Small business grants come from federal agencies, state and local governments, corporations, and private foundations. Unlike loans, grants don’t need to be repaid, which makes them highly competitive. The tradeoff is that most grants target specific types of businesses, industries, or owners, so finding the right fit matters more than casting a wide net.
Federal Grants Through the SBA
The U.S. Small Business Administration does not provide grants for starting or expanding a typical business. This surprises many people, but it’s worth knowing upfront so you don’t waste time searching in the wrong place. What the SBA does fund are grants to nonprofits, educational organizations, and resource partners that support entrepreneurs through counseling and training.
The two major exceptions are the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Both are designed for small businesses engaged in scientific research and development. If your company is developing technology or conducting R&D that aligns with federal research objectives, these programs offer grant funding in phases. Phase I awards typically fund feasibility studies, while Phase II supports full development. Eleven federal agencies participate in SBIR, including the Department of Defense, the National Institutes of Health, and the National Science Foundation, so the range of eligible research topics is broad.
The SBA also provides grants through its Made in America Manufacturing Initiative, which funds training and workforce development for small manufacturers. And its State Trade Expansion Program (STEP) helps businesses that want to sell products overseas, though STEP awards go to state and territory governments, which then distribute the funds to qualifying businesses.
How to Search Grants.gov
Grants.gov is the central hub for all federal grant opportunities. You can search by keyword, agency, or eligibility category (including “small business”). Every legitimate federal grant requires an application submitted through a government website like Grants.gov. There is never a fee to apply. If someone contacts you claiming you’ve won a federal grant you didn’t apply for, or asks you to pay a processing fee, that’s a scam.
Federal grant applications typically require detailed project proposals, budgets, organizational information, and sometimes financial statements. The process can be lengthy. Many programs have annual application cycles with firm deadlines, so check listings regularly. Creating an account on Grants.gov and setting up email alerts for relevant categories saves time.
Corporate and Foundation Grants
Private companies and foundations offer some of the most accessible grant programs for small businesses, especially those that don’t qualify for federal R&D funding. Award amounts range from a few hundred dollars to six figures, and eligibility requirements are generally simpler than federal programs. Here are several recurring programs worth knowing about:
- Amber Grant Foundation: Awards $10,000 monthly grants and three $25,000 annual grants. The foundation also offers 12 business category grants of $10,000 each month, giving applicants multiple chances throughout the year.
- Intuit QuickBooks x Mailchimp Small Business Hero Program: Awards $20,000 grants to three winners each quarter.
- Jobber Grants: An annual program awarding $10,000 to $100,000 to home service and blue-collar businesses.
- Famous Amos Ingredients for Success Entrepreneurs Initiative: Awards $50,000 each to three Black-owned startups annually.
- The Freed Fellowship Grant: A monthly $500 grant for U.S.-based small business owners, with recipients also eligible for a $2,500 end-of-year award.
- Awesome Foundation: Awards $1,000 grants monthly to individuals and groups working on creative or community-oriented projects.
- Etsy Emergency Relief Fund: Provides up to $2,500 on a rolling basis through a partnership with CERF+, aimed at creative businesses facing emergencies.
Some corporate programs offer non-cash support instead of, or in addition to, direct funding. Spectrum Reach’s Pay It Forward program, for example, provides complimentary TV and streaming advertising along with mentoring. The 500 Global Flagship Accelerator pairs a $150,000 investment with a four-month program, though that’s structured as an investment rather than a pure grant.
Application windows vary. Some accept applications year-round on a rolling basis, while others open once a year. Bookmark the ones that fit your business and check back for deadlines.
State and Local Government Grants
Every state has an economic development agency that manages grant programs for businesses within its borders. These agencies go by different names (department of commerce, economic development authority, business development office), but they all serve a similar function: distributing state and sometimes federal pass-through funds to local businesses.
State grant programs often target specific goals like job creation in underserved areas, workforce training, technology adoption, or disaster recovery. Award amounts and eligibility requirements vary widely. To find your state’s programs, search for your state’s economic development agency website and look for a grants or funding page. Many states maintain a centralized listing of active programs with deadlines and application instructions.
At the local level, Small Business Development Centers (SBDCs) are one of the best free resources available. There are roughly 1,000 SBDCs across the country, often housed at universities or community colleges. They provide confidential business guidance, help with securing capital, and can point you toward grant opportunities specific to your region and industry. Cities and counties sometimes run their own micro-grant programs as well, particularly for businesses in downtown revitalization zones or those owned by underrepresented groups.
Grants for Specific Groups
Many grant programs focus on business owners from specific demographics or communities. Veterans, women, minorities, and people with disabilities are among the most commonly targeted groups. The SBA funds community organizations that support veteran-owned and service-disabled veteran-owned businesses, and those organizations sometimes administer their own grant programs.
Women-focused grants are particularly common in the private sector. The Amber Grant Foundation, for instance, was originally created specifically for women entrepreneurs. Minority-focused programs like the Famous Amos initiative target Black-owned startups. LGBTQ+ business owners, immigrants, and rural entrepreneurs also have dedicated grant programs run by various nonprofits and corporate sponsors.
Searching grant databases by demographic category can surface opportunities you wouldn’t find through a general search. Sites like the U.S. Chamber of Commerce’s CO— platform maintain directories of over 100 grants and programs organized by business type and owner demographics.
What You Need to Apply
Grant applications vary in complexity, but most ask for some combination of the following: a description of your business, how you plan to use the funds, financial information (revenue, expenses, sometimes tax returns), and proof that your business is registered and in good standing. Federal grants tend to require the most documentation, including detailed project narratives, budgets broken down by line item, and evidence of your capacity to execute the proposed work.
Corporate and foundation grants are usually simpler. Many use short online forms and ask for a brief essay about your business story or how the grant would make a difference. Some require a short video. Even so, take the application seriously. Reviewers are often reading hundreds or thousands of submissions, and a clear, specific explanation of what you’d do with the money stands out.
One practical tip: keep a “grant folder” with your business registration documents, EIN, financial statements, a short business description, and a headshot or logo ready to go. Many grant deadlines are tight, and having these materials prepared in advance lets you apply quickly when you spot a good fit.
How to Spot Grant Scams
Grant scams are common enough that Grants.gov maintains a dedicated warning page about them. The rules are straightforward. The federal government never contacts people to award grants they didn’t apply for. There is never a fee to apply for a federal grant. You cannot apply for federal grants over the phone or by email. And federal grants are not awarded through drawings or raffles.
Be skeptical of anyone claiming to represent a government grants bureau you’ve never heard of, even if caller ID shows a Washington, D.C. number (scammers can spoof those). Legitimate grants are awarded for specific programs, research, or projects. If someone promises you money that can be spent on anything, including personal debt or household items, that’s a clear red flag. When in doubt, go directly to the agency’s official website rather than clicking links in unsolicited emails or messages.