The Pennsylvania Department of Environmental Protection (DEP) has announced the 2025–2026 Small Business Advantage Grant (SBAG) Program, a funding opportunity designed to help small businesses reduce energy costs, lower pollution, and protect Pennsylvania’s natural resources.

The program provides reimbursement funding for upgrades and improvements that make businesses more efficient and environmentally friendly. This is the 22nd year of the program, and it has a strong track record of helping small businesses thrive while complying with environmental regulations.

Important Program Details ➡️ Application Period:

🟢 Opens: August 1, 2025

🔴 Closes: March 13, 2026, or when all funds are committed

💰 Total available funding: $1 million

Funding Levels

Note: This grant reimburses equipment costs only. Labor, installation, freight, and taxes are not covered

👉 Who Can Apply

To be eligible, businesses must:

• Be a for-profit business located in Pennsylvania.
• Have 100 or fewer full-time equivalent employees (FTEs) worldwide.
• Be registered to do business in PA and have a PA Vendor Number.
• Be able to pay all project costs upfront before requesting reimbursement.
• Complete all project work between July 1, 2025, and June 30, 2026

👉 How to Apply

1. Identify your project – confirm it meets eligibility guidelines.
2. Get itemized vendor quotes – costs must match exactly what you enter in the online Grant Calculator.
3. Complete the Grant Calculator – this tool estimates your energy savings and calculates potential grant amounts.
4. Submit your application online through Pennsylvania’s ESA portal.

Program guidelines, calculator tools, and application links are available on the Small Business Advantage Grant website.

👉 Truck Retrofit Projects: Eligible Equipment

The SBAG program specifically supports Class 4–8 truck retrofits to help fleets reduce fuel consumption, comply with Pennsylvania’s Diesel-Powered Motor Vehicle Idling Act (Act 124), and lower emissions.

1️⃣ Idle Reduction Technology (IRT) - Funding is available for EPA SmartWay-verified devices, including:

• Auxiliary Power Units (APUs) and Generator Sets (GS) – provide electrical power without running the main engine.
• Battery-operated HVAC systems (BAC) – maintain cab comfort while parked.
• Fuel-operated or Direct-Fired Heaters (FOH/DFH) – heat the cab or engine without idling.
• Thermal Storage Systems (TSS) – store energy for later use.
• Other approved anti-idling technologies.
• These devices reduce unnecessary idling, saving fuel and cutting emissions.

2️⃣ Aerodynamic Improvement Technology (AIT) - Funding also covers SmartWay-verified aerodynamic devices that reduce drag and improve fuel efficiency:

• Trailer side skirts
• Trailer tails
• Gap reducers
• Under-trailer devices
• Splash guards
• Other DEP-approved aerodynamic equipment

Aerodynamic improvements may need to be combined with idle reduction projects to meet the 20% annual savings requirement for eligibility.

👉 Truck Project Eligibility

• Trucks must be registered in Pennsylvania (full or apportioned).
• Vehicles must operate at least 50% of the time in PA, measured by mileage or hours.
• DEP may request CDL verification for certain Class 7–8 truck projects

✅ Quick Checklist: Is Your Truck Retrofit Eligible?

👏 If you can check all boxes, your project is likely eligible for SBAG funding! 🥳

Other Eligible Business Projects

Even if your focus isn’t on your trucks, SBAG covers many other high-impact upgrades, including:

• Lighting upgrades (must be LED, Energy Star, or DLC certified).
• HVAC and boiler improvements (Energy Star-certified as required).
• Refrigeration upgrades for food service and cold storage.
• Medical x-ray/scanner equipment updates.
• Natural resource protection projects, such as stormwater control or agricultural runoff prevention

Businesses can combine truck projects with facility improvements in a single application, up to the annual funding cap.

👉 Why Apply

This grant program provides a valuable opportunity for small businesses to make meaningful upgrades while reducing financial strain. By offering reimbursement for equipment purchases, SBAG helps companies offset the upfront costs of major projects, making it easier to invest in technology that will deliver savings over time. Participating businesses benefit by lowering their operating expenses, staying compliant with environmental and idling regulations, and demonstrating a strong commitment to cleaner, more sustainable operations. With funding available for both trucks and facilities, PMTA members can take advantage of this program to make impactful investments that boost efficiency, cut costs, and support long-term growth.

👉 Get Help

For questions or assistance: RA-epAdvantageGrant@pa.gov

Act fast! Funding is limited and awarded first-come, first-served. Applying early greatly increases your chances of securing a grant.