Small Business Grants to Apply for This Year

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If you’re wondering what small business grants to apply for, look no further. Small business grants are a powerful funding tool for new businesses like limited liability companies (LLCs), partnerships, and even corporations. But getting them can be challenging if you’re not sure where to start.

In this guide, we’ll cover all the essentials of small business grants in 2024, including what they are, the different types of grants you might be eligible for, and how to make your applications as successful as you can.

What is a small business grant?

A small business grant is money that’s awarded to a small business with no strings attached. A grant doesn’t have to be repaid; the funds are yours to use to further your business objectives. In some cases, you have to use the funds for specific business purposes, but that depends on the grant.

In a way, a grant is somewhat similar to a scholarship granted to a college student; the student doesn’t have to repay their scholarship, unlike any loans they apply for. A grant is the same way. It’s a great way to fund your LLC or other fund your business.

Small business grants come from a variety of sources and can benefit different types of businesses: those in a specific industry, those owned by veterans or minority groups, and more.

Do you qualify for ZenBusiness's Grant Program?

We’ll be awarding over 40 grants to small businesses this year. See if you qualify and apply today!

Can I get a grant to help open my business?

If you have a new business idea that you’re ready to act on, checking out grant opportunities to help with cash flow is a good place to start (see cash flow definition). In general, startup or small business grants are easiest to qualify for if your business is a nonprofit organization or is launching a project that focuses on:

  • Technology
  • Medical research
  • Education

Additional categories for which grants may be available include: 

  • Ecologically friendly or green businesses
  • Rural businesses
  • Government contracting needs
  • Women-owned businesses
  • Veteran-owned businesses
  • Minority-owned businesses
  • Businesses located in areas with low economic growth or development

Types of Small Business Grants

There are a wide variety of different kinds of grants available to many different business types. No two grants are alike, either. Here’s a look at the different grants your business might be able to apply for.

Federal Grants

Federal grants are those offered by federal government agencies. While federal grants tend to be quite large, they’re available to entrepreneurs across the entire country. So, competition for them can be quite stiff. It’s still possible to obtain one, but be aware they aren’t a surefire way to receive funding.

Some of the top federal grants are offered by the Small Business Innovation Research and Small Business Technology Transfer programs. The U.S. Chamber of Commerce is also a great resource for federal funding opportunities. The government generally favors grants that foster entrepreneurship, technological advancement, and community organizations. Learn more on the sbir.gov and uschamber.com websites.

State Grants

State grants are a great alternative to federal government grants because there’s generally less competition since they’re exclusive to businesses in your state. State grants usually award a smaller dollar amount than federal grants, but they can still give you a much-needed financial boost.

Every state has unique grant opportunities for different types of businesses. We recommend checking with your state’s Small Business Development Center for some initial guidance regarding what grants are available in your area. Your Secretary of State’s website might have a page for grants and resources. You can also consult with your local chapter of the Economic Development Administration. Learn more on the eda.gov website.

Local Grants

It’s not uncommon for cities or counties to foster economic growth by offering grants to small businesses. The amount of money available and the level of competition vary, though. Some areas offer large grants, and others offer microgrants instead.

Some areas have a “mom and pop” nonprofit organization that sponsors these grants, so that might be a good place to start. You can also contact your local government directly for more information.

Corporate Grants

Sometimes, large corporations will offer grants (and other programs) for small businesses to help them get up and running. Sometimes, you have to keep your ear to the ground to know about these opportunities, but other high-profile grants get a lot of publicity. Here are just a few examples:

  • FedEx: Every year, the FedEx Small Business Grant Contest awards $30,000 to one winner (plus printing perks). Runners-up also receive notable prizes, too. To be eligible, businesses only have to be in operation for at least six months and have fewer than 99 employees. Learn more at fedex.com.
  • Patagonia: Patagonia offers grants ranging between $5,000 to $20,000 for qualifying nonprofits that strive to address environmental crises around the globe. Their programs also encourage marginalized communities to get involved in action-oriented change for the planet’s health. Learn more at patagonia.com.
  • National Association of the Self-Employed (NASE): NASE’s grant program requires membership, but eligible applicants can apply for grants of up to $4,000 to use for employee hiring, marketing efforts, and other business expansion opportunities. Learn more at nase.org.

These are just some high-profile grant options with highly competitive applicants. That said, keep your eyes open for new grant offerings, even from smaller brands. For example, if there’s a company you like whose services you use regularly, you can watch for grant opportunities. Or better yet, inquire directly if they have any grant opportunities coming up.

Grants for Women-Owned Businesses

Small businesses owned and operated by female entrepreneurs have plenty of opportunities for funding, at both the federal and state levels. Here are just a few resources to check out.

  • Amber Grants: WomensNet offers $435,000 worth of grants for female-owned businesses. Currently, they award two $10,000 grants every month to prospective applicants. At the end of the year, three grant recipients are awarded an additional $25,000. Learn more at ambergrantsforwomen.com.
  • Cartier Women’s Initiative: Cartier seeks to empower female entrepreneurs worldwide with one-on-one business coaching and prizes ranging between $30,000 and $100,000 annually. Learn more at cartierwomensinitiative.com.
  • Grants for Women: While not a grantor themselves, this organization provides a helpful database of resources and grants available to female entrepreneurs. It’s a great place to start if you’re seeking funding opportunities. Learn more at grantsforwomen.org.

Grants for Veteran-Owned Businesses

Veterans returning to civilian life and running a business can apply for several specific loans. Here are just a couple of the potential opportunities.

  • Second Service Foundation: The Foundation’s Military Entrepreneur Challenge offers vets the opportunity to pitch their best business ideas for a capital grant competition. The Foundation also provides coaching and mentorship programs, too. Learn more at secondservicefoundation.org.
  • Warrior Rising: Warrior Rising aims to help veterans become “Vetpreneurs” through coaching, mentorship, and opportunities to compete in “Shark Tank”-like events to receive grants and other gifts to further their business efforts. Learn more at warriorrising.org.

Learn more with our business grants for veterans guide.

Grants for Minority-Owned Businesses

Business owners who are members of different minority communities can find financial support through a variety of different grants across the country.

Grants for LGBTQIA+-Owned Businesses

Part of the LBGTQIA+ business community? Here are just a few of the grant opportunities to check out.

  • David Bohnett Foundation: Currently, the David Bohnett Foundation accepts proposals by invitation only, but they have funded over $120 million in grants to socially conscious organizations. Learn more at bohnettfoundation.org.
  • Astraea Lesbian Foundation for Justice: The Astraea Foundation supplies grants to LGBTQI organizations involved in social justice causes worldwide. Their support programs range between $5,000 and $30,000 per year. Learn more at astraeafoundation.org.
  • Arcus Foundation: The Arcus Foundation provides grants to organizations that foster equality and LGBTQ social justice initiatives. Their grants usually range between $100,000 and $150,000, but they only issue grants to organizations that are legal entities (not individuals). Learn more at arcusfoundation.org.

You can also check out the U.S. Small Business Administration’s LGBTQ support page on sba.gov for additional resources and information on support groups and financial grants.

Grants for Black-Owned Businesses

Black small business owners can take advantage of a variety of grant opportunities at the federal, state, and local levels. Here are just a few examples.

  • Keep It Local Business Fund: In a partnership between the NAACP and the Nextdoor Kind Foundation, Keep It Local awards microgrants totaling over $100,000 to entrepreneurs in a wide variety of industries. 2023 marked the program’s inaugural year. Learn more at naacp.org.
  • Powershift Entrepreneur Grant: Every year, the Powershift grant awards $25,000 each to various black entrepreneurs to grow their businesses. Other perks include mentorship from Daymond John of “Shark Tank.” Learn more at naacp.org.
  • Scale-Up Pitch Challenge: Sponsored by the National Black MBA Association, the Scale-Up Pitch Challenge encourages scalable growth for black start-ups. Not only does the competition award a $50,000 top prize, but competitors also get valuable exposure to venture capitalists and start-up investors. Learn more at nbmbaa.org.

You can also check out the SBA’s minority-owned business page on sba.gov for more information on resources, funding, and support.

Grants for Native American-Owned Businesses

Members of the Native American business community can find a variety of different programs to financially support their small businesses. Here are just a few examples of grants available to tribal organizations.

  • NABDI Grant: The Native American Business Development Institute (NABDI) provides funding to start-ups and existing businesses for federally recognized tribes. In 2022, awards ranged between $25,000 and $75,000. Eligible programs have to be completed in a year. Learn more at bia.gov.
  • First Nations: This Colorado-based organization has awarded nearly $80 million in grants since its founding in 1980. Although its grant opportunities vary, it always supports Native American entrepreneurs in a variety of industries. Learn more at firstnations.org.

Many of these grant opportunities are presented by state agencies in western states. We suggest contacting your state’s Department of Commerce for more information. You can also check out the SBA’s Native-American Owned Businesses page on sba.gov for more resources.

Grants for Asian-Owned or Pacific Islander-Owned Businesses

Members of the Asian American Pacific Islander (AAPI) business community can take advantage of several different grant opportunities.

  • Asian Women Giving Circle: The Giving Circle calls New York City home, and to date, they’ve provided over $1 million to over 100 different projects. They grant funding to Asian American artists and organizations driving the transformative power of the arts. Learn more at asianwomengivingcircle.org.
  • Backing Small Businesses: Presented by American Express, the Backing Small Business program provides grants to marginalized groups, including Asian and Pacific Islanders. Learn more at mainstreet.org.

You can also consult the SBA’s minority-owned businesses page for more resources and support.

How do I qualify for a small business grant?

Qualifying for small business grant programs isn’t always straightforward. It’s important to note that different grant opportunities may have different eligibility requirements, such as requiring specific types of business activities or United States citizenship. Make sure you read the criteria for each grant carefully.

New and existing businesses may be competing for these grants, and business owners often seek the help of grant writers to prepare their applications to increase their chances. The following list of grants is only a sample of available funding opportunities from government agencies and other sources.

The U.S. Small Business Administration (SBA)

The SBA is a government agency that provides support for entrepreneurship and small business development to strengthen the economy. The general requirements for SBA grants can be found on the SBA.gov website, which includes details of required accounting procedures, audit requirements, and more. 

SBA-associated award programs include the following:

Grants for Research and Development

If your business will be engaged in research and development activities, you may wish to seek grants for that purpose. A few organizations that offer such grants are as follows:

  • National Science Foundation (NSF): The NSF supports science and engineering research in the areas of biology, computer and information science and engineering, education and human resources, engineering, environmental research, geosciences, mathematics and physical sciences, and social, behavioral, and economic sciences. 
  • National Aeronautics and Space Administration (NASA): NASA evaluates and selects research proposals submitted in response to announcements it makes. 
  • Department of EnergyThis organization offers grants for research associated with the development of clean energy technologies.
  • National Institutes of Health (NIH): The NIH offers grants that fund various forms of biomedical research.

Grants for Exporting

If your business will export to foreign markets, there are grants for this purpose. Among these are the following:

Additional Grants

In addition, the SBA has a page dedicated to funding resources for small businesses affected by the COVID-19 pandemic.

Small Business Research and Technology Programs

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to encourage small businesses to engage in federal research and development with the potential for commercialization. The programs’ goals include stimulating technological innovation, supporting federal research and development needs, and encouraging entrepreneurship by women and the socially or economically disadvantaged.

To qualify, your business must meet program eligibility requirements, which include:

  • Be organized for profit and located in the United States (although nonprofits may receive STTR funding through a research partnership)
  • Be more than 50% owned and controlled by U.S. citizens or permanent residents
  • Have no more than 500 employees 

While SBIR and STTR have similar goals, STTR programs additionally focus on technology transfer between small businesses and research institutions. To learn more about these opportunities, visit SBIR.gov.

U.S. Chamber of Commerce’s Save Small Business Initiative

The U.S. Chamber of Commerce has been around for over a century with the goal of representing the interests of businesses large and small. The Chamber of Commerce represents the interests of businesses in Washington, across the country, and around the globe. 

The Save Small Business Initiative was launched as a result of economic struggles related to the COVID-19 pandemic and is designed to help small businesses keep their workers employed and businesses running. Multiple funding opportunities exist through this program, and they can be found on their website

They also offer a coronavirus small business resources guide to help with everything from adhering to local COVID-19 restrictions and adjusting budget and finances to save money to boosting your online presence and negotiating with creditors.

Grants.gov

The Grants.gov program was launched by the federal government in 2002 to create a centralized location where those looking for federal grants could search for grants to apply to. The Grants.gov website has information on over 1,000 grant programs. 

Using their website makes it easy to search and apply for federal grants through electronic application processes. You can easily search listings by specifying your search criteria to create a short list. Signing up for an account on Grants.gov is straightforward. Just enter your name and contact information, including an email address, create a username and password, and select whether to subscribe to communications. Once you have an account, applying is easy, and many of the forms used by the grantors are similar.

In addition, Grants.gov contains multiple educational resources to help you learn more about grant programs and eligibility and how to spot grant fraud. You’ll also find details about grant life cycles, general policies, grant-making agencies, and so on. There is even a get started checklist to help you stay on track.

Additional Grants

The grants listed above are only some of what’s available. Many more opportunities exist if you know where to look. Ask around and consult with other small business owners to see what worked for them or how they were able to get funded. 

Some additional grant sources include, but are not limited to, the following:

How to Apply for Small Business or Startup Grants

The grant application process may seem overwhelming, especially if this is your first time applying. Make sure before applying that you have established your business or have a clear business plan in place. This will help narrow your focus as to which grants you might qualify for and allow you to describe your goals more clearly when applying. 

Some tips that might help increase your chances of approval include the following:

  • Understand what’s required in the application, when it’s due, and anything else that may be needed. Always take the time to read all details and fine print carefully.
  • Give yourself time to learn about the general grant process, and don’t apply for any grant last minute. The more careful and thorough you are in an application, the better your odds.
  • Don’t be afraid of reaching out to the grant funder to ask clarification questions or details about what they’re looking for.
  • Create a detailed outline of your proposed work and financial data on your organization so that it’s clear to those who read your application what you plan on doing with the money.
  • Consult with an accountant and/or colleagues for advice on how much funding to request and how to go about making your case.
  • Look for workshops or conferences that you can attend to learn more about the entire grant process.
  • Hire an experienced grant writer to develop your startup business grant proposals for you. This is an investment that may be well worth the money.
  • Look at the details of any grant to which you’re applying to understand your odds. Do they only fund five businesses each year and receive thousands of applicants? Or are they a lesser-known grantor, which increases your odds? By choosing where to apply based on the odds of getting a grant, your grant-writing efforts are more likely to pay off.
  • Look locally, and don’t just focus on national grant opportunities. The competition in the local grant market is often much smaller. You may even find grant awards directed toward your specific town and business type.

Tips for Applying for Grants

Applying for grants takes a lot of time, and no entrepreneur wants to waste their time on grant applications. But with the right approach, you could be set up for success. Here are some tips on how to apply for grants successfully.

  • Keep an up-to-date draft of your business plan. When you apply, the grant organization will likely ask to see a draft of your business plan: your goals, objectives, revenue projections, mission statement, and so on. Have a draft readily available so you don’t have to write a new one every time.
  • Check the requirements for the grant. Some grants require you to be in business for a certain amount of time, have guidelines for the number of employees you can have, are limited to specific industries, and so on. Be sure to check that you’re actually eligible for the grant you’re applying for. If you don’t, your application will be thrown out first during the grant review process.
  • Set reminders for when a grant application window opens. Many grants are offered on a rolling basis, meaning there are only a few weeks to apply. If you’ve found a grant you’re interested in but this submission deadline has passed, don’t worry. You can apply next time. Set a reminder for yourself so you’ll be prepared.
  • If in doubt, start small. High-profile grants from the federal government or large corporations are possible to achieve, but it’s challenging since there are so many applicants. A grant from your municipality might be a smaller cash stack, but your odds are much higher.
  • Keep an eye on top grant resources. New grants come and go, and it can be tricky to keep informed about them all. Some top websites to watch are Grants.gov (or their mobile app), your state’s Small Business Development Center, GrantWatch (grantwatch.com; does require membership), and your local agencies. If you’re in a specific industry, you’ll want to watch those, too.

With some legwork and determination, you can find the perfect grant for your business.

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FAQs

  • Every small business grant has different criteria that you have to meet in order to be eligible. To qualify, you’ll have to meet those criteria and fill out an application. Often, a grant application will ask for your business plan, a picture of your business finances, and more, so be prepared to have that information on hand.

    Additionally, if there are terms for how you have to use the grant money, be sure to uphold those requirements.

  • Unlike a loan, you don’t have to pay back a small business grant. It’s much like a student doesn’t have to pay back their grant to the financial aid office — only student loans have to be paid back. Grants (for both businesses and students) are gifted funds.

  • Small business grants are like scholarships for businesses; they’re awarded to qualifying start-ups or small businesses so they can pursue success. To be awarded a grant, a small business has to meet the grant criteria and submit by the application deadline. After that, the grantor can choose to give the grant to their chosen applicant.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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