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68 grants, loans and programs to benefit your small business.

When you know where to look, help for your small business is there for the taking.

Whether you’re starting a new small business or looking to grow the one you already own, finding funding can be a challenge for businesses of all sizes. If you’re looking for a small business loan or grant, CO— is here to help.

Each week, we update this list of loans, small business grants, or other opportunities to connect with programs and organizations that can help you with your business. Come back often to see the latest. And, if your organization has a program or grant you’d like to see listed here, email us at [email protected] .

If you’re not sure of the difference between a loan and a grant, check out our explainer here . You can also learn more about all funding options in our small business financing guide here .

Government grants

Begin your search for a grant from the federal government at Grants.gov . This government site offers the most comprehensive database of funds the government is going to give away. There are thousands of grants to apply for, with opportunities for companies from all backgrounds.

Keep in mind that not all assistance flows directly from the federal government to small businesses. Some funds are distributed to state and local governments and agencies, nonprofit organizations, and institutions of higher learning. These entities, in turn, distribute the funds or use them to provide technical or educational assistance on a local level.

In addition to the programs listed here, be sure to check with your state and local governments and use the resources listed below. When searching through grant and contracting options, note that you may qualify for more than one program.

As illustrated by the following sampling of grants, the assistance available to you from the government will vary, depending on your specific situation.

• Employee Retention Credit. The Employee Retention Credit (ERC), sometimes called the Employee Retention Tax Credit, is a stimulus program established by the CARES Act. This refundable tax credit functions as a grant that helps businesses impacted during the COVID-19 pandemic. Eligibility guidelines are available on the IRS website .
• Higher Blends Infrastructure Incentive Program (HBIIP). The Higher Blends Infrastructure Incentive Program (HBIIP) helps fund projects that expand the use of biofuels in the U.S. The program covers up to 75% of project costs, awarding grants up to $5M; facilities with fewer than 10 fueling stations and home heating oil distributors with high throughput are eligible for higher cost-share percentages. To be eligible, applicants must operate fueling stations, convenience stores, fleet facilities, terminal operations, home heating oil distribution facilities, or the like. Applications are due by 4:30 p.m. EST on September 30, 2024.
• Illinois Infrastructure Grants. In 2020, Governor Pritzker launched an initiative to improve Illinois' infrastructure. $3 billion of this was allocated for capital grants through the Department of Commerce and Economic Opportunity (DCEO) . These capital grants, part of Illinois' $45 billion infrastructure initiative, are designed to support various projects that benefit local communities and businesses. The DCEO maintains a transparent list of these grants, which can be either general or specific project grants. You can find more information about these grants on the GATA website .
• The Minnesota Emerging Entrepreneur Loan Program (ELP). ELP is an initiative aimed at supporting the growth of Minnesota businesses owned by minorities, low-income individuals, women, veterans, and persons with disabilities. The program provides grant funds to nonprofit lenders across the state, which in turn offer loans to startup and expanding businesses. These loans not only foster business development but also aim to create jobs for minority and low-income individuals, strengthen minority-owned enterprises, and boost economic growth in disadvantaged areas. To participate in the program, eligible businesses must apply through certified nonprofit lenders, with DEED assisting in lender identification if needed, and loans are subject to DEED's approval.
• National Institute of Health Grants . The National Institute of Health (NIH) is currently funding grant opportunities related to COVID-19 research. These grants are reserved for small businesses that develop and research biomedical technology. There are multiple grants available with deadlines throughout 2024 and beyond.
• NIDILRR's SBIR program . The SBIR program aims to support organizations to help advance technology and research, as well as support the social/economic benefits for the nation. The SBIR will be backing the National Institute on Disability, Independent Living, and Rehabilitation Research (NIDILRR) through the Administration for Community Living (ACL) to provide 10 grants that support the improvement of the lives of those with disabilities. The total grant funding is estimated to be $1 million, and an outline of the available grants under this program can be found on the ACL website.
• San Francisco Accessibility Grant. Small business owners in San Francisco can apply for a grant to enhance accessibility in their establishments. The grant can cover expenses like accessible equipment, construction to remove ADA barriers, CASp inspections, design services, and relevant permit fees, with a maximum grant amount of $10,000. Eligible businesses must be registered in San Francisco, have less than $2.5 million in gross revenue for a single location, and employ an average of 100 or fewer employees. The application process is fast, and applicants can expect a response within 15 days of submission. Upon approval, they will need to provide proof of payment and photos showcasing accessibility improvements.
• Small Business Innovation Research Program (SBIR) . The SBIR offers grants to small businesses so they can participate in federal research and development with the potential for commercialization. It’s a highly competitive awards-based program that helps businesses achieve scientific excellence and technological innovation. To qualify for SBIR grants, you must operate a for-profit company and satisfy other requirements.
• Small Business Technology Transfer Program (STTR) . Similar to SBIR, the STTR program focuses on funding research in the R&D arena. However, what separates the STTR is the requirement that the small business has a formal collaboration with a research institution. To qualify for STTR grants, you must operate a for-profit company and satisfy other requirements.
• Texas Enterprise Fund (TEF). The Texas Enterprise Fund (TEF) offers "deal-closing" grants to companies competing with out-of-state sites for new projects in Texas. These grants are based on performance, encouraging significant capital investment and job creation. Eligible companies must meet criteria related to job creation, capital investment, financial stability, and local support. Once approved, grantees sign contracts committing to job and wage targets, with clawback provisions in case of non-compliance. The application process includes a thorough screening, and unanimous support from top state officials is required for approval.
• U.S. Department of Agriculture Rural Development Business Programs. The USDA’s Rural Development Business Programs provide financial support and technical assistance to promote rural business growth. They offer loans, grants, and guarantees with the goal of enhancing economic opportunities and job creation in rural communities; deadlines and eligibility requirements vary by program.
• U.S. Department of Commerce Minority Business Development Agency (MBDA) . Targeted grants and loans designed to aid minority-owned businesses are offered throughout the year. Minority-owned businesses can find information about local MBDA Business Centers at MBDA.gov .
• U.S. Department of Education Grants. The U.S. Department of Education (DOE) has various grants available to small businesses in the education sector. Each grant has unique eligibility criteria, with some opportunities set aside for public schools, state agencies, or nonprofit organizations; however, others allow applications from for-profit private sector companies. Deadlines for currently available DOE grants run through November 13, 2024, with more grant opportunities coming soon.
• U.S. Small Business Administration State Trade Expansion Program (STEP) . Intended to assist small businesses desiring to export product, this program distributes federal funds through state entities . Small businesses that meet the criteria set by each state can use the financial assistance to participate in foreign trade missions and shows, obtain entry to foreign markets, develop websites, and design international marketing products or campaigns.
• U.S. Economic Development Administration (EDA) . The EDA is part of the U.S. Department of Commerce and offers ongoing funding opportunities for projects that support regional and national economic development. Applicants can apply for a variety of rolling-basis EDA investments that fund projects in construction, non-construction, planning, technical assistance, research and evaluation, higher education, and more.

As you would expect, acceptance of free money from the government comes with a fair amount of paperwork. Applying for a grant can be time-consuming and technical. You want to make sure, therefore, that you are eligible before applying. In addition to the legal and administrative prerequisites, there are ongoing reporting and auditing requirements.

Government contract assistance

The federal government spends billions of dollars on goods and services each year. A lot of that money is spent through a competitive bidding process. Programs have been put in place to assist some small businesses with the process, allowing them a better chance to compete for those federal dollars.

• Service-Disabled Veteran-Owned Small Business Program . The federal government seeks to award at least 3% of all federal contracting dollars to veteran-owned businesses annually, so this program helps with meeting that target. This federal contracting program offers assistance to small business owners who are service-disabled veterans . Eligible small businesses must be over 50% owned/controlled by one or more service-disabled veterans, have day-to-day operations and long-term goals managed by at least one service-disabled veteran and have a service-connected disability.
• Women-Owned Small Business (WOSB) Federal Contracting Program . The federal government seeks to award at least 5% of federal contracting dollars to women-owned small businesses annually. Through this SBA program , the Office of Women’s Business Ownership provides support to women entrepreneurs by offering business training, counseling, federal contracts and access to credit and capital. Their goal is to offer equal opportunities for all women in business.
• 8(a) Business Development Program . The purpose of this program is to assist small businesses owned by socially and economically disadvantaged entities. This is achieved by limiting competition for certain government contracts to businesses participating in the 8(a) business development program. To participate a business must be certified as an 8(a) entity.
• HUBZone Program . This program aids businesses in underutilized business zones by making them more competitive in regard to some government contracts. Businesses that join the HUBZone program can compete for set-aside contracts as well as receive preference on others, including a 10% price evaluation preference in open contract competitions.

Natural Resource Sales Assistance Program

In addition to the billions of dollars spent purchasing goods and services, the federal government also sells large amounts of natural resources and surplus property. The SBA Natural Resource Sales Assistance Program sets aside a percentage of these goods for bidding by small businesses only. In addition, federal agencies sometimes divide surplus materials into smaller parcels, making it easier for small businesses to purchase. The five categories are:

• Timber and related forest products.
• Strategic materials.
• Royalty oil.
• Leases involving rights to minerals, coil, oil and gas.
• Surplus real and personal property.

The program also provides training for small businesses on government sales and leasing.

General small business grants

There are many nonprofit and corporate entities offering grants and other assistance to small businesses. Here are a few such programs that are open to qualifying small businesses in any industry:

• 500 Global Flagship Accelerator Program . Startups and small businesses seeking funding can do so on a rolling, year-round basis with the 500 Global Flagship Accelerator program . Since 2010, this program has offered businesses the opportunity for a four-month accelerator program based in San Francisco in addition to a $150,000 investment. Rules for applying can be found on the company's website.
• Awesome Foundation Grants. Each month, the Awesome Foundation awards grants of $1,000 to individuals and groups looking to fund various projects. The Awesome Foundation is made of 84 independently-run chapters, with members contributing to a micro-funding pool that goes towards grant projects. Though funding is not limited to businesses, startups, and small businesses have been among the recipients of the monthly grants. Applications are accepted on a rolling basis.
• Bizee Entrepreneur Grant . Bizee (formerly Incfile) offers two grants to support aspiring entrepreneurs and students. The "Young Entrepreneur Scholarship Grant" provides $2,500 to a high school senior, undergraduate, graduate, or trade school student in the U.S. with a GPA of 3.0 or higher and an interest in starting a business. The "Fresh Start Business Grant" offers $2,500 and Bizee's Gold plan for free to adult entrepreneurs (21 years or older) in the U.S. planning to start a new business or significantly grow an existing one. Though dates for the next round of funding are "coming soon," entrepreneurs can review eligibility and application criteria in the interim.
• The Freed Fellowship Grant. U.S.-based small business owners can apply for a monthly $500 grant from The Freed Fellowship . Applicants are evaluated based on the 5C Framework, which assesses various aspects of applicants’ business. Along with the grant, applicants receive feedback on their business and a two-month free membership in the Freed Studio, a community of ambitious business owners. Grant recipients are also eligible for an end-of-year grant of $2,500.
• GoFundMe Small Business Relief Fund . GoFundMe’s Small Business Relief Fund will match $500 grants to qualifying small businesses that have been negatively impacted by COVID-19 and raise at least $500 through a GoFundMe campaign. The fund is backed by GoFundMe and corporations like Intuit QuickBooks, Yelp, GoDaddy, and Bill.com. Small business owners with existing campaigns can add the hashtag #SmallBusinessRelief to their campaign and fill out this form to confirm their business.
• Hustler’s Microgrant. The Hustler's MicroGrant offers $1,000 in funding to support passionate entrepreneurs in their small business ventures. Presented by Deja Vu Parker of WBLS and HerSuiteSpot, this grant provides financial assistance and resources to promising small businesses across the United States, helping them grow their operations. Applications are accepted monthly, and eligible small business owners are encouraged to apply.
• Secretsos™ Small Business Grant. The Secretsos™ Small Business Grant offers $2,500 to help entrepreneurs overcome challenges and accelerate growth. To apply, business owners must be 21 or older and operate in eligible U.S. states, excluding Alaska, Florida, Hawaii, New York, and Rhode Island. Applications are due by September 30, 2024, at 11:59 pm CST.
• Skip Monthly Grants. Small business aggregator Skip offers monthly grants for U.S.-based small business owners and entrepreneurs; grants are typically set at $1,000, though the exact amount varies by Skip’s monthly YouTube revenue. To be considered, you must have a Skip account and add the monthly grant to your Funding Assistant, as well as be subscribed to Skip’s YouTube channel. Deadlines for the next round of grant applications are expected to be announced soon.
• Skip Instant Grants. Skip offers Instant Grants on a rolling basis, providing funding opportunities with shorter turnaround windows. These grants are announced a couple of days in advance and generally occur twice a month. Applicants are required to participate in Skip’s YouTube livestream during the selection process. Learn more about these ongoing funding opportunities by following Skip on social media.
• Small Business Digital Readiness Program. In partnership with Verizon, National ACE has developed a digital readiness program to help small business owners succeed in a digital world. The free online curriculum includes expert coaching, peer networking, and other resources to support your small business. Those who register for the program and take two courses are eligible for a $10,000 grant. This opportunity is rolling and you can learn more at the program’s webpage .
• Small Business Readiness for Resiliency Program. Small businesses often feel the effects of a natural disaster the hardest. It can be difficult when starting a business to suddenly have to raise money to repair a roof or attend to flood damage. To help offset some of these concerns and costs, the U.S. Chamber of Commerce Foundation and FedEx have teamed up to create the Small Business Readiness for Resiliency (R4R) Program. The program helps small businesses put plans in place to prepare for disaster and also provides immediate emergency funding when necessary. Businesses are asked to complete a four-step process to be eligible for funding opportunities.
• Walmart Spark Good Local Grants. Organizations can apply for the Walmart Spark Good Local Grants program provided by Walmart and Sam’s Club, which offers grants ranging from $250 to $5,000 to address the unique needs of local communities. Tax ID status determines eligibility, with 501(c)(3) charities, public entities, and educational institutions qualifying. Grant applications are accepted quarterly, with the current round open through October 15, 2024. All organizations must be Deed verified and have a Spark Good account to apply.

Industry-specific and diversity small business grants and programs

Some small business grant programs are confined to a specific entrepreneur demographic or business profile and they often have an application process that is easier to navigate. This is a sample list, so be sure to check with nonprofits and large corporations in your geographic area or industry.

• 2024 Black Girl Ventures Pitch Program. The 2024 Black Girl Ventures Pitch Program is designed to support Black and Brown entrepreneurs from Los Angeles, Chicago, and NYC by offering coaching, a live crowdfunded pitch competition, and networking opportunities. To qualify, applicants must be revenue-generating, in good standing, and located in the city for which they are applying. The remaining application deadlines are October 9 for NYC applicants and November 6 for Los Angeles applicants. Winners will receive cash prizes ranging from $5,000 to $15,000, as well as access to the BGV Connect Incubator and a new network of business owners and investors.
• Accion Opportunity Fund. The Accion Opportunity Fund grants small business loans ranging from $5,000-$250,000, along with educational resources, coaching, and support networks in both English and Spanish. This program offers mentorship programs, microloans, and a hubzone program for small business owners’ financial needs. Accion Opportunity Fund works with a clientele that is 90% diverse, has created and retained over 50,000 jobs, and has generated $1 billion in economic activity. Those interested in applying for a loan can do so here .
• Amazon’s Black Business Accelerator Program. If you're a seller in Amazon's store, you may be eligible for the Black Business Accelerator Program. Created to support Black entrepreneurs, the program offers financial support, mentorship, business advice, and promotional support. Eligible sellers will have access to free imaging services, cash grant opportunities, advertising credits, and money toward start-up costs. You can learn more about this opportunity at their website .
• Amazon Business Small Business Grant Program. Amazon Business’s third annual Small Business Grant Program is set to award over $250,000 this year to eligible U.S.-based small businesses. There will be one grand prize winner who will receive $25,000, along with four $20,000 finalists and 10 $15,000 semi-finalists. Grant recipients will also walk away with one year of free Business Prime membership, Amazon devices, and Amazon Basics products. Current Amazon Business customers with an annual revenue of $1 million or less are eligible to apply; applications are due on May 24, 2024, with winners announced on July 22, 2024.
• Amber Grant Foundation . With a simple goal of supporting women entrepreneurs, the Amber Grant Foundation was founded by WomensNet in 1998. The foundation awards a series of grants throughout the year, including the $10,000 Monthly Amber Grant, two $25,000 Annual Amber Grants, and $10,000 each quarter for The Startup Grant and The Non-Profit Grant, respectively. There are also 12 Business Category Grants — an additional $10,000 each month — with all eligible applications remaining active until the month of their specific category.
• America’s Seed Fund. America’s Seed Fund, sponsored by the National Science Foundation (NSF), offers up to $2 million for U.S.-based startups and small businesses that are developing innovative technology. Project pitches are accepted on a rolling basis, and official responses from NSF typically take one month.
• Backstage Capital. Backstage Capital supports underrepresented founders by investing in startups led by women, people of color, and LGBTQ+ entrepreneurs. They focus primarily on U.S.-based, scalable businesses with the potential for high growth. Investments typically range from $100,000 and up, predominantly targeting early-stage companies. Applications are reviewed regularly and feedback is provided to those not selected with encouragement to reapply in the future.
• Binc Foundation Emergency Financial Assistance. The Binc Foundation provides emergency financial assistance to bookstore owners, booksellers, and comic store employees and owners facing unforeseen financial needs. Eligibility criteria include specific employment durations and financial hardship resulting from qualifying life events. Binc's assistance process involves a confidential application and documentation verification, aiming to help individuals regain financial stability.
• Boundless Futures Foundation. The Boundless Futures Foundation awards grants to U.S.-based female entrepreneurs and nonprofits that support female entrepreneurship. The EmpowHer Grant offers entrepreneurs up to $25,000, with funds provided as reimbursements for business expenses upon proof of payment. Nonprofits that support female entrepreneurs through education, mentorship, or financing can request up to $30,000 in grant funding through the Her Village Grant. Applications for the EmpowHer Grant are accepted quarterly, while the Her Village Grant follows a biannual cycle, with details on the next round to be announced soon.
• Carhartt For the Love of Labor Grant. Carhartt, a popular workwear distributor, created the Love of Labor grant program to help connect workers with trade programs in their local communities during an unprecedented labor shortage. Awards will be distributed on a rolling basis to “like-minded organizations” that are dedicated to the education, training, and placement of workers into trade jobs. Organizations with interest in the program can apply by reaching out to Carhartt directly. Nominations are accepted as well.
• Casper Accelerate Grant Program. The Casper Association aims to support the adoption of blockchain technology via Casper, a scalable blockchain network. To support innovation within the blockchain industry, Casper has opened the Casper Accelerate Grant Program. Those who want to build apps to support infrastructure, end-user applications, and research innovation are invited to apply. This $25 million grant program has a rolling application deadline, so you can apply anytime here .
• Child Care Business Opportunity Fund. The Child Care Business Opportunity Fund , offered by the Women's Business Development Council (WBDC) in partnership with the Connecticut Office of Early Childhood, offers grants of up to $25,000 to support child care businesses in Connecticut. These grants are designed to help both licensed and aspiring businesses at different stages, whether they're just starting or ready to expand. Eligibility differs based on each grant offering, with application deadlines running through November 15, 2024, and more to be announced soon.
• DoorDash Restaurant Disaster Relief Fund. The DoorDash Restaurant Disaster Relief Fund offers $10,000 grants to help restaurants recover from natural disasters, severe weather, or major infrastructure failures. Eligible applicants include U.S.-based restaurants, gastropubs, or bakeries with brick-and-mortar locations that have experienced revenue loss due to a declared disaster within the past 12 months. To qualify, businesses must have no more than three locations, have been in operation for at least six months, employ fewer than 50 people at each location, and generate less than $3 million in annual revenue per location. Applications are accepted quarterly, with fall applications open through December 2, 2024, at 6:00 p.m. ET.
• Etsy Emergency Relief Fund. If you’re an Etsy business owner, you may be qualified to apply for relief funding courtesy of a partnership with CERF+, a nonprofit organization dedicated to helping artists prepare for and recover from emergencies and disasters. The partnership was established in 2017, and both companies continue to provide up to $2,500 in funding through the grant program. To apply, you must have been a registered Etsy business for at least one year and have been affected by a natural disaster. This grant opportunity is rolling.
• Forrest E. Mars, Jr. Chocolate History Research Grant. The 2025 Forrest E. Mars, Jr. Chocolate History Grant celebrates projects that explore chocolate's cultural and historical significance, supporting research, publications, and immersive experiences. Eligible applicants include non-profit organizations, individual researchers, and K-12 educators in the U.S. who can demonstrate the educational impact of their projects. A minimum of $50,000 will be awarded, with recipients announced at the Heritage Chocolate Society meeting in February 2025; winners must attend the meeting in person or virtually to receive their grant. Applications are due by October 26, 2024 .
• Foundation for a Just Society Grants . Foundation for a Just Society offers grants to local, national, regional, and global organizations and networks that support the rights of women, girls, and LGBTQI individuals. Grants are issued four times each year (March, June, September, and November), with invitations for proposals extended two months prior.
• Galaxy Grants. Galaxy Grants is on a mission to support women and minority entrepreneurs with their small businesses by offering valuable resources, tools, funding, and knowledge. They are running a $4,250 Galaxy Grant Giveaway , sponsored by Hidden Star, a 501(c)(3) organization, with a quick 30-second entry process. The deadline to enter is September 30, 2024, and winners will be announced the following week. Plus, there's an opportunity to win for both you and a friend, as each of you could receive a $4,250 grant if your friend wins, subject to the Terms and Conditions.
• Hawai'i FoundHer Business Accelerator. The Hawai'i FoundHer Business Accelerator offers capital and resources to women-founded businesses in Hawai’i, focusing on AAPI and Native Hawaiian wāhine who have historically been overlooked. To qualify, businesses must be for-profit entities based in Hawai'i, with at least 51% ownership by women of Native Hawaiian, Pacific Islander, or Asian descent, and should be in the early stages of development. Applications are due by September 30, 2024, at 11:59 PM HST, and participants must engage in regular mentorship meetings, complete surveys, and attend various program events if selected.
• HerRise MicroGrant. The HerRise MicroGrant offers financial aid to U.S.-registered businesses that are majority-owned by women of color, with a focus on businesses with innovative community solutions that are still struggling to obtain funding. Applications are reviewed monthly, with winners announced during the subsequent month's HerSuiteSpot First Friday Mixer. Nonprofits, franchises, direct sellers, authorized resellers, and independent consultants are ineligible to apply.
• The High Five Grant for Moms. The High Five Grant for Moms , hosted by The Mama Ladder, offers financial support to ambitious mom entrepreneurs, with awards ranging from $1,000 to $10,000. Winners will also receive additional prizes, including travel vouchers and health supplements. To qualify, applicants must be mothers — with kids of any age — or expectant mothers, own at least 50% of a for-profit business, have generated between $10,000 and $500,000 in revenue over the past year, and be based in the U.S. or Canada. Applications are open through September 30, 2024.
• Hivers and Strivers Investment Program. As an angel investment group, Hivers and Strivers works to provide capital to qualifying businesses. Specifically, the investment group funds projects submitted by veteran-owned and veteran-led businesses. Funding opportunities can range from $250,000 to $1 million. Those who qualify can apply for funding for a business idea on a rolling basis, but businesses reliant on government contracts are not eligible to apply.
• IFundWomen Universal Grant Application. This is a resource for female entrepreneurs seeking grants . Through partnerships with brands like Visa, Caress, and Comcast, IFundWomen has deployed over $170 million in grants to entrepreneurs. Applicants gain priority access to funding opportunities and resources within the IFundWomen community.
• #MomsMeanBusiness. ZenBusiness, a company that helps others launch and run their own businesses, has created the #MomsMeanBusiness campaign to recognize the resilience of moms and celebrate their accomplishments. To help mothers take the first step toward entrepreneurship, ZenBusiness is covering business formation costs and will help entrepreneurs form an LCC, track expenses, secure a business name, and more. All mothers are eligible and costs will be covered for “every mom in America.” The program is rolling and you can sign up here .
• National Association for the Self-Employed (NASE) Growth Grants . According to its website, the NASE has distributed over $1,000,000 in grants to its members. Its growth grants provide up to $4,000 to assist with training, marketing, and more. You must be a member for 90 days before you are eligible to apply.
• Olga Loizon Memorial Foundation. The Olga Loizon Memorial Foundation offers grants of up to $10,000 to aspiring women entrepreneurs in Michigan who embody the passion and vision of Olga Loizon, the founder of metro Detroit's Olga's Kitchen. Applicants must have a business located in Michigan and demonstrate financial need through a personal statement; a formal business plan is also required. Applications are accepted on a rolling basis.
• Patagonia Corporate Grant Program . Patagonia’s corporate grant program offers between $10,000 and $20,000 of funding to nonprofits with missions to protect and preserve the environment. Though grants are awarded by invitation only, Patagonia accepts recommendations for organizations that meet program criteria.
• Pipeline Angels Pitch Summit. The 2024 Pipeline Angels Pitch Summit offers founders the chance to present their for-profit social ventures and compete for funding. To qualify, applicants must have a U.S.-based business with a social or environmental mission and belong to one of the following groups: trans women, cis women, nonbinary, two-spirit, agender, or gender-nonconforming individuals. Applications close on October 1, 2024, and virtual pitch summits will be held on December 13-15, 2024.
• RTC Women in Tech Fund. Rewriting The Code (RTC) works to support college and early-career women in tech by providing them with opportunities to help disrupt gender and racial inequality in the industry. The RTC Women in Tech Fund provides financial resources to women enrolled in undergraduate tech programs to help cover costs that may be an obstacle to education. There are three different grants available depending on each applicant’s specific financial needs. All applications are accepted on a rolling basis.
• StartHER Grant. The StartHER Grant , offered by the Center for Women Entrepreneurs , provides $5,000 to support women-owned startups in Texas. To qualify, businesses must be 51% woman-owned, have five or fewer employees, and operate in Texas as a legal entity formed after October 4, 2019. Applications are due by 5:00 p.m. on October 4, 2024.
• StartOut Scholarship Program . StartOut offers scholarship opportunities to LGBTQ+ entrepreneurs who wish to participate in their Founder Program and become a Giving Member. The initiative provides a 12-month membership for those LGBTQ+ entrepreneurs who have been underrepresented, underserved, and underestimated within their community.
• Supplier Innovative Finance Program. The Empire State Development’s Supplier Innovative Finance Program offers up to $5,000 in unrestricted grants to help socially and economically disadvantaged businesses (SEDI) in New York grow and access capital. In addition to funding, businesses can access educational resources designed to help founders improve their funding readiness and connect them with funders in matchmaking sessions. To be eligible, companies must be headquartered in New York with annual revenues between $250,000 and $10 million and certified as minority, women, veteran, or LGBTQ+ owned. Applications are accepted on a rolling basis.
• Veteran Shark Tank . Veteran business owners can compete for $50,000 in the 11th annual Veteran Shark Tank , held on December 9, 2024, in Philadelphia. To qualify, businesses must be less than three years old, and veterans must own at least 50% of their company, have a clean legal record, and use the prize money for business improvement. Applications, due by October 6, 2024, must include a brief video pitch and a PowerPoint presentation detailing the business plan.
• Tory Burch Foundation Fellowship Program. The Tory Burch Foundation Fellowship Program provides 50 female entrepreneurs a yearlong opportunity to accelerate growth through workshops, mentorship, and financial support. Participants receive a $5,000 business education grant, plus access to 0% interest loans through Kiva. The program concludes with a company presentation, where fellows showcase their progress and receive expert feedback. Women entrepreneurs who hold a majority stake in their for-profit business, are 21 years or older, and are legal residents of the U.S. are eligible. Applications close on November 1, 2024, at 11:59:59 ET., and the fellowship begins in the summer of 2025.
• The TRANSFORM Business Grant. The TRANSFORM Business Grant provides $1,000 microgrants to entrepreneurs from systemically marginalized communities. In addition to funding, grantees also gain access to a year-long, tailored business development program featuring pro bono support from experts in areas such as branding, coaching, skill-building, and marketing. To qualify, applicants must be based in the U.S., show financial need, and focus on creating social impact by addressing systemic injustices. Applications are accepted through September 30, 2024.
• The Wish Local Empowerment Program. This program brought to you by the e-commerce brand, Wish, assists Black-owned small businesses by dedicating a $2 million fund to support approximately 4,000 Wish Local partners. Recipients can receive financial assistance ranging from $500 to $2000, with flexibility in fund allocation. Eligible businesses must meet criteria such as having a Black-owned business with 20 or fewer employees and an average annual revenue under $1 million. Successful applicants will also join Wish Local, gaining access to its consumer base through various partnership opportunities.

Additional resources

The programs listed above are a good start when it comes to grants and funding. You may find additional resources available by following the links below.

• Agricultural Justice Project (AJP) , a program offering free resources and guidance for owners of farms and food businesses.
• Challenge.Gov , part of the General Services Administration's Technology Transformation Services, aids federal agencies in utilizing prize competitions and crowdsourcing to advance their goals. Hosting over 1,300 challenges since 2010, Challenge.Gov facilitated 105 in 2021 alone, totaling a prize pool of over $60 million alongside non-monetary rewards.
• Community Development Financial Institutions (CDFI) Fund , a government agency that offers financial support to certified lenders serving low-income communities. The CDFI is broken up into several different program areas, including Native Initiatives that provide training and assistance to Native communities, and the Capital Housing Fund that delivers affordable housing for low-income communities.
• Fearless Fund , a venture capital firm that actively invests in businesses led by women of color across the United States. Concentrating on early-stage investments in various industries, the fund looks for companies at the Pre-seed, Seed, or Series A financing stages, offering up to $3 million in exchange for a minimum equity stake of 10%.
• Funding options for Black-owned businesses , including venture capital firms and programs offering financing to Black entrepreneurs.
• Funding options for LGBTQ+-owned businesses , including resource networks and organizations that offer grants to LGBTQ+ entrepreneurs and those from other underrepresented backgrounds.
• Funding options for Hispanic-owned businesses , including funding sources and organizations aimed at supporting Latinx and Hispanic entrepreneurs.
• Funding options for minority-owned businesses , including multiple grants, funding sources, and low-cost loans that are intended to help minority-owned businesses grow.
• Funding options for veteran-owned businesses , from government-backed programs to pitch competitions and business accelerators.
• Funding options for women-owned businesses , including ten programs, agencies and organizations that are helping women entrepreneurs be better represented in the ranks of American business owners.
• GrantsForWomen.org , an online directory that provides a comprehensive database of grants for women globally, along with valuable advice on securing grants and information on relevant events and workshops for female business owners. The grants featured in the directory are sourced from reputable organizations, foundations, and venture capital funds, covering both nonprofit organizations and for-profit businesses.
• Live Your Dream Awards , sponsored by Soroptimist International of the Americas, which offers grants of up to $16,000 in financial support to help women overcome financial barriers and achieve their educational and career goals. Applications for this cycle are accepted through November 15, 2024.
• Resources and funding opportunities for AAPI-owned businesses , including accelerator programs, grants for AAPI entrepreneurs, and networking groups.
• SBA Small Business Development Centers , which can help companies of all kinds locate additional funding opportunities at the national and local level.
• SCORE , which can assign a volunteer business mentor who can provide guidance on numerous topics, including funding and operations.
• Sephora Accelerate , a six-month incubation program for beauty brand founders of color. Eligible applicants must lead an early-stage beauty brand based in North America that is not yet widely distributed. Applications are due by September 23, 2024, at 4:59 p.m. PST.
• Tory Burch Foundation Funding Finder , a tool for founders that provides personalized funding recommendations and resources based on their responses to a few questions about their business financials and aspirations.
• Warrior Rising , a national organization designed to turn Veterans (and their immediate families) into “vetrepreneurs” through business opportunities in the form of mentorship, funding, education, and training. Since its inception in 2015, the program has supported over 26,000 Veterans — more than 5,400 so far in 2024 alone — and helped 21 Veteran-run businesses achieve a $1 million valuation.

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Small Business Grants: Your Guide to Finding Funding

Small business grants provide financial aid without the burden of repayment, but obtaining them may be competitive. Federal and state agencies, corporations and industry-specific organizations may offer grant funding.

Nathan Paulus

Director of Content Marketing, MoneyGeek

Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy. Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

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Dr. Rae Osborn is a MoneyGeek content editor with over seven years of editing experience and over 20 years of experience in publishing and writing science content. She also works as a science researcher, writer and editor and a professional reviewer for Science Reviews and Advances in Entomology.

Quality Verified

MoneyGeek is dedicated to providing trustworthy information to help you make informed financial decisions. Each article is edited, fact-checked and reviewed by industry professionals to ensure quality and accuracy.

Updated: September 20, 2024

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How to Apply

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Starting a small business is rewarding, yet securing initial funding is a common hurdle. Grants provide financial support without the obligation of repayment, but the allure of 'free money' typically results in stiff competition. As an entrepreneur, understanding the various types of grants, their advantages and limitations and the application process will help you secure grants that align with your business needs and increase your chances of acceptance.

Small Business Grants Key Takeaways

Understanding the landscape of small business grants helps entrepreneurs looking to finance their ventures effectively.

Grants provide non-repayable financial aid to foster business growth, innovation, or project development.

A broad range of grants are available, including federal and state grants, industry-specific funds and those aimed at particular demographics, such as women or veterans.

In contrast to loans, grants are "free money" with no repayment obligation, whereas loans accrue interest and require repayment.

Entrepreneurs should regularly visit federal and state government websites to find grants, connect with industry organizations and nonprofits and look into corporate programs. Keep in mind that grants are often time-sensitive.

What Is a Small Business Grant?

Small business grants are funds designed to support ventures that may not appeal to conventional lenders yet offer significant community value. These grants, sourced from government entities, private corporations and philanthropic organizations, are unique because they do not require repayment. The amount awarded can vary significantly, with some grants as modest as a few hundred dollars and others providing substantial support well over $10,000.

Grants vs. Business Loans: Key Differences

Grants may seem the ideal choice due to their non-repayable nature, but they come with their own challenges and stipulations. On the other hand, while requiring repayment, business loans can offer more flexibility and may be more accessible.

Federal and State Small Business Grants

The U.S. Small Business Administration (SBA) is a primary source for federal small business grants, providing various funding opportunities. These include grants and loans available through its Small Business Development Centers , many targeting businesses that focus on research and rural economic development. Numerous other federal and state agencies also offer specialized grant programs for small businesses.

Small Business Innovation Research Program (SBIR)

The SBIR program is a competitive grant initiative targeting small businesses engaged in research and development. Its goal is to stimulate scientific and technological innovation. The program is structured into three phases, each designed to serve distinct objectives and advance participants to the next stage of development.

Key Details

R&D entrepreneurs aiming for technological advancements.

Grant Amount

• Phase 1: $50,000–$250,000 for six months.
• Phase 2: $750,000 for two years, eligible for Phase I recipients.

Submit your application to agency solicitations . Only small businesses in the United States that qualify as a Small Business Concern (SBC) can receive the grant. Visit their website for further information.

Small Business Technology Transfer Program (STTR)

Like the SBIR, the STTR program emphasizes collaboration between research institutions and small businesses. A key feature of the STTR program is its requirement for the small business awardee and its associated institution to formulate an intellectual property agreement.

Technology-focused businesses aiming to collaborate on innovative projects.

• Phase 1: $50,000–$250,000 for one year.

USDA Rural Business Development Grant

Administered by the U.S. Department of Agriculture, the Rural Business Development Grant program aims to bolster small businesses in rural communities. It focuses on stimulating job creation and economic development and providing financial assistance to businesses that are pivotal in rural growth.

The USDA provides two grant types: Opportunity and Enterprise. Opportunity grants are limited to up to 10 percent of the total annual grant funding. Enterprise grants are for projects that benefit small and emerging businesses in rural areas, as specified in the application. To learn more about how these grants can be used, visit their website .

Rural public entities, including towns, communities and state agencies.

Varies based on the specific grant type and project.

Ensure your business has fewer than 50 employees, under $1 million in gross revenue and is located in a qualifying rural area. Applications can be submitted through the local or state USDA Rural Development offices and are accepted once per year.

Program for Investors in Microentrepreneurs (PRIME)

The PRIME program offers federal grants to microenterprise development organizations. These organizations also assist disadvantaged microentrepreneurs.

Small businesses looking to expand their operations internationally, especially those involved in exporting.

Varies based on the specific grant and business needs.

Businesses interested in the STEP grant should contact the SBA’s Office of International Trade to determine eligibility and application procedures.

State Trade Expansion Program (STEP)

The STEP program supports small businesses aiming to expand their reach into international markets. This program grants businesses involved in exporting, assisting them in participating in foreign-market trade shows and other global expansion opportunities.

Environmental Protection Agency (EPA) Grants

The EPA Grants provide grants for small businesses striving to enhance the environment. These grants support innovative solutions and initiatives that address concerns such as air and water quality, pollution prevention and overall environmental quality.

Small businesses focused on environmental improvements and innovations.

Varies based on the specific grant and project.

Explore the EPA's official website or attend their grants webinars for further information.

Economic Development Administration (EDA) Grants

The EDA provides various programs, funding opportunities and grant competitions. Note that the EDA doesn't provide direct grants; you can review their funding options and apply accordingly.

Small businesses and startups aiming to contribute to community infrastructure and regional economic growth.

Varies based on programs.

Regularly monitor the EDA's official website for new grant announcements and competitions.

National Institute of Food and Agriculture Grants

The NIFA provides grants to support small businesses within the agriculture and food sectors through three primary funding mechanisms: competitive, capacity and non-competitive. Competitive grant programs utilize a peer review process to select the best proposals from various institutions. Capacity grant programs help maintain research and extension capabilities within the Land-Grant University System. Non-competitive grant programs, mandated by Congress, support designated institutions in research, education or extension activities vital to state or regional needs.

Small agriculture and food industry businesses.

Varies, with multiple grants offered throughout the year.

Regularly check the NIFA's official website for detailed application guidelines and grant announcements.

Corporate and Private Grants for Small Businesses

Corporations and large companies often offer small-business grants as part of their philanthropic efforts. Some of these grants cater exclusively to nonprofits servicing industries. A significant number are also available to for-profit companies as well. While the application process might be more competitive, the potential rewards make it a valuable avenue for businesses seeking financial support.

How to Apply for Small Business Grants

Grant programs typically operate on annual cycles, announcing recipients well after applications are submitted. Given the fierce competition and precise eligibility criteria, it's helpful to understand the distinct requirements of each grant thoroughly. Using the steps below, you can start crafting a strategic application that effectively highlights the value and potential of your business.

Craft a Solid Business Plan

Many grants have specific application windows. Mark these dates and set reminders to ensure you start the application process well in advance. Set up alerts or regularly check grant websites to ensure you take advantage of new opportunities. Prepare a detailed business plan outlining how the grant funds will benefit your business.

Tailor Your Application

Review businesses that previously secured grants to gauge your chances. Avoid using a one-size-fits-all approach. For each grant, customize your application to address each grant's specific requirements and objectives.

Verify Eligibility

Have all necessary documents ready. This includes your EIN, DUNS number and revenue history. Also, double-check that you meet all the grant's eligibility criteria. This ensures your efforts are directed at viable opportunities.

Consider Professional Help

Local business organizations can guide you on grant applications. For substantial grants, consider hiring a professional grant writer. Their expertise can help articulate your vision and increase your chances of success.

Emphasize Innovation, Growth and Alignment

Focus on your business's innovative aspects and growth potential in your application. Highlight emerging technologies and how your business aligns with the grantor's mission.

Specialty Small Business Grants

Specialty small-business grants cater to distinct segments of the entrepreneurial landscape, ensuring that specific groups receive the support they need. These grants recognize their targeted demographics' unique challenges and offer tailored financial assistance. You can access resources that align closely with your needs by tapping into these specialized funds.

Small Business Grants for People From Racial Minority Groups

Entrepreneurs from racial and ethnic minority groups often face challenges in securing funding. Grants tailored for them aim to bridge this gap, offering recognition and financial support.

Small Business Grants for Veterans

After serving our nation, many veterans start a business . For veterans looking to kickstart or expand business ventures, the Veterans Business Outreach Center can be a valuable resource for finding support and assistance.

Small Business Grants for Women

Women entrepreneurs are making waves in business. There are grants tailored specifically for women-owned small businesses, aiming to bridge the funding gap and foster growth. Beyond these grants, local Women's Business Centers , with over 100 locations across the United States, offer invaluable resources and guidance. These centers can direct women entrepreneurs to additional grant opportunities or alternative funding avenues.

Alternative Funding Options for Small Businesses

Small business grants aren't always the most feasible or immediate solution for every entrepreneur. If you find yourself outside the grant eligibility circle or need quicker access to funds, there are several alternative avenues to explore.

Traditional Small Business Loans

Offered primarily by banks and credit unions , these loans are a go-to for businesses with established credit histories. They provide a lump sum of money repaid over a set term, often with competitive interest rates.

Backed by the U.S. Small Business Administration , these loans are crafted specifically for small businesses. They offer longer repayment terms and lower interest rates, making them a favorable choice for many entrepreneurs.

• Business Credit Cards

Business credit cards offer flexibility in financing short-term needs and can come with rewards or cash-back options. These cards are ideal for businesses aiming to optimize cash flow or earn rewards. Discover the best business credit cards to support your operations.

Line of Credit

A line of credit is a revolving credit facility that allows businesses to borrow up to a certain limit. It's a flexible option, ideal for managing cash flow or unexpected expenses, with interest paid only on the amount used.

Invoice Financing

This allows your business to get an advance on its outstanding invoices. By selling unpaid invoices to a third party, companies can improve cash flow without waiting for clients to pay.

Venture Capital

Venture capital involves securing funding from institutional investors. Venture capitalists invest large sums in startups or small businesses with high growth potential, usually in exchange for equity.

Peer-to-Peer Lending

Online platforms like LendingClub and Prosper connect individual lenders with businesses needing funds. It helps you secure a loan without going through traditional financial institutions.

Angel Investors

Angel investors are individuals with significant capital looking to invest in promising startups or early-stage businesses. They often seek equity or a convertible note in return for their investment.

Crowdfunding

Platforms like Kickstarter and Indiegogo enable you to raise funds by showcasing your projects or products to the public. It's a great way to validate a business idea and engage with a community of supporters.

Here are some resources that provide additional support and tools to bolster your business's success:

• General Services Administration : This independent agency provides resources to help businesses understand government contracting opportunities and how to market their contracts.
• Small Business Development Center (SBDC) : SBDCs ​​are corporate efforts that offer many services, including connecting businesses with potential small-business grants. Beyond grant assistance, they provide counseling, training and technical guidance on various business topics, from digital advertising to cybersecurity.
• State Business Incentives Database : This national database offers a user-friendly map feature, enabling business owners to select their state and instantly view available grants, tax credits and exemptions. Access is exclusive to members of the Council for Community and Economic Research (C2ER). A basic C2ER membership, which grants access to the database, is priced at $362 annually.
• Small Business Digital Alliance : This co-sponsorship agreement between the U.S. Small Business Administration (SBA) and Business Forward, Inc. provides a library of tools and resources for small businesses. They offer personalized resources for businesses.
• USBusinessGrants.org : This platform offers information on federal government grants with opportunities for various companies. The site emphasizes the limited small business grants provided by SBA.gov at the federal level.
• U.S. Department of the Treasury Small Business Resources : This platform provides links for reference and information related to small business programs. It does not endorse any non-government websites but offers a comprehensive list.

About Nathan Paulus

Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

• American Association of University Women . " Current Funding Opportunities ." Accessed September 20, 2023 .
• Black Girl Ventures . " BGV Pitch ." Accessed September 20, 2023 .
• FedEx . " FedEx® Small Business Grant Contest ." Accessed September 20, 2023 .
• First Nations . " Grantmaking ." Accessed September 20, 2023 .
• Hello Alice . " $5,000-$25,000 Grants for Your Small Business ." Accessed September 20, 2023 .
• Lenovo . " Evolve Small Aid ." Accessed September 20, 2023 .
• National Association for the Self-Employed . " Growth Grants ." Accessed September 20, 2023 .
• National Black MBA Association, Inc. . " 2023 NBMBAA® Scale Up Pitch Challenge ." Accessed September 20, 2023 .
• SBIR.gov . " The SBIR and STTR Programs ." Accessed September 20, 2023 .
• Second Service Foundation . " Military Entrepreneur Challenge ." Accessed September 20, 2023 .
• Tory Burch Foundation . " The Fellows Program ." Accessed September 20, 2023 .
• U.S. Chamber of Commerce . " America's Top Small Business ." Accessed September 20, 2023 .
• U.S. Department of Agriculture . " Rural Business Development Grants ." Accessed September 20, 2023 .
• U.S. Economic Development Administration . " Funding Opportunities ." Accessed September 20, 2023 .
• U.S. Environmental Protection Agency . " EPA Grants ." Accessed September 20, 2023 .
• U.S. National Institute of Food and Agriculture . " Apply for a Grant ." Accessed November 20, 2023 .
• U.S. Small Business Administration . " Program for Investors in Microentrepreneurs (PRIME) ." Accessed September 20, 2023 .
• U.S. Small Business Administration . " State Trade Expansion Program (STEP) ." Accessed September 20, 2023 .
• Venmo . " The Venmo Small Business Grant ." Accessed September 20, 2023 .
• Verizon . " Verizon Small Business Digital Ready ." Accessed September 20, 2023 .
• Veteran Affairs . " VR&E Self-Employment Track ." Accessed September 20, 2023 .
• Visa . " Visa Everywhere Initiative 2023 ." Accessed September 20, 2023 .
• WomensNet . " Apply Today for a $25,000 Amber Grant for Women ." Accessed September 20, 2023 .
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Small Business Grants: How To Get Free Money

Updated: Dec 1, 2021, 2:40pm

Small business grants provide free money to small businesses, startups and organizations alike. Businesses can use these funds to grow their business, recover from the pandemic or do work that benefits the public, among other purposes. However, finding available grants and applying can be time-consuming. We simplify the process here.

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What Is a Small Business Grant?

A small business grant is a sum of money awarded to a small business owner or organization. Several entities, including the federal government, state and local governments and private corporations provide funds for small businesses in specific industries that meet certain eligibility requirements.

Unlike a business credit card or loan, small business grants don’t require repayment. Although grants are considered free money, an organization or individual typically has to spend a lot of time and effort researching available grants and writing grant proposals.

In addition, some small business grants come with specific guidelines on how you can use the funds. Failing to adhere to the rules may result in repaying some or all of the money you receive.

Small Business Grant vs. Business Loan

Although a small business grant and loan are both ways to get funds for your business, they operate differently. A small business loan , unlike a small business grant, has to be repaid, plus interest and any fees a lender charges.

The business loan application process also differs. When you apply for a small business loan , a lender normally reviews your personal and business credit scores to determine whether you qualify . A grantor, on the other hand, doesn’t check your credit since it doesn’t expect repayment.

In addition, when you apply for a business loan, you’ll likely receive funds faster than applying for a grant, provided you qualify. For example, some lenders can approve qualified applicants on the same business day and disburse funds within a few days. However, if you apply for a federal grant, it can take up to six months for a grantor to make a decision.

Find the Best Small Business Loans of 2024

Types of small business grants.

Several types of small business grants exist, including Covid-19, federal, state and regional and specialty grants.

Covid-19 Small Business Grants

Covid-19 grants are available to businesses that have suffered financial loss as a result of the pandemic.

• Fiserv + Clover Back2Business Grant Program : This program provides grants to Black and minority-owned small businesses in certain cities that have been affected by Covid-19. To qualify, you must be 18 years or older, own a business that was formed before Jan. 1. 2020 with annual revenue of less than $1 million. Applications are currently closed but additional grants are anticipated in the new year.
• Ohio’s Entertainment Venue Grant : Ohio’s Department of Development administers grants up to $30,000 to museums, movie theaters, sports arenas and other entertainment venues impacted by Covid-19.
• Restaurant Revitalization Fund : The U.S. Small Business Administration (SBA) provides grants to bars, restaurants and other eligible businesses impacted by Covid-19. Applications are now closed.

Federal Small Business Grants

The federal government awards billions of dollars in funds each year to small businesses that engage in work that benefit the public, such as infrastructure and scientific research projects. You can find federal small business grants by visiting Grants.gov .

• SBIR and STTR Programs : These programs offer federal funds to small businesses that engage in scientific and technological research and development that has the potential to be commercialized. To qualify, a business must operate for a profit and have no more than 500 employees.
• U.S. Department of Energy (DOE) Grants : The DOE announced on Oct. 18, 2021 it set aside $105 million for small businesses that invest in clean energy research and development. Funding will be administered by DOE’s Small Business Technology Transfer (SBTT) and Small Business Innovation Research programs (SBIR). You can find more details on the DOE’s funding opportunities page .
• National Institute of Health (NIH) Grants : The NIH offers numerous grants to small businesses that engage in biomedical and behavioral research. There are thousands of grants available on its grants and funding page.

When searching for federal small business grants, keep in mind that the federal government doesn’t offer free money to individuals to start a business. If a website promises to give you free money from the government, it’s likely a scam.

State and Regional Small Business Grants

State governments also offer funds to small business owners. You can search for these grants online or by contacting your state’s economic development office .

• Economic Development Administration (EDA) : The EDA—which is a part of the U.S. Department of Commerce—funds regional and national economic development projects.
• Small Business Development Centers (SBDC) : If you need help finding a small business grant in your state or region, contact your local SBDC .

Corporate Small Business Grants

Corporations, like Visa, offer small business grants to nonprofit organizations, startups and other organizations.

• Visa Everywhere Initiative : This is a global competition designed for startups that focus on solving commerce and payment issues. Winners receive free money, as well as global exposure for their business. You can sign up to be notified when 2022 applications become available.
• Walmart Local Community Grants : Walmart gives grants that range from $250 to $5,000 to nonprofit organizations that benefit the community. The application deadline is December 31, 2021.
• Nike Community Impact Fund : Nike, in partnership with the Charities Aid Foundation of America, awards funds to nonprofits in select metro areas that have a positive impact on communities through sports and other community-focused initiatives.

Specialty Small Business Grants

Some organizations set aside funds for certain groups of business owners who face unique challenges, including minorities, veterans and women.

• Black Founder Startup Grant : SoGal Foundation, along with its partners, offer several cash grants that range from $5,000 to $10,000 to Black women and nonbinary entrepreneurs. To qualify, you must have a legally registered business, identify as a Black woman or Black nonbinary person and plan to seek investor funding to scale.
• The Veteran Small Business Award : The Street Shares Foundation hosts a pitch contest each year for veteran-owned businesses that have a social impact on the military community. If you qualify, you must create a pitch video and submit an online application. Applications are closed for 2021.
• The Amber Grant Foundation : The Amber Grant foundation awards $14,000 each month and $25,000 in December to women-owned businesses . While applying for this small business grant is easy—you only have to fill out a short form—the application fee is $15.

How to Qualify for a Small Business Grant

Eligibility requirements vary based on the type of grant you’re applying for. A grantor may require that your business operates in a specific industry, fits its definition of a small business and meets a minimum annual revenue threshold.

Before you apply for a small business grant, review the requirements carefully to ensure you have the best chances of qualifying.

How to Apply for a Small Business Grant

The grant application process varies from grant to grant. For instance, if you apply for a small business grant with the Amber Grant foundation, you can complete your application within a few minutes by submitting a short form. However, when you apply for a federal grant, you’ll be required to submit a formal grant proposal and it could take weeks to finish your application.

Here are some documents and information you may need when applying:

• Personal story
• Business plan
• Business pitch
• Annual revenue
• Bank statements
• Years in business
• Purpose of funds
• Number of employees
• Website name

If you need help completing your grant application, contact your local SBDC.

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Jerry Brown is a personal finance writer based in Baton Rouge, La. He's been writing about personal finance for three years. Financial products he enjoys covering include credit cards, personal loans, and mortgages.

Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.

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Small Business Grants: Where To Get Funding in 2024

Every new business can do with a bit more cash. Find small business grants and additional funding options for your startup. Browse grant programs, find tips for applying, learn about eligibility requirements, and more.

Starting a business isn’t cheap.

Developing products , researching market trends, securing inventory⁠—there’s no shortage of costs for a startup business. But if you haven’t even started selling yet, where does the money come from? For up-and-coming entrepreneurs, securing business financing before having a chance to prove yourself can be tricky.

The application process for small business grants involves more than putting your name on a list and waiting for a deposit. Not every grant is right for every business, and understanding how grant-issuing organizations evaluate applicants is crucial to securing the financial assistance you need.

If you plan on investing the time and energy into applying to a small business grant program, it’s important to understand the available options. Here’s a list of resources to help you pick the right grant for your business.

Table of contents

Federal SBA grants

Other federal small business grants, state and local grants, non-government grants for small businesses, corporate grants, grants for women-owned businesses, grants for bipoc-owned businesses, other funding for small business owners, how to get a small business grant, fuel growth in your startup with a small business grant, small business grants faq.

The US Small Business Administration (SBA) is a federal government agency that provides support for small businesses (based on certain size standards ), with the goal of strengthening the nation’s economy.

The SBA has Small Business Development Centers across the country and offers a wide variety of federal grants, loans, and other programs that help connect small business owners with funding opportunities from federal, state, and local governments. Here are some SBA grants and programs that can help support your small business:

State Trade Expansion Program (STEP) 

The State Trade Expansion Program (STEP) offers federal small business grants throughout the US to assist existing businesses in expanding globally, offering funds for foreign-market trade shows and expansion opportunities. 

Veteran assistance programs

The SBA offers a number of veteran assistance programs that provide grant funding for veteran-owned businesses. 

Women-owned Small Business Federal Contract program

The Women-Owned Small Business (WOSB) Federal Contract program offers funds specifically to women-owned businesses, with the goal of leveling the playing field for women entrepreneurs .

HUBZone program

The HUBZone program provides assistance to small businesses with the aim of fueling growth in historically underutilized business zones. 

Natural Resources Sales Assistance program

The Natural Resource Sales Assistance program prioritizes small businesses and assists them in securing federal government contracts through a bidding system. Eligible industries include timber and forestry products, minerals, coal, oil, gas, and real estate.

Small Business Innovation Research and Small Business Technology Transfer programs

The SBA coordinates both the Small Business Innovation Research Program (SBIR) and Small Business Technology Transfer Program (STTR) . SBIR is aimed at businesses conducting innovative research and development projects with commercial potential. There are 11 participating agencies including: 

• Environmental Protection Agency (EPA)
• Department of Agriculture (USDA)
• Department of Health and Human Services (HHS)
• Department of Education (DOE) 

The Small Business Technology Transfer Program (STTR) is designed to encourage joint research and development projects between small businesses and research institutions.

Apart from the SBA, there are a number of other federal agencies offering grant programs for small businesses in the US.

National Institutes of Health

The National Institutes of Health continues to offer a variety of funding grant opportunities for businesses developing biomedical research related to the COVID-19 pandemic.

USDA Rural Business Development Grants

USDA Rural Business Development Grants (RBDG) are offered by the US Department of Agriculture to help with technical assistance and training programs for small rural businesses. Funds are also given for non-technical uses, such as entrepreneur training and long-term business strategy planning. The business must have fewer than 50 new workers and less than $1 million in gross revenue. 

US Department of Commerce Minority Business Development Agency

The US Department of Commerce Minority Business Development Agency (MBDA) has a wide variety of small business programs intended to assist with the growth and development of minority-owned businesses throughout the United States. 

US Department of Energy clean energy grants

The US Department of Energy clean energy grants are offered to businesses that have previously received SBIR or SBTT funding to assist in creating clean energy and to fund companies whose goals are to combat climate change.

US Department of Agriculture’s Rural eConnectivity program

The US Department of Agriculture’s Rural eConnectivity Program is a grant program offering federal small business grants to companies and projects that assist rural communities (particularly in disadvantaged communities) or that help to mitigate the effects of climate change within rural areas.

Grants.gov offers tons of federal small business grants—primarily for organizations and not individuals—from various federal agencies, like the Bureau of Educational and Cultural Affairs and the US Department of Commerce.

Many local and state agencies also offer small business grants. These grants can be industry-specific or focus on broader economic development goals. To find state and local grant opportunities, visit your state’s economic development agency website or contact your local chamber of commerce .

Government agencies aren’t the only source of small business grants and financing: Many private corporations and nonprofit organizations also offer private grant programs designed to help small business owners start and expand their companies.

Comcast RISE

The Comcast RISE Investment Fund offers assistance to help independently owned businesses grow by providing funds for advertising , marketing, business consultations, entrepreneurship education, commercial creative production services, and other technical assistance.

Activist-minded outdoor brand Patagonia offers funding for small businesses seeking to address the core causes of climate change and confront environmental injustice.

National Association for the Self-Employed

The National Association for the Self-Employed is an organization that provides a broad-range of assistance programs for small businesses to help them be successful and competitive in the marketplace. The NASE offers growth grants of up to $4,000 for small businesses with the potential for growth. The grants can be used for business purposes including marketing, hiring, and technology equipment.

500 Global Flagship Accelerator Program

The 500 Global Flagship Accelerator Program provides $150,000 in seed capital and mentorship for fast-growing technology companies with the goal of promoting technological innovation.

Halstead Grant

The Halstead Grant offers a top prize of $7,500 in startup capital, as well as smaller grants to businesses innovating and advancing the artistry of the jewelry industry .

StartOut Founders Program

The StartOut Founders Program aims to provide resources that include its startup accelerator Growth Lab for LGBTQ+-owned businesses at every stage of development, from aspiring founders at the ideas phase to established companies looking to grow.

Second Service Foundation

The Second Service Foundation is a nonprofit organization dedicated to supporting the growth of veteran-owned businesses through access to coaching, financing, and educational resources. Its grant program, the Military Entrepreneur Challenge, awards capital grants to eligible businesses based on factors such as positive social and community impact. The amount of the small business grants vary by event.

Faire's small business grant program offers new retail businesses $5,000 grants to help them stock their store with products from Faire. To be eligible, you must be a US-based, independent retailer who opened their store in 2023-2024 or plans to open in 2024.

Corporations, or their foundations, also provide small business grants. You might want to consider a corporate grant if your business closely aligns with the corporation’s goals and mission. These types of grants may also offer more flexible eligibility compared to federal grants. Examples of corporate grants include:

FedEx Small Business Grants Program

The FedEx Small Business Grants Program is open to businesses with fewer than 99 employees and that have been in operation for at least six months. FedEx awards more than $225,000 in grants to small businesses, including $500 in FedEx print credits to awardees.

Venmo Small Business Grant

With the Venmo Small Business Grant , 20 small businesses are awarded $10,000 in grant funding and free promotion on Venmo’s social media accounts. Plus, you get access to free technical resources and mentorship. To qualify, you must have a US Venmo account and valid business profile . You also must have less than $50,000 in annual sales and 10 or fewer employees.

Some small business grants focus on women in business . Here are a few examples:

Cartier Women’s Initiative Regional Awards Program

The Cartier Women’s Initiative Regional Awards Program offers grants up to $100,000 to entrepreneurs and women-owned businesses in their initial stages of development that are working to meet one of the 17 UN Sustainable Development Goals .

IFundWomen grants

IFundWomen , a marketplace for women-owned businesses to network and secure partnerships and financing opportunities, has partnered with brands like Adidas, Caress, Botox, Visa, and more to offer grants to women-owned businesses. Apply to the Universal Grant Application Database to qualify for future partner grants. Grant amounts vary by partnerships.

Foundation for a Just Society

The Foundation for a Just Society (FJS) offers grants to local, national, regional, and international organizations that work to advance the rights of women and LGBTQ+ people. The FJS focuses its efforts in Francophone West Africa, Mesoamerica, South and Southeast Asia, and the US Southeast, as well as some areas of New York City. Grant amounts range from $50,000 to $500,000.

WomensNet’s Amber Grant

WomensNet is a community of entrepreneur-minded women supporting businesses led by women starting their entrepreneurial journey. The organization awards monthly Amber Grants of $10,000 each and additional $25,000 end-of-year grants to women entrepreneurs.

Stacy’s Rise Project

This Hello Alice and Stacy’s Pita Chips partnership gave rise to a program supporting women entrepreneurs through $25,000 business grants, mentorship , and other resources. Requirements for the Stacy’s Rise Project include being a small business selling consumer packaged goods and $25,000 to $1 million in annual sales.

Restaurant Disaster Relief Fund

Hello Alice, in partnership with DoorDash, offers $10,000 grants via its Restaurant Disaster Relief Fund , with the goal of assisting restaurants in recovering from natural disasters such as fires and floods.

There are numerous grants geared toward helping Black, Indigenous, and other people of color (BIPOC) start and grow their businesses. Here are a few to consider:

BOSS Impact Fund

The BOSS Impact Fund focuses on financially elevating Black women entrepreneurs with $10,000 Invest In Progress grants. The program, a partnership between Hello Alice and The BOSS Network, also provides mentorship opportunities.

Founders First CDC grant programs

Founders First bills itself as “the largest national platform for growing businesses led by diverse founders.” In addition to providing coaching and accelerators, the org offers a variety of grant programs for founders who identify as Latinx, Black, or Asian. Grants are available to residents of Southern California, Chicago, Pennsylvania and New Jersey, and Texas with a $100,000 pool divided among 25 recipients in each area.

Coalition to Back Black Businesses grant program 

The US Chamber Foundation, in collaboration with American Express, launched its grant program as part of a multiyear initiative to support small businesses owned by Black entrepreneurs . Recipients receive $5,000 grants, mentorship, and opportunities for future financial support. The latest cohort was eligible for an additional $25,000 Enhancement grant.

Aside from small business grants, there are other ways for a new business to secure the startup funds it needs to grow. If you’re looking for other methods of financing your startup, here are a couple of options to look into:

Small business loans

Small business loans are one of the most common ways that new entrepreneurs secure funding for their businesses. Unlike grants, loans need to be repaid, so it’s important to understand how much money you need, what it will be spent on, and how you plan on making the money to pay the loan back.

TIP: Want to know how much it will cost to take out a loan? Try our free business loan calculator .

Learn more: How To Get a Small Business Loan: 6 Steps To Take

Get funding to run your business with Shopify Capital

Shopify Capital makes it easy to get funding quickly and use it for inventory, marketing, and more. Automatically make payments as a percentage of your daily sales. No compounding interest. No schedules. No surprises.

Crowdfunding for small businesses

Crowdfunding has become one of the most popular methods of raising money for startup businesses, largely due to online crowdfunding sites that make it accessible to nearly anyone.

Rather than seeking a large sum of money from an organization or angel investors, crowdfunding involves collecting small sums of money from ordinary people that believe in the potential of your own business.

Learn more: How To Do Crowdfunding: With Expert Tips and Examples From Successful Campaigns

Equity crowdfunding for small businesses

Equity crowdfunding is similar to—but a little different from—ordinary crowdfunding. With equity crowdfunding, everyday people commit smaller sums of money to your business in exchange for equity .

Non-accredited investors can participate in crowdfunding within limits. Previously, new businesses could sell shares only to accredited investors, meaning there was strict net worth criteria that kept members of the public from being able to invest. The restriction also acted as a huge barrier to entrepreneurship, since newer merchants are less likely to have built a network of wealthy investors.

With equity crowdfunding, investment and entrepreneurship have become more accessible.

Learn more: Equity Crowdfunding: Definition, Advantages, and How To Do It

Capital investors for small businesses

Capital investors refer to both angel investors and venture capital funds. Accredited investors can help provide funding for your business startup in return for equity ownership or convertible debt (a loan that may be converted into equity in the future). For example, Backstage Capital is a venture capital fund that invests in underrepresented groups in entrepreneurship, offering funds for small businesses owned by women, people of color, and LGBTQ+ founders.

The biggest benefit of capital investors is that they can provide you with large sums of money in a relatively short amount of time. At times, they can also provide valuable mentorship as you work to grow your own business.

Learn more:

• How To Invest in Your Business: What You Need to Know Before You Get Started
• How To Start an Ecommerce Business
• Look for grants within your industry
• Read the eligibility requirements carefully
• Make sure your business aligns with the organization’s mission
• Know what you’ll be spending the grant money on
• Focus your pitch on innovation and expansion
• Deliver on your promises

Small business grants are offered by all kinds of organizations to all types of businesses with a wide range of values, missions, and functions. If you’re starting out as a small business owner and looking to apply for small business grants for your startup, here are some key points to keep in mind:

1. Look for grants within your industry

Many small business grants are industry-specific, so it can help narrow down your search if you focus on organizations and research institutions within your particular industry. Focusing on one industry also builds buzz around your business and can help build connections with industry figures who may be able to offer guidance and investment opportunities.

2. Read the eligibility requirements carefully

It sounds obvious, but it’s not hard to overlook aspects of grant eligibility requirements and end up putting effort into applying for a grant you’re ineligible for. Read the requirements carefully and evaluate whether you qualify for the grant award. If you’re unsure whether you qualify, contact someone from the organization and ask.

3. Make sure your business aligns with the organization’s mission

Organizations that provide small business grants do so in the hopes of achieving a specific goal they care about deeply. Ask yourself how your business model helps contribute to achieving this goal. If the answer is hard to parse, you might want to consider applying for grants with another organization.

4. Know what you’ll be spending the grant money on

Some organizations stipulate allowable expenses for grant money. But even when they don’t, it’s still important to have an idea of how you plan to use the money. When an organization is determining whether to issue your business a grant, having a solid business plan and knowing how the money will be spent will help them understand more clearly how your business aligns with their mission.

5. Focus your pitch on innovation and expansion

Organizations that issue small business grants typically favor for-profit businesses that they see as innovative, forward-thinking, and on a path to growth. Focus your pitch on how you plan to scale, any new technologies you might be developing, and what your business can do to help the organization with its mission.

6. Deliver on your promises

Small business grants are not loans, so lenders aren’t expecting to be paid back. They’re not investment capital either, so issuers aren’t expecting to own assets of your business. But that doesn’t mean that small business grants don’t come with expectations and incentives.

Issuers still expect a return on investment , just not a monetary one. Instead, organizations that provide small business owners with grants want to feel confident that your business idea contributes to their organization’s mission⁠—whether it be a common good, an innovation in a particular industry, or economic growth in a specific community.

A small business grant isn’t necessarily “free money.” Grant issuers often have stipulations about how the money can be spent, sometimes even spending the money themselves on specific resources they believe will help your business grow.

The first few months of running a business are often the most challenging. It takes time for a business to become profitable, but costs can add up quickly.

Small business grant programs can make a world of difference for a new small business owner. Not only do they provide a vital injection of funds, they can also help to establish connections and networking opportunities in your industry and meet your business needs early on.

If your business has the potential to innovate and serve the public good, chances are you’re a great candidate for a small business grant.

What is the difference between a grant and a loan?

The difference between a grant and a loan is that a grant is a financial award that does not need to be repaid. A loan is borrowed money that must be repaid with interest over a specified period of time.

What are the benefits of getting a small business grant?

The benefits of getting a small business grant include receiving non-repayable funds to start or expand a business, reducing financial risk, and increasing credibility with lenders and investors.

What is the maximum grant amount?

The maximum grant amount varies depending on the grant program and funding entity. It can range from a few thousand dollars to hundreds of thousands, depending on the specific grant and eligibility criteria.

Where can I find a list of small business grants?

To find a list of small business grants, you can visit websites of government agencies, non-profit organizations, and private foundations, as well as online grant directories and databases like Grants.gov , SBA.gov , and regional Small Business Development Centers (SBDCs).

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RoadtoFunding

Home » Grants » Business Grants

11 Steps to Writing a Grant Proposal for Small Business Funding

Do you want to apply for startup grants but don’t know how to write a proposal? If YES, here are 11 steps to writing a grant proposal for small business funding. Starting a business is not easy feat especially for people who are considered disadvantaged like Veterans, the disabled or people who are in minority.

For this reason, certain nonprofit organizations, agencies and foundations have been set up by government and even private individuals to provide these people grants to start their small businesses. If a new small business is struggling financially or if the business operates within a certain field, like agriculture or nonprofit charities, a grant may be the best way to obtain funding.

What is a Grant?

Grants are typically a donation of a set amount of money made by foundations, other businesses, government agencies or nonprofit organizations to companies or individuals that meet specific requirements and qualify for the grant.

Grants are given to businesses for free, so they are not to be paid back. This is one of the major or even the only lure of grants. A grant differs from small business loans in that loans must be paid back, typically with interest. Because they offer free money, grant giving organizations are usually quite strict in their requirements.

How Easy Is It to Access Grants?

The truth is that there is a lot of free money out there begging to be spent on businesses that are ready to advantage of it. That’s grant money. Several organizations, foundations, and government bodies provide grants for small businesses and nonprofit organizations. If you are looking for grant money for an existing or new business, you are more than likely to encounter difficulties finding grant funding, but it’s not impossible.

If anything makes grant funding similar to bank loans and equity funding ( by investors and venture capitalists ), that would be the fact that you need to write a proposal to get it. And as with proposals meant for lenders and equity funders, your proposal for a grant funding must be downright compelling. Even though the grant issuer isn’t taking any gains from your profits, they don’t want their funds to go down the drain.

So, you need to send a proposal to convince them that your idea or business is viable. This explains why such a proposal needs to include many of the elements in your business plan—the same elements that make your business plan compelling. While business plans and grant proposals serve nearly the same purpose, the two are different from each other.

What Do You Need to Access Small Business Grants?

Organizations that provide grants have a vision they want to use that grant to accomplish, so you need to find this vision, read through it, and tailor your grant application to align with it. Typically, you get one shot at a grant proposal, so you need to make the best out of it. You should know that businesses of different sizes and types have different kinds of grants and they are different organizations that offer these grants.

Projects relating to medicine, agriculture or research, will all qualify for separate grants. So the first step in applying for a grant is to determine which one is best for your business. In the united states, the new business will need to register with a federal grant program before they can apply for a grant.

You would need to obtain things like a DUNS number, and an employer identification number (EIN) should be included in your form before you can complete your grant registration. Once the business has been registered, the next step is to write a proposal for the grant and fill out the application form.

Herein then lies the problem, writing the grant proposal. It should be noted that many people have been deprived of grants because their proposal was never at par with what the organization’s needs. Even if you are the best person for the grant but you have a poorly written proposal, the only thing your proposal would see is the trash. This is why you need to take time when writing your proposal.

You will greatly increase your chances of getting grant funding for your business if you really know how to write a compelling business proposal for grant funding. Writing such a proposal isn’t as difficult as you think. Here are the steps involved in writing a winning proposal.

• How to Write a Fundraising Proposal

Writing a grant proposal can be quite challenging for the small business owner as it is an art that takes time and practice to master. This is because grant writing is quite technical in its requirements, but that does not mean that it is the most difficult task in the world. Each grant is different in its requirements, but most of them ask for the same basic things. You only need to follow this general guideline and you are on your way to getting the perfect grant proposal.

Grant proposals are different from business plans, but include many of the same elements and serve nearly the same purpose. The grant proposal is usually divided into various parts; you need to be careful and as detailed as possible when writing each so your proposal does not appear shallow. Here is an outline you can use to write your small business grant proposal;

1. Know what the grant issuer wants

Before writing your business proposal for grant funding, you must bear in mind that your proposal must be tailored to each individual grant issuer that you seek grant funds from. So, you need to really understand the requirements of each grant issuer if you want your proposal approved for funding.

Find out the requirements of the grant issuer you are sending your proposal to. This will help you know what to include in your proposal and what not to include.

2. Your cover page

To start, you need to create a cover page for your proposal to make it look professional. Your cover page should include your company or Business Name, the date of submission, and the name and contact information of the company representative assigned to work with the grantor. This of course comes first but it is usually written or created at the end of the proposal.

3. Cover Letter

The cover letter introduces the business to the grant organization. It is the first part the grantor goes through so you need to describe your business clearly, but keep it short and preppy because your cover letter is not supposed to be lengthy. Here, you should let the organization know why your business is perfect for this grant and what you aim to accomplish with it.

Make sure to cater to the specific grant and not speak in generalities as if you are applying to every financing source in the United States. Use the cover letter to state the needs your organization serves, how you address these needs, and how your mission fits with the goals of the grantor. Include your contact information in the cover letter too.

Here are a few tips for writing a good cover letter;

• Address your cover letter to an individual—making sure they are the correct person.
• Limit your cover letter to one page with three or four paragraphs at most.
• Include a statement of support from your board of directors.
• Do not include a cover letter in federal or state grant applications, unless they specifically request one.

4. Table of Contents

This is where you outline the sub-heads of the various chapters and where they can be found. It makes it easy for the reviewer to jump to whatever section they wish with ease. It also displays some professionalism on your part. Again, funding organizations usually receive high volumes of grant proposals; the more reader-friendly your proposal is, the easier it is to fully understand your organization, its mission, and its needs. Place the table of contents immediately after your executive summary.

5. Compare your proposal to the funder’s requirements

Remember that each grant issuer is very specific in what they are looking for and will rarely deviate from their requirements. (The fact that there is a lot of money available doesn’t mean they will fund just anything).

So, you have to ensure that your proposal’s outline and summary really matches what they expect from you. Even if your business idea is brilliant and promising, the funder will never bend their rules to fund your business if your proposal doesn’t play by their rules.

6. Write the first draft

After having ensured that the content of your proposal matches the requirements of the grant issuer, start writing your first draft by expanding each point in your outline. This first draft doesn’t have to look good or perfect—it’s a draft and you can polish it later. You must emphasize the aspects of your business that the funder will like best (their requirements/guidelines will give you clues).

7. Executive Summary

The executive summary of a document summarizes the rest of it. In this document you should pinpoint the main reasons the grant is needed and how it will solve the problems of the granting organization. While you explain this, the amount of funding as well as information about the venture should also be listed.

Use this part of the document to convince the grantor that funding your business is the greatest idea ever. Describe how your organization and its mission match the philosophy and specialization of the grantor in the executive summary.

An executive summary is similar to a cover letter in many respects, but it is usually longer. Make certain that your summary clearly describes the contents of your grant proposal. If you manage to get their attention, they will continue reading the rest of the proposal. Here are Tips for writing an executive summary:

• Identify your organization.
• Include your mission statement.
• Emphasize the key points of your grant proposal.
• Clearly communicate the need for your business.
• State the cost of the project and the amount you are requesting.
• State the time period for the project.
• State the results that are expected from your business.

8. Your Statement of Need/Problem Statement

In this section of the document, you have to provide in great detail the needs and problems that the business, project or venture is fulfilling and solving. Conduct research and show that you have done your homework. Answer key questions like, what is the scope of the problem? What will your business do that someone hasn’t or can’t easily do in the future? Show that you fill a void in the market and that you need the grant to do so.

Fully conveying the nature of the unmet or underserved needs that your organization can fulfill is vital to gaining funding. Also, adding hard statistics and quotes from people impacted by your organization add weight and credibility to the proposal. Be concise and to the point. Here are some tips for writing statement of needs;

• Make sure your statement of need is well-written and reader-friendly.
• Use quantitative data: statistical analysis, trends and expert views that support your argument.
• Reference reputable research, literature and comparative data to support your argument.
• Explain your time frame, and why securing funding is critical now

9. Project Description

The project description section is the main section of your grant proposal. This section is written best by separating different issues and ideas in separate sections. This will make it easier for you to write the section by focusing on one idea at a time, and make it easier on the reader as well since the section won’t be all scattered.

10. Objectives of your business

This section would contain the goals you aim to achieve with your business. You may not have to list anything in intense detail; just give the reviewer a highlight of the objectives of your business. The objectives section includes measurable aspirations of the venture such as achieving a hold of a certain percentage of the estimated market. Break down your objectives in a bulleted list so it is easier to read.

Tips for writing your proposal’s objectives:

• Use quantifiable terms.
• Identify who or what your objectives will serve.
• Make sure your objectives are measurable and realistic.
• Objectives should be consistent with your statement of need.

11. Methods/Project Management Plans/Timelines of the business

This section will show the reader how you intend to achieve your objectives. The methods, plans, and timeline of implementation for those methods and plans will also be shown. Visual timelines are best to show the reader exactly where everything fits into the scheme of things as well as when. This section shows the reader you not only have goals and objectives but that you also know how to achieve them using a detailed well thought out plan.

12. Number of staff you need

Many government grants will have stringent personnel requirements because they want you to create employment with the money that they are giving you in order to alleviate poverty and want. If the grant requires a certain number of personnel, make sure your personnel planning matches those requirements.

Also make sure that your objectives match personnel planning. Provide an overview of your organization’s top leadership, including its founder and board of directors. Include short professional biographies, focusing on the experience and resources each leader brings to the organization. Then you can write briefly on all the roles required to be filled in your business.

13. Your Financial Projections/budget

This is where you tell how you’ll use the money you receive. It should be within the amount you are asking for, be realistic and include only eligible expenses. Grant amounts are generally determined by the funding organization. Use the dollar amount anticipated and set up a budget for your project.

Make it detailed enough to satisfy anyone’s curiosity on the question of how the money will be spent, and make sure everything adds up. The financial section is your opportunity to convince the grant organization that you have a firm understanding of managing finances and budgeting your anticipated grant money.

Use realistic numbers in your budget, remembering to include all the costs that might be associated with your project. For example, if your project includes the need for printed marketing materials, you might need the services of a graphic artist and a professional printing company, as well as postage for mailing the materials.

Here are some tips for writing this section;

• Make sure all figures are 100% accurate.
• Specify direct costs—the expenses for which the requested grant funding will be used. Direct costs include personnel, fringe benefits, travel, equipment, and supplies.
• Specify all sources of income and contributions, including volunteer services calculated at “market value.”
• State all indirect costs and overhead associated with administrative expenses.

14. Polish your draft

After completing your draft, go through it carefully and polish it up. Edit sentences where necessary to make your ideas clear and concise. Read it aloud to yourself to hear how it flows. You will probably do a lot of rewriting here—and that’s okay.

Look for strong words to replace any weak ones. Eliminate fancy or difficult words for simpler ones. Correct all typographical, spelling, grammar, and style errors. And ensure that your completed proposal goes well in line with your original summary and outline.

15. Conclusion

Write the conclusion section, which should be about one paragraph to reiterate your request and need in just one sentence and explain how your non-profit will sustain the project when funding ends. Thank the foundation for the opportunity and include a final appeal for assistance.

In conclusion, grant awarding organizations usually prepare an application package that lists what they’re looking for in a grant proposal and you should do well to follow their guidelines. Typically a grant package will require specific information that must appear in the grant.

To effectively respond and create a grant proposal, it helps to follow the grant application requirements in order. Answer each question that is asked using the same “voice” as that found in the documents. Mirroring the verbiage in the document helps to let the organization providing the grant know that you understand the organization’s purpose.

8 Things to Avoid When Writing a Small Business Grant Proposal

A. flowery language.

If your grant proposal is too confusing or too difficult to understand, it may have less of a chance of being accepted. Focus on conveying information in a clear, concise way and avoid giving it a lot of embellishments. The proposal should first address what impact the business will have on the surrounding community. Identify what the business aims to do, and make an outline of projected goals the business intends to accomplish.

b. Editing and proofreading mistakes

A simple error can wreak havoc on your proposal and may even cost you the grant because there are lots of other people applying for the same grant as you are. Special attention should be paid when reviewing the content of the proposal. A misplaced period or misspelled word can mean the end of a proposal’s consideration.

c. Beware of misplaced priorities

When writing your proposal, make sure you tailor our content correctly to what was demanded for by the grant organization. Asides that, your business’ outline needs to be specific and provide information on every step of the plan for growth and development. For instance, if the proposal focuses more on the existing problem than the solution the business will provide, it may not pass muster.

d. Accounting fails

Budget and accounting are other things that may prevent your grant from sailing through. Make sure all the accounting work is presented accurately and in a way that makes logical sense. Review your budget to make sure it tallies with the kind of business you are proposing. Make sure that you do not overask or underask because doing each would not make you successful. Just stick with the reality.

e. Eliminate jargon

Every industry has its own jargon and businesses are no different. However, use of these jargons will not convince your reviewer that you are smart or you are the most qualified candidate to receive the grant. As such, it is best to eliminate all internally used acronyms and jargon. Tell your story simply, from your heart.

f. Not paying attention to details

Some foundations can be very choosy. They may demand that your grant proposal must have a certain page length, page margins, typeface, et al., be sure to follow these specifications. Even if these minor details do not seem important to you as an individual, you should know that the grant makers have their reason for making such specifications and as such, you should respect them else you run the risk of having your application tossed into the trash. Don’t go to all that work just to have your proposal rejected because of logistics.

g. Waiting too long

A common mistake new entrepreneur’s make is waiting until the last minute to write and submit the proposal. Aim to finish the first draft three or four days before the deadline. This will allow plenty of time for proofreading. When submitting, make sure the proposal and application adhere to all guidelines set by the grant provider.

h. Sending unnecessary attachments

Most grant makers will tell you exactly what to send. Sending a lot more attachments that was demanded of you will not increase our chances of winning the grant. Again, it’s important to follow the rules. Grant makers are reading a lot of proposals, and they may view extraneous materials as an annoyance.

More on Business Grants

Small business grants: 20 options to apply for free funds for your business

No matter what kind of small business you own, there are grants available to help your business grow. Read on for details on grant options and databases.

Ready to start your business? Plans start at $0 + filing fees.

by   LegalZoom staff

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Updated on: February 15, 2024 · 14 min read

• What are small business grants, and who is eligible to receive one?

Grants for starting a small business

Small business grants for women, small business grants for minority groups, business grants for veterans, business grants for startups, applying for a small business grant: 4 process tips.

Looking for a little financial assistance to help launch or grow your small business? Check out these grant opportunities—including LegalZoom’s Fast Break for Small Business grant program.

Small business grants offer funds to grow your business in a variety of ways. In many cases, you can use grants for things like operations, marketing, or expanding your team. Finding out which grants you may be eligible for is crucial so that you can start applying.

In this article, we'll cover the basics of grants and give you tips about how to score more of them.

What are small business grants, and who is eligible to receive o ne?

Small business grants are amounts of seed money given to entrepreneurs  to build their businesses. Grant money is considered “gifted," and you are not required to pay it back. Sometimes, you may need to pay taxes on the amounts received, so please consider this and talk to a tax professional.

To secure a grant, you may have to do things like:

• Meet eligibility requirements
• Submit applications
• Go through interviews

In exchange, you could be awarded financial resources to  build your brand , team, and operations.

Government entities or private businesses establish most grant programs because they want to help others succeed.

Tip:  Search grant databases, such as  GrantWatch , to find available grants in your industry. GrantWatch is an online hub for more than 26,000 grants in the United States and Canada in which you can browse various funding opportunities easily by filtering your specifications.

Grants vs. loans: What's the difference for entrepreneurs?

A  loan  is funding you must pay back to the creditor who loaned you the money. In contrast, a grant is “gifted" money you don't need to pay back.

You will have to apply for both grants and loans, but a loan application considers your ability to repay the money, while a grant application considers your merit as it applies to the rules of the grant.

If you’re considering a loan, LegalZoom’s Fast Break for Small Business grant fund administrator, Accion Opportunity Fund , is an inclusive Community Development Institutions Fund (CDFI) dedicated to helping small business owners. They provide support through affordable small business loans, coaching, educational resources, networks, webinars, and policy advocacy. 

4 types of grants available to small businesses

Grants of many types are available to small business owners and are grouped into four main categories. Your eligibility for these grants will depend on your products and services, how you own your business, and your business's mission.

The four types of grants available to business owners are:

• Federal grants : The government gives grants to stimulate the economy. These grants are drawn from the U.S. general federal revenue.
• State grants : These can be smaller than federal grants, but because of their state-specific requirements, the competition is often slimmer. This makes them more attainable for many organizations. Even though they may be smaller than a federal grant, they can still be a much-needed financial boost.
• Local grants : Small establishments are the main focus of these grants that directly stimulate the community around them.
• Corporate grants : These grants, given out by corporations, can have various requirements, come in different amounts, and be suited for specific or broad types of businesses. In most cases, companies set aside money at the beginning of the fiscal year and host competitions to distribute funds.

There's plenty of grant money available for entrepreneurs. Look into funding from the following sources to help your business. These grants were available at the time of publishing and may not still be available.

1. LegalZoom’s Fast Break for Small Business grant program

Together with the NBA, WNBA, and NBA G League, LegalZoom is offering $3 million in grant funding and services to small business owners and emerging entrepreneurs, with a $6 million commitment over three years. Apply today through Sept. 15, 2024, for your chance at a $10,000 small business grant and/or up to $500 in LegalZoom products and services.

• Award amount : $10,000 for established businesses, $500 in products and services for emerging entrepreneurs
• How to apply : Apply on Accion Opportunity Fund’s website .  

2. Grants.gov

The U.S. Department of Health and Human Resources created Grants.gov in 2002. It's a government program operated by the Office of Management and Budget. The program provides resources and assistance for grant seekers to find and receive funding.

• Award amount:  Varies
• How to apply:  Visit grants.gov for details on specific grants.

The website allows you to search for federal grants and check your eligibility before applying for one. You can also track your grant applications once submitted.  

3. Local chamber of commerce

Start by researching grants within your community—your local Chamber of Commerce is a great place to start.

• How to apply:  Reach out to your local  Chamber of Commerce  for information.

Although some grants have stipulations like industry, business type, size, and location, your local chamber of commerce should be able to connect you with grants that fit your situation. Their team can also provide your small business funding services, tips, and resources.

4. Small Business Innovation Research Program (SBIR)

The Small Business Innovation Research Program (SBIR) is a competitive grant program for small businesses. This program helps fund entrepreneurs in the research and development industry to support scientific and technological innovation.

• Award amount:  Phase 1, $50,000–$250,000 for six months or one year; Phase 2, $750,000 for two years (only available for businesses who previously received a Phase I grant).
• How to apply:  Apply with a  specific solicitation  if you meet industry requirements.

A  solid business plan  is a must before you apply. A plan will clarify your business's direction and how it can benefit your community.

5. Small Business Technology Transfer Program (STTR)

Small Business Technology Transfer Programs are similar to SBIRs but focused on the technology industry. This grant is issued to businesses in the technology industry.

These grants help fund innovative technological advancement in many fields with the intention of boosting the economy.  

6. FedEx Small Business Grant

FedEx hosts a small business grant contest to provide funding for ambitious entrepreneurs. The contest has tough competition, with nearly 18,000 applicants for the grant in 2022.

• Award amount:  Up to $30,000
• How to apply:  Visit the  FedEx website  for specific application details.

This grant is open to small business models with a story “worth telling," so if you plan to apply, pinpoint what makes your business unique.

7. National Association for the Self-Employed (NASE) Growth Grant

The  National Association for the Self-Employed (NASE) Growth Grant  was established in 2006. Over the years, NASE has awarded roughly $1,000,000 to entrepreneurs to help grow small businesses.

• Award amount:  Up to $4,000
• How to apply:  Visit NASE's  website  for information on the grant and how to become an NASE member.

You must be a member of NASE to apply for this grant, but winners can receive up to $4,000 to go toward marketing, team growth, and other needs.

Several small business grants are available exclusively to women, and more arise every year to tackle inequality in funding.

8. Amber Grant Foundation

WomensNet founded the  Amber Grant Foundation  in 1998. Its mission is to help aspiring  female small business owners  fund their dreams in honor of Amber Wigdahl, the grant's namesake.

• Award amount:  $10,000–$25,000
• How to apply:  Visit WomensNet's  website  for details on monthly and annual grant gifts. This grant has a $15 application fee.

In the first week of every month, $10,000 is awarded to a woman pursuing her entrepreneurial passions, from “scientific inventors to bakers," according to the WomensNet site. At the end of each year, the foundation also grants one woman $25,000.

9. Live Your Dream Award

Each year, the  Live Your Dream Foundation  grants $2.1 million in educational funds to women on behalf of Soroptimist International. This foundation focuses on women who have survived sexual violence or other traumatic events.

• Award amount:  $1,000–$10,000
• How to apply:  Visit Soroptimist's website  for more information.

The Live Your Dream Foundation offers programs and funding that help women build confidence, advance their careers, and overcome unexpected situations. 

10. Cartier Women's Initiative Award

This grant program is for eco-friendly and sustainable women-owned businesses around the world. Cartier offers three funding types:  regional awards ,  diversity, equity, and inclusion awards , and  science and technology pioneer awards .

• Award amount:  $30,000–$100,000
• How to apply:  Visit the  Cartier Women's Initiative website  for more information on various awards.

11. American Association of University Women (AAUW)

The American Association of University Women not only offers academic and research grants but also grants for career development for women looking to change careers or reenter the workforce.

• Award amount:  $2,000–$20,000
• How to apply:  Visit the  AAUW website  for a timeline and eligibility requirements.

In addition to grants for individual career betterment, the AAUW also grants funds for projects that encourage and jump-start young girls' careers in technical fields.

12. Stacy's Rise Project

Stacy's Snacks is a women-led brand that launched the Rise Project to help women grow their businesses in the food industry. The project offers funding in addition to mentorship and opportunities for community and networking.

• Award amount:  $25,000
• How to apply:  Visit the  Stacy's website  for grant information

Past winners have received more than $450,000 to grow their products with mentorship.

13. Tory Burch Foundation Fellowship Grant

Designer Tory Burch has a fund with the goal of mentoring and uplifting women entrepreneurs across all walks of life.

• Award amount:  $5,000
• How to apply:  Visit the  Tory Burch website  for details on the fellowship program and the foundation itself.

In addition to a monetary grant, the fellowship program offers a yearlong education model with mentorship tailored to your needs. The foundation also offers a peer network of other recipients and a trip to Burch's New York office.

Many small business grants celebrate this diversity by offering grants specifically for minorities to help you and your business grow.

14. Sephora Accelerate

Sephora is a makeup retailer that launched its  Accelerate  grant program to uplift minority business leaders. Each fall, this program helps fund and mentor entrepreneurs in the beauty industry.

• Award amount:  This is a non-monetary award that offers mentorship and a potential Sephora-exclusive product launch
• How to apply:  Visit  Sepora Accelerate  for more information on eligibility and selection criteria.

Though rewards for this grant aren't monetary, they do involve a hefty financial advantage. Winners receive access to a six-month boot camp and are eligible to launch their products directly with Sephora.

16. National Minority Supplier Development Council (NMSDC)

The  National Minority Supplier Development Council  is a top corporate membership organization that offers business services and networking opportunities to connect you with investors and build your practice.

• How to apply:  Visit the  NMDSC website  for more information on offerings and one-off funding and grant opportunities.

Although grant opportunities run the gambit, access to the NMSDC's roster of mentors and community small business advisors is top-notch.

17. Operation Hope Small Business Empowerment Program

The  Small Business Empowerment Program  from Operation Hope offers eight and 12-week entrepreneurship training programs with funding opportunities.

• How to apply:  Visit   Operation Hope  for details and other entrepreneurial growth opportunities.

18. SBA Funding Programs

The  SBA grant program  offers a few funding options—research and development, exporting, and associate rewards. Grants vary by year, and eligibility may differ depending on each grant offering.

• How to apply:  Visit SBA  for more information on grant offerings.

The SBA also offers a Veterans Business Outreach Center services for veterans to help assist in operations, funding, and other business needs.

Thanks to certain organizations, veterans are on the receiving end of many small business grants and programs.

19. The Second Service Foundation

The Second Service Foundation's mission is to inspire and support military entrepreneurs. It grants businesses funding, shares educational content, provides mentorship and coaching, and hosts networking events.

• Award amount:  $4,000–$15,000
• How to apply:  Visit the  Second Service Foundation  for more information on grant offerings.

Since 2016, the foundation (formerly The StreetShares Foundation) has built a strong community of over 85,000 members and helped more than 5,000 entrepreneurs build their businesses.

20. VA VR&E Business Ownership Track

If you're a veteran with a disability and an entrepreneurial passion, reach out to the  VR&E Self-Employment Track program . This program helps coordinate services to build your business—starting with your business plan. Team members assist in small business operations, marketing, and finances.

• Award amount:  Non-monetary. Assistance with planning and growing a business.
• How to apply:  Visit the  VA.gov  for more information on program benefits.

While the program isn't a monetary grant, the resources provided to recipients are valuable for planning and scaling a business as a veteran.

In all likelihood, you'll need funds to take your business model to the next level. Instead of taking out a business loan, consider these startup grants.

20. Economic Development Administration (EDA) Grants

The Build to Scale (B2S) Program seeks to build regional economies by funding scalable startups through various grant competitions. Total funding stands in the millions, with $45 million in federal funds available to startups in 2022.

• How to apply:  Visit EDA.gov  for details on grant competitions.

The B2S program accepts applications for three different competitions: Venture Challenge, Capital Challenge, and Industry Challenge.

Small business grants come in many forms and have various requirements. While there's nothing you can do to guarantee you get a grant, there are some things that can increase your likelihood of getting picked for one.

1. Start local

Nationwide grants can be appealing due to their large awards. Before you spend countless hours preparing submissions for nationwide grants, consider starting locally.

Look for any small grants offered by your town or city. Then, branch out to the state level and regional level. These grants may not be as big as some of the ones offered to the entire country, but you'll also be competing with a smaller pool and have a greater chance of winning funding.

2. Research previous winners

If you've found a grant that looks like a good fit for your business, do some digging and see who the previous winners were. Note any patterns you see between the business.

Seeing what kinds of businesses are awarded a certain grant can help you narrow down if your business is a good fit, what you could do to increase your chances, and ultimately help you save time by not applying to a grant you're unlikely to land.

3. Take your time with applications

Grant applications can be long and grueling. Take it slowly when filling them out, and don't let yourself get overwhelmed by trying to rush them. A mistake on the application could cost you the grant, so make sure it's time well spent by filling out the forms the right way.

Similarly, take your time developing your story before you start writing grant applications. Many grants may ask entrepreneurs to appeal to emotion in their applications, wanting to hear about the “why" behind your motivation to grow a business besides financial gain. A confident story can be a great asset before embarking down a path of grant applications.

4. Consider hiring a grant writer

Grant writing is an art, so consider hiring a grant writer. A grant writer will know what kind of language to use to make your application stand out, which can make quite an impact when you're competing.

It's worth noting that grant writers can be expensive. So, if you're strapped for cash, you may want to hold off and consider taking some  free grant writing courses  instead.

Before applying to grant programs, ensure you've  covered all your business's legal bases  and have a story to tell along with a business plan to show.

When you’re ready to take your business to the next level, LegalZoom will be there to help you every step of the way.

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How to Apply for (& Get) Small Business Grants

Opening a new business, or making improvements and upgrades to an existing one, requires capital – a fact you’re probably all to familiar with.   In many cases, small business owners must turn to lending opportunities through banks or investors , many of which come with added interest, fees, or credit requirements. However, small business grants offer a welcome departure from those financing options.

Small business grants provide owners with much desired funds but without those pesky repayment terms, though that doesn’t mean it’s easy money.   On the contrary, those who want to benefit from grants will need to work diligently to identify opportunities, complete applications, and prove that their business goals are aligned with the grant requirements. 

Of course, there’s more to winning grants than just following the requirements and submitting forms.   Businesses that want to secure the available funds will need to show a competitive edge, convincing the grant provider that their business is most worthy – a tall order when competition is high.

So how do you apply for these grants?   What can you do to put your best foot forward?   Here are a few tips to help you along the way.

Apply for Small Business Grants

Explore small business grants for businesses at every stage and quickly find the best grants for your business.

Know Where to Look

Grants come in all shapes and sizes and are extended on behalf of various entities, including government and nonprofit agencies, but also private companies and organizations. Don’t forget to look for grants specifically available to women and minorities.

It’s easy to hop online and search for “grants for small businesses,” but you could find the results overwhelming. Instead, you may want to check out (and bookmark) Small Business Grants: 24 Best Places to Apply ,   which covers some of the best small business grant resources, including Grants.gov and SCORE.org. Also keep in mind that Nav offers the “ Legitify Your Small Business “ grant worth $10,000.

It’s also worth your while to look into small business development centers and local business resources, as they typically have their finger on the pulse of, well, all things local business, including private small business grants.

Gather All Your Basic Business Information

Part of the application process will require you to provide basic-yet-essential business information.   The address, name, phone number, EIN, etc. for your business will be required, and as such, before you even start the application process, be sure that you can provide this information. 

Create or Update Your Business Plan

Regardless of what type of lending or financing opportunity you seek out, a business plan is likely to be a requirement.   Grants are no different, and in some cases, especially when it comes to federal grants, a business plan is required.

A well-written business plan will provide a comprehensive overview of your products or service, the target audience, and financial and operational requirements, among other things.   Together, these things show lenders and grant providers that you’ve done your homework and developed a comprehensive plan to get from point A to point B.

If you already have an existing business plan but your applying for a grant that will allow you to expand, pivot, or renovate, be sure to update your plan, as an outdated plan may not accurately describe your business or show how it meets the grant requirements.

Read & Understand all Requirements

Even if you have a stellar business plan , you’ve done your grant research and have found some potential opportunities your work isn’t quite done. One of the most complicated parts of the grant application process is actually properly submitting your application and supporting documents.

Many grant givers require the same basic information about how the funds will be used, your “elevator pitch,” your business plan, and your social media handles. Others, however,  require that you to submit a business proposal and other additional requirements, so be sure to read carefully before dropping your package in the mail.   The worst thing you can do it send in an application without thoroughly reviewing all the requirements and due dates.  In most cases, l ate or incomplete applications won’t be considered and it’s not likely you’ll get a second chance at the available funds.

Small business grants can provide your business with the cash necessary to get things started or take your business to the next stage in your long-term plan.   Finding and applying for grants may be overwhelming, but if you know where to look, prepare for the application process, and come armed with all the essential information and assets, you can increase your chances of beating the competition and obtaining much needed funds.

Know what you can qualify for before you apply

Nav is the only financial solution that evolves with your business, ensuring your business is always ready for financing.

This article was originally written on March 19, 2018 and updated on January 27, 2021.

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Jennifer Lobb

Jennifer is a alum of the University of Denver. While in the graduate program there, she enjoyed spending time identifying ways in which non-profits and small businesses could develop into strong and profitable organizations that while promoting strong community growth. She also enjoys finding unique ways for freelancers and start-up businesses to reach and expand their goals.

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• Building Your Business

How To Find and Get Small Business Grants

Learn how grants work and the ways in which to receive them

How Small Business Grants Work

How to find small business grants, types of small business grants, how to apply for grants for your business, frequently asked questions (faqs).

PixelsEffect / Getty Images

Small business grants are sums of money awarded to businesses for various purposes such as economic development, job creation, or disaster relief by government and nonprofit organizations.

Grants essentially are free money, providing businesses of all types, sizes, ages, and industries with the resources to grow without requiring anything in return. Learn what grant opportunities are perfect for your business, including what types are available, how to find them, and how to apply for them.

Key Takeaways

• Small business grants are sums of money given for a particular purpose by government or nonprofit organizations for economic and business development.
• Grants don't require equity (a stake in your company), which means nothing is expected in return other than your time and effort to acquire them.
• Grants do not need to be repaid; however, your business must meet requirements to receive funding.
• You can find small business grants by browsing the websites or calling the offices of local, state, federal, and nonprofit organizations in your area.

Small business grants can be divided into two categories: those from the government (local, state, or federal) and those from private organizations. Many different types of small business grants are available, but not all grants are the same. Most grants are first come, first serve and based on need, so as long as you fulfill the requirements, you have a shot at receiving funding. Unlike traditional loans , which are available for any kind of business, your business must be eligible and match requirements for the specific grant you are applying for to receive funding.

How Much Funding Can You Expect to Receive?

Federal agencies, including the Small Business Administration (SBA), award billions of dollars every year in small business loans and grants to help fund startups, keep existing businesses thriving, and create jobs.

In 2021 alone, the SBA distributed nearly $416.3 billion in emergency relief aid through various grant programs to more than 6 million small businesses impacted by the COVID-19 pandemic.

Small business grants can range from a few thousand dollars to a few million. Government programs from federal down to state and local can provide small business owners with grant funding, tax credits, free training, no-interest loans, and other financial perks. Private organizations such as nonprofits function similarly but on a smaller scale, and can provide grants, equity investments, no-interest loans, and patent protections to business owners.

Do You Have To Pay It Back?

As a small business owner, knowing the rules and regulations surrounding your grant funding, including what you need to do after receiving a small business grant, is essential. The short answer is no. Grants do not need to be repaid once you receive them from a government or nonprofit organization. Grants are free sums of money awarded to businesses in need.

There is no need for monthly repayments or interest charges; however, you are still responsible for any associated taxes that come with accepting the grant.

How Difficult Is It To Get Small Business Grants?

Many factors can complicate the process of applying for grants, including the grant itself, the level of competition, the longevity of the business, and how well you detailed your purpose for the grant. However, the SBA and most nonprofit grant organizations have resources to help guide you through the process. If you still run into difficulties, you can always turn to an attorney, business mentorship network SCORE, or nonprofit guide for help.

There are many ways to find small business grants. One way is to research online for funding opportunities. Government sites such as Grants.gov are excellent places to start your search because they offer the most variety of programs. However, there are also non-governmental sources where you can find grant programs.

One option is to ask your local chamber of commerce or other small business associations in your area about grant opportunities and where you can apply. Depending on your location, you can check out local and regional grant programs that focus on specific industries, such as manufacturing or tourism.

There are various ways to find small business grants, depending on the type of grant you are looking for. Local, state, and federal government agencies receive funding and offer resources to small business owners expressly for this purpose.

It can be helpful to reach out to these agencies about the grants available in your area or for your business type or demographic. The U.S. Chamber of Commerce is also a helpful resource for locating grants that fit your business’s needs.

If you're looking to get support for your small business, keep in mind that there are many avenues to explore. Some funds are issued directly by the federal government, while others are distributed through state and local governments or private organizations such as nonprofits. After the funds are distributed, organizations then can use their funding to provide technical or educational assistance on a regional level.

Below are some examples of resources across government levels.

Local Grants

Since local grant programs generally have less competition than state and federal ones, they are excellent places to start. Search online for your local small business development center (SBDC) or economic development center. SBDC websites and SBA local chapter websites should have information on grants available for your business. Additionally, you can contact your district's elected officials' offices about grant funding in your area.

State or Regional Grants

You can find out if your business qualifies for any state or regional grants by checking out the SBA’s website and exploring its information on available grants and funding programs. Another place to check is your state’s economic development websites. You can also contact your elected state officials’ offices for more information on grant funding available. State grants generally have more competition than local grants, so apply early and make sure you meet eligibility requirements. For example, there is:

• U.S. Small Business Administration State Trade Expansion Program (STEP) : STEP offers financial assistance to small businesses seeking to export products. This grant program distributes federal funds through state agencies. Small businesses that meet the criteria set by each state can use the funds to participate in foreign trade shows, facilitate entry to foreign markets, develop websites, create products, and design international marketing campaigns.
• Minority Business Development Agency (MBDA) grants : The MBDA is an agency subsidiary of the Department of Commerce and provides grants to promote the growth and competitiveness of minority-owned businesses .

Federal Grants

These grants can be the most competitive to apply for, but are available for a wide variety of recipients. Grants.gov is a great place to start while looking for federal grant programs for your industry or demographic. Federal grant programs include:

• Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) : SBIR and STTR are federal grant programs from the SBA that encourage small businesses to engage in research and development with the potential for commercialization and socioeconomic benefit.
• Boots to Business (B2B) : The B2B program provides entrepreneurship training, curriculum updates and program management support services for active military members, veterans, and their spouses.

Private Grants

The government is not the only provider of small business grants. Nonprofit organizations often provide funding for entrepreneurs starting or growing their business ventures. Private organizations, demographic-specific grants, and emergency economic development grants are also options. The type of small business grants available to help entrepreneurs grow their businesses vary greatly and include grants for women-owned businesses, minority-owned businesses, and veteran-owned businesses. Examples include:

• Fast Break for Small Business : LegalZoom has partnered with the NBA, WNBA, G League, and Accion Opportunity Fund to help out small business owners by offering $10,000 grants and up to $500 in LegalZoom services for small business owners. Applications are open twice a year.
• National Association for the Self-Employed (NASE) : The NASE offers up to $4,000 for business development through its Growth Grants program.
• Amber Grants : Grants are awarded monthly in the Amber Grants program to women who want to fulfill their entrepreneurial dreams. Previous grant recipients have ranged from bakers to inventors.

What’s involved in the typical small business grant application process? The process for obtaining a small business grant has three main phases.

• The pre-award phase : Grant applicants look for and apply for funding opportunities, then wait as their applications are reviewed.
• Award phase : Grant organizations make award decisions and notify the recipients.
• Post-award phase : Grant funds are utilized, any required reporting is submitted, and the grant organization closes the application.

Applying for a small business grant as a sole proprietor can be daunting and varies in time and effort depending on the type of grant and the funding organization's requirements. However, in general, the following steps are taken: c

• Determine which grants are a good match for your business needs and goals. Research government grant programs and reach out to specific organizations that might be interested in funding your business.
• Gather the information and documentation the funding organization needs to evaluate your application, including your pitch, financial statements, employer identification number (EIN) , and business plan.
• Fill out the application form or submit your online application.
• Wait for a response from the funding source.
• Repeat this process until you receive the funding amount needed for your business.
• If required, report back on how your business used the funding.

Is a Grant Right for You?

With the vast number of options available for this kind of funding, many applicants can find a grant that suits their business needs. However, there are potential downsides to seeking grant funding, including the competition and the time it takes to acquire it.

If you own a small business, need funding, meet grant eligibility requirements, and have time to be patient, then grant funding is right for you. For businesses unable to meet eligibility requirements for government or private grants, or who can’t wait for funding, there are better options, such as small business loans or lines of credit , worth looking into for financing.

How do I qualify for a small business grant?

You can qualify for a small business grant if you are a small business owner looking to start and grow your business, and meet the granting organization's criteria. The organization granting the funds will often specify what it is looking for during the application process. Call its office or review its website for more information about grant eligibility requirements.

How long does it take to get a small business grant?

The length of time it takes to get a small business grant will depend on what type of funding you're applying for and which organization is supplying it. Grant approval and funding, whether from government agencies or  private foundations, can take several months to as long as a year. Keep in mind that some grants have eligibility windows that applicants can't miss. Find out the average wait time for the grant you are applying for and plan accordingly.

U.S. Small Business Administration. “ FACT SHEET: The U.S. Small Business Administration Is Delivering Support to America’s Small Businesses, Helping Them Recover From the COVID-19 Pandemic .”

U.S. Chamber of Commerce. “ 52 Grants, Loans and Programs To Benefit Your Small Business .”

Grants.gov. " Grants 101 ."

Grants.gov. “ How To Apply for Grants .”

Fifth Third Bank. “ 3 Steps To Apply for a Small Business Grant .”

New York State, Empire State Development. “ Meet Me in New York Grant Program .”

GetFundid. “ How Long Does It Take To Get a Business Grant? ”

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Types of Small Business Grants

• Qualifying for Business Grants
• How to Apply

The Bottom Line

• Small Business

How to Get Approved for a Small Business Grant

Federal agencies, state agencies, and even private companies offer funding to help you grow your business

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If you own a small business or are planning to start one, you have a number of options for securing funding . While taking out a loan may be the first idea that comes to mind, you could be overlooking another possibility: cash grants from the federal government, state or local government, or private companies. While grants can be much more competitive and difficult to obtain, unlike loans they don't have to be paid back. Here is what you need to know about getting approved for one.

Key Takeaways

• Small business grants, unlike loans, do not normally need to be paid back.
• The federal government, state and local governments, corporations, and nonprofits can all be sources of grants.
• Grant programs tend to have very specific criteria, so it's important to know what they're looking for and whether your business appears to be a good fit.
• Grants are highly competitive and applying for one can represent a significant time commitment.

Small business grants are available from a variety of sponsors. Three major sources are the federal government, your state government, and certain corporations.

Federal Small Business Grants

The U.S. government provides grants and loans to small businesses through many different departments and agencies. The website Grants.gov is a centralized resource where you can learn about many of them, search for ones you might be eligible for, and submit your applications. Major federal grant sources for small businesses include:

U.S. Small Business Administration (SBA) . Best known for the SBA loan program , through which it backs loans to small businesses made by private lenders, the SBA also has a limited grants program. While it notes that it "does not provide grants for starting and expanding a business," its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs "encourage small firms to undertake scientific research that helps meet federal research and development objectives and have a high potential for commercialization if successful."

In addition, the SBA funds the State Trade Expansion Program (STEP). STEP provides money to states and U.S. territories, enabling them to offer grants and other financial assistance to small businesses looking to export internationally.

U.S. Department of Health and Human Services (HHS) . The Department of Health and Human Services Office of Small and Disadvantaged Business Utilization (OSDBU) provides grant money to small businesses that meet its criteria. Its programs are intended to help small businesses compete for federal contracts, with a focus on socially or economically disadvantaged people (the 8(a) Business Development Program), historically underutilized business (HUB) zones (HUBZone Program), and women-owned businesses (the Women-Owned Small Businesses (WOSB) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) programs, among others. Including its small business programs, HHS says it "distributes the largest amount of grant funding of any federal agency.

U.S. Department of Agriculture (USDA) . The USDA funds a wide range of financial assistance programs for farmers, ranchers, and other agricultural producers, directly or indirectly. The USDA Rural Development Business Program, for example, partners with lending institutions and community-based organizations to provide grants, loans, and loan guarantees to individuals and businesses in rural areas.

Again, you can find out about all these programs and many others at Grants.gov.

State Small Business Grants

State and local governments can also have grant programs for small businesses, drawing on federal funding, their own resources, or some combination of the two.

The U.S. Department of the Treasury's State Small Business Credit Initiative (SSBCI), for example, provides funding to states, territories, and tribal governments, which they in turn use to support small businesses through cash grants and other means. Ohio, for instance, announced in late 2022 that it was in line to receive up to $182 million in SSBCI funding.

Oregon's Export Promotion Program, partially funded by the federal SBA's STEP program, provides grants to small businesses so that they can participate in international trade shows and trade missions.

To find grant possibilities in your state, two good resources are the Council for Community and Economic Research's State Business Incentives Database and the Small Business Development Center serving your area.

Corporate Small Business Grants

Some corporations, as well as nonprofit organizations, also provide grants to small businesses . In addition to the money, many of these programs offer mentoring and other benefits for the winners. A few examples: 

The Amazon Business Small Business Grants program, for example, makes grants to small business customers with no more than $1 million in annual revenue. Like many grant programs, this one is extremely competitive. For 2023, it planned to award a total of 15 grants, ranging from $15,000 to $25,000; in 2022, it received more than 19,000 grant applications.

The FedEx Small Business Grant Contest awards grants to a limited number of U.S. small businesses to be applied towards growing or enhancing their business. To be eligible, the business must be a FedEx customer with a valid FedEx business shipping account number and fewer than 99 employees. For 2023, it made 10 awards.

Visa's She's Next Grant Program offers $10,000 grants to 60 Black women-owned businesses in six U.S. cities. The company is also a sponsor of similar grant programs in several other countries.

As with state-funded grants, a good place to start in looking for corporate or nonprofit grants would be the SBA-sponsored Small Business Development Center serving your area.

Most 7(a) SBA loans have a maximum amount of $5 million.

Qualifying for Small Business Grants

As noted in the sections above, grants for small businesses are highly competitive and often limited to a certain type of business or business owner. So your first step in qualifying for a grant is to narrow the list to grants with criteria that seem a good match. 

Having done that, you'll want to take a careful look at the application for each grant program , spend the time to fill it out thoroughly, and make sure you supply any documents or other backup that the application asks for. With so many applicants for a limited number of grants, you don't want to be ruled out simply on a minor technicality.

Some grant programs also profile past winners on their websites. This can give you a better idea of what the administrators are looking for and allow you to position your business accordingly.

How to Apply for Small Business Grants

The first rule in applying for a small business grant is to check on any deadlines. Some programs accept applications throughout the year, while others may have annual or quarterly deadlines.

While you shouldn't rush yourself in filling out your applications, it is in your best interest to get them in as early as possible. Most grant programs have a limited amount of funds and may stop even reviewing applications once the money is exhausted.

Grant writing, as applying for grants is called, is a craft in its own right and a full-time profession for some people. If you're coming at it for the first time you'll find a lot of useful how-to information in books and online. For example, Grants.gov has a blog devoted to helpful grant-writing tips.

Among them: try to put yourself in the place of a person reviewing your application and enlist some capable proofreaders early in the process not only to spot typos but to point out any issues of logic or structure that may be interfering with your message.

Who Is Eligible for U.S. Business Grants?

To be eligible for U.S. business grants , a business must already be in operation and also must have (1) taxes in good standing and no outstanding tax amounts or liens; (2) an owner who is the majority owner of the business as well as the decision-maker; (3) a business owner who earns their main income from this business, and (4) an owner who can prove their eligibility by providing government-issued identification.

Can You Borrow Money From the Government to Start a Business?

Yes, you can borrow money from the government to start a business through the U.S. Small Business Administration (SBA). The SBA offers many different loans with different requirements, most stipulating that a business must already exist.

What Is the Disadvantage of a Grant?

The primary disadvantage of a business grant is that the money needs to be used in a very specific way; you can't use the money in any way you please. However, this is not typically a disadvantage because when you're applying for a grant, you know why you are applying and what the money will be used for, and that will determine whether or not you will receive the grant, based on the grant donor's requirements.

Grants are basically free money and worth pursuing if you believe your small business fits the precise criteria for them. Bear in mind that even in that case, grants are extremely competitive, so you'll want to have other funding sources in mind, as well. 

U.S. Small Business Administration. " Grants ."

U.S. Small Business Administration. " State Trade Expansion Program (STEP) ."

U.S. Department of Health and Human Services. " Small Business Programs ."

U.S. Department of Health and Human Services. " Get Ready for Grants Management ."

U.S. Department of Agriculture Rural Development. " Business Programs ."

U.S. Department of the Treasury State Small Business Credit Initiative. " State Small Business Credit Initiative ."

Ohio Department of Development. " Ohio to Receive Funding to Support Small Businesses ."

Business Oregon. " Export Promotion Program ."

Council for Community and Economic Research. " State Business Incentives Database ."

U.S. Small Business Administration. " Small Business Development Centers (SBDC) ."

Amazon Business. " Amazon Business Small Business Grants 2023 ."

FedEx. " Small Business Grants Program Rules 2024 ."

FedEx. " FedEx Small Business Grant Contest ."

FedEx. " 2023 FedEx Small Business Grant Contest Winners ."

Visa. " Visa's She's Next Grant Program ."

Visa. " IFund Women Visa She's Next ."

U.S. Small Business Administration. " Terms, Conditions, and Eligibility ."

U.S. Business Grants. " Eligibility Requirements ."

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Guide to Startup Business Grants: Get Free Money for Your Business

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On paper, grants sound like the perfect funding option for most small businesses. After all, grants give you money to spend on your business―but unlike loan money, you never have to pay it back. What’s not to love?

Well, as great as grants are, they do have some downsides. But should those downsides stop you from applying?

In this guide to startup business grants, we’ll help you decide. We’ll show you how grants work (the good and the bad) and tell you how to find grants for your business. We’ll also point you toward some alternative financing options, in case grants don’t work out for you.

What is a startup business grant?

• How to get a startup grant

Where to find startup grants

Startup grant alternatives, the takeaway, related content, startup business grants faq.

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Qualifications:

$50k in revenue

6 mos. in business

560 credit score

If you didn't know what a startup business grant is, it does just what it sounds like. It grants funding to startups, small businesses, or nonprofits—and the funding comes from an organization or the government. Although this sounds great, competition for grants is fierce.

Let's look at some more pros and cons to help you see if they're the right fit for your business. 

Pros and cons of business grants

How to get small-business grants.

As we already said, grants give money that you don’t have to repay. That means you’re getting free funds for your business.

Of course, actually getting and using those funds can get a little more complicated. Here’s what you need to know.

1. Find a relevant grant

If you want to get a startup business grant, first you need to find a grant to apply for.

Maybe you already have one (or more) in mind. In that case, you can skip ahead to the next step. If you don’t, it’s time to start looking. We have some tips on where to look (which we’ll come to in just a bit ).

Remember, though, that you’re not just looking for any grant. You’re looking for a grant that you can use for your business. Most grants specify how the funds can be used. So if you want to buy equipment, for example, don’t bother with grants that have to be used to hire more staff.

Once you think you’ve found a grant, it’s time to take a closer look at the application requirements.

2. Make sure you qualify

Most grants require applicants to meet certain eligibility requirements.

For example, the grant-giving organization might require you to have a for-profit business. The requirements can get much more specific than that though. Take the Asian Women Giving Circle Grant. Applicants must be Asian American women with a nonprofit in New York City.

So before you start an application, make sure you and your business meet all the relevant requirements for your grant of choice. Otherwise, you could waste time on a grant you’ll never get.

Now, the good news is that most grants stick to demographic qualifications or industry qualifications―things about you or the area you work in. They don’t, however, usually care about things like your personal credit score . Likewise, you won’t find too many grants that have strict revenue or time in business qualifications.

That means you can often qualify for grants even if you can’t qualify for business loans―making grants great for startup funding.

When you’re sure you qualify for the grant you want, you’re ready to begin your application. After all, grants don’t get handed out willy-nilly to anyone who wants them―you have to win them.

3. Work on your application

Depending on the grant you’re applying for, the application can range from answering a few basic questions about your business to very involved essays, videos, and budget proposals. In other words, you should plan on investing some time in your grant application.

That said, you should consider how involved the grant application is and compare that to the grant award amount. It may be worth pouring hours and days into an application for a $60,000 grant―but you might not want to invest that much time in a $1,000 grant.

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4. Submit your application

Assuming you still decide to apply, though, you can finish and submit your application.

Make sure you fill out the application completely and submit all the required parts. After all, your application will probably have quite a bit of competition.

And watch out for deadlines . Many grant applications have a very strict submission deadline. Don’t miss it, or you’ll have to sit out that grant cycle.

5. Wait to see if you get the grant

While we know you want to hear back about your application right away, you probably won’t get an answer for a while .

Most grants get quite a few applicants. And the more broad the grant requirements, the more applicants they’re likely to get.

Because so many business owners apply, it can take a long time to find out whether or not you won the grant. After all, someone has to review all those applications.

So settle in for a long wait. But do make sure you check your email and voicemail regularly to make sure you don’t miss any important communications about the grant―like telling you that you won.

6. Use your grant money

If you’re lucky, you’ll win the grant.

Congratulations! You got free money. That doesn’t mean you can spend your grant money however you want though. Most grants earmark the funds for certain uses. (Fortunately, they tell you about those uses upfront.)

As you spend your grant money, make sure you use it on those designated uses . If you don't, you could end up on the hook for repaying your improperly used funds.

Most grants publish a list of their winners, which means you’ll get some free publicity for your business. (So make sure your business website is updated and operational.)

Now that you know how to get a startup business grant, how do you actually find one you want?

Mostly, you’re going to have to put in some time and effort to look.

As we said earlier, we suggest looking locally if possible . Ask around at local small business development centers, business expos, and other places.

But yes, you can look online too. That’s how we found some of our favorite grants for startup businesses.

Grants for small businesses

Data effective 9/22/22. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

Another good place to look is grants.gov . It lists all current government grant opportunities.

And you can always look at grants for special groups.

Grants for specific groups

While business lenders can’t choose to give money only to certain groups―like women, veterans, or minorities―grant programs can. So if you’re in one of those groups, look for grants targeted at you.

If you’re a female business owner , you can check out our roundup of the best small-business grants for women . Some opportunities are open to all female entrepreneurs, while others get more specific.

If you’re a minority business owner , there are grants just for you. We have a list of the best business grants for minorities to get you started.

And if you (or your spouse) served in the US military , you might be able to qualify for grants for veterans .

Before we wrap this guide up, we want to pause for a brief reality check.

Grants are great, and we highly recommend applying for them―but realistically, you can’t count on getting grant funding . (Sorry.)

Startup business grants are very, very competitive. Even if you have the best application, you can’t guarantee that you’ll win a grant.

With that in mind, we want to suggest some other business financing options you can look at.

Business loans

Unlike grants, you have to repay small-business loans. But if you need working capital, you may find that loans are worth the cost.

As a young startup, you’ll have somewhat limited options for business loans. Traditional lenders (banks) won’t even look at you.

You’re better off applying with online lenders, like the ones on our list of the best small-business loans for startups .

Enter your loan needs and qualifications to get matched with a list of lenders best suited to you. Then, sort by the financing factor that you find most important. ( Note : not all lenders allow personal loans for business use .)

Crowdfunding

Crowdfunding offers another way to get free money for your business. In most cases, you don’t have to repay the funds you get through crowdfunding (though you’ll probably have to reward your backers somehow).

Plus, you can crowdfund even with a very young startup. Just keep in mind that crowdfunding tends to work better for product-based businesses rather than service-based businesses.

Our guide to crowdfunding for startups explains how you can get started with crowdfunding platforms.

Other options

You’ve got more financing options than just grants, loans, and crowdfunding. Here are some other popular funding methods:

• Borrowing from family and friends
• Personal assets
• Angel investors
• Venture capitalists

Startup business grants can be a great way to fund your business, since you don’t have to repay the money and you don’t have to meet any credit requirements. But grants often have involved applications and competitive applicant pools, so they’re not right for every small-business owner.

If you can find relevant grants that don’t take too long to apply for, we highly recommend submitting an application. Just remember you can’t count on grant funding―so make sure you have a backup plan.

Interested in other funding options with no (or low) credit requirements? Check out our rankings of the best bad credit startup loans .

• Small-Business Grants for Women 2023: 5 Programs with Free Money for Women
• Business Loans, Grants, and Resources for Veteran Entrepreneurs
• Small-Business Grants for Minorities: The Best Opportunities―And Where to Find More
• 10 Best Startups Loans for Bad Credit in 2023
• 7 Best Credit Cards for Bad Credit 2023

There are multiple ways to get funding for your startup—grants being just one of them. We cover a few briefly in this article (including business loans, crowdfunding, and other options), but we discuss the options in depth in our Best Small-Business Funding Options .

If you are just looking at grants though, we recommend looking on Grants.gov .

The government only provides grants for nonprofits and educational institutions. So unless your business is a nonprofit, you're out of luck.

No, the SBA stopped accepting PPP loan applications on May 31, 2021.

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What Are Small Business Grants and How to Get Them

6 min. read

Updated January 4, 2024

We’ve all seen the late-night TV commercials targeted at entrepreneurs touting “free money from Uncle Sam”.  Unfortunately, for the most part, there is no such thing.

I say “for the most part” because government grants for small businesses do exist, but the opportunity to secure one is limited to a narrow field of candidates.

Here’s what you need to know about government grants for small businesses, who is eligible to receive them, and how to go about getting them.

• What are business grants?

A business grant is a specific type of grant provided to businesses, often small enterprises or startups. These grants are awarded by governments, corporations, or foundations to stimulate economic growth, promote innovation, and support the development of certain industries or communities. Businesses can use these funds to start up, expand, implement new technologies, or create jobs. 

Unlike loans, business grants do not require repayment, but they may come with certain criteria or conditions, such as the need to match funds, create a certain number of jobs, or operate within a specific region. Businesses usually have to go through a competitive application process and meet very select criteria to receive these grants.

• What grants are available?

Before diving into the types of government grants available to small businesses, let’s start by establishing what the government does not provide grants for.

The federal government doesn’t provide grants for any of the following activities:

• Starting and expanding a business
• Paying off debt
• Covering operational expenses

However—and here’s the twist—the federal government does award grants to small businesses in certain fields and industries (for example, scientific, environmental, and medical research). The Small Business Innovation Research (SBIR) program , for example, is one of the most lucrative sources of federal grants for high-tech startups or high-growth firms (more on SBIR below).

The reason why federal grants are largely off-limits to small businesses is that they are funded by our tax dollars and appropriated through Congress and The White House. Fund allocations are tightly controlled and only awarded to business endeavors that are closely tied to the agenda of a particular government agency, such as the U.S. Department of Agriculture or the U.S. Department of Energy.

Outside Washington, things don’t get much better. Although some state and local government agencies do award small business grants—which they often call “discretionary inventive grants”—these state grants are also closely aligned to agency objectives and tend to be limited to larger companies.

How to find and apply for small business grants

If you think your business may qualify for a grant, the resources below can help you with your search:

Federal grants

Grants.gov is Uncle Sam’s central repository and searchable database of over 1,000 different grant programs. To narrow down your search to small business grants, navigate to the “Browse Eligibilities” tab and select “Small Businesses”.

State and local grants

Contact your state economic development agency for information about discretionary incentive grants.

Corporate and nonprofit grants

Small business grants are also available from select nonprofits ( WomensNet , for example) and corporations, such as the Intuit “Love our Local Business” campaign.

SBIR grants for R&D businesses

As mentioned above, if your small business is engaged in research and development (R&D), you may be eligible for a Small Business Innovation Research (SBIR) grant. SBIR is a federal program, overseen by the U.S. Small Business Administration (SBA), that awards grants and government contracts to stimulate high-tech innovation and grow the economy by supporting the R&D necessary to develop and commercialize innovative technological products. In 2010, SBIR awarded approximately $2 billion in research funds, with more than half the awards going to businesses that employed fewer than 25 people.

While the eligibility criteria for an SBIR grant is pretty straightforward—businesses need to be more than 50 percent American-owned, located in the U.S., and have fewer than 500 employees—securing a grant requires some effort. First, you’ll need to prove that your efforts are aligned with federal R&D goals by searching advertised agency solicitations on the SBIR website. 

Next, submit a proposal outlining the technical merits and benefits of your venture. If you are successful, you’ll then enter a phased R&D process. You can read more about this phased approach on SBIR.gov .

Grants aren’t for everyone

Hopefully this information cleared up any misconceptions you may have had about small business government grants.

If you need an injection of capital, don’t waste your time falling for the promises of late-night “free government money” infomercials, and instead use your energies to investigate other sources of financing.

If you don’t qualify for a bank loan, consider an SBA loan, which can be easier to secure than a standard bank loan. An SBA loan is funded with money that comes indirectly from the SBA—first the SBA makes a guaranteed loan to your bank, which then makes a small business loan to you, the business owner. This approach allows the bank to take on a little more risk than they otherwise might be able to afford.

Small business grants templates and tools

Resources to help you prepare to apply for grants.

Free business plan template

Showcase your business structure, performance, and potential with a detailed and SBA-approved business plan.

Download Template

Free pitch deck template

Impress donors with visuals to back up your business plan and grant application.

Show how you'll manage grant funding with LivePlan

Create and share your plan, pitch, and financial forecasts with a single powerful tool.

Small business grants FAQ

What are grants?

Grants are non-repayable funds provided by one party, often a government department, corporation, foundation, or trust, to a recipient, typically a nonprofit entity, educational institution, business, or individual.

They are awarded for a specific purpose, such as starting a business, conducting research, or implementing a community program. Unlike loans, grants do not require repayment, but they usually come with stipulations regarding their use and reporting requirements to ensure accountability.

How do you find grants for small businesses?

You can find grants for small businesses by exploring resources provided by federal, state, and local government agencies, such as the U.S. Small Business Administration (SBA). Additionally, check databases like Grants.gov for federal opportunities. Private foundations, corporations, and industry associations may also offer grants and often list these opportunities on their websites. Consider consulting with a business advisor or mentor to navigate these resources effectively.

What can a small business grant be used for?

A small business grant can be used for a variety of purposes depending on the specific conditions of the grant. This may include starting or expanding the business, purchasing equipment, implementing new technologies, hiring staff, funding research and development, or launching a specific project. It’s essential to understand the grant guidelines to ensure the funds are used appropriately.

What are examples of grants?

Examples of grants include the SBA’s Small Business Innovation Research (SBIR) program, which funds small businesses pursuing innovative research and development. The FedEx Small Business Grant Contest is another example, where small businesses compete for cash and business services. Local and state governments also often offer grants to stimulate economic development in specific regions or industries.

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• How to find and apply for grants
• Grants aren’t for everyone
• Templates and tools

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Top Small Business Grants

Small business grants, available from federal, state and private sectors, offer a source of capital for entrepreneurs looking to grow their businesses.

Table of Contents

For small business owners, grants can often provide the financial assistance needed to take your company into its next chapter of success. These grants, which may come from federal, state or private sources, are a source of capital that doesn’t need to be repaid. Check out our curated list of premier small business grants and how you can apply to secure these funds for your business.

Editor’s note: Looking for a small business loan? Fill out the questionnaire below to have our vendor partners contact you about your needs. 

Federal grants for small businesses

The federal government typically provides grants to nonprofits and educational institutions only. However, local governments may offer grants through departments such as the Office of Economic Development. SBA.gov has documents that detail the full list of eligibility requirements, terms and conditions for Small Business Administration (SBA) grants.

Here are the top federal grants for small businesses and how to apply for government grants. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs 

The SBIR and STTR programs are competitive grant programs that encourage small businesses to engage in federal research and development, particularly with technological innovation and scientific research. 

The grant programs help connect small businesses, universities and research centers with federal grants. To qualify, you must be a for-profit business with 500 or fewer employees. Nonprofits – those with a 501(c)(3) designation by the IRS – aren’t eligible for these programs. 

The Office of Science, a subset of the U.S. Department of Energy (DOE), also participates in the SBIR and STTR grant programs. It offers numerous funding opportunities, spanning areas that support energy production, energy use, fundamental energy sciences, environmental management and defense nuclear nonproliferation. Check out the DOE’s open funding opportunity announcements and open lab announcements . 

The SBIR and STTR grant programs are structured into three phases. SBIR Phase I awards are normally up to $150,000 for six months, and Phase II awards are typically no greater than $1 million for two years. Phase III is designed for small businesses to pursue commercialization objectives resulting from Phase I and Phase II. The SBIR program doesn’t fund Phase III. 

National Institutes of Health

The National Institutes of Health (NIH), a subset of the U.S. Department of Health and Human Services, offers grants for small businesses researching and developing biomedical technologies. NIH has hundreds of distinct funding opportunities available and updates its grant database regularly.

National Institute of Food and Agriculture

The National Institute of Food and Agriculture (NIFA), a branch of the U.S. Department of Agriculture, supports research, educational and extension efforts in several rural areas related to agricultural and behavioral sciences. These fields include food science, animal life, farming and ranching, business and economics, and plant life.

NIFA’s grants consist of four phases: 

• Pre-award: This phase begins with the announcement of funding opportunities for grants and involves the preparation, submission and review of proposals related to those announcements.
• Award: This phase involves making funding decisions and notifying awardees of their selection for a grant. 
• Post-award: This phase consists of setting up accounts in the financial payment system and monitoring awardees for compliance with applicable laws, regulations, policies and the submission of required reports. 
• Closeout: The closeout phase involves the submission, review and approval of all final reports as required by specific program policies and regulations.

National Institute of Standards and Technology

The National Institute of Standards and Technology (NIST), a nonregulatory agency of the U.S. Department of Commerce, gives small business grants to startups researching and developing technology in fields like advanced communications, artificial intelligence, bioscience, nanotechnology and neutron research.

Current NIST funding opportunities can be found on NIST.gov .

Environmental Protection Agency

The U.S. Environmental Protection Agency (EPA) awards more than $4 billion annually for grants and other assistance agreements. The aim is to help small nonprofits and even large state governments achieve their environmental goals. 

You can find current EPA funding opportunities by searching Grants.gov . 

Department of Transportation

The Volpe Center, the U.S. Department of Transportation’s (DOT) systems center, is a federal resource that accepts solicitations for financial aid. Visit Volpe’s Solicitation Center to view active topics and learn about submitting proposals. The organization seeks funding for proposals that may enhance the DOT’s ability to execute its mission or that otherwise deliver innovative concepts. 

State and local grants for small businesses

Many state-level grants for small businesses focus on the state’s social and economic affairs. You can find state business grants by checking your state’s Department of Commerce website. Here are some of the most popular state government grants. [Read related article: Best Business Loan and Financing Options ]

Arkansas Economic Development Commission

The Arkansas Economic Development Commission (AEDC) offers many job-creation incentives and business grants for small businesses in Arkansas. For example, ArkPlus is a state income tax program that provides tax credits of 10 percent of the total investment in a new location or expansion project. 

The AEDC also offers infrastructure grants, which share the cost of project infrastructure needs by committing grants from state and federal infrastructure funds. The amount of money committed depends on several factors, including the strength of the company, jobs, average wage and project investment.

Small Business Development Centers

The SBA can help small business owners and entrepreneurs find local assistance for business grants through its Small Business Development Centers . These centers are associated with local colleges and universities, and many can connect business owners with networking and financing opportunities.

Corporate grants for small businesses

Numerous organizations throughout the U.S. offer corporate grants. These grants help spread goodwill in the community and polish a corporation’s public image. While many nonprofits may overlook corporate philanthropy as a means to raise capital, many startups will likely jump at the opportunity. 

The Halstead Grant

The Halstead Grant is a yearly award for emerging jewelry artists. Applicants must answer 15 business questions and submit a design portfolio. The award money is intended to help silver jewelry artists jump-start their businesses. The grand prize is $7,500 in cash. Check the website for annual deadlines. 

Comcast Innovation Fund

Comcast hosts several grant contests each year searching for internet innovation in the areas of open source, research, and “useful and interesting things.” Each applicant must create a Comcast Innovation Fund account, select a grant and apply for the grant.

National Association for the Self-Employed (NASE)

NASE members can apply for Growth Grants worth up to $4,000. This grant money can be used to purchase equipment, create marketing materials, create a website, hire part-time employees and more. To be eligible, Growth Grant applicants must be members in good standing; a resume and thorough business plan are required.

FedEx Small Business Grant Contest

FedEx hosts an annual small business grant contest that awards small business owners money and insight from FedEx experts to help grow their companies. This grant contest is open to U.S.-based for-profit small businesses that have fewer than 99 employees, are actively shipping with FedEx, and have been selling a product or service for at least six months from the start of the contest. 

The amount of grant money awarded changes every year, but past winners have received $50,000 for first place with additional prizes of $20,000 for up to nine runners-up. Check the website for entry deadlines and more details. 

Grants and training opportunities for women-owned businesses

These are just some of the funding and training opportunities set aside specifically for women entrepreneurs:

SBA Office of Women’s Business Ownership

The SBA helps women entrepreneurs on their journey toward owning successful businesses and remaining competitive in the marketplace. The Office of Women’s Business Ownership has programs designed to help women entrepreneurs with business training, federal contracts, and access to credit and capital. 

The Amber Grant Foundation

The Amber Grant Foundation awards a minimum of $30,000 each month to women-owned businesses, along with three $25,000 annual grants at the end of each calendar year. For-profit and nonprofit organizations alike are eligible to apply, as are pre-revenue startups.

Grants and training opportunities for minority-owned businesses

Businesses owned by Black, Latino/a/x, Asian American and other minority entrepreneurs can leverage the following resources: 

Minority Business Development Agency

The Minority Business Development Agency (MBDA), a branch of the U.S. Department of Commerce and the National Association of Investment Companies, is the largest grant opportunity for minority-owned small businesses seeking a grant award and other financial opportunities. 

Visit the website to learn about applying for current MBDA grants . For counseling and more information on financing a minority-owned business, find your local Minority Business Center . 

Operation HOPE Small Business Development Program

Operation HOPE is a small business development initiative designed to provide minority-owned businesses with the necessary financial services to thrive in the marketplace. One component of Operation Hope’s program features the 1MBB (1 Million Black Businesses) initiative, which offers an eight-week Small Business Development workshop focused on giving new entrepreneurs the skills to handle small business ownership.  

8(a) Business Development Program

The SBA’s 8(a) program helps minority-owned businesses and other small businesses owned by economically disadvantaged people compete for government contracts. The program can also help minorities form joint ventures with established businesses through the SBA’s mentor-protege program. 

You must be certified to participate in the 8(a) program. To become certified, visit certify.SBA.gov ; you will also need to create a profile at SAM.gov . If you’re accepted into the program, your certification will last for a maximum of nine years. However, you’ll need to complete annual reviews to maintain good standing in the program. 

Grants and training opportunities for veteran-owned businesses

Veteran entrepreneurs can explore these funding opportunities and resources:

SBA Office of Veterans Business Development

The SBA offers support for veteran-owned businesses looking for funding programs, training and federal contracting opportunities. The Office of Veterans Business Development is specifically devoted to veteran entrepreneurship, service-disabled veterans, active-duty service members, transitioning service members, and their dependents or survivors. 

Veterans Business Fund

The Veterans Business Fund nonprofit was created because of the high unemployment rate among veterans. Many veterans could become successful small business owners but lack access to startup capital or don’t qualify for a small business loan. Visit the website to apply for funding.

Boots to Business

Boots to Business (B2B) is an education and training program for veteran entrepreneurs that is offered through the SBA. Active-duty service members, veterans of all eras and their spouses are eligible to participate. 

Participants are taught entrepreneurial skills and are provided the resources to launch a small business. The two-day Introduction to Entrepreneurship course is managed by SBA experts and introduces transitioning veterans to business ownership through key business steps, such as raising startup capital and writing a business plan. Check out the upcoming B2B course schedule .

What is a business grant?

A business grant is an investment of capital from private or public sources to help small businesses develop. These opportunities are generally based on an entrepreneur’s geographical location, income, business type and qualifications, and are designed to support underrepresented groups, such as women, minorities and veterans. 

Grant funding is often awarded through a small business contest, in which eligible small business owners apply to be considered as a recipient. Many grants for small businesses target companies in the science, technology and medical fields. Some business grants provide training and technical assistance to low-income entrepreneurs, but they generally do not provide grant money. 

Federal agencies administer numerous grant funds and grant contests; however, it can be difficult to receive an award from these programs. Many state-level business grants that target social or economic concerns may be easier to obtain (if you satisfy certain criteria). [Learn how your business credit score impacts your chances of borrowing .]

Local and state governments also provide business grants for investments in key initiatives they are promoting, such as investing in enterprise zones or supporting certain types of businesses. These grants are sometimes given in the form of a tax credit.

Do you have to pay back business grants?

Business loans and business grants are different. Unlike a business loan, a small business grant doesn’t have to be repaid. You simply apply, and if you qualify, there you have it – free money for your business. 

An SBA loan, like any business loan, does need to be repaid. The SBA itself doesn’t provide grants, but you can acquire grants with its assistance through its website and small business programs. [Read more about the hidden gotchas in your business loan repayment terms .]

How to apply for a business grant

Most grants have very specific rules about who can apply, which types of companies and business innovations are eligible, and the timeline. The deadlines and processes vary dramatically by grant program.

You’ll need to determine which grant you want to pursue and then write a grant proposal. Follow these three steps to apply for a business grant: 

• Find a grant. Confirm your eligibility requirements for business grants. Read and understand the requirements, and find the grants that are most relevant to you and your business. 
• Write a grant proposal. This step requires you to gather substantial information, in addition to having a complete business plan . Focus on the needs your business intends to fulfill, the problem you are proposing a solution for and how you plan to track your impact.
• Prepare and submit forms. Register to complete and submit your grant application. You may receive a tracking number to monitor the status of your application.

Sean Peek and Max Freedman contributed to this article.

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Redirect Notice

Small research grants (r03).

To provide research support specifically limited in time and amount for studies in categorical program areas. Small grants provide flexibility for initiating studies which are generally for preliminary short-term projects and are non-renewable.

The R03 grant mechanism supports small research projects that can be carried out in a short period of time with limited resources.

Award Information

• Funding Instrument: Grant
• Funding Category: Research and Development
• Budget Mechanism Code: RP - Research Projects

Application and Submission Information

Parent announcements.

R03 Parent Announcement s are available.

Parent announcements are broad funding opportunities that applicants can use to submit investigator-initiated applications for a range of popular programs. They do not specify any particular area of scientific interest. They simply provide the standard forms and instructions needed to apply.  

Not all NIH institutes and centers participate on all parent announcements. Check the participating organization in the funding opportunity before applying.

Application Characteristics

• Project period of up to two years (check funding opportunity for exceptions)
• Budget for direct costs of up $50,000 per year (check funding opportunity for exceptions)
• Cannot be renewed
• No preliminary data are required but may be included if available
• Research Strategy may not exceed 6 pages

The common characteristic of the small grant is the provision of limited funding for a short period of time. Examples of the types of projects that ICs support with the R03 include the following:

• Pilot or feasibility studies
• Secondary analysis of existing data
• Small, self-contained research projects
• Development of research methodology
• Development of new research technology

A doctoral student may not apply for an R03 grant to support thesis or dissertation research. An R03 award may be used to assist students who are pursuing dissertation studies when the work is within the scope of the R03 award.

Investigators are strongly encouraged to consult with NIH Scientific/Research staff (see Section VII. Agency Contacts of the funding opportunity) during the concept development stage of the application to determine if an R03 application is appropriate.

After identifying a funding opportunity, follow guidance in the How to Apply – Application Guide including any Research (R) instruction call-outs, except where instructed to do otherwise in the funding opportunity or related notices.

The Key Dates section of funding opportunities lists specific due dates. Many opportunities indicate Standard Due Dates apply.

Participating Funding Organizations

Each funding opportunity specifies the participating organizations. Applications must fit within the mission of at least one participating funding organization and meet all opportunity-specific requirements.

The following funding organizations participate on at least one active funding opportunity.

• Division of Program Coordination, Planning and Strategic Initiatives, Office of Disease Prevention ( ODP )
• Eunice Kennedy Shriver National Institute of Child Health and Human Development ( NICHD )
• Fogarty International Center ( FIC )
• National Cancer Institute ( NCI )
• National Center for Complementary and Integrative Health ( NCCIH )
• National Eye Institute ( NEI )
• National Heart, Lung, and Blood Institute ( NHLBI )
• National Human Genome Research Institute ( NHGRI )
• National Institute of Allergy and Infectious Diseases ( NIAID )
• National Institute of Arthritis and Musculoskeletal and Skin Diseases ( NIAMS )
• National Institute of Biomedical Imaging and Bioengineering ( NIBIB )
• National Institute of Dental and Craniofacial Research ( NIDCR )
• National Institute of Diabetes and Digestive and Kidney Diseases ( NIDDK )
• National Institute of Environmental Health Sciences ( NIEHS )
• National Institute of Mental Health ( NIMH )
• National Institute of Neurological Disorders and Stroke ( NINDS )
• National Institute on Aging ( NIA )
• National Institute on Alcohol Abuse and Alcoholism ( NIAAA )
• National Institute on Deafness and Other Communication Disorders ( NIDCD )
• National Institute on Drug Abuse ( NIDA )
• National Institute on Minority Health and Health Disparities ( NIMHD )
• National Library of Medicine ( NLM )
• Office of Behavioral and Social Sciences Research ( OBSSR )
• Office of Research on Women's Health ( ORWH )
• Your organization's sponsored programs office or grants administrators can answer many internal and agency policy and process questions. 
• Before you apply, check your chosen funding opportunity for application submission, scientific/research, peer review, and financial/grants management contacts.  
• After you apply, find NIH staff assignments in the Status module of eRA Commons .