If you run a small venture, small business grants are one of the best opportunities you can take advantage of. It’s a sum of money that you receive from a donor to achieve your business goal. Federal and state governments are two of the biggest donors of small business grants, but other lenders also offer small business grant opportunities.
The biggest benefit of a grant is that it’s not a loan. That means there is no obligation for you to repay the amount you received. You can use the funds you receive to grow your business, for marketing, or to expand your services and products.
Of course, these positive factors also make receiving business grants highly competitive. After all, what business doesn’t want free money? Today, let’s take a closer look at business grants and where they come from.
Top Federal Small Business Grants
The federal government doesn’t directly give out grants to small businesses. Instead, it releases funds through agencies like the Small Business Administration (SBA) or distributes them to nonprofit and research organizations. Small businesses can then receive support from these sources through the programs they offer.
U.S. Small Business Administration Grants
Below are some of the most common small business grant opportunities you can obtain from the SBA:
Research & Development Grants (SBIR, STTR programs)
SBIR stands for “Small Business Innovation Research,” while STTR refers to Small Business Technology Transfer. These are seed funding grants primarily meant for businesses working in science and technology. There are several government agencies through which the SBIR/STTR offers help. Funding comes in two phases. Phase I allows up to $314,363. Phase II allows for up to $2,095,748.
Manufacturing Grants Under Made in America Manufacturing Initiative
Launched in the Spring of 2025, the Manufacturing in America Grant initiative offers up to $1.1 million split among three awardees. This program is mainly aimed at applicants who can offer training and assistance to support small manufacturers.
Grants for Veteran-Owned Businesses and Community Organizations
The SBA offers a number of grants to organizations that help veterans. Thus, if your operation supports veteran welfare, consider looking into the following programs:
- Boots to Business (B2B)
- Service-Disabled Veteran Entrepreneurship Training Program (SDVETP)
- Veterans Business Outreach Centers (VBOC)
- Veterans Federal Procurement Entrepreneur Training Program (VFPETP)
- Women Veteran Entrepreneurship Training Program (WVETP)
Exporting Grants via State Trade Expansion Program (STEP)
The SBA also helps thousands of small businesses under the STEP program. This initiative focuses on businesses interested in exporting and expanding internationally. STEP can cover costs related to participating in trade shows abroad, foreign trade missions, and funding training workshops for your education.
Women-Owned Small Business Federal Contract Program
This is a program for businesses that are majority owned and controlled by women whose business falls under the small business category according to SBA criteria. A subcategory exists within this program for economically disadvantaged women with additional criteria, such as their personal net worth being under $850,000.
While the program doesn’t offer direct funding or grants, it does offer these businesses the opportunity to compete for and win federal government contracts set aside for women-owned small businesses.
US Department of Commerce Minority Business Development Agency
The Minority Business Development Agency (MBDA) offers options like the Capital Readiness Program. This initiative has a budget of $125 million and is meant to support minority entrepreneurs via capacity building, access to capital, and networking opportunities.
US Department of Energy Clean Energy Grants
The Department of Energy is one more agency that offers grants under the SBIR/STTR programs mentioned earlier. It also offers ARPA-E programs (Advanced Research Projects Agency-Energy). These are not often pursued by the private sector, but they exist to support short-term and transformative R&D projects.
State and Local Grant Opportunities
Each state has its own small business grant opportunities and programs that you can also apply for. For instance, New York has programs like the Global NY Fund Grant. Florida has the Florida High Tech Corridor Matching Grants. Illinois has the Advantage Illinois initiative, and Michigan has its Small Business Restart Program. Look into programs your state may offer.
Eligibility for these grants is often tied to factors like the impact your business has on the local community, the industry you are in, and innovativeness.
Industry-Specific and Demographic-Focused Grants
Grants often target specific groups and sectors. Some of these grants are based on the industry you may operate in, while others are based on your background. When searching for grants, you’ll have an easier time with approval if you can find grants that match your industry (for example, agriculture) or your demographic (for example, veteran-owned).
Eligibility for many grants is industry-specific. So, the WOSB grant naturally can’t be claimed by male entrepreneurs. The same goes for the Service-Disabled Veteran-Owned Small Business (SDVOSB) and NGLCC’s Community Impact Grant Program for LGBTQ-owned businesses.
Grants for Larger Businesses
The majority of grants tend to be focused on small businesses. However, occasionally, you might see some funding for large companies as well. For instance, the CHIPS and Science Act has provided funding to corporations like Intel, Micron, and TSMC (Taiwan Semiconductor Manufacturing Company). Besides these two acts, the previously mentioned SBIR/STTR grants are also available for larger corporations.
Grant Application Tips for Small Businesses
If you can get approved, small business grants can be exactly the kind of stimulus your business needs to grow. Considering how many grants are targeted toward community impact, it may be worth at least partially orienting your operations to offer some public service. If you’re just in it for profit, you may not be prioritized over some of your more philanthropic rivals.
Applying for small business grant opportunities is no different than applying for any other funding. Here are a few things to keep in mind
Understand Eligibility and Criteria
Regardless of which small business grant opportunities you apply for, make sure you read all the requirements. Remember, competition is high, and even one mistake can cause a failure in approval.
Have a Strong Business Plan
With grants, the donor doesn’t expect repayment. However, they want to ensure that the funds are being put to good use. Thus, ensure your vision and business plan are concrete and convincing.
Be Aware of Deadlines and Requirements
Federal grants like those from the SBA, National Science Foundation (NSF), and Department of Education (DOE) open once or twice a year. Missing the deadline might mean waiting six to twelve months for your next opportunity. Thus, set reminders and send in your application well in advance.
Seek Mentorship and Technical Assistance
The entire application process can be quite overwhelming and exhausting for small businesses. Thankfully, there are great organizations like SCORE (Service Corps of Retired Executives) that can help you prepare and even review your grant proposals. Likewise, lenders and consultants like Fast Business Financial can also guide you on what steps to take.
Frequently Asked Questions
What types of small business grants are available in the USA?
Grants for small businesses are offered by the federal, state, and local governments and tend to be industry or demographic-focused. A good place to start would be the grant section of the official SBA website.
Who qualifies for these small business grants?
There is no one set of eligibility criteria. Each grant has its own set of requirements. That said, for small business grant opportunities, you are likely to see some common requirements. For example, the business should have fewer than 500 employees and be registered in the U.S., etc.
Do small business grants have to be repaid?
No. Grants are not loans, and hence, there is no obligation for repayment. That said, some grants might have a condition that fund usage is reported. Likewise, some grants may only be provided for specific use cases.
Where can I find federal small business grants?
You can visit websites like SAM.gov, which is the system for award management. It allows you to register to apply for federal grants. Likewise, many of the grants on the SBA and SBIR program websites are federally funded.
How competitive are small business grants, and how can I improve my chances?
This is one of the downsides of small business grant opportunities. They are almost always in high demand and hence very competitive. It’s common for some businesses to apply several times before being approved.
Small Business Grants Are Worth the Effort
While applying for grants can be exhausting due to how competitive they are to win, they do have transformative power. The fact is that grant funding with little or no strings attached gives your small business a better chance of achieving its mission.
Apply for Funding Today
As a financing provider, we at Fast Business Financial understand that winning grants is not easy. Sometimes, the best funding alternative to a grant is a loan with great terms. We offer short-term business loans, term loans, and more. Our simple application process makes finding the right loan easier than you imagine.