Federal and state agencies, as well as private companies, offer small-business grants. Here's a list of resources.
Small-business grants provide free money for startups and existing businesses, including those impacted by the coronavirus pandemic.
It takes time and effort to research and applies for funding, but the payoff can be worth it if you secure a grant for your small business. To help you get started, here’s a list of federal, state, and private small-business grants and resources.
Federal small-business grants
Government agencies are among the biggest distributors of business grants, supporting a range of enterprises from environmental conservation to child care services. Applying may seem intimidating, but federal grants are great opportunities for small-business owners looking to grow.
Grants.gov: Grants.gov is a comprehensive database of government small-business grants administered by various federal agencies, such as the Department of Education and Veterans Affairs.
Small Business Innovation Research and Small Business Technology Transfer programs: The SBIR and the STTR grant programs focus on research and development for technology innovation and scientific research. The programs help connect small businesses with federal grants and contracts from 11 government agencies.
To qualify, you must operate a for-profit business, have no more than 500 employees and meet other eligibility requirements.
USDA Rural Business Development Grants: The U.S. Department of Agriculture administers the Rural Business Development Grant program, which provides financing to strengthen and grow small businesses in rural communities.
Businesses must have fewer than 50 new employees, less than $1 million in gross revenue, and be located in an eligible rural area to qualify. Applications are accepted once per year through the USDA Rural Development’s local or state offices.
Program for Investors in Microentrepreneurs: The SBA doesn’t typically offer grants directly to small businesses. The Program for Investors in Microentrepreneurs, or PRIME, however, offers federal grants to microenterprise development organizations so that they can provide assistance to disadvantaged microentrepreneurs. These organizations, such as the Washington Area Community Investment Fund and the GROW Nebraska Foundation, both of which were awarded funding in 2022, can be private nonprofits or run by the state, local or tribal governments.
Economic Development Administration: This U.S. Department of Commerce agency provides grants, resources, and technical assistance for communities to support economic growth and encourage entrepreneurship and innovation.
Each state’s agency helps businesses find financing (including state or regional grants), secure locations, and recruit employees. You can search for the economic development director for regional offices and local resources.
Small Business Development Centers: Your local Small Business Development Center, or SBDC, provides support for small businesses and aspiring entrepreneurs. They’re often associated with local universities or a state’s economic development agency, and many can help connect you with small-business grants, as well as other business financing opportunities — plus, counseling, training, and technical assistance.
Minority Business Development Agency Centers: The MBDA runs a national network of business centers dedicated to growing and promoting minority-owned small businesses. These centers help business owners access capital, secure contracts, and compete in emerging markets.
Your local MBDA center can help you apply for debt-based financing as well as federal, state, and local business grants. The agency usually holds an annual small-business grant competition and provides updates on this contest on its website.
State Trade Expansion Program: The SBA funds state governments to implement the State Trade Expansion Program, or STEP, grant — which helps small businesses cover costs to start or expand into international markets. The available funding amounts and eligibility criteria of these government small-business grants vary based on your state, but capital can be used to participate in export trade shows, design international marketing products, support website globalization, and more.
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