Funding your dream shouldn’t feel like an impossible dream. There’s a grant out there waiting for your vision.
What Grants Are Available For Small Business Owners?: Starting or growing a small business often requires capital—and while loans are an option, many business owners prefer grants because they don’t require repayment. Small business grants are an essential funding resource, especially for startups, minority-owned businesses, women entrepreneurs, and nonprofits. But with so many programs available, navigating the grant landscape can feel overwhelming.
This guide highlights the most accessible and valuable small business grants, backed by up-to-date data and insights from reliable sources.
Types Of Small Business Grants Available
Small business grants come from a variety of sources including government agencies, corporations, and nonprofit foundations. Each has unique eligibility requirements, funding purposes, and application processes.
1. Government Grants
Government grants remain one of the most popular sources of small business funding. In 2023, the U.S. Small Business Administration (SBA) and other federal agencies distributed over $30 billion in funding to entrepreneurs and small businesses.
Some popular government-backed grants include:
- SBIR (Small Business Innovation Research): Focuses on tech innovation.
- STTR (Small Business Technology Transfer): For research and development partnerships.
- State-level small business grants: Many states offer grants targeted at local startups or underserved communities.
Learn more about eligibility via Investopedia.
2. Private And Corporate Grants
Corporations increasingly support small businesses to promote innovation and social equity. Some notable options include:
- Freed Fellowship Grant: Monthly grants of $500 for BIPOC entrepreneurs (Nerdwallet).
- Nav’s Small Business Grant: Offers up to $10,000 to businesses that demonstrate resilience and community value.
- Hello Alice Grants: Partnering with major companies like DoorDash and Verizon to distribute business grants.
3. Nonprofit And International Grants
Platforms like FundsforNGOs aggregate grant opportunities globally, making it easier to find niche or mission-based funding.
How To Qualify And Apply For Small Business Grants?
Applying for a grant isn’t just about eligibility—it’s also about presentation and timing. Here are some proven tips to boost your chances:
- Be specific: Tailor your application to the grant’s mission.
- Have documentation ready: Financial statements, business plans, tax documents.
- Follow up: Many successful applicants are persistent.
According to Shopify, well-prepared applicants are 5x more likely to receive grant funding than those who submit incomplete or generic applications.
Also, Medium suggests that businesses that clearly articulate their social impact and market gap tend to get noticed more quickly.
Frequently Asked Questions (FAQs)
What Is A Small Business Grant?
It’s a non-repayable fund provided by governments, corporations, or nonprofits to support business growth or launch.
Who Can Apply For Small Business Grants?
Eligibility varies but often includes startups, minority-owned businesses, women entrepreneurs, and nonprofits.
Are Grants Better Than Loans?
Yes, because grants don’t require repayment—unlike loans which accrue interest and need regular repayments.
How Do I Find Grants For My Business?
Use platforms like FundsforNGOs or Shopify's guide to discover options.
What Are Some Easy Grants To Apply For?
Freed Fellowship, Nav’s Small Business Grant, and Hello Alice are known for simple applications and recurring funding rounds.
How Competitive Are Business Grants?
Highly competitive. On average, only 10% to 15% of applicants secure funding depending on the grant type.
Can I Use A Grant For Any Business Expense?
Usually yes, but some grants specify usage—for example, R&D, hiring, or technology upgrades.