Historically Disadvantaged Business Assistance Program - Microgrant Prgram Support (HDBA)

The Historically Disadvantaged Business Assistance Program, administered by the Pennsylvania Department of Community and Economic Development (DCED), aims to support the creation, sustainability, and growth of small businesses owned by socially or economically disadvantaged individuals across Pennsylvania. The program seeks to increase access to capital, promote economic empowerment, and expand the participation of small and diverse businesses in government contracting and procurement. This initiative is authorized under the Act of May 10, 1939 (P.L. 111), commonly known as the Commerce Law. The program consists of two major components: funding for Business Assistance Service Centers and funding for microgrant programs. Business Assistance Service Centers will provide technical assistance and business support services to small, historically disadvantaged businesses, helping them access capital and expand their operations. These centers will offer services such as business plan development, accounting assistance, contract procurement guidance, and strategic planning. Eligible applicants to establish such centers include community-based nonprofit organizations, educational institutions, and nonprofit economic development organizations with at least three years of operational experience in Pennsylvania. The microgrant component is designed to help historically disadvantaged businesses with startup and expansion costs, as well as to eliminate financial barriers that may prevent them from obtaining government and institutional procurement contracts. Eligible applicants for this funding must be nonprofit organizations, educational institutions, or nonprofit economic development organizations with a history of at least three years in operation. Microgrants may cover costs such as business filing fees, certification expenses, working capital, marketing, and procurement-related costs. Applications for funding must be submitted electronically through DCED’s Single Application for Assistance (ESA) system. Eligible applicants must provide a detailed proposal outlining their experience, a service plan tailored to their chosen DCED region, a proposed budget, and documentation demonstrating their commitment to historically disadvantaged businesses. Additionally, applicants interested in administering microgrants must provide a map of their intended service area and an outline of their grant distribution and evaluation process. Awardees will receive funding on a competitive basis, with contracts issued electronically and requiring signatures within 45 days. Funding may be distributed in multiple payments, with 25% available immediately and subsequent quarterly payments requiring documentation of past expenditures. Grant recipients are also required to submit mid-term and final reports detailing the program's impact, including the number of businesses served, financing secured, jobs created, and businesses expanded. The program prohibits the use of grant funds for lobbying, repayment of debt, payroll taxes, or other restricted expenditures. Compliance requirements include adherence to Pennsylvania’s nondiscrimination policies, record-keeping obligations, and prevailing wage regulations where applicable. The DCED reserves the right to review applications based on an organization's experience, program impact, and ability to serve historically disadvantaged businesses effectively. For inquiries regarding the Historically Disadvantaged Business Assistance Program, applicants may contact the DCED Center for Business Finance at (717) 787-6245 or via email at ra-dcedcbf@pa.gov. The application period and relevant deadlines will be posted on the program's webpage at dced.pa.gov/hdba.