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Top Small Business Grants
Small business grants, available from federal, state and private sectors, offer a source of capital for entrepreneurs looking to grow their businesses.
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Not every entrepreneur has the means to self-fund their business, and taking out a loan or seeking investment capital may not always be feasible or desirable. That’s where small business grants come in.
A grant — a capital injection that doesn’t need to be repaid — can come from federal, state or private sources. Businesses that qualify for and are awarded grants can get the financial assistance they need to take their companies into the next chapter of success.
Check out our curated list of top small business grants and how to apply for them to secure funds for your business.
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What is a business grant?
A business grant is money provided by private or public sources to help small businesses grow and develop. Grant funding is often awarded through a small business contest in which eligible business owners apply for consideration. Grants differ from business loans in that grants don’t have to be repaid, and business owners don’t have to give up a stake in their venture.
“Small business grants provide capital that does not dilute your equity, allowing entrepreneurs to scale responsibly without added financial strain,” said Swapnil Shinde, CEO of Zeni, an AI-powered financial services company.
Many small business grants are based on factors such as an entrepreneur’s demographics, geographical location, income, business type and other qualifications. Some grant programs are designed to support underrepresented groups, such as women, minorities and veterans, while others target companies in specific industries, such as science, technology and medical fields. There are also non-monetary business grants that provide free training and technical assistance to low-income entrepreneurs.
Because grants are essentially free money, they are rarely easy to obtain and typically have many stipulations.
“Grants often come with strict eligibility criteria and specific restrictions on how the money can be spent,” said Mark Valentino, head of business banking at Citizens.
Top federal grants for small businesses
The following are highly sought-after federal grant opportunities for small businesses. The programs are competitive, have strict eligibility requirements and are narrowly focused on specific industries.
If these grants don’t suit your venture, try searching on Grants.gov, a comprehensive database of government-backed funding with thousands of available opportunities across various sectors.
Department of Transportation
The Volpe Center, the U.S. Department of Transportation’s (DOT) systems center, is a federal resource that accepts solicitations for financial aid once per fiscal year. The organization seeks funding for proposals that may enhance the DOT’s ability to execute its mission or that otherwise deliver innovative concepts.
Environmental Protection Agency
The U.S. Environmental Protection Agency (EPA) awards more than $4 billion annually in grants and other assistance agreements to help small nonprofits and even state governments achieve their environmental goals.
National Institutes of Health
The National Institutes of Health (NIH), a subset of the U.S. Department of Health and Human Services, offers grants for small businesses researching and developing biomedical technologies. NIH has hundreds of distinct funding opportunities and regularly updates its grant database.
National Institute of Food and Agriculture
The National Institute of Food and Agriculture (NIFA), a branch of the U.S. Department of Agriculture, supports research, educational and extension efforts in several rural areas related to agricultural and behavioral sciences. The fields include food science, animal life, farming and ranching, business and economics, and plant life.
National Institute of Standards and Technology
The National Institute of Standards and Technology (NIST), a nonregulatory agency of the U.S. Department of Commerce, gives small business grants to startups researching and developing technology in fields such as advanced communications, artificial intelligence, bioscience, nanotechnology and neutron research.
Small Business Innovation Research and Small Business Technology Transfer programs
The Small Business Administration’s SBIR and STTR programs — collectively known as America’s seed fund — help connect small businesses focused on tech innovation and scientific research with federal grants. To qualify, you must be a for-profit business with 500 or fewer employees (nonprofits are ineligible).
SBIR and STTR grants are structured in three phases. Phase I awards up to $275,000 for six to 12 months, while Phase II awards up to $1.8 million for 24 months. Phase III supports commercialization, but it doesn’t provide direct funding.
The U.S. Department of Energy’s Office of Science participates in the programs and provides funding to support energy production, energy use, fundamental energy sciences, environmental management and defense nuclear nonproliferation.
Grants and resources for minority-owned businesses
The following resources and business grants for minorities can help you start and grow a business successfully:
- Minority Business Development Agency (MBDA): The MBDA, a branch of the U.S. Department of Commerce, is the largest grant opportunity for minority-owned small businesses seeking a grant award and other financial assistance. Visit the website to learn about applying for current MBDA grants. For counseling and more information on financing a minority-owned business, find your local Minority Business Center.
- Operation HOPE: Operation HOPE is a small business development initiative designed to provide minority-owned businesses with the necessary financial services to thrive in the marketplace. One component of Operation Hope’s program is the 1 Million Black Businesses initiative, which offers an eight-week small business development workshop focused on giving new entrepreneurs the skills to manage successful ventures.
- 8(a) business development program: The SBA’s 8(a) program helps minority-owned businesses and other small businesses owned by economically or socially disadvantaged people compete for government contracts. The program can also help minorities form joint ventures with established businesses through the SBA’s mentor-protege program. You must be certified to participate in the 8(a) program; applications can be completed on the MySBA Certifications website. If you’re accepted into the program, your certification will last for a maximum of nine years, but you’ll need to complete annual reviews to maintain good standing in the program.
Grants and resources for veteran-owned businesses
Veterans who want to transition into entrepreneurship should consider the following grants and resources for veteran-owned businesses.
- SBA Office of Veterans Business Development: The SBA offers support for veteran-owned businesses looking for funding programs, training and federal contracting opportunities. The Office of Veterans Business Development is devoted to veteran entrepreneurship, service-disabled veterans, active-duty service members, transitioning service members, and their dependents or survivors.
- Boots to Business: Boots to Business (B2B) is an education and training program for veteran entrepreneurs offered through the SBA. Active-duty service members, veterans of all eras and their spouses are eligible to participate. Participants are taught entrepreneurial skills and are provided with the resources to launch a small business. The two-day Introduction to Entrepreneurship course introduces transitioning veterans to business ownership through key business steps, such as raising startup capital and writing a business plan. Those who wish to continue their education can also apply for the follow-on B2B Revenue Readiness course, available through Mississippi State University.
- Hivers & Strivers: Hivers & Strivers is an angel investment group that provides early stage financing to veteran-owned and veteran-led businesses. In addition to funding (from seed stage through Series B), the group offers business development, operations, networking and staffing support. Pitches are accepted on a rolling basis.
Tips for applying for small business grants
If you’re considering applying for a small business grant, follow these best practices to give yourself the best chance to stand out and secure funding.
Ensure you’re eligible for the grant.
Valentino advised researching and identifying grants that align with your business goals and eligibility. Grantors usually have a specific type of business or business owner in mind and want to ensure that their funds are used in ways that align with their vision for the grant program.
“Eligibility checks can save precious time and prevent you from focusing on grants that [don’t] truly support your business goals,” Valentino said. “Ensure that your intended use for potential grant funding will be aligned with the mission of the grantor. Only then should you move forward with an application.”
Conduct thorough research on the grant requirements and deadlines.
Once you’ve found a grant you qualify for, take time to understand the program’s requirements, including any financial documentation you may need to submit.
“Business owners should do their homework and … research the grants they are applying to, so they have a better knowledge base before submitting,” Shinde said.
Valentino suggested seeking feedback from advisers or previous grant recipients to ensure your application aligns with the grantor’s requirements. He also emphasized the importance of finalizing and submitting your application on time to avoid missing the program’s deadline.
Tailor your application to the grant’s goals.
Just like a job-seeker may tweak their resume and cover letter to better align with a job description, Shinde advised tailoring your applications to the grant goals to give yourself the best chance of getting approved.
Valentino agreed, adding that you should showcase your business’s successes and potential for growth in the application.
“Clearly define your project objectives and the impact it will have on all stakeholders — owners, employees, customers and the community,” Valentino said.
Simone Johnson contributed to this article.
