owned by individuals who have been subjected to racial or ethnic bias or cultural prejudice because of their identity as members of groups and without regard to their individual qualities, such that their disadvantage arises from circumstances beyond their control,” according to the Commerce Department.

According to a 2022 Federal Reserve study, white business owners were more likely than Hispanic, Black, or Asian business owners to obtain financing. The same study also found that businesses owned by people of color were about twice as likely as white-owned businesses to describe their financial situation as “poor.”

“In the city, as in many other parts of the country, there are a number of historically disadvantaged business owners who have a harder time accessing capital,” said Yvonne Boye, deputy director of commerce at the Philadelphia Department of Commerce and one of the creators of the Boost Your Business program. “This program is one of many the department offers to help address this issue.”

Companies applying for the second round must also:

According to Boye, 20 companies will be selected by a committee and offered an interest-free loan, which will be forgiven once the company meets its set growth goals. The chances of the loan being forgiven are high, thanks to the technical support and close supervision provided by the city to the winners, Boye said.

“None of the beneficiaries of the first round were forced to repay their loans,” she said.

Applicants will be required to submit a formal growth plan, along with credit authorization forms, government-issued identification, two years of federal income tax returns, historical financial statements, debt schedules, projections and business organization documents, including fully executed articles of incorporation and bylaws.

Boye says that while all businesses are eligible and no specific sectors are targeted, the program is looking for companies that are ready to grow. She also wants to attract more B2B companies, such as contractors and manufacturers.

“We expect to see job creation and increased revenue,” Boye said. “We also hope this award will help the winners secure contracts with the city or with major institutions.”

Angie Millan, owner of Angie’s Auto Tags Inc. in Feltonville, was one of the first recipients of the program and used the funds to hire essential employees from her community to help grow her business.

“With this grant, I was able to implement critical improvements and expand my operations, which directly contributed to securing new contracts, generating increased revenue, and fostering employee growth,” she said. “As an entrepreneur from an underrepresented background, accessing resources and opportunities has been a challenge, especially during the COVID-19 pandemic. However, the funding provided by the program has allowed me to grow my business and successfully overcome these barriers.”

Marcos Tlacopilco and Alma Romero, owners of Marco’s Fish and Crab House in the Italian Market, said the funds received from the program were instrumental in renovating the facade and interior of their store, as well as purchasing much-needed equipment.

“Being a business owner is a lot of work, especially in the city,” Tlacopilco said. “Thanks to programs like Boost Your Business, we’ve been able to overcome some of the obstacles and increase opportunities.”

Applications must be submitted by July 31 and can be submitted online. An online information session is also being held by the Ministry of Commerce on July 17.