Starting a business can be daunting, especially when it comes to securing the necessary funding. Small-business grants offer entrepreneurs a valuable opportunity to obtain free money, aiding both startups and existing businesses in need of assistance. Whether it’s recovering from the devastating impact of the coronavirus pandemic or navigating other hardships, these grants serve as a lifeline for many business owners. To kickstart your journey, we provide an overview of various federal, state, and private small-business grants and resources that could be a perfect fit for your venture.
Applying for funding and researching suitable small-business grants can be both time-consuming and challenging. However, the reward of obtaining a financial boost for your business can significantly outweigh the efforts put in. To simplify the process for you, we offer guidance on eligibility requirements, application processes, and other essential information to help you secure the financial support you need.
Key Takeaways
- Various federal, state, and private small-business grants are available to aid both startups and existing businesses.
- Identifying and applying for appropriate funding requires understanding eligibility requirements and application processes.
- Securing a small-business grant can provide the necessary financial support to grow your business or overcome hardships.
Federal Small-Business Grants
Grants.gov Database
The Grants.gov database offers a wide range of federal grants for small business owners facilitated by several federal agencies like the Department of Education and the Department of Veterans Affairs.
SBIR and STTR Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs emphasize research and development in the field of technology and scientific research. Through these programs, small businesses can connect with federal grants and contracts from 12 government agencies. To be eligible, businesses must be for-profit, have a maximum of 500 employees, and fulfil other criteria.
USDA Rural Business Growth Grants
Administered by the U.S. Department of Agriculture (USDA), the Rural Business Development Grant program aims to strengthen and expand small businesses in rural communities. To qualify, businesses must have under 50 new employees, less than $1 million in gross revenue, and be situated in an eligible rural area. Applications are accepted annually through local or state USDA Rural Development offices.
PRIME: Support for Microentrepreneurs
While the Small Business Administration (SBA) doesn’t usually provide grants directly to small businesses, the Program for Investors in Microentrepreneurs (PRIME) allocates federal grants to microenterprise development organizations. These organizations then assist disadvantaged microentrepreneurs. Examples of such organizations include the Washington Area Community Investment Fund and PeopleFund, which received funding in 2023. These organizations can be private nonprofits, or operated by state, local, or tribal governments.
State and Regional Grants for Small Businesses
Economic Development Administration
The Economic Development Administration (EDA) offers business grants, resources, and technical assistance to communities in order to support economic growth, entrepreneurship, and innovation. Each state’s EDA helps small businesses find funding, such as state or regional grants, secure locations, and hire employees. You can use the economic development directory to locate regional offices and access local resources.
Small Business Development Centers
Local Small Business Development Centers (SBDCs) offer resources and support to small businesses and entrepreneurs. They are often affiliated with local universities or a state’s economic development agency. SBDCs can connect businesses to small-business grants and other funding opportunities, as well as counseling, training, and technical assistance.
Minority Business Development Agency Centers
The Minority Business Development Agency (MBDA) operates a national network of business centers focused on supporting and promoting minority-owned small businesses. These centers help business owners access capital, secure contracts, and compete in emerging markets. Local MBDA centers can assist in applying for debt-based financing and federal, state, and local business grants. The agency usually holds an annual small-business grant competition and provides updates on its website.
State Trade Expansion Program
The State Trade Expansion Program (STEP) is funded by the SBA, which provides grants to state governments. The program aims to help small businesses cover costs associated with starting or expanding into international markets. Funding amounts and eligibility criteria may vary based on the specific state, but capital can be used for activities such as participating in export trade shows, designing international marketing products, and supporting website globalization.
Some notable state and regional grant opportunities include:
- California: Employability Business Grant, Restaurants Care Resilience Fund, Founders First Job Creators Quest Grant, San Francisco Business Training Grant, and Immigrants Rising SEED Grant.
- Florida: Florida High Tech Corridor Research Grants, Prospera Business Grants, City of Orlando Business Assistance Program, North Miami Legacy Business Grant, and Enterprise Florida Trade Grants.
- New York: Global NY Fund Grant Program: This program offers grants of up to $25,000 to small businesses looking to enter or expand into global markets.
Remember to research your state and local government resources for specific grant opportunities tailored to your business needs.
Corporate Small-Business Grants
This section covers various small-business grants provided by corporations and large organizations to support the growth and development of smaller businesses.
NASE Growth Grants
The National Association for the Self-Employed offers monthly grants of up to $4,000 for its members. They also provide an annual $3,000 college scholarship for dependent children of members. Grant applications are reviewed quarterly, in January, April, July, and October.
Verizon Digital Ready Grants
Through the Digital Ready program, Verizon offers $10,000 grants to eligible small businesses alongside free educational courses and materials. Registered entrepreneurs must participate in at least two courses, live coaching, or community events before applying. In 2023, Verizon is giving a total of $500,000 in grant awards. Applications are open from October 12 to December 20, 2023.
Small Business Expansion Fund
The Small Business Expansion Fund is a partnership program between Global Entrepreneur Fund and Hello Alice, funded by Etsy and Progressive. They award annual grants, ranging from $5,000 to $25,000, to for-profit businesses in the US with less than $1 million gross revenue in 2022. The current application window is September 18 to October 27, 2023, with winners being announced in November.
FedEx Grant Contest for Small Businesses
The FedEx Small Business Grant Contest awards more than $300,000 to ten small businesses each year. The grand prize includes a $30,000 grant and $1,000 worth of FedEx print credits. US-based, for-profit businesses with fewer than 99 employees and an active FedEx shipping number are eligible to apply. The next contest cycle begins in early 2024.
Venmo Business Grants
The Venmo Small Business Grant program provides $10,000 grants to 20 eligible businesses, along with promotional support and mentorship from industry leaders. Eligible businesses must be US-based, have less than $50,000 in annual sales, and have ten or fewer employees. Applications for the 2023 cycle closed in August, with winners announced in October.
Amazon Business Grants
The Amazon Small Business Grant program offers grants to 15 small businesses with Amazon Business accounts and less than $1 million in annual revenue. Grant awards range from $15,000 to $25,000. Recipients also receive a one-year Business Prime membership and free products from eero Wifi and Kindle Scribe. The 2023 grant recipients were announced in July.
Top US Chamber of Commerce Business Awards
The US Chamber of Commerce Top Small Business Awards recognizes small businesses that contribute significantly to the economy, offering a $25,000 grant for the winner. Additional category awards are also given, such as emerging business and green/sustainable business. Businesses must be in operation for at least one year to qualify. Applications for the 2023 cycle closed on July 21, with finalists announced on October 4.
Visa’s Global Initiative Grants
The Visa Everywhere Initiative is a global competition providing funding to innovative tech startups using Visa’s products creatively. The overall winner receives a $50,000 grant, with additional prizes for finalists and regional winners. The North America region applications closed on June 26, 2023, followed by the global finals on September 19 at TechCrunch Disrupt.
Lenovo Evolve Grants for Small Businesses
The Lenovo Evolve Small Business Grant offers support to small businesses in the US and Canada through grants and technology donations. This year, 30 small businesses received $10,000 in funding, a Lenovo laptop, and business support. The winners of the 2023 cycle have been announced.
Grants to Begin a Business
Incfile’s New Business Assistance Grant
The Incfile Fresh Start Business Grant offers $2,500 to help entrepreneurs cover startup costs. Winning applicants also receive free incorporation services in their state, complimentary registered agent services for one year, and a no-cost tax consultation from Incfile. To be eligible, one must plan to start or expand an existing business. Incfile additionally provides a Young Entrepreneur Grant for students eager to start their own companies, with the next cycle set to take place in 2024.
Hello Alice Grant Opportunities
Hello Alice grant platform collaborates with numerous organizations, such as Progressive and DoorDash, to provide various grants for small businesses, including startups. By creating an account, users receive notifications regarding new opportunities and can apply for grants relevant to their business ventures.
Grants for Female Entrepreneurs
Amber Grant for women is provided by WomensNet, which offers monthly $10,000 grants and awards two $25,000 grants annually. The foundation also distributes extra funding throughout the year. With a single application, startups and existing women-owned businesses can qualify for any of the grants provided by WomensNet.
SubSummit Startup Contest
The SubSummit Pitch Competition is designed for subscription-based businesses less than two years old. Winners of this annual contest receive a $10,000 small-business grant and $40,000 in business services. Entrants submit a brief video describing their business, the inspiration behind their brand, and how they might use the grant funds (optional). Semi-finalists participate in a virtual competition and finalists vie for the grand prize at a live event. The 2023 cycle for this competition concluded in May.
Supporting Small Businesses in Times of Hardship
Local and State Grants for Small-Business Recovery
Governments at both state and local levels often provide small-business hardship grants. These programs offer financial relief and assistance, including emergency business loans, particularly during crises like the COVID-19 pandemic. Additionally, ongoing grant programs may be available to aid businesses suffering damages from events such as fires, floods, and hurricanes.
Support Fund for Etsy Sellers in Emergencies
For eligible Etsy sellers affected by natural disasters, the e-commerce platform collaborates with the nonprofit organization, CERF+, to offer financial aid. To qualify, the applicant must have an active Etsy seller account in good standing for a minimum of one year and have experienced a federally declared natural disaster within the past year. Etsy Emergency Relief grants amount to $2,500, with applications accepted on a rolling basis, and funds issued quarterly.
DoorDash Fund for Disaster-Affected Restaurants
Brick-and-mortar restaurants experiencing trouble due to natural disasters can look into the DoorDash Restaurant Disaster Relief Fund. This program provides $10,000 business grants to restaurants with three or fewer locations, less than 50 employees, and under $3 million in annual revenue per location. The restaurant must also have been operational for a minimum of six months. Applications must be submitted within a year of the declared disaster, with recipients notified within 30 days following the application period’s closure. The current application cycle is open until December 31, 2023.
Readiness for Resiliency Program for Small Businesses
A two-tier initiative, the Small Business Readiness for Resiliency (R4R) Program, helps businesses prepare for and recover from unforeseen disasters. Participants must fulfill an emergency action plan detailed on a preparedness checklist and register in the R4R database to be eligible for grant application when disaster strikes. Emergency relief funds of $5,000 are provided, and businesses must demonstrate incurred disaster-related damages or losses of equal or greater value. Furthermore, to qualify, a business must have fewer than 500 employees amongst other requirements.
Specialty Small-Business Grants
Focused on supporting diverse communities, numerous organizations provide funding for specific groups, such as veterans, nonprofit organizations, veteran-owned businesses, entities seeking National Institute of Health (NIH) grants, and initiatives like iFundWomen.
Alternatives to Small-Business Grants
Small-Business Loans
If your business does not qualify for grants, small-business loans offer various options for funding your venture. These can include bank loans, SBA loans, business lines of credit, term loans, and equipment financing. Compare these choices and determine the best financing solution for your specific needs.
Business Credit Cards
Small-business credit cards present another alternative for financing day-to-day operations and earning rewards simultaneously. Research and compare available card options to identify the one that best fits your business requirements.
Crowdfunding for Business
Crowdfunding campaigns utilize the power of the internet, allowing you to raise funds for your small business by promoting your product or service to a wide audience. This method can be a viable alternative to grants or loans, depending on your business model.
Frequently Asked Questions
Where can I find small-business grants?
Locate small-business grants through government agencies, state organizations, and private corporations. Start your search by checking the government database Grants.gov, your local Small Business Development Center, and nonprofits such as the Local Initiatives Support Corp.
What are the qualifications for business grants?
Eligibility for business grants varies based on the awarding organization. Some organizations prioritize businesses in rural or low-income locations or those operated by women or minority groups. Be sure to thoroughly review a grant’s eligibility criteria to understand if your business qualifies.
Does the Small Business Administration offer grants directly to small businesses?
Typically, the Small Business Administration (SBA) does not provide grants directly to small businesses. Instead, they issue grant funding to state, local, and tribal governments as well as nonprofit organizations that support small-business initiatives. SBA loans serve as an alternative option for those seeking funding without access to SBA grants.
Frequently Asked Questions
How do I apply for small business grants?
The application process for small business grants generally involves finding the right grant opportunity, ensuring your business meets the eligibility criteria, preparing a comprehensive and convincing grant application, and submitting the application before the deadline. Each grant has its specific application process, so it is essential to follow the instructions and guidelines provided by the grant-issuing organization.
Where can I find grants tailored for my state or industry?
To find grants specific to your state or industry, you can explore the grants.gov website. Additionally, you can check CFDA.gov for opportunities, and visit your state or local government websites for any available grants relevant to your location or sector.
What are the eligibility criteria for SBA grants?
It’s important to note that the Small Business Administration (SBA) doesn’t typically provide grants to start or expand a business. However, the SBA offers grants to non-profit, resource partners, and educational organizations that support entrepreneurship through counseling and training programs. Those interested in receiving an SBA grant should visit the SBA grants page for information on available opportunities and eligibility requirements.
Which resources can help me with grant applications?
Various resources are available to assist you with the grant application process. Organizations like Small Business Development Centers (SBDCs) and the Service Corps of Retired Executives (SCORE) offer free counseling and training services, including guidance on grant applications. Additionally, you can find online tutorials, webinars, and articles related to grant writing and grant application best practices.
What factors increase my chances of winning a grant?
To improve your chances of being awarded a grant, make sure your business meets the eligibility criteria, and thoroughly research the specific priorities and requirements of the grant opportunity. Ensure that your application is well-written, comprehensive, and convincingly demonstrates how your business aligns with the grant’s goals. Providing detailed plans, accurate budgets, and highlighting your business’s potential impact on the community can also improve your odds of success.
