Starting a small business requires money for equipment, inventory, technology, marketing, licensing, and everyday operating expenses. For entrepreneurs who want to avoid unnecessary debt, grants for starting a small business can be an attractive funding option.
Unlike traditional business loans, grants generally do not require repayment when recipients follow the program’s terms and conditions. However, finding the right grant can be challenging. Many programs have strict eligibility requirements, limited application windows, and specific rules about how funding can be used.
The good news is that government agencies, nonprofit organizations, corporations, and local economic development programs offer funding opportunities for eligible entrepreneurs.
This guide explores 10 grants and funding programs to consider in 2026. It explains their award amounts, eligibility requirements, availability, and application processes, helping entrepreneurs identify opportunities that match their business goals.
Grant programs have different application periods, eligibility requirements, and funding availability. Some opportunities accept applications throughout the year, while others operate through limited funding rounds. Always verify the latest information with the administering organization before applying.
What Are Grants for Starting a Small Business?
Small business grants are financial awards that help eligible entrepreneurs start, develop, or expand their businesses. Unlike loans, grants generally do not require repayment if recipients follow the funding rules.
Grants may support equipment purchases, product development, research, business expansion, or community projects. However, eligibility and funding purposes vary by program.
How Small Business Grants Work
Most grant programs follow these steps:
- Find a suitable grant opportunity.
- Check eligibility requirements.
- Submit an application and required documents.
- Wait for the provider’s evaluation.
- Receive approved funding or reimbursement.
- Follow spending and reporting requirements.
Can You Get a Government Grant to Start a Business?
Yes, but federal grants for starting a typical small business are uncommon.
The U.S. Small Business Administration (SBA) generally does not offer grants to launch ordinary for-profit businesses. Federal grants mainly support research, innovation, exporting, and specialized development projects.
Entrepreneurs can also explore:
- State and local government grants.
- Private and corporate funding programs.
- Nonprofit business grants.
- Startup competitions and accelerators.
10 Best Grants for Starting a Small Business in 2026
The following programs and funding sources are worth exploring. They serve different business types and development stages, so not every opportunity will be suitable for every applicant.
1. Amber Grant for Women
The Amber Grant, operated by WomensNet, supports women entrepreneurs starting or growing businesses.
Key features:
- $15,000 monthly grants across three categories.
- Three additional $75,000 year-end awards.
- Startup funding for businesses with limited sales.
- $15 application fee, with hardship waivers available.
Best for: Women entrepreneurs in the US or Canada who own at least 50% of their business.
2. IFundWomen Startup Accelerator Grant
IFundWomen provides startup funding, mentorship, and business development resources.
Key features:
- $5,000 unrestricted grant for one founder.
- Open to eligible US-based, pre-revenue startups.
- Applicants must be 18 or older and own at least 50% of their business.
Best for: Early-stage entrepreneurs seeking startup funding.
2026 Deadline: November 30, 2026.
3. Verizon Small Business Digital Ready Grants
Verizon and LISC support eligible small businesses through digital education and grant funding.
Key features:
- $10,000 grants for selected businesses.
- 10 recipients selected monthly from June through December 2026.
- Two eligible courses or events required before applying.
Best for: US-based small businesses seeking funding and digital skills development.
2026 Deadline: December 7 for completing required activities.
4. Small Business Innovation Research (SBIR) and STTR
Federal SBIR and STTR programs fund eligible small businesses developing innovative technologies and research-based products.
Key features:
- Competitive research and development grants.
- Funding for feasibility studies and technology development.
- Opportunities for commercialization.
Best for: Technology startups and research-driven businesses.
2026 Update: Programs were reauthorized through September 30, 2031. Application availability varies by federal agency.
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5. USDA NIFA SBIR Program
The USDA’s NIFA SBIR program supports agricultural research and technological innovation.
Key features:
- Funding for agricultural and food technology research.
- Support for innovative product development.
- Phase II awards ranging from $600,000 to $650,000.
Best for: Agricultural technology and food innovation startups with qualifying research projects.
2026 Deadline: November 17, 2026, for Phase II applications. Only previous eligible Phase I winners can apply.
6. NIH Small Business Innovation Research and Technology Transfer Programs
The National Institutes of Health (NIH) supports eligible small businesses developing health-related innovations through SBIR and STTR programs.
Key features:
- Funding for medical research and development.
- Support for early-stage innovation.
- Opportunities for commercial technology development.
Best for: Biotechnology, medical device, and digital health startups.
2026 Update: SBIR/STTR programs were reauthorized in April 2026, but funding availability varies. Check NIH and Grants.gov for active opportunities.
7. USDA Rural Business Development Grants
The USDA supports rural economic development through grants generally awarded to eligible public bodies and nonprofit organizations rather than directly to individual businesses.
Key features:
- Rural business development assistance.
- Training and technical support.
- Funding for eligible community projects.
Best for: Rural entrepreneurs seeking assistance through local development organizations.
Important: Individual for-profit startups generally cannot apply directly.
8. State Trade Expansion Program (STEP)
The SBA’s STEP program helps eligible small businesses enter international markets through state-administered export assistance.
Key features:
- Export training and trade show support.
- International marketing assistance.
- Potential reimbursement for approved expenses.
Best for: Operating small businesses planning international expansion.
2026 Update: The federal application deadline for state applicants was September 9, 2026. State-level assistance may remain available.
9. USDA Rural Energy for America Program (REAP)
REAP supports qualifying rural small businesses and agricultural producers investing in renewable energy and energy-efficiency improvements.
Key features:
- Renewable energy project assistance.
- Energy-efficiency improvements.
- Financial support for eligible equipment.
Best for: Rural businesses and agricultural producers planning energy-related investments.
2026 Update: USDA is not currently accepting new REAP grant applications while updating regulations. Guaranteed loan applications may remain available.
10. State and Local Small Business Grants
State and local governments may provide funding for entrepreneurs starting or expanding community-based businesses.
Common opportunities include:
- Storefront improvement grants.
- Downtown revitalization funding.
- Local startup competitions.
- Rural business development grants.
Best for: Retail stores, restaurants, service businesses, and local startups.
Important: Eligibility, funding amounts, matching requirements, and application deadlines vary by location.
Which Grants Are Best for a Brand-New Business?
Not all small business grants are available to new entrepreneurs. Some require revenue or operating history, while others support businesses at the idea or startup stage.
Grants for Idea-Stage Entrepreneurs
Entrepreneurs who have not launched their businesses can explore:
- Amber Grant Startup Grant.
- IFundWomen grant and accelerator opportunities, when available.
- University business competitions.
- Local startup pitch competitions.
- Incubator and accelerator funding.
Eligibility varies, but some programs consider business ideas, innovation, and growth potential.
Grants for Existing Small Businesses
Operating businesses may qualify for:
- Local business improvement grants.
- Export assistance programs.
- Digital transformation grants.
- Energy-efficiency funding.
- Research and development grants.
Always check revenue, registration, and operating-history requirements before applying.
How to Find Grants for Starting a Small Business
Finding the right grant starts with identifying programs that match your business type and funding needs.
- Search Grants.gov: Explore federal opportunities, although most do not fund ordinary startup costs.
- Visit SBA.gov: Find guidance on research grants, financing, and business assistance.
- Check state agencies: Look for state-level incentives and industry-specific funding.
- Explore local programs: Search city and county grants for business development and storefront improvements.
- Contact SBDCs: Get free or low-cost guidance on funding opportunities and applications.
- Monitor private grants: Check corporate, nonprofit, and entrepreneurship programs for new application rounds.
How to Apply for a Small Business Grant
A successful small business grant application clearly explains your business, funding needs, and how the money will be used.
Step 1: Check Eligibility
Review the grant’s requirements, including business location, industry, ownership, revenue, operating history, and funding purpose.
Step 2: Prepare a Business Plan
Create a concise plan covering your business model, target customers, competition, financial projections, and growth strategy.
Step 3: Explain Your Funding Needs
Clearly describe how you will use the grant, such as purchasing equipment, developing products, or expanding operations.
Step 4: Create a Budget
List expected expenses and ensure they follow the grant provider’s spending rules.
Step 5: Gather Required Documents
Common documents include:
- Business registration and EIN.
- Business plan and project budget.
- Financial statements and tax records.
- Required licenses and permits.
Step 6: Submit Your Application
Follow all instructions, attach required documents, and submit before the deadline.
Step 7: Prepare for Follow-Up
Be ready to provide additional information, attend interviews, or explain your business proposal.
Example of a Small Business Grant Budget
Suppose an entrepreneur is requesting a $10,000 grant to launch a small online retail business.
A sample project budget might look like this:
| Expense | Estimated cost |
|---|---|
| Website development | $2,000 |
| Initial inventory | $3,500 |
| Business equipment | $1,500 |
| Digital marketing | $1,500 |
| Packaging and supplies | $1,000 |
| Business software | $500 |
| Total | $10,000 |
This is an illustrative budget, not a guarantee that any particular grant will cover these expenses.
Some programs prohibit inventory purchases, general operating costs, marketing, or other categories.
Applicants should only include expenses explicitly permitted by the grant.
Do Small Business Grants Require Matching Funds?
Some grants require recipients to contribute a portion of the total project cost.
This contribution is commonly called a matching requirement.
For example, suppose an eligible project costs $20,000 and a grant covers 50% of approved expenses.
The business would need to provide the remaining $10,000.
Matching funds may come from eligible business resources or other permitted funding sources.
However, grant programs may restrict which funding sources can count toward the match.
Always confirm whether matching funds are required and how they must be documented.
Upfront Grants vs. Reimbursement Grants
Small business grants differ in how funding is distributed. Understanding the payment structure helps entrepreneurs plan their expenses.
| Feature | Upfront Grants | Reimbursement Grants |
|---|---|---|
| Payment Timing | Funds provided before expenses | Funds paid after eligible expenses |
| Initial Investment | Lower upfront cash requirement | Business pays costs first |
| Cash Reserves | Less funding needed initially | Sufficient cash reserves required |
| Spending Rules | Must follow approved budget | Must provide proof of expenses |
| Best For | Startups with limited funds | Businesses with available capital |
Key Takeaway: Upfront grants may be more suitable for entrepreneurs with limited savings, while reimbursement grants require businesses to cover expenses before receiving funding.
Federal Grant Registration Requirements
Some federal grants require a Unique Entity ID (UEI) and active registration on SAM.gov.
- Register well before the application deadline.
- Check each grant’s registration requirements.
- SAM.gov registration is free.
- Avoid third parties charging unnecessary registration fees.
What Happens After You Receive a Small Business Grant?
Grant recipients must follow the funding provider’s rules, which may include:
- Spending funds only on approved expenses.
- Keeping receipts and financial records.
- Submitting progress reports.
- Meeting project deadlines.
- Documenting matching funds when required.
- Returning improperly used funds.
Tip: Review all grant conditions before accepting funding to avoid compliance issues.
Are Small Business Grants Taxable?
Small business grants are generally considered taxable income for for-profit businesses unless a specific tax exclusion applies.
- Tax treatment depends on the grant and applicable laws.
- Some grant-related expenses may be deductible.
- Maintain accurate financial records.
- Consult a tax professional for guidance.
Small Business Grants vs. Business Loans
Grants and loans can both support business development, but they work differently.
| Feature | Small business grants | Business loans |
|---|---|---|
| Repayment | Generally not required if conditions are met | Required |
| Interest | Usually none | Usually charged |
| Availability | Limited and competitive | Broader range of financing options |
| Eligibility | Often project-specific | Usually based on credit, revenue, cash flow, and other criteria |
| Application process | May involve proposals and competitive review | Usually involves financial and credit evaluation |
| Spending restrictions | Often strict | Depends on the loan agreement |
| Funding speed | Can be slow or unpredictable | Varies by lender and product |
For entrepreneurs who need immediate funding, a grant may not be the most reliable option.
A business loan may provide more predictable financing, although it creates a repayment obligation.
Alternatives to Small Business Grants
If your business does not qualify for grants, consider these alternative funding options:
- SBA Microloans: Small loans for eligible businesses to cover equipment, inventory, and working capital.
- CDFIs: Community-based lenders offering financing and support to underserved entrepreneurs.
- Business Credit Cards: Useful for short-term expenses but may carry high interest rates.
- Crowdfunding: Raise money from customers, supporters, or investors through online platforms.
- Business Incubators and Accelerators: Provide mentorship, networking, and sometimes funding in exchange for equity.
Common Mistakes to Avoid When Applying for Business Grants
Small business grant applications are competitive, and even minor mistakes can reduce your chances of receiving funding. Common mistakes include:
- Not checking eligibility: Applying for grants that do not match your business requirements.
- Using generic proposals: Submitting applications without addressing the grant’s specific goals.
- Requesting ineligible expenses: Including costs that the grant program does not cover.
- Missing deadlines: Failing to submit applications on time.
- Providing unrealistic projections: Making financial claims without supporting evidence.
- Ignoring reporting requirements: Overlooking spending records and progress reports.
- Relying only on grants: Depending entirely on uncertain grant funding instead of exploring other financing options.
How to Avoid Small Business Grant Scams
Entrepreneurs searching for free business funding may encounter misleading advertisements or fraudulent offers.
Be cautious of anyone who promises guaranteed grant approval or requests sensitive information without a legitimate reason.
Warning signs include:
- Claims that everyone qualifies for government grants.
- Requests for payment to release an award.
- Unsolicited messages announcing a grant you never applied for.
- Pressure to provide bank passwords or personal financial credentials.
- Websites impersonating government agencies.
- Promises of guaranteed funding without an application review.
Some legitimate private grant competitions charge application fees, so a fee alone does not prove fraud.
However, government registration through SAM.gov is free, and legitimate grant providers should clearly explain their application requirements.
Whenever possible, verify opportunities through the administering organization’s official website.
Final Thoughts
Finding grants for starting a small business can take time, but the right opportunity may help reduce startup costs, support innovation, or fund a specific business project without creating traditional loan debt.
The most important step is choosing programs that genuinely match your business. Private grants and local entrepreneurship competitions may be suitable for certain early-stage entrepreneurs, while federal research programs are better suited to businesses developing innovative technologies.
Before applying, review eligibility requirements, funding restrictions, deadlines, matching obligations, and reporting rules. Also, check whether the program is currently accepting applications rather than relying on previously announced funding rounds.
A clear business plan, realistic budget, and well-prepared application can help you compete more effectively.
Grants for Starting a Small Business FAQs
1. Can I get a grant to start a small business with no money?
Yes, some grants support entrepreneurs with little or no startup capital. However, eligibility requirements vary, and certain programs require matching funds or financial resources.
2. Does the SBA give grants to start a business?
The SBA generally does not offer grants to start a typical small business. However, it supports specialized funding programs and provides resources to help entrepreneurs explore other opportunities.
3. Can startups with no revenue apply for grants?
Yes, some grants accept pre-revenue startups, particularly through business competitions, research funding programs, and private entrepreneurship initiatives. Eligibility depends on the specific program.
