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Business Incentives

Business Incentives

Cumberland Street Sign

Business Financing Options

Small Business Administration (SBA) 504 

Small Business Administration (SBA) 504 loans provide businesses with access to subordinate long-term capital to assist with the acquisition, expansion or refinancing of real estate and equipment. 


  • Assists growing businesses with subordinate long-term, fixed-rate financing 
  • Finances major fixed assets such as land, building, and equipment 
  • Long-term rates not typically found at commercial banks, 10 or 20-year fixed rate option 
  • Retain working capital with minimal equity injection. Equity injection as low as 10% 
  • Attractive to banks as a risk mitigator 
  • Primary lender is typically financing 50% of project costs in a first line position. SBA 504 loans provide up to 40% of the financing behind the primary lender. 

SBA 504 Refinance 

  • Assists businesses with restricting long-term, fixed-rate financing 
  • Offers straight refinancing up to 90% LTV; cash out refinancing up to 85%LTV 

Small Business First (SBF) 

  • Provides growing businesses of 100 employees or fewer with incentive financing for major fixed assets such as land, building, and equipment 

PA Industrial Development Authority (PIDA) 

  • Low interest loan financing for land and business acquisition, construction and renovation projects that result in the creation or retention of jobs. 
  • Available to any size business 

Community First Fund 

  • Provide financing up to $750,000 to both start up and growth of small businesses 
  • Business loan products fall into two categories: Small Business Loans and Microenterprise Loans 
  • Commercial real estate loans 
  • New market tax credit program

Tax Abatement Programs


The Local Economic Revitalization Tax Abatement (LERTA)   program   provides five year phased out exemptions on new development from all three taxing entities: school district, city, and county. The exemption is 100% for three years, and 50% for the following two. The program applies to industrial, commercial and retail-related new construction and major rehabilitation projects on properties located on both sides of Cumberland Street, and the entire City limits north of Cumberland Street. 


Keystone Opportunity Zones (KOZ) are specific commercial or industrial areas with a greatly reduced tax burden for property owners and businesses. Businesses that locate in designated KOZ parcels are eligible to have no City, School District, or County property taxes levied on new development for a period up to 10 years. There are currently two Keystone Opportunity Zone sites available in the City. Please contact the City of Lebanon for more details and locations.