How to Find and Apply For Small Business Grants

Small business grants award you with money to start or grow your company without taking on debt or bank loans.

• Multiple Grant Options: You can find funding specifically built for women, veterans, minorities, rural shops and new startups.
• Prep Work Is Key: Check all requirements, gather your documents, and write a clear plan showing how the money helps your business.
• Get Local Help: Advisors at your local SBDC office will help you find grants and apply for free.

Starting a new small business requires a lot of thought and strategic planning. In addition to having a solid business plan, you also need to find the funding to get your startup off the ground. There are several ways to get financing for your business, and one option new business owners can look into is a small business grant.

Unlike loans, small business grants are issued by government and nonprofit organizations and do not require repayment. Now it’s true that eligibility requirements are strict, and that the applicant pool is competitive for small business grants. That said, if you are well qualified for a grant and are selected, it can be a dream come true for you and your business idea.

What Are the Common Types of Small Business Grants?

Grant programs exist to give every entrepreneur a fair shot at success. Government offices, large companies and nonprofit groups set aside money each year to help specific owners and industries thrive. You can find funding options based on who you are, where your shop is located or what problem your business solves.

Examples include businesses that are:

• Woman, veteran or minority-owned
• Green and sustainable
• Research and development-driven
• Rural
• Not-for-profit

How Do I Find Startup Grants?

You can begin researching grants on your own right away. There are small business grants available through the government and private companies. Key resources include:

• Small Business Administration (SBA): The SBA does not give direct grants to start or expand general small businesses. Instead, SBA grant money goes to nonprofits, universities and resource partners, like Women’s Business Centers, to offer free training, mentorship and grant guidance to local owners. However, the SBA does oversee specialized federal grant programs, including:
  • SBIR (Small Business Innovation Research): Funding for early-stage tech, science or healthcare startups to research and test new inventions.
  • STTR (Small Business Technology Transfer): Grants for tech startups that partner with a university or research institute to develop new products.
  • STEP (State Trade Expansion Program): Grants that help existing small businesses cover the costs of exporting goods and entering international markets.

• Grants.gov: This federal database catalogs thousands of opportunities ranging from agriculture to energy. You can filter listings by your business type, location and industry to find grants matching your exact needs. To apply for federal grants on Grants.gov, you must register your business on SAM.gov to get a free Unique Entity ID (UEI).

• Private and Corporate Grants: Many large companies run grant contests to help small shops grow while giving back to local communities. Popular options include:

  • FedEx Small Business Grant Contest: An annual contest awarding cash prizes and printing/shipping credits to help small product and service businesses grow.

  • Amber Grant for Women: A monthly grant program that awards cash to women-owned businesses, culminating in a larger year-end grant.

How Do I Start the Small Business Grant Application Process?

Once you find a grant you are eligible for, you’ll want to collect everything you need for each step of the application process and ensure that you can complete it before the grantor’s deadline. Here is how to get the process started:

Step 1. Don’t Go It Alone

There are several ways to get free help. Your local Small Business Development Center (SBDC) can provide you with free business consulting to help you through the grant process. SBDC advisors can help you find grants for which you are eligible. They also provide free and at-cost training, help with business planning and more. As you get further into the application process, it may be necessary to hire a professional accountant or attorney to make sure you’re completing the application correctly.

Step 2. Do Your Homework

Before applying, review the grant requirements and make sure that you and your business are both eligible to receive the grant. Know the deadlines and what documents will be required. Most applications ask for a business plan that includes financial projections.

Step 3. Write a Clear Grant Proposal

Your grant proposal needs to show that you have a solid business plan and why you and your business are eligible for the grant. A successful grant proposal may include the following sections:

• Summary: A quick overview of your business and funding request.
• Business Overview: A snapshot of what your company does and who it serves.
• Statement of Need: A clear explanation of why you need the money and what problem your business solves.
• Goals and Objectives: A detailed list of the measurable targets your business plans to achieve.
• Program Design: An operational plan showing how your business works and how you will reach your goals.
• Evaluation: A set of criteria explaining how you will measure your business's success.
• Additional Funding: An outline showing the grantor where existing and future money will come from.
• Budget: A snapshot of how much money your startup will need to get off the ground.

How Can I Get a Small Business Grant Proposal Approved?

Grant reviewers look at hundreds of forms, so make your application stand out by showing how the money will help you hire local workers, serve customers or bring new services to your town.

If grant writing feels overwhelming, consider partnering with a professional grant writer or get help from your local SBDC office. If you don’t get approved for a grant, don’t get discouraged. You can explore low-interest SBA microloans or Community Development Financial Institution (CDFI) loans as backup options to keep your business moving forward.

To learn more about applying for small business grants to get your startup off the ground, check out the SBA website or get in contact with your local SBDC today.