Scranton officials closed Thursday on the loan from Amalgamated Bank.
City Solicitor Paul Kelly tells The Times-Tribune that the money will cover Friday's payroll of $1.1 million.
Kelly says it will also allow payment of $750,000 in back wages. In June, the mayor temporarily slashed the pay of about 400 city workers to minimum wage, saying the city was nearly broke.
Scranton has been cash-strapped for years. Last week, City Council approved a financial recovery plan.
The loan will be repaid with a $2.25 million state aid package and earned-income taxes to be collected in coming months.