Small Business Grants: Best Options & How to Apply

Running a small business takes grit, determination, and yes—money. While loans help many businesses grow, grants offer something even better: funding you don't have to pay back. In other words, grants are just like rocket fuel for your business goals—without the debt hangover.

Whether you're launching a new venture, expanding your team, or weathering tough times, small business grants can provide the financial boost you need. Unlike loans, grants don't require repayment or surrendering equity in your business.

Let's dive into the best small business grant opportunities available right now, how to apply for them, and who qualifies to receive this free funding.

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Best small business grants available in 2025

Let's explore the most promising grant opportunities for small businesses this year, organized by funding source.

1. Federal small business grants

Federal grants are facilitated by government agencies, offering some of the largest amounts available to small businesses, though competition can be fierce. Here are the top federal opportunities to consider.

Small Business Innovation Research (SBIR) Program

• Award amounts: $50,000–$275,000 for Phase I; up to $1.8 million for Phase II
• Focus: Funds innovative research and development projects with commercial potential
• Requirements: For-profit U.S.-based businesses with fewer than 500 employees
• Application process: Apply through participating federal agencies (e.g., EPA, USDA)
• Deadline: Varies by agency and solicitation
• For more information, visit Small Business Innovation Research. Note that you can apply for the Small Business Technology Transfer (STTR) program as well—the main difference between the two programs is that to qualify for the STTR, you must formally partner with a research institution. 

Women-Owned Small Business Federal Contract Program (WOSB)

• Award amounts: Varies
• Focus: Supports women-owned businesses to compete for federal contracts
• Requirements: Must be a women-owned business certified by the SBA
• Application process: Apply through the SBA’s certification portal
• Deadline: Rolling basis
• For more information, visit Women-Owned Small Business Federal Contract Program

Economic Development Administration (EDA) Grants

• Award amounts: Varies based on program type and project scope
• Focus: Supports economic resilience, recovery from disasters, infrastructure development, and regional economic growth
• Requirements: Projects must align with EDA’s investment priorities such as equity, sustainability, and resilience
• Application process: Submit application through EDA’s Regional Offices or Grants.gov
• Deadline: Rolling basis
• For more information, check out this list of all funding opportunities from the EDA

USDA Rural Business Development Grants (RBDG)

• Award amounts: Varies
• Focus: Supports small rural businesses with technical assistance, training, and strategy planning
• Requirements: Rural location with population under 50,000
• Application process: Apply through local USDA Rural Development office
• Deadline: Usually February-March annually
• For more information, visit USDA Rural Business Development Grants

HUBZone Program

• Award amounts: Varies
• Focus: Aims to stimulate economic development in historically underutilized business zones (HUBZones)
• Requirements: Must be located in a HUBZone and meet SBA size standards
• Application process: Apply through the SBA’s certification portal
• Deadline: Rolling basis
• For more information, visit HUBZone Program

Minority Business Development Agency (MBDA) Grants

• Award amounts: Varies
• Focus: Supports minority-owned businesses through targeted grants and loans
• Requirements: Minority-owned businesses
• Application process: Apply through Grants.gov
• Deadline: Rolling basis
• For more information, visit Minority Business Development Agency Grants

2. State & local small business grants

State and local governments often have less competition than federal programs and may be tailored to your specific geographic area. Here are some of the most accessible options to explore:

State Trade Expansion Program (STEP)

• Award amounts: Varies
• Focus: Assists small businesses in expanding globally, including funding for foreign-market trade shows and expansion opportunities
• Requirements: Must be a small business as defined by the US Small Business Administration (SBA) standards
• Application process: Apply through state-level STEP offices; more details available on the SBA website
• Deadline: Varies by state
• For more information, visit: State Trade Expansion Program

State Small Business Credit Initiative (SSBCI)

• Award amounts: Varies by state program
• Focus: Supports small businesses through capital and technical assistance programs
• Requirements: Eligibility varies by state; typically includes small businesses and entrepreneurs in underserved communities
• Application process: Apply through state-specific programs
• Deadline: Rolling basis; varies by state
• For more information, visit State Small Business Credit Initiative

State-specific Grants

Each state offers unique grants for small businesses. For example:

• California: Offers various grants through the California Office of the Small Business Advocate.
• New York: Provides grants through Empire State Development.
• Texas: Offers grants through the Office of the Texas Governor.

For specific state grants, visit the respective state’s economic development website or contact local business development centers.

3. Private & corporate small business grants 

Corporate and private grants often focus on specific industries or demographics and may have less stringent requirements than government programs. These grants usually require applicants to complete a grant interest form as a preliminary step in the application process.

These opportunities represent some of the most accessible private funding sources:

FedEx Small Business Grant Contest

• Award amounts: Up to $50,000 in cash
• Focus: Supports small businesses with innovative ideas or growth potential
• Requirements:
  
  • Must be a U.S.-based for-profit business.
  • Have fewer than 99 employees and been in operation for at least six months.
• Application process: Submit an online application, including a business story and photos. Public voting determines finalists.
• Deadline: Typically opens annually in February or March
• For more information, check out the program rules for the 2024 FedEx small business grant contest

Venmo Small Business Grant

• Award amounts: $20,000 for each of 10 small businesses
• Focus: Supports small businesses with less than $50,000 in annual sales.
• Requirements:
  
  • Must have a U.S. Venmo account and valid Venmo business profile.
  • Have fewer than 10 employees and annual sales under $50,000.
• Application process: Apply online through Venmo's grant portal
• Deadline: Varies; typically annual
• For more information, check out the criteria for the 2024 Venmo grant

Amber Grant for Women

• Award amounts: $10,000 monthly grants; $25,000 annual grant awarded to one of the monthly winners
• Focus: Supports women entrepreneurs in the U.S. and Canada who are starting, operating, or expanding a business
• Requirements: Business must be at least 50% women-owned and operate in the U.S. or Canada.
• Application process: Submit an online application on the Amber Grant website
• Deadline: Applications are due by the last day of each month at 11:59 PM ET for that month’s grant cycle.
• For more information, visit the Amber Grant website

Wish Local Empowerment Program

• Award amounts: $500 – $2,000 grants
• Focus: Supports Black-owned businesses to grow their operations
• Requirements: 
  
  • Must own a brick-and-mortar storefront in the U.S.
  • Businesses must have 20 or fewer employees and annual revenue of less than $1 million
  • Applicant must be over 18 years old
• Application process: Apply online through the Wish Local Empowerment Program website; applications are reviewed on a rolling basis.
• Deadline: Rolling basis

NASE Growth Grant

• Award amounts: Up to $4,000 monthly grants for small businesses
• Focus: Provides funding for business growth and development needs like marketing or equipment purchases
• Requirements: Must be a member of the National Association for the Self-Employed (NASE)
• Application process: Apply online through the NASE website; applications reviewed quarterly
• Deadline: Rolling basis; quarterly reviews in January, April, July, and October

ZenBusiness $5K Grant Program

• Award amounts: $5,000 grants to help fuel growth and innovation for small businesses formed within the last three to six months
• Focus: Supports U.S.-based private businesses creating meaningful community impact
• Requirements: Must be a current ZenBusiness customer; business formed within the last three to six months
• Application process: Apply online through ZenBusiness
• Deadline: Applications open through December 31, 2025

The Freed Fellowship Grant

• Award amounts: $500 monthly micro-grants; eligible for an additional $2,500 end-of-year grant.
• Focus: Supports small business owners across industries with financial assistance and expert feedback.
• Requirements: Must be a U.S.-based small business owner.
• Application process: Apply online by the last day of each month to be considered for that cycle.
• Deadline: Monthly rolling deadlines; end-of-year grant eligibility requires prior monthly grant receipt.
• For more information, visit the Freed Fellowship website

Start.Pivot.Grow. Micro Grant

• Award amounts: $2,500 quarterly micro-grants, plus business planning resources like growth planners and loan prep tools
• Focus: Helps small businesses fund essential expenses like rent, inventory, or marketing
• Requirements:
  
  • Must have been in operation for at least two years with annual revenue of at least $50,000.
  • Have one to two employees (including the owner).
• Application process: Apply online through the program’s website; awarded quarterly.
• Deadline: Rolling basis; quarterly deadlines.

How to apply for small business grants

The grant application process can seem intimidating, but breaking it down into manageable steps will help you navigate it successfully. Follow this four-step approach to improve your chances of securing funding.

Step 1: Find the right grant.

Don't waste time on applications where you don't fit the criteria. After all, eligible businesses must meet specific criteria for grant funding. Target grants that align with your business profile.

Here's how to find the right opportunities:

• Use grant databases like Grants.gov, GrantWatch, and Candid.
• Connect with your local Small Business Development Center.
• Follow industry associations that share funding alerts.
• Set up Google alerts with keywords related to your business and "grants".

The best strategy? Focus where you have a competitive edge—whether that's your industry, location, or business owner demographics.

Step 2: Review eligibility criteria.

Before you invest hours in an application, make sure you qualify. Create a simple checklist covering:

• Business fundamentals:
  
  • Size and structure requirements
  • Revenue thresholds
  • Years in operation
  • Location restrictions
• Demographic factors:
  
  • Owner characteristics (women, veterans, minorities)
  • Industry specifications
  • Financial requirements

Run through your checklist for each grant opportunity. If you meet all criteria, move forward. If not, save your energy for better matches.

Step 3: Prepare your grant application.

Your application needs to tell a compelling story about your business. Think of it as a pitch, not just paperwork. The most successful applications combine clarity, specificity, and evidence of potential.

Skip the fluff.

Start with clear, concise answers that directly address what the funder wants to know. Skip the fluff—remember that grant reviewers often read dozens or even hundreds of applications, so clarity matters more than clever wording.

Be specific.

Include a specific plan for the funds. Explain exactly what you'll do with the money, how it will impact your business, and how your plan aligns with the grant's purpose. Be precise about amounts, timelines, and expected outcomes. 

Avoid vague statements.

Vague statements like "improve our marketing" won't impress reviewers. Instead, detail how you'll use $5,000 for a targeted digital campaign that will reach 10,000 new potential customers, for example.

Prove your promises.

Provide evidence of your potential impact through business metrics, customer testimonials, market research, and financial projections. Numbers speak louder than assertions—demonstrate that you've done your homework and can deliver measurable results with the grant money.

Take your time.

Take time to tailor each application to the specific grant opportunity. Generic answers won't stand out in a competitive field. Study the grant provider's mission and priorities, then show how your business aligns with their goals. This extra effort significantly increases your chances of success.

Step 4: Submit your application on time.

Missing a deadline means missing the opportunity—period. Create a submission plan:

• Mark all deadlines on a calendar with reminders
• Submit at least 1-2 days early to avoid last-minute technical issues
• Triple-check that all attachments are included
• Save confirmation emails and application numbers

Pro tip: Keep digital copies of everything you submit. Many grants have multi-stage processes, and you'll want to reference your initial materials.

Who qualifies for small business grants?

Understanding eligibility requirements before you apply can save you time and increase your chances of success. Unlike a small business loan, which may have different eligibility criteria, here’s what you need to know about who typically qualifies for small business grants:

Common eligibility criteria

While requirements vary by program, most grants look for:

• Officially registered businesses (sole proprietorship, LLC, corporation)
• For-profit status (though some grants target non-profits)
• Specific employee count (often under 500, but can be much lower)
• Minimum time in business (typically 1-2 years)
• Strong business plan with clear objectives
• Demonstrated financial need or growth potential
• Good standing with tax authorities
• Clean regulatory history

Many grants also target specific demographics:

• Women-owned businesses
• Minority-owned businesses
• Veteran-owned businesses
• Businesses in rural or underserved communities
• Businesses in specific industries (clean energy, technology, healthcare)

The key is matching your business profile with grants that prioritize your strengths.

Who may not qualify?

Not every business fits the grant mold. You might struggle to find grant funding if:

• Your business is too new. Most grants want to see some track record of operations, typically at least one year.
• You have compliance issues. Tax problems, regulatory violations, or legal troubles will disqualify you from most programs.
• Your industry faces restrictions. Some sectors (gambling, cannabis, adult entertainment) are excluded from many grant opportunities.
• You're seeking basic operating funds. Grants typically fund specific projects, expansions, or innovations—not day-to-day expenses.
• Already received significant grant funding? Many programs limit how much support you can receive or require waiting periods between awards.

Unlocking the power of small business grants

Small business grants can provide you with the financial support you need. Without the burden of repayment or equity loss, grants are an excellent option for businesses looking to grow. 

By understanding the different types of grants available—from federal and state government grants to private and corporate funding—small business owners like you can find the right fit to fuel success and innovation.

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FAQs about small business grants

Is it hard to get a small business grant?

Yes, business grants are competitive. Federal grants might receive hundreds or thousands of applications for limited funds. Your chances improve with smaller, more targeted grants, especially those focusing on your specific industry or demographic. 

Create standout applications and apply to multiple opportunities to increase your odds.

Can an LLC get grant funding?

Absolutely. LLCs qualify for most business grants. Your business structure rarely matters as much as your business purpose, location, and demographics. 

Some grants might have specific requirements about how long your LLC has been established.

How do I get money to start a small business?

While many grants require existing businesses, several programs target startups:

• Look for "seed grants" specifically for new businesses
• Explore pitch competitions with cash prizes
• Consider grants for business planning (before launch)
• Check incubator and accelerator programs that include funding
• Research local economic development initiatives targeting new businesses

Who is eligible for the US Small Business Administration grant?

Federal business grants typically require:

• U.S.-based business.
• For-profit status (in most cases).
• Under 500 employees.
• Good standing with federal and state governments.
• Compliance with specific agency requirements.

Each grant program has its own additional criteria based on the funding purpose.

Are small business grants free money?

Yes—grants don't require repayment like loans. However, they're not without obligations. Most require:

• Using funds exactly as specified in your application.
• Regular reporting on progress and outcomes.
• Meeting specific milestones or metrics.
• Acknowledging the funding source in materials.
• Participating in case studies or promotional activities.

Failure to meet these requirements can result in having to return the money.

What’s the easiest small business grant to get?

While no grant is truly "easy," your best odds come with:

• Smaller dollar amounts (under $10,000).
• Local programs with geographic restrictions.
• Industry-specific grants where you're a perfect fit.
• Demographic-focused grants if you qualify.
• Newer grant programs that haven't built widespread awareness.

Monthly contests like the Amber Grant often have simpler applications and regular award cycles, giving multiple chances to win.

Can startups apply for grants?

Yes, though options are more limited. Look for:

• Innovation grants for new technology or concepts.
• Local economic development programs.
• Industry-specific startup grants.
• Pitch competitions and challenges.
• Incubator and accelerator grants.

Many startup grants focus on technology, research, and innovation rather than traditional retail or service businesses.

Do you need good credit for a business grant?

Unlike loans, most grants don't require credit checks. They focus more on your business concept, potential impact, and alignment with the grant's purpose. However, some programs may review your financial management history as part of the evaluation.

How long does it take to receive grant funding?

The timeline varies significantly:

• Application review: 1-6 months
• Notification of award: 1-4 weeks after selection
• Contract/agreement process: 2-6 weeks
• Initial disbursement: 2-8 weeks after agreements

Federal grants typically take the longest, while private grants often move faster. Some programs release funds in stages based on project milestones. 

What's the difference between small business grants vs. loans?

For small businesses, the key differences between grants vs. loans include:

• Repayment: Grants don't require repayment; loans must be repaid with interest.
• Application process: Grant applications are typically more competitive and detailed.
• Use restrictions: Grants often have stricter requirements for how funds are used.
• Reporting: Grants usually require more detailed reporting on outcomes.
• Timing: Loans can often be secured more quickly than grants.
• Amounts: Loans are typically available in larger amounts than grants.

Many businesses use a combination of grants and loans to fund different aspects of their growth and operations. Considering getting a loan? Learn how you can apply for a loan to best fund your small business.