If you’re a small business owner in Pennsylvania looking to cut energy costs while helping the environment, the state has money waiting for you. The Small Business Advantage Grant (SBAG) Program is offering approximately $1 million in grants to help small businesses upgrade their equipment and processes.
What Is This Program?
The SBAG Program provides reimbursement grants to Pennsylvania small businesses that want to install energy-efficient equipment or adopt processes that prevent pollution. Think of it as the state paying you back for making smart upgrades that save money and protect the environment.
Who Can Apply?
Your business needs to meet these basic requirements:
- Size: 100 or fewer full-time equivalent employees worldwide
- Location: Based in Pennsylvania and registered to do business in the state
- Type: For-profit business (not individuals, except sole proprietorships)
- Project timing: Can complete all work between July 1, 2025, and June 30, 2026
What Projects Qualify?
The program covers several types of upgrades:
- Lighting: LED lighting upgrades (must be Energy Star or DLC certified)
- HVAC systems: More efficient heating and cooling equipment
- Boilers: Energy-efficient boiler replacements
- Refrigeration: Upgraded cooling systems for businesses
- Truck retrofits: Anti-idling or aerodynamic improvements for commercial vehicles
- Medical equipment: Digital X-ray and scanner upgrades
- Natural resource protection: Agricultural projects that prevent water pollution
- Other projects: Energy-saving or pollution-preventing equipment not listed above
Your project must save your business at least $500 annually and reduce energy or pollution costs by at least 20%.
How Much Money Can You Get?
Funding ranges from 50% to 80% of eligible project costs, with maximum amounts between $7,500 and $12,000, depending on your project’s environmental impact and location. Projects in Environmental Justice areas or those with significant environmental benefits can receive higher funding levels.
Next Steps
Applications opened August 1, 2025, and close March 13, 2026 (or when funds run out).
Here’s what to do now:
- Get quotes: Contact vendors for detailed, itemized quotes for your project.
- Complete the Grant Calculator: Download this required tool from the program website to determine your potential savings and grant amount.
- Gather documents: Collect utility bills, product brochures, and other required paperwork.
- Register for an SAP Vendor Number: You’ll need this to receive payment from the state; see more details here.
- Apply online: Submit your application through Pennsylvania’s Electronic Single Application website.
The program works on a first-come, first-served basis, so don’t wait until the deadline.
Important Details
This is a reimbursement program, meaning you pay for the project upfront and get paid back after completion. You can have paid up to 50% as a deposit before July 1, 2025, but all work must be finished by June 30, 2026.
For questions or application help, contact PennTAP via one of the ways outlined here. You can also reach out to the Pennsylvania Small Business Ombudsman Office at 717-783-0909 or email RA-epAdvantageGrant@pa.gov.
Don’t leave money on the table – if you’ve been considering energy-efficient upgrades, this program can help make them more affordable while benefiting your bottom line and the environment.