Where To Find Business Grants

Small business grants are one of the most attractive financing options for business owners since they don’t need to be repaid and don’t require companies to take on debt. But grant programs tend to be highly competitive, with many of them targeted at underserved groups.

If you’re looking for small business grants for your company, there are a few places to find them. Below, we’ll explain where to secure federal, state and local grants for small businesses to get your company the funding it needs.

Federal grants for small businesses

Many government agencies provide small business grants to promote entrepreneurship, boost the economy and support innovation. Here are some places where you may find federal grants for small businesses.

1. Grants.gov

If you’re searching for federal funding for your organization, Grants.gov should be the first place you look. Run by the U.S. government, Grants.gov is home to an extensive database of grants from federal agencies, such as the U.S. Department of Agriculture, the Department of Commerce, and the Department of the Interior. Funding amounts vary by grant.

2. Small Business Technology Transfer

Powered by the U.S. Small Business Administration, the Small Business Technology Transfer provides financial support to technology-focused entrepreneurs, startups, and small businesses, offering funding to develop ideas and pursue commercialization. Some of the participating agencies in these programs include the U.S. Departments of Defense and Education.

The funds from the STTR grants are awarded in phases, with the first phase usually equaling between $50,000 and $275,000 for six months or a year of work. During the second phase, businesses will typically receive $400,000 and $1.8 million for two years of work completing research and development.

STTR does not fund phase three but rather recommends businesses use this time to pursue the commercialization objectives established in the first two phases. This phase may include STTR-funded R&D or production contracts intended for use with the U.S. government.

3. Small Business Innovation Research programs

Much like the STTR program, the Small Business Innovation Research grant is operated by the Small Business Administration and seeks to improve research and development for emerging technology among small businesses. Specifically, the SBIR aims to foster technology transfer through cooperative research and development between small businesses and research institutions.

4. Rural Business Development Grants

The United States Department of Agriculture operates the Rural Business Development Grant, which awards money to businesses that seek to develop operations in rural areas. The purpose of the grants is to provide technical assistance and training for small rural businesses. Multiple programs are made available, including Technical Assistance for Passenger Rural Transportation (RT) and the Rural Business Development Grant (RBDG).

5. Economic Development Administration Build to Scale Program

The U.S. Economic Development Association’s Build to Scale Program offers growing tech firms funding to help develop and grow their business. The program, operated by the EDA’s Office of Innovation and Entrepreneurship, is focused on next-generation technologies.

In fiscal year 2024, the B2S Program anticipated that it would  award 40 to 50 grants totaling $50 million, with individual grants ranging from under $500,000 to $5 million. In 2023, the program gave out a total of $53 million across 60 organizations. The money is distributed to startups operating in regions needing technological growth and helping to grow tech companies in areas with less equity funding available.

Regional and state small business grants

You may also be able to secure grants from regional or state government agencies. Funding opportunities will vary by location, but here are a few examples of where you might find local and state small business grants.

6. Small Business Development Centers

With chapters around the country, SBDCs are designed to help small businesses succeed by offering counseling, education, and other resources. You can reach out to your local SBDC and ask if they’re aware of any potential funding opportunities in your area.

7. City and county programs

Depending on where you live, your city or county may offer financing for home-grown small businesses. For example, Miami-Dade County’s Mom and Pop Small Business Grant helps growing businesses cover the costs of equipment, marketing, insurance, renovations and more.

8. Small Business Association’s  State Trade Expansion Program

The Small Business Association operates a development opportunity known as the State Trade Expansion Program or STEP. The program provides financial awards to states and local governments to help small businesses with export development. More than $200 million has been awarded since STEP’s founding, and the program has helped small businesses across the country learn how to export their products, participate in foreign trade missions, equip their e-commerce operation for global sales, and more.

Private small business grants

Separate from government-sponsored business financing, some private companies also offer their own grants – both for marketing purposes and as a form of charitable giving. These are some of the most popular private small business grants.

9. Pathway to Opportunity Pitch Competition

Pathway to Opportunity is offering grants up to $5,000 for small businesses who are owned, operated and controlled by U.S. entrepreneurs and want to sell products or services to corporations. A corporate procurement community judge panel will select 30 businesses to advance to the second phase. Those who move onto phase two can participate in live finals for a chance to win up to $5,000.

10. National Association for the Self-Employed Growth Grants

NASE is a member organization that educates self-employed people about key business concepts, such as marketing, accounting and business strategy. As part of this mission, the group offers grants of up to $4,000 to help its members advance their businesses.

11. Bizee’s Entrepreneur Grant

Bizee, powered by Incfile, an online service for legal document preparation and filing, offers an Entrepreneur Grant targeted toward students and young people who are pursuing their education with a big idea in mind. Bizee gives out a $2,500 grant , which is intended to be put towards education expenses by the recipients.

12. Lenovo Evolve Small Business Fund

Ten small businesses can apply to win a $25,000 Evolve Small AI grant, a $10,000 AI technology package and access to mentorship programs.  The program has provided more than $3.6 million in awards to over 5,000 businesses across the country since 2021.

13. The Chamber of Commerce Small Business Growth Fund

The U.S. Chamber of Commerce operates CO-100, formerly America’s Top Small Businesses that sets out to honor the achievements of small businesses across the country and provide funding to further their growth.

 The top prize is a $25,000 grant. Other honorees will receive $2,000. 

15. Patagonia Corporate Grant Program

Patagonia offers businesses that help to address climate change and improve the environment access to the Patagonia Grant Program designed to expand impact and encourage growth and change. The company offers a number of programs which it awards throughout the year. Grants range from between $5,000 and $20,000.

16. National Black MBA Association Scale-Up Pitch Challenge

The National Black MBA Association offers the Scale Up Pitch Challenge, a grant that seeks to support wealth-building opportunities for its members. Since 2017, the organization has offered the grant to startups looking to grow their operation. The organization offers four awards ranging from $1,000 to $50,000 to competing businesses and helps organizations connect with potential investors.

17. Amber Grant

The Amber Grant, operated by WomensNet since 1998, awards grants to women-owned businesses across a number of different categories to help support their operations. The organization gives out at least $30,000 every month, plus three  $25,000 year-end grants. The grants are awards for marketing, business operations, and a number of other purposes.

18. Venmo Small Business Grant

The Venmo Small Business Grant is a new grant that began in 2022. It awards a $20,000  grant, mentorship and promotion on Venmo social channels to 10  small business owners.

19. Merchant Maverick Opportunity Grants

Merchant Maverick Opportunity Grants are designed to help small businesses with issues obtaining traditional business funding. Merchant Maverick aims to create positive change for small businesses by providing education and support in every area that affects small business owners. In the past, grants have gone to Black female business owners, AAPI restaurant owners, Indigenous business owners and Portland-area startups. Grant money can be used for the following:

• Business space rent, utilities or renovation
• Payroll
• Repayment of business loans or taxes
• Business equipment
• Business marketing
• Business travel expenses
• Utilities
• Office supplies
• Marketing and advertising expenses
• Subscriptions for business software
• Business space renovations

Business grants for underserved communities

While there are lots of opportunities for businesses to receive funding, underserved communities like women-owned and minority-owned businesses consistently face more difficulties trying to access capital.

According to the Small Business Credit Survey by the Federal Reserve Banks, minority-owned businesses were significantly more likely to report challenges accessing capital. Likewise, those businesses were more likely to have to scale down operations as a result.

Several groups and underserved communities have challenges accessing capital but can gain access to grants designed specifically to serve them, including:

How to apply for a business grant

While each grant is different, many of them have similar application processes. Here’s what to expect when you apply for a small business grant.

1. Before submitting any grant applications, think about what sets your company apart. Many grant programs are extremely competitive, so you’ll need to provide a compelling explanation for why your business deserves funding.
2. If you’re applying for a federal grant, sign up with SAM.gov. Keep in mind that it can take up to 10 days to receive your UEI, so you’ll want to sign up at least a few weeks before any grant application deadlines.
3. Once you have your UEI, register your organization with Grants.gov (again, if you’re applying for a federal grant). At this point, you can also create roles for other people within your business who will be helping with the grant application.
4. Fill out your application. Depending on the grant, you may be required to submit a business plan, company history, revenue information, tax returns and W-9 forms. You might also need to share specific details about why you’re applying for the grant and how you plan to use the funds.
5. Wait to hear back. Some grants accept applications on a rolling basis, while others have strict deadlines. In either case, the closing date should be listed on the application.

Resources for small businesses

Locating small business grants may be a top priority for business owners, but tapping into various resources such as mentorship, workshops and training is also beneficial.

SCORE

Backed by the SBA, SCORE is a nonprofit organization that guides entrepreneurs and small business owners through expert mentoring, workshops, webinars and other educational resources.

Small Business Development Centers

Small Business Development Centers (SBDCs) are valuable resources for entrepreneurs. These federally funded local centers offer free resources and services to new and established small businesses. Services include consulting and training to help small businesses grow, succeed and overcome challenges.

Chamber of Commerce

The Chamber of Commerce offers small businesses networking opportunities, advocacy and resources to encourage growth and expansion and connect with their communities.

Business grants alternatives

Securing a small business grant can be tricky. Since grants don’t need to be repaid, most are wildly competitive. Others have strict eligibility requirements, making it difficult to find one that’s a good match for your business.

As an alternative to grants, you can look into other financing options. On the positive side, these funding types are usually faster and easier to get than grants, but they will require you to take on debt.

• Small business loans. Allows startups and established businesses to secure capital for operational costs, inventory or equipment purchases and more. The principal plus interest is repaid over a set period.
• Business credit cards. Businesses get access to a revolving credit line that can be used to cover a variety of business expenses. Unlike a small business loan, interest is paid on the funds used rather than the whole amount.
• Business lines of credit. Similar to a business credit card, business lines of credit provide a credit line up to a certain limit that can be used to cover business expenses.
• SBA microloans. This loan can be used to cover business expenses under $50,000. They often require collateral and/or a personal guarantee, and interest rates fall between 8 percent and 13 percent.
• Peer-to-peer lending. Allows businesses to secure funding from individuals or companies that lend money directly to them through an online platform. Interest can be high with peer-to-peer lending, but it’s a great alternative when traditional financing isn’t an option.
• Crowdfunding. Lets you raise money for your business from friends, family, business acquaintances and even strangers. In exchange, you might offer equity or a reward (like company merchandise, exclusive products, or discounts).

Eligibility Criteria for Federal Funding

If your goal is to pursue federal grant funding, the first step is to figure out whether you’re eligible for the grants you’re targeting. Each grant has its own unique eligibility requirements, often established by legislation or the policies of the particular federal agency offering the grant. You can typically find grant eligibility criteria outlined in the grant’s synopsis. Before investing a great deal of time in an application, closely review the eligibility criteria to confirm that it aligns with your business type and credentials. If you have questions about eligibility criteria, it may also be possible to reach out to the federal agency offering the grant to obtain more information.

Grant Writing Tips and Resources

Like any professional document, it’s important to take the time to put together a polished grant application. It’s a good idea to find someone who can proofread a draft of the application before you submit it. Ask your proofreader to consider your application’s overall flow along with helping to improve grammar, punctuation and helping to assess whether your draft meets the grant’s eligibility criteria. Following the grant’s application instructions and guidelines closely is also important, as is keeping the writing clear and concise. There are many resources online designed to help with the grant-writing process, including grant-writing tips from such federal agencies as the U.S. Department of Health and Human Services and the National Institutes of Health.

Industry-Specific and Diversity Grants

It’s not unusual for grants to be designed for a specific target demographic, industry or business-type. For instance, there are grants targeting minority-owned businesses, veteran-owned businesses, rural businesses and more. Identifying grants targeting your particular business type or demographic can be a helpful step, opening up more grant possibilities. In addition, grants designed for a specific industry or demographic may have an easier application process.

Common Reasons for Grant Application Rejection

Don’t be discouraged if your grant application is rejected. There are many reasons why this might happen, including that the grant is highly competitive or that there’s a very limited pool of funds. A grant may also be rejected if the application does not meet eligibility requirements, is incomplete or is not compelling enough. Knowing what the potential reasons for rejection are in advance can help you to avoid them.

Grant Application Timeline and Planning

The grant application timeline can often be lengthy. In some cases, it may extend over several weeks, particularly if there are several steps in the application process. When submitting a grant application, it’s important to get started well in advance of the deadline so that you have plenty of time to prepare a quality submission. Managing your time wisely and staying on top of all deadlines along the way is also critical. Time management and project management skills are essential if you considering submitting a grant application.

Bottom line

It can be challenging for small businesses to secure capital. Many may consider financing, but this a risky option because it requires businesses to take on debt. But with federal, state, local or private small business grants, businesses can access non-repayable capital, making it one of the most low-risk, affordable ways to fund a business.

Frequently asked questions about business grants