List of Grants and Funding for Small Businesses in the US
According to research, only about 20% of small businesses make it past the first year, and only about 50% make it past 5 years. There are many reasons small businesses fail. But did you know that over 80% of business failures stem from insufficient cash flow? This statistic underscores the critical importance of financial stability for small businesses.
As a small business owner, you want to focus on running your business, not constantly worrying about financial constraints. However, reality often presents challenges that demand attention to cash flow and funding to scale successfully.
Whether it’s ensuring payroll is met, investing in marketing efforts, or expanding operations, having access to adequate funding is crucial for facilitating growth and sustaining progress in today’s competitive environment.
Without sufficient financial resources, even the most innovative ideas and promising ventures can struggle to reach their full potential. That’s why exploring avenues such as getting grants for small businesses can be a lifeline for those looking to thrive and make their mark in the market.
While the concept of obtaining free money may seem improbable, the reality is that hundreds of grants tailored for small businesses exist, aimed at making financing more attainable for entrepreneurs.
Federal Small Business Grants
The US Small Business Administration (SBA) is a federal agency dedicated to supporting the nation’s economy by providing assistance to small businesses. With Small Business Development Centers across the country, the SBA serves as a vital resource hub, offering a variety of federal grants, loans, and programs. These initiatives aim to facilitate access to funding opportunities from federal, state, and local governments, empowering small business owners to thrive and contribute to economic growth. Here are some noteworthy SBA grants and programs tailored to support small businesses:
- State Trade Expansion Program (STEP)
- Small Business Innovation Research (SBIR)
- Small Business Technology Transfer (STTR)
- Veteran-owned Small Businesses
- Service-disabled Veteran-Owned Businesses
- Small Business Development Centers (SBDCs)
1. State Trade Expansion Program (STEP)
The STEP program is designed to help small businesses expand their export activities and access global markets. Administered by state governments in partnership with the SBA, STEP provides financial assistance to eligible small businesses to offset the costs associated with exporting, such as participation in trade missions, trade shows, export training programs, and market research. By assisting small businesses in overcoming barriers to international trade, STEP aims to increase their competitiveness and promote economic growth through exports.
2. Small Business Innovation Research (SBIR)
The Small Business Innovation Research (SBIR) program encourages domestic small businesses to engage in federal research and development (R&D) with the potential for commercialization. This program aims to stimulate technological innovation and address federal research priorities. It provides funding opportunities across various federal agencies, allowing small businesses to participate in the innovation ecosystem and compete for funding to develop and commercialize innovative products and services.
3. Small Business Technology Transfer (STTR)
Similar to SBIR, the STTR program also fosters innovation and commercialization, but with a unique emphasis on collaboration between small businesses and research institutions, such as universities or federal laboratories. STTR encourages the transfer of cutting-edge technologies from research institutions to small businesses, fostering partnerships that can lead to the development of new products and services with both commercial and societal benefits.
4. Veteran-Owned Small Businesses
The SBA offers various resources and support programs specifically tailored to veteran-owned small businesses. These programs provide access to capital, government contracting opportunities, entrepreneurial training, mentorship, and counseling services. By leveraging the skills, leadership, and discipline acquired through military service, veteran entrepreneurs contribute to economic growth and job creation.
5. Service-disabled Veteran-Owned Businesses
Service-disabled veteran-owned businesses (SDVOSBs) are eligible for special considerations and contracting opportunities through federal procurement programs. The SBA administers the Service-Disabled Veteran-Owned Small Business Concern Program, which sets aside certain government contracts for SDVOSBs. This program aims to provide opportunities for disabled veterans to participate in federal contracting and succeed in the competitive marketplace.
6. Small Business Development Centers (SBDCs)
SBDCs are a nationwide network of partnerships between state governments, universities, private businesses, and the SBA. These centers provide free or low-cost consulting and training services to small businesses and aspiring entrepreneurs. SBDCs offer assistance in various areas, including business planning, market research, financial management, marketing, and access to capital. By leveraging the expertise of SBDC advisors, small businesses can improve their operations, expand their markets, and achieve long-term growth and sustainability.
Other Federal Small Business Grants
Apart from the SBA, several other federal agencies offer grant programs for small businesses in the US.
1. USDA Rural Business Development Grants
The US Department of Agriculture coordinates the Rural Business Development Grants to support the growth of rural businesses and communities by providing financial assistance for various activities such as training, technical assistance, infrastructure development, and business planning. These grants often target small and emerging rural businesses, helping them expand their operations, create jobs, and stimulate economic development in rural areas.
2. US Department of Commerce Minority Business Development Agency
The Minority Business Development Agency (MBDA), part of the US Department of Commerce, offers various grants and programs aimed at fostering the growth and competitiveness of minority-owned businesses. These grants may support initiatives such as business consulting, access to capital, market research, and networking opportunities. By empowering minority entrepreneurs and businesses, the MBDA contributes to the overall economic development and diversity of the business landscape.
3. US Department of Energy Clean Energy Grants
The US Department of Energy (DOE) offers a range of grant programs to support clean energy innovation, research, development, and deployment. These grants fund projects focused on renewable energy sources such as solar, wind, hydroelectric, and geothermal power, as well as energy efficiency technologies and practices. By investing in clean energy projects, the DOE aims to reduce greenhouse gas emissions, enhance energy security, and drive economic growth in the clean energy sector.
4. US Department of Agriculture’s Rural eConnectivity Program
The USDA’s Rural eConnectivity Program, also known as ReConnect, provides grants and loans to support the deployment of broadband infrastructure in rural communities. Access to high-speed internet is crucial for rural businesses to compete in the modern economy, access markets, and improve efficiency. The program aims to bridge the digital divide by expanding broadband access to underserved rural areas, thereby promoting economic development, job creation, and enhanced quality of life for rural residents.
Non-Government Grants for Small Businesses
Non-government grants for small businesses in the US are often offered by private organizations, corporations, foundations, and nonprofit entities to help entrepreneurs and small business owners start and expand their businesses.
1. 500 Global Flagship Accelerator Program
The 500 Global Flagship Accelerator Program offers $150,000 in seed capital along with mentorship to rapidly expanding technology firms, aiming to foster technological innovation.
2. The American Dream Awards
Presented by Hello Alice, The American Dream Awards celebrate small businesses across the United States that exemplify innovation, community impact, and sustainable practices. Grant awards start at $1,000 and include participation in an accelerator program and media exposure.
3. Awesome Foundation Grants
The Awesome Foundation distributes monthly grants of $1,000 to individuals and groups pursuing various projects. Comprising 84 independent chapters, this initiative pools member contribution to fund grant projects, with a history of supporting startups and small businesses. Applications are accepted continuously, offering a flexible approach to securing funding.
4. Bizee Entrepreneur Grant
Bizee (formerly Incfile) administers two grants aimed at supporting aspiring entrepreneurs and students. The “Young Entrepreneur Scholarship Grant” awards $2,500 to high school seniors, undergraduates, graduates, or trade school students with a GPA of 3.0 or higher and a business interest. Similarly, the “Fresh Start Business Grant” offers $2,500 and a complimentary Bizee Gold plan to adult entrepreneurs (21 years or older) planning to launch or expand a business. Details on upcoming funding rounds are forthcoming, with eligibility criteria available for review in the interim.
5. Fast Break for Small Business
In collaboration with the NBA, WNBA, and NBA G League, the Fast Break for Small Business grant program provides small business owners and entrepreneurs with an opportunity to secure a $10,000 grant and/or up to $500 in LegalZoom products and services. With a cumulative grant pool of $3 million, the initiative has supported over 3,150 small businesses to date.
6. The Freed Fellowship Grant
The Freed Fellowship Grant offers qualifying business owners in the US a monthly grant of $500, alongside evaluation based on a “5C Framework” assessing various aspects of applicants’ businesses. Additionally, recipients receive feedback on their business and a two-month free membership in the Freed Studio community of ambitious entrepreneurs. Grant recipients may also qualify for an end-of-year grant totaling $2,500.
7. GoFundMe Small Business Relief Fund
The GoFundMe Small Business Relief Fund matches $500 grants for eligible small businesses impacted by COVID-19, provided they raise at least $500 through a GoFundMe campaign. Supported by
GoFundMe and corporate partners such as Intuit QuickBooks, Yelp, GoDaddy, and Bill.com, interested small business owners can apply by adding the hashtag #SmallBusinessRelief to their campaign and completing a verification form.
8. PowerUP Business Plan Competition
The PowerUP Business Plan Competition, facilitated by the Brooklyn Public Library, invites startup entrepreneurs in Brooklyn to compete for up to $20,000 in seed capital. Since its launch in 2003, the competition has supported over 10,900 individuals and created more than 100 companies across various sectors, granting over $650,000 in cash and in-kind gifts. Eligible participants must be 18 or older, reside in Brooklyn, and intend to establish a business there. Applications remain open until April 30, 2024, requiring attendance at an orientation, consultation with a business advisor, and completion of at least three webinars on key business topics.
9. Skip Monthly Grants
Skip, a small business aggregator offers monthly grants to small business owners and entrepreneurs based in the US, typically set at $1,000 (though exact amounts may vary). To qualify, applicants must possess a Skip account, add the monthly grant to their Funding Assistant, and subscribe to Skip’s YouTube channel. Applications for the next round of $1,000 Skip Grants are due on April 29, 2024.
10. Skip $15k Entrepreneur Grant
The Skip $15k Entrepreneur Grant supports small business owners in their growth and innovation endeavors through funding opportunities. Open to entrepreneurs and small business owners at any stage of business development, applications for this grant are due by April 24, 2024.
11. Small Business Digital Readiness Program
The Small Business Digital Readiness Program, in collaboration with Verizon, offers a free online curriculum designed to equip small business owners with digital skills. Participants who register and complete two courses are eligible for a $10,000 grant. This opportunity is ongoing, and interested individuals can find more information on the program’s webpage.
12. Small Business Readiness for Resiliency Program
The U.S. Chamber of Commerce Foundation and FedEx collaborate on the Small Business Readiness for Resiliency (R4R) Program, which assists small businesses in preparing for and recovering from natural disasters. The program offers immediate emergency funding and supports businesses in implementing disaster preparedness plans through a four-step process.
13. Walmart Spark Good Local Grants
The Walmart Spark Good Local Grants program, sponsored by Walmart and Sam’s Club, provides grants ranging from $250 to $5,000 to address local community needs. Eligible entities include 501(c)(3) charities, public entities, and educational institutions. Quarterly grant applications are accepted, with the current submission period for Q1 ending on April 15. Applicants must be Deed verified and have a Spark Good account to apply.
Grants for Women-owned Businesses
Several small business grants are specifically tailored to support women in business.
1. WomensNet’s Amber Grant
WomensNet is a community of entrepreneur-minded women dedicated to empowering women-led businesses at the start of their entrepreneurial journey. The organization awards monthly Amber Grants of $10,000 each, alongside additional $25,000 end-of-year grants to women entrepreneurs.
2. Foundation for a Just Society
The Foundation for a Just Society (FJS) provides grants to local, national, regional, and international organizations striving to advance the rights of women and LGBTQ+ individuals. FJS focuses its efforts in various regions globally, offering grants ranging from $50,000 to $500,000.
3. Cartier Women’s Initiative Regional Awards Program
The Cartier Women’s Initiative Regional Awards Program offers grants of up to $100,000 to entrepreneurs and women-owned businesses in their early stages of development, working towards achieving one of the 17 UN Sustainable Development Goals.
4. IFundWomen grants
IFundWomen serves as a platform for women-owned businesses to network and secure partnerships and financing opportunities. Through collaborations with brands like Adidas, Caress, Botox, Visa, and more, IFundWomen offers grants to women entrepreneurs. Eligibility for future partner grants can be determined by applying to the Universal Grant Application Database, with grant amounts varying based on partnerships.
5. Stacy’s Rise Project
The Stacy’s Rise Project, a collaboration between Hello Alice and Stacy’s Pita Chips, provides support to women entrepreneurs through $25,000 business grants, mentorship, and additional resources. Eligible businesses must be small enterprises selling consumer packaged goods, with annual sales ranging from $25,000 to $1 million.
6. Restaurant Disaster Relief Fund
Hello Alice, in partnership with DoorDash, administers $10,000 grants through its Restaurant Disaster Relief Fund. This initiative aims to assist restaurants in recovering from natural disasters such as fires and floods, offering financial aid alongside other forms of support.
For many small businesses, especially those just starting or struggling with limited funding, traditional loans can feel out of reach. Grants, however, offer a lifeline. They provide non-debt capital that can bridge the funding gap and propel a business forward.
With grants, businesses can access much-needed financial support without accumulating debt or facing the pressure of repayment, allowing them to focus on growth and innovation rather than financial strain. This makes grants an invaluable resource for small businesses seeking to overcome financial hurdles and thrive in competitive markets.
If your business demonstrates potential for innovation and contributing to the public good, you’re likely a strong candidate for a small business grant.