Enterprise Zone Designation

The Enterprise Zone Program, administered by the Pennsylvania Department of Community and Economic Development (DCED), provides municipalities and regions the opportunity to designate specific areas for focused investment and revitalization over a five-year period. This designation targets deteriorated, distressed, and blighted industrial or manufacturing zones, with the aim of stimulating local economic growth through revitalization efforts, attracting new business activity, and fostering job creation. The designation is not a funding program in itself, but offers substantial advantages by providing priority consideration for various DCED programs, including eligibility under the Neighborhood Assistance Program (NAP), as well as potential benefits related to state contracts, financial assistance for site clean-up, and liquor licensing. Eligibility for the designation is limited to specific entity types that include local government units (counties, cities, boroughs, townships, and towns), redevelopment and similar authorities, nonprofit organizations including economic development corporations and community development corporations, as well as business improvement, neighborhood improvement, and downtown improvement districts. Nonprofit applicants and similar entities must show a minimum of two years of operational experience, with clean financial audits for the two most recent years to be considered. The application process is sequential and starts with the interested party contacting the relevant DCED Regional Office to assess program fit. Once preliminary discussions confirm potential eligibility, applicants must submit the formal application via email to the designated program resource account. Applications are reviewed by DCED staff, who may request clarifications or revisions. Approved applications receive formal confirmation specifying the designation area and the effective start and end dates of the five-year designation period. Applicants are advised that while the designation opens access to multiple funding and resource programs, it does not guarantee financial awards. As part of the application package, a detailed justification must be submitted, demonstrating the community's need for revitalization. This includes economic and demographic data such as unemployment rates, crime rates, property conditions, and regional economic roles. Applicants must also submit a comprehensive Five-Year Strategy tailored to the designated zone, outlining actionable goals for business development, revitalization plans, and alignment with broader economic development strategies. A map detailing the zone’s boundaries and key landmarks is required, along with a resolution of support from each participating municipality. The organization managing the zone must be identified, and its staff credentials and governance structure fully described. The Enterprise Zone designation also permits boundary extensions under certain conditions, though such changes must be substantiated by documentation of unforeseen opportunities not included in the original request. In rare cases, the applicant may be required to offset added areas by removing other parts of the zone. Zones may include non-contiguous areas if they are programmatically connected and aligned with a broader economic development plan. Applications are accepted on a rolling basis throughout the year. However, to initiate the process, coordination with the appropriate DCED Regional Office is essential. Additional information and regional contact details are available within the program guidelines. Program-related inquiries can be directed to the Innovation & Development Zones Office at DCED, located in the Commonwealth Keystone Building in Harrisburg. Applicants may also consult their respective DCED Regional Directors for localized guidance. The program represents a strategic, non-grant pathway to unlock economic opportunities for communities facing structural and economic challenges, with the goal of stimulating investment and fostering equitable economic revitalization across Pennsylvania.