Where Pennsylvania law stands on business financing disclosures
State help comes mainly through PIDA loans packaged by local economic development groups and the free PA SBDC network [4][6]. As of Oct 20, 2026, Pennsylvania has no law that makes a business funder show a standard cost disclosure. The bill that would add one is House Bill 639 of the 2025 to 2026 session. Its co-sponsorship memo is titled "Protecting Small Businesses From Predatory Lending" [1].
HB 639 would amend Pennsylvania's Loan Interest and Protection Law, the 1974 act often called the state usury law, to add a section "providing for truth in lending" [1]. Its prime sponsor is Representative Kristine Howard, with 13 co-sponsors [1]. The official status page shows one action: "Referred to Commerce, Feb. 20, 2025." It has not been reported from committee, and there have been no votes [1].
| Step | Status |
|---|---|
| Introduced and referred to House Commerce | Done, Feb 20, 2025 [1] |
| Reported from committee | Has not reached this step [1] |
| Passed the House | Has not reached this step [1] |
| Senate action | Has not reached this step [1] |
| Signed into law | Has not reached this step [1] |
Other states have taken a different path and passed disclosure laws. Our state disclosure law table lists every enacted law with a link to the text. This is general information, not legal advice, as of Oct 20, 2026.
How to get the real cost of an offer without a state disclosure
Without a required form, the cost may come to you as a factor rate, a "buy rate," a flat fee or a daily payment. None of those, alone, tells you what the money costs per year. Ask for these in writing before you sign anything:
- The amount you will actually receive after every fee is taken out.
- The total you will repay, in dollars.
- How payments are collected: a split of card sales or a fixed daily or weekly debit, and the amount.
- The expected number of months to pay it back.
- What happens if you pay early, and whether any of the cost is forgiven.
- An estimated APR, or enough of the above to work one out yourself.
With those numbers you can use the offer translator on this page, or our offer comparer, to see dollars and an estimated APR side by side. That matters most for a merchant cash advance, which is a purchase of future receivables, not a loan, and is priced with a factor rate rather than interest. NerdWallet puts effective APRs on these advances between 40% and 350% [3].
If a funder will not write it down
A funder that will not put the total payback and payment schedule in writing before you sign is telling you something. The federal FTC Act declares "unfair or deceptive acts or practices in or affecting commerce" unlawful, and its text is not limited to consumers [2]. It does not, however, give you a state disclosure form, so the written numbers are yours to ask for.
PIDA: Pennsylvania's main state business loan program
The Pennsylvania Industrial Development Authority, or PIDA, is run through the Department of Community and Economic Development (DCED). It "provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs" [4]. If you remember the older Small Business First fund, DCED now says that program "has been consolidated and is now part of" PIDA [5].
| Use of funds | Longest term |
|---|---|
| Land and building purchase, construction or renovation | Up to 15 years [4] |
| Machinery and equipment | Up to 10 years [4] |
| Working capital and accounts receivable lines of credit | 1 year, renewable [4] |
Eligible sectors on DCED's list include manufacturing, agriculture, hospitality, construction, child day care, retail and service, export, and computer-related services [4]. PIDA finances only part of a project. How much depends on what the money is for, the type of business, how much other financing you bring, and how many full-time jobs you keep or add [4]. DCED does not publish a fixed rate: "Interest rates for the program are based on current market conditions" [4].
You do not apply to PIDA on your own. A Certified Economic Development Organization (CEDO) that serves your county packages the application and works out with you whether PIDA can help [4]. DCED's PIDA office takes questions at 717.783.5046 [4].
Free help: the PA SBDC network and SBA district offices
The Pennsylvania Small Business Development Centers offer "no-cost, confidential consulting" to owners and people starting out, through "a statewide network of 15 Centers and outreach locations" [6]. A consultant can help you build the business plan and financial statements a PIDA package or bank loan will ask for. The network also lists specialty help for child care businesses, agriculture, manufacturing and the State Small Business Credit Initiative [6].
For SBA loans, Pennsylvania is split between two SBA district offices. The SBA's own pages divide the state by county:
| Office | Area it serves | Address |
|---|---|---|
| Philadelphia District Office | The 40 counties of eastern Pennsylvania [7] | 660 American Ave., Suite 301, King of Prussia, PA 19406 [7] |
| Pittsburgh District Office | The 27 counties of western Pennsylvania [8] | 3 Parkway Center Dr S, Suite 375, Pittsburgh, PA 15220 [8] |
SBA loans are made by banks and other lenders, with the SBA backing part of each loan. Our SBA loans guide covers the 7(a) and 504 programs, rate caps and timelines.
Matching the need to the right Pennsylvania option
| Your need | Where to start | Trade-off |
|---|---|---|
| Buying a building or land and adding jobs | PIDA through your county CEDO | Up to 15 years, but packaging and underwriting take time [4] |
| New machinery | PIDA, or equipment financing | PIDA allows up to 10 years; equipment financing can move faster [4] |
| Short working capital line | PIDA line of credit, or a bank line | PIDA lines run 1 year and renew [4] |
| Cash in days | An online offer, after you translate it to dollars and APR | Speed usually costs more; advances can run 40% to 350% APR [3] |
| Not sure yet | PA SBDC consultant | No cost, but it is advice, not money [6] |
Batch Capital, our funding team, is not a lender and cannot speak for any state program. If you answer a few questions, you see which kinds of funding tend to fit your situation and their typical costs, before you share contact details. Any offer names the funder in the agreement, and you decide whether to sign.
This is general information, not legal advice, as of Oct 20, 2026.