Did you know that about 20% of small businesses within the first two years? There’s a range of reasons why, including lack of product market fit, poor timing, and ultimately, lack of investment capital. Even the best ideas can succeed without the funds to bring your ideas to life. One solution is small business grants.
For eligible small businesses, these grant programs provide funding opportunities to help grow your businesses, hire more people, and expand into new markets. Today, we'll show you what these grants are, and highlight some of the most notable ones you can apply for.
What is a small business grant?
A small business grant is funding given by government agencies, nonprofit organizations, or private companies and entities. The main goal is to provide financial and technical assistance for small businesses to grow.
The main difference between a loan and a grant is that a grant does not need to be repaid. Small business grants are awarded based on a number of criteria, such as the location of the small business, the industry, or the type of business.
Small business grants are awarded for specific purposes, such as business startup costs, business expansion, research and development, employee retention credit, declared disaster, and more.
When small businesses apply for a grant, they have to go through a lengthy application process that typically requires a business plan and financial documentation. Let's take a look at a few different types of grants that a small business can apply for in the United States, from federal agencies to private companies.
Government grants
Federal grants
Small Business Innovation Research (SBIR) Program: This program provides funding for small businesses to engage in federal research and development with the potential for commercialization. It's aimed at fostering innovation in various fields, including technology and healthcare.
Department of Energy (DOE) SBIR/STTR Grants: The DOE provides SBIR and STTR grants to small businesses working on advanced energy technologies. These grants support federal research and development projects that aim to improve energy efficiency, renewable energy sources, and energy storage solutions.
USDA Small Business Innovation Research (SBIR) Program: The U.S. Department of Agriculture (USDA) SBIR program provides grants to small businesses conducting research in agriculture and rural development. The grants support projects that enhance agricultural productivity, sustainability, and food security.
Department of Education (ED) Education Innovation and Research (EIR) Program: The EIR program offers grants to support innovative educational practices and technologies. These grants fund projects that aim to improve student achievement and educational outcomes, particularly for underserved populations.
Department of Transportation (DOT) Small Business Innovation Research (SBIR) Program: The DOT SBIR program offers grants to small businesses developing innovative transportation technologies. The grants support research that improves safety, infrastructure, and efficiency in the transportation sector.
State Grants
California Small Business COVID-19 Relief Grant Program: This program offers financial assistance to small businesses in California affected by the COVID-19 pandemic. Grants were provided to help businesses stay afloat and recover.
Texas Governor’s Small Business Grants: The Texas Economic Development and Tourism Office offers grants to small businesses focused on technology and innovation. These grants support R&D, commercialization of new technologies, and business expansion to drive economic growth in the state.
New York State New Farmers Grant Fund: This program offers grants to support new and early-stage farmers in New York State. The grants fund projects that improve farm viability, such as purchasing equipment, constructing farm buildings, and implementing sustainable farming practices.
Massachusetts Workforce Training Fund Program: This state-funded program provides grants to small businesses in Massachusetts to support employee training and workforce development. The grants help businesses improve employee skills, increase productivity, and enhance competitiveness.
Colorado Tourism Office Marketing Matching Grant Program: The Colorado Tourism Office offers grants to support marketing efforts for tourism-related businesses and organizations. These grants fund projects that promote Colorado as a travel destination and boost the state’s tourism industry.
Local Grants
New York City Small Business Continuity Loan Fund: Offered by New York City, this grant supported small businesses facing challenges due to the COVID-19 crisis. It provided financial relief to help businesses maintain operations and cover expenses.
Chicago Neighborhood Opportunity Fund: The City of Chicago offers grants through the Neighborhood Opportunity Fund to support small businesses and cultural projects in underserved neighborhoods. These grants help revitalize local communities by funding improvements to commercial spaces and supporting local entrepreneurs.
Los Angeles Department of Cultural Affairs Grants: The City of Los Angeles provides grants to support arts and cultural projects through its Department of Cultural Affairs. These grants fund a variety of initiatives, including public art installations, community arts programs, and cultural events that enrich the local community.
San Francisco Mayor's Office of Housing and Community Development (MOHCD) Grants: MOHCD offers grants to support small businesses and non-profits in San Francisco, focusing on projects that foster innovation and economic development. These grants help businesses leverage technology to improve operations and serve the community more effectively.
Visit Florida Small Business Grants: Visit Florida provides grants to small businesses in the tourism and hospitality industry. These grants support marketing efforts, tourism development projects, and initiatives that enhance the visitor experience in Florida, even in rural communities.
Private grants
Corporate grants
FedEx Small Business Grant Contest: FedEx offers an annual grant contest for small businesses, providing winners with funding to support business growth and development. This grant helps businesses enhance their operations and expand their reach.
Walmart Foundation Community Grant Program: The Walmart Foundation provides grants to small businesses and organizations that work towards enhancing the quality of life in local communities. These grants support initiatives in areas such as education, environmental sustainability, and workforce development.
Microsoft AI for Accessibility Grants: Microsoft offers grants to startups and small businesses developing AI solutions that empower people with disabilities. The program provides funding, technology, and expertise to help create inclusive and innovative technologies that improve accessibility.
Coca-Cola Foundation Community Support Grants: The Coca-Cola Foundation offers grants to small businesses and non-profits that contribute to community development. These grants support projects in education, economic empowerment, environmental sustainability, and health and wellness.
Visa Everywhere Initiative: Visa’s global innovation program offers grants to startups and small businesses that provide innovative solutions in payments and commerce. The initiative awards substantial funding to businesses that address challenges in financial technology, social impact, and more.
Foundation grants
The Amber Grant for Women: This grant, provided by the Amber Grant Foundation, supports women entrepreneurs with monthly awards. The foundation aims to help women achieve their business dreams by providing necessary financial support.
Bill & Melinda Gates Foundation Grants: The Gates Foundation provides grants to support educational initiatives and innovations. These grants fund projects that aim to improve educational outcomes, increase access to quality education, and promote equity in education for underserved populations.
Robert Wood Johnson Foundation (RWJF) Grants: RWJF offers grants to support health-related projects and research. These grants aim to improve public health, reduce health disparities, and promote a culture of health through innovative solutions and community-based initiatives.
The David and Lucile Packard Foundation Grants: The Packard Foundation provides grants to support environmental conservation and sustainability efforts. These grants fund projects focused on protecting and restoring ecosystems, promoting sustainable practices, and addressing climate change.
Kauffman Foundation Grants: The Kauffman Foundation offers grants to support entrepreneurship and economic development. These grants fund programs that provide training, resources, and support to entrepreneurs, with a focus on fostering innovation and economic growth.
Industry-specific grants
USDA Rural Business Development Grants: The U.S. Department of Agriculture (USDA) offers grants to support the development of small businesses in rural areas. These grants aim to improve the economy and quality of life in rural communities through business growth.
National Institutes of Health (NIH) Small Business Grants: The NIH offers several grant programs, such as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These grants support small businesses developing innovative medical technologies and healthcare solutions.
Value-Added Producer Grant (VAPG): Offered by the USDA, the VAPG program helps agricultural producers enter into value-added activities. Grants support planning activities or working capital expenses related to producing and marketing a value-added agricultural product.
Department of Energy (DOE) Small Business Vouchers (SBV) Pilot Program: This program connects small businesses with national laboratories, providing vouchers that can be used for research and development in the energy sector. The goal is to foster innovation and commercialization of new energy technologies.
Travel Oregon Matching Grants Program: Travel Oregon offers matching grants to tourism-related businesses and organizations in Oregon. These grants support projects that enhance tourism facilities, attractions, and marketing efforts, boosting the state's tourism industry.
Demographic specific grants
Minority Business Development Agency (MBDA) Grants: The MBDA provides grants to minority-owned businesses to support their growth and competitiveness. These grants help minority entrepreneurs access resources, training, and funding opportunities.
Veteran-Owned Business Grants (StreetShares Foundation): The StreetShares Foundation offers grants to veterans or their spouses who own small businesses. These grants support veteran entrepreneurship and help them scale their businesses.
Eileen Fisher Women-Owned Business Grant Program: This program provides grants to women-owned businesses that have a positive social and environmental impact. Eileen Fisher, a clothing brand, supports women entrepreneurs working towards social change and sustainability in their business practices.
LGBTQ+ Business Enterprise Certification Grants: Offered by the National LGBTQ Chamber of Commerce (NGLCC), these grants cover the cost of certification for LGBTQ-owned businesses. Certification can open doors to networking, contracts, and other opportunities specifically available to certified diverse businesses.
Grants for Disabled Entrepreneurs by the National Disability Institute (NDI): NDI offers grants to entrepreneurs with disabilities to help them start or expand their businesses. These grants support various business needs, including equipment, technology, and marketing efforts.
Research and development grants
National Science Foundation (NSF) Small Business Technology Transfer (STTR) Program: The NSF STTR program provides funding for small businesses engaged in scientific research and development. The goal is to encourage partnerships between small businesses and research institutions to bring innovative technologies to market.
Environmental Protection Agency (EPA) Small Business Innovation Research (SBIR) Program: The EPA SBIR program offers grants to small businesses developing innovative environmental technologies. These grants support projects that address critical environmental issues such as pollution control, sustainable materials, and green energy solutions.
ARPA-E Grants: The Advanced Research Projects Agency-Energy (ARPA-E) provides funding for high-potential, high-impact energy technologies that are too early for private sector investment. These grants support groundbreaking research in energy efficiency, renewable energy, and other advanced energy technologies.
NASA Small Business Technology Transfer (STTR) Program: NASA's STTR program provides funding for small businesses collaborating with research institutions to develop space-related technologies. These grants support projects that contribute to NASA's mission and have potential commercial applications in space exploration and technology.
National Institute on Aging (NIA) Small Business Grants: The NIA offers grants to small businesses conducting research on aging and age-related diseases. These grants support the development of innovative products and services that improve the health and well-being of older adults.
Conclusion
Small business administration can feel very complex for someone who has never run a business before. And if you're short on funds, running a small business can feel exhausting. Small business grants can help eligible businesses get off the ground, give them disaster assistance, support technological innovation, and simply improve their bottom line.
Speaking of which, you need to organize your small business administration before even applying for grant programs. A solid CRM can help you organize your sales operations and keep tabs on all figures related to revenue, making it easier to prepare documentation and apply for a grant.
Try Capsule for free today - an easy-to-use, small-business-friendly CRM.
Frequently Asked Questions
It depends on the grant. Typically, eligible applicants for federal government and other types of grants are self-employed workers, independent contractors, sole proprietors, and corporations. Federal grants and non-profit corporations may have different requirements, so it's best to do your research first.
Yes, Amazon offers up to $250,000 to 15 small businesses in the United States every year to promote entrepreneurship and give technical assistance to small business owners in need.
Eligibility requirements differ from grant to grant. Some grants are offered only to citizens, while others require a green card and some are for residents only. Small businesses should do their own research before applying for any grant programs.
