Grants for small businesses

Unlock the potential of your small business with grants designed to help you grow without the debt.

What is a small business grant? Who provides them?

Small business grants are funds provided by federal, state, county, or local governments, as well as private businesses and corporations, to support entrepreneurs and small businesses.

Grants do not have to be repaid—making them an attractive option for many business owners, including but not limited to:

Women
Minorities
Veterans
Americans with Disabilities

What can you get with a small business grant?

A small business grant gives you cash to help you grow your business.

Here’s how a grant for small business can help you unlock potential:

Hire new employees: Expand your team to increase productivity and drive growth.
Covering day-to-day costs: Keep your business running smoothly.
Upgrade facilities: Improve your workspace, whether it’s renovating your office or upgrading equipment.
Purchase inventory: Stock up on necessary supplies to meet customer demand.
Expand retail partnerships: Grow your market reach by forging new retail partnerships.
Invest in marketing: Boost your visibility and attract more customers with targeted marketing campaigns.

How to get a small business grant

Here’s how to improve your chances of getting that grant:

Make sure to read the rules: You’ll improve your chances if you make sure to provide everything required.
Match criteria: Focus on grants tailored to your business. This boosts your chances and saves time.
Be detailed: Carefully complete each application, including all required documents. Don’t let minor mistakes disqualify you.
Research past winners: Look at what previous winners have done to win the grant. Tailor your application to meet expectations.

Learn about your grant and financing options

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Types of small business grants you can apply for

Find grants for innovative ideas, local impact, and underrepresented businesses.

Federal grants

Federal agencies offer grants primarily for specific industries like scientific research, technology, and conservation. Start looking at Grants.gov.

State grants

State grants often target local economic and community development, offering a smaller pool of applicants and better chances of success.

Check out the State Business Incentives Database to learn more.

Corporate grants

These opportunities can provide significant funding for innovative ideas, even if you don’t win the top prize. If you work with a nonprofit, check out Patagonia’s grant program.

Demographic-specific grants

Grants targeting women, veterans, veterans with disabilities, and minority business owners are available from corporations, special interest groups, and the U.S. Small Business Administration (SBA).

These grants aim to support underrepresented demographics in the business world.

Pros and cons of grants
for small businesses

Pros

Grants don’t need to be repaid: Some grants offer substantial amounts depending on your proposal.
Tap into the waterfall effect: Securing one grant increases your chances of receiving others.
Build credibility: Promote your business and showcase the merit of your ideas.

Cons

Applying is time-consuming: You need to identify grants that align with your venture and then craft a compelling proposal.
Grants are highly competitive: On average, only a small fraction of proposals receive funding.
Grants come with restrictions: You must detail how you will use the funds in your application and adhere to that plan.

Alternatives to small business grants

Short on time? Concerned about the competition? The good news: You have a number of alternatives available to you.

Small business loans

Avoid the stress of borrowing too much or too little with loans designed to support your growth seamlessly.

Working capital loan

Pre-qualify, get approval, and have funds in your account in as little as 24 hours.

Business line of credit

Borrow up to your credit limit, pay interest only on what you use, and access funds repeatedly as needed.

And these are just a few of the alternative options available to you.

Approval

as fast as 2 hours

Funding

as fast as 4 hours

$2.5+

billion in financing

50,000+

small businesses financed

How our team of financial experts can help you make the right decision

Navigating the financial landscape can be challenging, whether you’re considering a grant or financing options. Here’s how we can help.

Personalized financing solutions

Our experts provide tailored advice on whether a grant or a financing option, like a small business loan or line of credit, is the right fit for you.

Experienced support

Our 100% US-based customer service team is ready to assist you at every step.

With an average tenure of 6 years, our financing experts bring extensive knowledge and experience, offering insights that can save you time and stress.

Flexible funding options

Tap into financing options are designed to support your business’s growth, with right-sized capital and competitive rates.

Empower your business

Our financing experts help you weigh the pros and cons of grants versus financing, enabling you to choose the best path for your business’s success.

Frequently asked questions about small business grants

What is the difference between a small business loan and a grant?

A small business loan requires repayment of the borrowed money, typically with interest. In contrast, a grant is essentially a gift that does not need to be repaid.

Grants are awarded by government departments, trusts, or corporations to individuals, businesses, educational institutions, or non-profits.

Grants are highly attractive for small business owners looking to fund growth or expansion.

How do corporate small business grants work?

Corporate small business grants are provided by large companies, such as FedEx and Visa, often through contests or pitch competitions. These grants offer significant funding for innovative business ideas.

To apply, you typically need to submit a business proposal or pitch your idea in a competition. Even if you don't win the top prize, there are often runner-up prizes or opportunities for publicity that can benefit your business.

Corporate grants encourage creativity and innovation, providing valuable financial support and exposure.

Why do small businesses need grants?

Small businesses need grants because they offer essentially free money that does not require repayment. This financial support can help establish and grow your business without adding to your debt.

Grants can also provide the necessary capital for hiring employees, purchasing inventory, upgrading facilities, or investing in marketing.

By reducing financial strain, grants help small business owners to focus on innovation and expansion, fostering long-term success and sustainability.

Are grants better than loans?

Grants are often seen as better than loans because they do not require repayment.

However, grants come with their own set of challenges, including stringent eligibility criteria, detailed applications, and competitive selection processes.

Additionally, grants can take longer to secure. If you need funding quickly, a loan or alternative lending solution may be a more practical option despite the obligation to repay the borrowed amount.

The best choice depends on your specific financial needs and timeline.

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Grants for small businesses

What is a small business grant? Who provides them?