Pennsylvania First Program (PA First)

The Pennsylvania First Program is a competitive funding initiative administered by the Pennsylvania Department of Community and Economic Development (DCED). This program is designed to strengthen the Commonwealth's economic base by supporting businesses looking to expand or locate operations in Pennsylvania. The initiative was established under the authority of the Commerce Law (Act of May 10, 1939, P.L. 111, No. 51), which empowers the DCED to encourage commercial development, job creation, and economic growth throughout the state. Through this program, Pennsylvania aims to remain competitive in a global economy by facilitating increased investment and employment opportunities. The primary objective of the Pennsylvania First Program is to promote business expansion, encourage the location of new enterprises, and support projects that create or retain jobs. Eligible applicants include for-profit businesses (such as corporations, partnerships, LLCs, and sole proprietors), not-for-profit entities, municipalities, municipal and redevelopment authorities, industrial development organizations, and local development districts. The funding can be used for a wide range of purposes directly tied to the operational needs of businesses. Allowable expenses include job training for full-time employees, acquisition and preparation of land or buildings, infrastructure development, machinery and equipment purchases, working capital, and environmental remediation. However, the program explicitly prohibits the use of funds for lobbying activities, refinancing of existing debt, or any costs incurred before official approval of funding. Applicants are expected to meet several requirements. Notably, businesses must commit to a private capital investment, typically maintaining a minimum leverage of $10 in private funds for every $1 in program assistance. Job creation or retention is also essential, with specific thresholds including either a minimum of 100 full-time jobs created or retained, a 20% increase in full-time employment statewide, or the creation of significant employment in high-growth sectors or economically distressed areas. Additionally, award recipients must operate at the approved project site for at least eight years. The funding may be provided as grants, loans, or loan guarantees, and the maximum assistance is generally capped at $5,000 per job created or retained. Loan terms vary based on the nature of the investment, with real estate and infrastructure loans extending up to 15 years and equipment loans up to 10 years, with a 1% commitment fee. The program enforces strong accountability standards. If recipients fail to meet job creation or investment requirements, they may face penalties up to the full amount received, with additional financial consequences for failing to maintain operations at the project site. Grants may require securing potential penalties through liens or other forms of collateral. For loans, borrowers must demonstrate an ability to repay and offer sufficient collateral. The application process is conducted through the DCED’s Electronic Single Application for Assistance, accessible online. Submissions can be made year-round, subject to funding availability. All application documents must be signed by two authorized officials and include supporting materials as outlined in the program appendices. Applications are evaluated based on job impact, wage levels, private investment leverage, regional economic conditions, and strategic or technological importance. Additionally, the department emphasizes equitable geographic distribution of funds and adherence to sound land use principles. Once approved, recipients will receive commitment letters outlining terms. For grants, applicants must return the signed agreement within 60 days. Detailed financial documentation is required to request disbursement, and compliance with the Pennsylvania Prevailing Wage Act may apply to construction-related expenses. The DCED maintains oversight through monitoring reports, site visits, and access to project records. For further inquiries or to submit supporting materials not included in the electronic application, applicants are directed to contact the Center for Business Finance and Workforce Development at the DCED headquarters in Harrisburg. No specific deadlines are defined, and applications are accepted on a rolling basis. However, funding is subject to annual appropriations and availability.

Projects with higher private investment leverage and those in high-unemployment areas are more competitive; include clear documentation of job and wage metrics.