Business in Our Sites Grants/Loans (BOS)

The Business in Our Sites (BOS) Program, administered by the Commonwealth Financing Authority (CFA) through the Pennsylvania Department of Community & Economic Development (DCED), provides critical financial support to facilitate the development and revitalization of business-ready sites across Pennsylvania. Established under the Act of April 1, 2004 (P.L.163, No. 22), the program aims to empower municipalities, redevelopment authorities, and industrial development agencies to attract and support business expansion by ensuring the availability of shovel-ready sites. Through a combination of grants and loans, BOS addresses the financial barriers often associated with site preparation and infrastructure development necessary for economic growth. BOS funds are intended exclusively for speculative development, not for projects with pre-committed tenants. Eligible sites must either be previously utilized—such as former industrial, institutional, or commercial locations—or undeveloped but zoned and planned for development. The program supports site acquisition, infrastructure improvement, environmental remediation, demolition, and construction of utilities and amenities. Key site features may include water and sewer systems, energy facilities, stormwater drainage, roads, and broadband infrastructure. Private developers may only receive loans, while public-sector applicants may apply for both grants and loans, with grant funding capped at $4,000,000 or 40% of the total project funding request, whichever is less. Financial assistance through BOS is patient and flexible. Loan repayment is deferred until a site is sold or leased, or five years from the closing date, whichever comes first. Loans are amortized over a maximum of 20 years. Interest rates range from 2% to 3% for first-lien loans, and 8% to 9% for subordinate-lien loans, depending on the county's unemployment rate. Security for loans includes a mortgage lien and may require additional collateral. A commitment fee, scaled by loan size, and a $350 non-refundable application fee are required. Program funds may not be used for lobbying, back taxes, or certain financing fees. To apply, applicants must use the DCED’s online Single Application for Assistance between January 1 and March 31, 2024. If applying for both grant and loan funds, the loan application must be submitted first. Required documentation includes detailed project descriptions, cost estimates, funding commitments, marketing analyses, site appraisals, financial statements, and zoning compliance letters. The application must also demonstrate future site use that promotes job creation, economic growth, and community revitalization. Applications are evaluated based on feasibility, marketability, local economic impact, and alignment with regional plans. Priority is given to projects in high-unemployment areas, those involving multiple municipalities, redevelopment of existing sites, and initiatives with strong local support. Fund disbursement requires signing a commitment letter within 45 days of approval. Grant agreements are executed electronically. Projects must adhere to bidding laws, nondiscrimination clauses, prevailing wage requirements, and provide detailed expenditure documentation for closeout. For questions, inquiries can be directed to the Office of Business Financing and Workforce Development – Site Development Division at [email protected] or (717) 787-6245. Full guidelines are available via the DCED website. The BOS program is an essential tool in Pennsylvania’s economic development strategy, promoting site readiness to attract future business investment statewide.

Grants must be paired with loans; private developers are loan-only and must submit loan first.