A few hidden programs many Pennsylvania small businesses should be using in 2025

Back in February, Pennsylvania Gov. Josh Shapiro’s administration announced that it spent “more than $1 billion with small, small diverse, and veteran-owned businesses.”

Did your business take advantage? The commonwealth also offers other resources for small businesses that you may not know about.

Last year this summit brought together more than 400 small-business owners, government and nonprofit leaders, and procurement specialists to network and learn about services the commonwealth offers, such as its Mentor-Protégé Program, and initiatives designed to streamline the procurement process for small businesses.

There was also information on how to take advantage of Gov. Shapiro’s Executive Order 2023-18 — Improving State Government Contracting Opportunities for Pennsylvania’s Small Businesses and Small Diverse Businesses. This order gives priority for small and diverse businesses in state contracting and promises to reduce the administrative burden and ensure prompt payment for small, diverse, and veteran-owned businesses participating in state contracts, to fend off cash-flow issues.

Suzanne Curran, who runs a certified woman-owned staffing agency in Philadelphia, said the September event was “enormously helpful” because it brought together most of the state’s resources for small businesses into one space and provided a “one-stop shop” for getting questions answered.

“There were so many small businesses and so many resources that you wouldn’t have had ability to reach otherwise,” she said.

Leland Nelson, owner of Pennsylvania-based Dirty Dog Hauling, said the event provided a “first step” for him and other business owners to actively network with both companies and government agencies providing services.

“You can go to all the networking events you want to go to, but if you don’t apply it or reach out … it defeats the purpose,” he said. “Make yourself available to attend events … come ready to network.”

The next Small Business Empowerment Summit will likely be held in the fall. However, the Department of General Services (DGS) and other state agencies hold educational forums and partner with chambers of commerce for events throughout the year.

Certified businesses get greater access to opportunities, resources and support from the DGS. These include training and educational programs, networking opportunities, and marketing support.

To become certified your business should have 100 or fewer full-time employees and bring in less than an average of $47 million over three years.

A small diverse business must be majority-owned by women, minorities, individuals with disabilities, members of the LGBTQ community, or certain veterans.

Curran said being a certified women-owned business has been beneficial, especially since the state actively seeks to award contracts to minority- and women-owned businesses through set-aside programs.

“The state wants to fill so many contracts with minorities and women-owned and small businesses,” she said. “They’re looking for these certifications.”

Getting access to these contracts is important. But getting paid is even more important. To that end, the commonwealth has made it a priority to reduce the time invoices are outstanding, particularly to certified small businesses. DGS Secretary Reggie McNeil said his agency has already significantly cut the time it takes for certified businesses to get paid.

“Prime contractors are now mandated to pay their subcontractors within 10 days. We’ve been monitoring this and it’s working,” he said.

Last fall the Shapiro administration, through the Department of Community and Economic Development, began accepting applications for a new round of $800,000 in funding under its Global Access Program, which helps eligible small businesses in Pennsylvania export their products. The program is designed to help with marketing, such as trade shows, foreign market sales trips, translation/interpreter fees, shipping sample products, and more.

Henk de Vos, a Global Sales Manager for American Cable Co. in Philadelphia, has benefiting from these grants for a few years. He said the grants cover up to 75% of certain expenses (like hotels, rental cars, and trade show costs) and provides assistance in finding international customers through paid consultants in target countries. Businesses must front the costs and then get reimbursed after submitting detailed reports and invoices within strict timelines.

“These grants are helping us to find new sales in targeted countries like Canada and Australia,” he said. “We get reimbursement for the conferences we attend and lower our global marketing costs.”

Despite national discussions about scaling back diversity initiatives, Nelson said the commonwealth has “remained committed” to engaging small, diverse businesses like his.

“The commonwealth is still looking to engage [businesses led by] women, minority, LGBTQ, [and] service-disabled veterans,” he said. “It’s a good time to still stay in the game.”

The DGS has more detail on these programs and also offers other services — including portals for public works contracting opportunities, resources and guidance for construction firms, and an eBidding platform.

McNeil said his agency is a “conduit” for the vendor community and has strong relationships with other commonwealth agencies. He wants more diverse businesses to get certified so they can benefit too.

Some “people think diversity and inclusion is only targeted at certain groups,” he said. But “it’s really about building up the economic engine.”