On Monday, December 16, Pennsylvania Governor Josh Shapiro, Lieutenant Governor Austin Davis, and Department of Community and Economic Development (DCED) Secretary Rick Siger opened the Historically Disadvantaged Business Assistance Program. The program is intended to support and empower small businesses through the creation of Business Assistance Service Centers across the state.

“The Shapiro-Davis Administration is committed to making sure that every entrepreneur and small business across our Commonwealth has the same opportunities for success,” Siger said. “The Commonwealth must support our small, minority-owned businesses because when they succeed, our communities thrive, and Pennsylvania’s economy grows.”

Business Assistance Service Centers for Disadvantaged Businesses

Eligible education institutions, community-based nonprofits, and economic development organizations can apply for funding to establish Business Assistance Service Centers until January 22, 2025. These institutions will provide the technical assistance and support services necessary for disadvantaged businesses to thrive by promoting economic empowerment.

Advocacy for Local Support

Since his appointment as governor, Shapiro and his administration have advocated for historically disadvantaged businesses in Pennsylvania, including minority-owned businesses. This bipartisan 2024–2025 budget is designed to extend support for these businesses on a local level across the state. Shapiro feels that local support services will allow the state’s range of small and diverse businesses to grow.

“I’ve advocated for this funding because when small businesses succeed, they create opportunity for Pennsylvanians all across the Commonwealth,” Shapiro said in a statement. “My Administration and I are committed to breaking down barriers to progress and helping historically disadvantaged business owners and entrepreneurs build generational wealth. Pennsylvania is open for business, and we’re making sure small, diverse businesses have the support they need to achieve their dreams and grow our economy.”

Other Aspects of Pennsylvania’s 2024–2025 Budget

The 2024–2025 budget allots $20 million for the Historically Disadvantaged Business Assistance Program but also includes additional funding for other programs. This includes $500 million for site development with $400 million for the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) program, $20 million for the Main Street Matters program, and $15 million for tourism marketing.

The Application Process for 2025

The Historically Disadvantaged Business Assistance Program will use a competitive application process to determine which organizations will receive funding in 2025. At least one eligible organization in each region of Pennsylvania will be selected from among applicants, ensuring that all parts of the state receive access to new Business Assistance Service Centers.

“When we invest in minority communities and help historically disadvantaged businesses in those neighborhoods,” said Davis, “we’re not just supporting job creation—we’re building ladders of opportunity. The Shapiro-Davis Administration will never leave any community behind.”

“When we created the Historically Disadvantaged Business Program four years ago,” said Senator Vincent Hughes, Senate Democratic Appropriations Chair, “we believed that our investments should be a reflection of our priorities. When we give someone the support or tools needed to open a barber shop or take over a vacant storefront in the neighborhood, it matters to everyone that small business is serving. Since its inception, the Historically Disadvantaged Business Program has gotten real resources to businesses that are often neglected by more traditional programs. I’m glad this support for these businesses will continue.”

Pennsylvania’s Economic Strategy for the Future
Certainly, the benefits for disadvantaged small businesses are wide and varied, and the local focus of this funding initiative is sure to make a greater impact. Business Assistance Service Centers have the advantage of working more closely with funding applicants on a regional basis. The initiative is part of Pennsylvania’s first Economic Development Strategy in two decades, demonstrating where the state is putting its focus moving forward.