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Small Business Grants: A Complete Guide to Funding

Starting or growing a business is exciting, but securing funding can be a major hurdle.

Small business grants can help you access capital without taking on debt—if you know where to find them and how to apply strategically. This guide walks you through what grants are, where to look, and how to submit a standout application.

What Is a Small Business Grant?

A small business grant is money awarded by a government, corporation, or private foundation to a business for a specific purpose—and unlike a loan, it generally does not need to be repaid. Entrepreneurs use grants to cover startup costs, equipment, R&D, marketing, hiring, or expansion projects.

Unlike loans (which hinge on credit and repayment capacity), grant awards are based on fit and merit—your business’s alignment with the funder’s goals, the strength of your plan, and the impact you can deliver. Grants typically come from three places: government agencies, corporations, and private foundations.

  • Government agencies: Federal, state, and local programs use grants to drive economic growth, innovation, and job creation.
  • Corporations: Many brands fund small businesses that advance innovation, community impact, or their supply chain priorities.
  • Private foundations: Mission-driven nonprofits support founders who align with specific causes (e.g., women, veterans, rural businesses).

Because grants are non-dilutive and don’t require repayment, competition is fierce. A clear vision, measurable outcomes, and a credible plan are your edge.

Where to Find Small Business Grants

Federal government grants

Start with the official federal portal, Grants.gov—a comprehensive database of programs from all U.S. federal agencies. While many listings target nonprofits or research institutions, there are opportunities for for-profit small businesses, especially in innovation and R&D.

Two leading federal programs for innovators are the SBIR/STTR programs, which engage 11 federal agencies and collectively award over $4 billion annually in non-dilutive funding for research and commercialization. If you’re developing new technology or products, review agency topics and past awardees to gauge fit.

The U.S. Small Business Administration (SBA) rarely offers direct grants to for-profit businesses, but it funds local partners and initiatives you can access. Explore SBA Resource Partners (SBDCs, SCORE, WBCs, VBOCs) for free advising and local grant leads.

State and local grants

Your best odds may be close to home. State and municipal economic development agencies often run grant and incentive programs tailored to local priorities (e.g., downtown revitalization, job creation, energy efficiency).

Use these trusted directories to find nearby programs and advisors:

  • USA.gov: State Business Resources – Links to your state’s business and economic development pages.
  • America’s SBDC: Find Your Center – Connect with local Small Business Development Centers for grant guidance and application support.
  • Your city or county economic development office – Search for “[Your City] economic development office” or “[Your County] business grants” to discover place-based programs.

These grants can be less competitive than federal awards and may be faster to access—especially if you can demonstrate local impact (e.g., hiring residents, renovating a vacant storefront, or reducing environmental footprint).

Corporate and private grants

Corporations and foundations run recurring grant contests and mission-aligned programs. Match your business to their priorities for the best shot.

  • FedEx Small Business Grant Contest – A well-known annual competition awarding cash grants and services to multiple winners.
  • Amber Grant for Women – Monthly grants for women-owned businesses, plus larger year-end awards.
  • NASE Growth Grants – Monthly microgrants for National Association for the Self-Employed members to fund specific needs.
  • Warrior Rising – Mentorship and potential grant opportunities for U.S. military veterans and immediate family members.
  • Hello Alice Grants Hub – A regularly updated listing of national and industry-specific grants.

Tip: Always verify deadlines and eligibility on the official program page, and beware of pay-to-apply “grant directories.” Legitimate programs do not require an application fee.

How to Craft a Strong Grant Application

1) Follow the instructions—every word

Most rejections happen because applicants miss basics: eligibility, word counts, required attachments, or naming conventions. Build a simple checklist from the RFP (request for proposals), and submit early enough to troubleshoot uploads or portal issues.

2) Tighten your business plan

Include a crisp mission statement, target customer profile, competitive advantage, go-to-market strategy, traction to date, and 12–24 month financial projections. Emphasize measurable outcomes the grant will unlock (e.g., “hire 2 technicians and increase production capacity by 40% within 9 months”).

Attach supporting documents the funder requests (and label them clearly):

  • Executive summary and business plan
  • Budget and cash flow forecast
  • Recent financials and tax returns (if applicable)
  • Ownership documentation and certifications (e.g., women-owned, veteran-owned)
  • Letters of support, MOUs, or customer testimonials

3) Tell a compelling, credible story

Numbers matter—but so does why. Explain the problem you solve, who benefits, and the community or industry impact. Use plain language, avoid jargon, and back claims with evidence (pilot results, revenue growth, waitlists, pre-orders, or partnerships).

4) Build a detailed, itemized budget

Show exactly how every dollar will be used and why it’s necessary. Example: “$2,000 for a targeted Meta and Google ad campaign to reach 100,000 local prospects; $3,000 for e-commerce site redesign to improve conversion rate by 1.5 points; $5,500 for CNC equipment upgrades to expand capacity by 30%.” Tie line items to outcomes and timelines.

5) Proofread—and get a second set of eyes

Typos and formatting issues can sink a great proposal. Step away for a day, read it aloud, and have a mentor or advisor (e.g., from your local SCORE chapter or SBDC) review for clarity and completeness.

Frequently Asked Questions

How much money can you get from a small business grant?

It varies widely. Local microgrants can be $500–$5,000. Corporate contests may award $10,000–$50,000+. Federal innovation grants (e.g., SBIR) can reach six or seven figures across phases. Always review the program’s past awards and caps.

Are small business grants taxable income?

In most cases, yes—grants are considered taxable income by the IRS. Consult a tax professional and review IRS guidance on taxable and nontaxable income to plan for any liabilities.

How long does the grant application process take?

Timelines range from weeks to 6+ months. Local and corporate grants often decide faster; federal cycles (especially R&D) can span multiple review rounds. Build your funding plan assuming long lead times, and apply to a pipeline of opportunities to keep momentum.

Next Steps

Shortlist 3–5 grants that match your stage and mission, gather core documents, and set weekly application goals. For free guidance, connect with local advisors via SBA Resource Partners. With focus and a strong narrative, small business grants can become a meaningful, non-dilutive part of your growth strategy.