Small Business Grants: 40+ Free Funding Options (2026)

Developing products, researching market trends, securing inventory⁠—startup business costs add up fast. For new entrepreneurs, securing business financing before you’ve proven your concept can be difficult. But small business grants offer a way to access funding without taking out a loan.

You don’t have to pay back the money issued through a small business grant, but the application process can be daunting. There’s been a 33% drop in grant opportunities over the past year, and most federal grants fund specific purposes, not general startup costs. That means finding the right fit and submitting a strong application is essential to securing funding. 

This guide covers 40 small business grants available in 2026, including government-backed grants and private funding for underserved groups. You’ll also learn how to apply and common pitfalls to avoid. 

What are small business grants?

Small business grants are non-repayable funds that help entrepreneurs grow their businesses. They’re awarded by federal, state, and local government agencies, private corporations, or nonprofit organizations.

Unlike loans, money from a small business grant doesn’t need to be paid back, but most issuers require you to meet specific eligibility criteria. You might need to operate in a particular industry or region, fall below a revenue threshold, or belong to an underrepresented group to apply. 

Grants typically come with usage restrictions too: funds must be spent on approved expenses. Issuers often ask for progress reports to confirm the money was used as intended.

Grant vs. loan: Understanding the difference

Unlike startup business loans, grants don’t need to be repaid. That means you don’t need to consider monthly repayments for business or cash flow planning.

Grants are more competitive than loans. Most issuers offer limited funding and have stricter eligibility criteria.

Most small businesses can’t operate on grants alone, so they complement other financing options rather than fully replace them.

In a 2025 Shopify survey of established ecommerce store owners, 79% reported using profits to self-fund growth, while 62% also used additional funding from outside sources—suggesting that the majority of successful businesses blend multiple funding strategies rather than relying on a single source.*

Types of small business grants available in 2026

There are four main types of grants available to small businesses, based on who provides the funding and what the grant supports:

• Federal grants, issued by the federal government to support innovation, economic growth, or public service initiatives 
• State and local grants, awarded to small businesses in specific regions to stimulate local economies
• Corporate grants, funded by larger businesses that support smaller businesses with the same mission
• Nonprofit grants, awarded by charitable organizations focused on community or social impact

According to the same Shopify survey, businesses that sell both business to consumer (B2C) and business to business (B2B) are twice as likely to use government loans and grants compared to B2B-only businesses. This suggests that diversified sales models may open more funding pathways.

For example, entrepreneurs Niki and Ritika Shamdasani raised $100,000 from college grants and another $100,000 from a local startup accelerator program to launch their clothing company Sani.

General eligibility requirements

Every grant sets its own rules, but most share a core set of baseline requirements:

• Business registration status. Most grantors require your business to be legally registered in the US. This could be an LLC or corporation. 
• Time in operation. Some grants require at least one year of operation, while others ask for two or three. If you’re pre-revenue or in the ideation stage, look for accelerator programs or business incubators instead.
• Revenue and employee limits. Grant programs designed for small businesses often cap eligibility by annual revenue or headcount. Amazon’s grant program, for example, is available only for small businesses with annual revenue of $1 million or less.
• Permitted use of funds. Most grants specify what the money can (and can’t) be spent on. Common approved uses include hiring, equipment, marketing, R&D, and training. 
• Industry, demographic, and geographic restrictions. You’ll need documentation to verify eligibility for specialist grants, like those issued to women-owned or veteran-owned businesses.

Carefully reviewing eligibility requirements before applying will help you save time you might spend on grants that don’t suit your business. 

Federal SBA grants

The US Small Business Administration (SBA) is a federal government agency that supports entrepreneurs through funding, training, and business resources. They primarily coordinate and support grant programs rather than directly funding small businesses. Their goal is to help small businesses grow and strengthen the nation’s economy.

The SBA also runs Small Business Development Centers, which help entrepreneurs identify relevant grant opportunities and navigate the application process. It offers several funding opportunities from federal, state, and local governments—including federal grants. 

Here are some SBA grants and programs that can help support your small business:

State Trade Expansion Program (STEP)

The State Trade Expansion Program (STEP) offers federal small business grants to help entrepreneurs expand globally. Grant funds can be used for foreign-market trade shows and expansion opportunities. STEP grants are administered through state agencies, so eligibility and award amounts vary by state.

Veteran assistance programs

The SBA offers a number of veteran assistance programs that provide grant funding for veteran-owned businesses.

Women-Owned Small Business Federal Contract program

The Women-Owned Small Business (WOSB) Federal Contract program helps businesses compete for federal contracts, where women entrepreneurs are underrepresented.

HUBZone program

The HUBZone program assists small businesses operating in historically underutilized business zones. Eligible businesses can access grant funding and receive preferential consideration for federal contracts.

Natural Resources Sales Assistance program

The Natural Resource Sales Assistance program prioritizes small businesses and assists them in securing federal government contracts through a bidding system. Eligible businesses include those operating in natural resource sectors: timber and forestry products, strategic materials, coal, oil, gas, and real estate niches.

Native American Trade Expansion Program (NATEP)

The SBA also funds local organizations to help Native businesses grow through exports abroad. Businesses selected can receive up to $240,000 to increase participation in foreign trade missions, sales trips, website and product translation, and international marketing media design.

Small Business Innovation Research and Small Business Technology Transfer programs

The SBA coordinates both the Small Business Innovation Research Program (SBIR) and Small Business Technology Transfer Program (STTR). These programs fund small businesses conducting research and development projects with commercial potential.

Participating agencies include:

• Environmental Protection Agency (EPA)
• Department of Agriculture (USDA)
• Department of Health and Human Services (HHS)
• Department of Education (DOE)

Looking for SBA loans?

• SBA Loan Requirements: How to Qualify
• SBA 7(a) Loans: Types, Eligibility & How to Apply
• SBA 504 Loans: Eligibility Requirements & How to Apply

Other federal small business grants

Several federal agencies other than the SBA offer grant programs for small businesses in the US (including hardship grants).

Grants.gov

Grants.gov is a centralized database where entrepreneurs can find and apply for federal small business grants. 

The site gathers grant opportunities from various federal agencies, like the Bureau of Educational and Cultural Affairs and the US Department of Commerce. Most grants are for organizations, not individuals, and can be competitive. Filter grants by “small business” and industry to shortlist options.

National Institutes of Health

The National Institutes of Health continues to offer a variety of funding grant opportunities for businesses developing biomedical research. This type of grant is competitive—recent data found the number of researchers winning NIH grants fell by 23% between 2024 and 2025.

US Department of Commerce Minority Business Development Agency

The US Department of Commerce Minority Business Development Agency (MBDA) has a wide variety of small business programs intended to assist with the growth and development of minority-owned businesses throughout the United States.

US Department of Energy clean energy grants

The US Department of Energy offers clean energy grants to businesses that previously received SBIR or STTR funding. These grants help fund companies focused on combating climate change.

Economic Development Administration (EDA) grants

The Economic Development Administration (EDA) funds regional economic development across the US. Unlike most federal grant programs, EDA grants typically flow to intermediaries—local governments, universities, economic development organizations, and nonprofits—rather than directly to individual businesses.

State and local grants

Many local and state agencies also offer small business grants to support growth in their regions. These grants can be industry-specific or focus on broader economic development goals.

How to find grants in your specific state

Every state has a different way of providing grants to businesses in its area. To find state and local grant opportunities:

• Search “grants” on your state’s official website
• Visit your state’s Economic Development Administration website
• Contact your local chamber of commerce
• Check online databases at local libraries
• Contact your local Small Business Development Center

Top state-based grant programs for 2026

Here are some standout state-level grant programs to consider if you’re starting a small business this year:

• California. Entrepreneurs who want to start a small business in California can apply for grants through the California Office of the Small Business Advocate (CalOSBA).
• New York. Empire State Development encourages entrepreneurs to start businesses in the state by offering funding, including grants.
• Florida. The Florida High Tech Corridor grant issues funding to small technology businesses. Eligible businesses partner with researchers at Florida universities to develop new business ideas.
• Texas. If you’re raising money to hire staff, consider the Texas Workforce Commission grant program. It’s designed to help new entrepreneurs with fewer than 100 employees train full-time workers.

Read more: 10 Best States to Start a Business in 2026

Non-government grants for small businesses

Many private corporations and nonprofit organizations also offer private grant programs designed to help small business owners start and expand their companies:

National Association for the Self-Employed (NASE) Growth Grants

The National Association for the Self-Employed provides financial assistance programs for small businesses to help them succeed and compete in the marketplace. NASE growth grants award up to $4,000 to small businesses for business needs, including marketing, hiring, and technology equipment.

LISC small business grants

Local Initiatives Support Corporation (LISC) is a grant provider focused on supporting small businesses in underserved and historically excluded communities. It’s delivered $270 million in relief grants to 26,000 small businesses across the US. Programs and application windows vary—check current offerings via the official page.

Industry-specific grant opportunities

Certain industries have tailored grant programs for small businesses. Here are some examples.

Halstead Grant

The Halstead Grant offers a top prize of $7,500 in startup capital for emerging jewelry designers, as well as smaller grants to businesses innovating and advancing the artistry of the jewelry industry. 

National Science Foundation

If you want to start a business in the science industry, consider the National Science Foundation’s SBIR/STTR program. It provides grants to small businesses that turn scientific discoveries into products and services. Any money issued goes to building proof of concept.

Office of Advanced Manufacturing

The Office of Advanced Manufacturing (OAM) provides funding for research and development. Eligible small businesses are manufacturers that increase energy efficiency.

Children’s Health Grants

The United States Environmental Protection Agency (EPA) has regular grant competitions to help small businesses improve children’s health.

Corporate grants

Corporations, or their foundations, also provide small business grants to businesses closely aligned with their mission. These types of grants may also offer more flexible eligibility compared to federal grants. 

Corporate grant opportunities to look for in 2026 include:

• Verizon. Alongside a library of free resources for entrepreneurs, Verizon has issued more than $15 million in small business grants since 2021.
• Walmart. The retailer issues grants to local businesses that support the communities they serve with grants ranging from $250 to $5,000.
• Lenovo. Winners of this grant get a tech package, access to mentorship, and a small business grant to cover AI technology and training.
• Freed Fellowship. Every month, Freed Fellowship reviews grant applications to issue a $500 grant to a small business owner. Every submission comes with free advice on how to grow your company.
• American Express + Main Street America “Backing Small Businesses.” An annual grant program that provides $10,000 grants for businesses promoting sustainable growth and making a local impact.
• Amazon Business. The retail giant offers more than $250,000 to winners, including a $25,000 grand prize, plus Amazon Business perks like free Prime. 

Grants for women-owned businesses

Some small business grants focus on women in business. These programs often aim to provide women entrepreneurs with funding, mentorship, and resources:

Cartier Women's Initiative Regional Awards Program

The Cartier Women’s Initiative Regional Awards Program offers grants up to $100,000 to entrepreneurs and women-owned businesses in their initial stages of development that are working to meet one of the 17 UN Sustainable Development Goals.

IFundWomen grants

IFundWomen connects women-owned businesses with multiple grants through a single application. The organization has partnered with brands like Adidas, American Express, Botox, Visa, and more to offer grants tailored to different industries and growth stages.

Foundation for a Just Society

The Foundation for a Just Society (FJS) offers grants to local, national, regional, and international organizations that work to advance the rights of women and LGBTQ+ people. The FJS focuses its efforts in Francophone West Africa, Mesoamerica, South and Southeast Asia, and the US Southeast, as well as some areas of New York City.

WomensNet’s Amber Grant

WomensNet is a community of entrepreneur-minded women supporting businesses led by women starting their entrepreneurial journey. The organization gives away at least $30,000 every month to women entrepreneurs, as well as a $50,000 year-end grant to three recipients.

HerRise MicroGrant

The HerRise MicroGrant (via the Yva Jourdan Foundation) is a monthly $1,000 grant for under-resourced women. Applications close the last day of each month. Your business must be majority-owned by women, registered in the US, and make less than $1 million in gross revenue. 

Grants for BIPOC-owned businesses

Numerous grants are geared toward helping Black, Indigenous, and other people of color (BIPOC) start and grow their businesses. Here are a few to consider:

Founders First CDC grant programs

In addition to providing coaching and accelerators, Founders First offers a variety of grant programs for founders who have between two and 20 employees.

NAACP grant programs

The NAACP partners with different organizations like BeyGOOD, Vistaprint, the Boston Celtics Shamrock Foundation, Diversity Capital, Hello Alice, and more to offer multiple grant programs for Black entrepreneurs, such as:

• Powershift Entrepreneurs Grant. Awards grant recipients $25,000 and tools and resources to help their business grow.
• Inclusive Beauty Fund Grant. Awards six grants of $25,000 to recipients in the beauty industry. 

Grants for veteran-owned businesses

If you’re a qualified US military veteran, explore these grants for veteran-owned businesses.

Hiring Our Heroes

Operated by the US Chamber of Commerce, the Hiring Our Heroes program awards a $10,000 one-time grant to five small businesses owned by veterans and military spouses. To be eligible, you must be a legal resident and living in an eligible US state, make less than $5 million in annual revenue, and be located in an economically vulnerable community.

Warrior Rising Vetrepreneur

Warrior Rising supports veterans and their families in starting businesses. Approved entrepreneurs who share their business plan through the Vetpreneur program will receive invitations to pitch for funding opportunities.

Grants for LGBTQ+ entrepreneurs

Entrepreneurs in the LGBTQ+ community can apply for the following grants to launch their own business:

National Pride Grant

Founders First CDC runs the LGBTQIA+ National Grant. Each year, it awards a $1,000 microgrant to 25 LGBTQIA+ business owners. To apply, you must have an active US business that’s at least a year old, has between two and 100 employees, and makes less than $5 million in annual revenue.

StartOut Founders Program

The StartOut Founders Program provides resources that include its startup accelerator Growth Lab for LGBTQ+-owned businesses at every stage of development, from aspiring founders at the ideas phase to established companies looking to grow.

Grants for rural businesses

Businesses in rural communities face unique challenges, such as limited access to capital and technical support. Grants to address this include:

USDA Rural Business Development Grants

The US Department of Agriculture (USDA) offers the Rural Business Development Grants to help with technical assistance and training programs for small rural businesses. Funds are also given for non-technical uses, such as entrepreneur training and long-term business strategy planning. 

National Institute of Food and Agriculture

The National Institute of Food and Agriculture (NIFA) awards grants to rural businesses. Eligibility criteria depends on the grant competition you’re applying for. Previous contests include small businesses specializing in crop research, mentoring youth, and supplemental nutrition.

How to get a small business grant

1. Look for grants within your industry
2. Read the eligibility requirements carefully
3. Align with the grantor’s mission
4. Know how you’ll use the grant money
5. Focus your pitch on innovation and expansion
6. Deliver on your promises

Applying for a small business grant takes time and planning. “You have to just keep your eyes open for any grant,” says Myriam Belzile-Maguire, cofounder of Maguire Shoes, in a Shopify Masters episode. 

If you’re starting out as a small business owner and looking to apply for free business funding for your startup, here are six points to prepare a stronger application:

1. Look for grants within your industry

Many small business grants are industry-specific. Focus on organizations and research institutions within your particular industry. For example, the National Science Foundation’s SBIR/STTR program only provides grants to small businesses in the technology industry.

Be aware that fraudsters target small business owners actively searching for funding. Red flags include unsolicited offers, requests for upfront fees or bank details to “release” funds, and any program claiming to guarantee approval. Legitimate grants are competitive—no genuine program can promise you’ll receive investment.

Before applying, verify the grant through official sources such as Grants.gov, the SBA’s website, or your state’s economic development agency website.

2. Read the eligibility requirements carefully

Before investing time in an application, double check grant eligibility requirements. Read the requirements carefully and evaluate whether you qualify for the grant award. If you’re unsure that you meet the criteria, reach out to the organization directly.

3. Align with the grantor’s mission

Organizations fund businesses that help achieve a specific goal they care about. Ask yourself how your business model helps contribute to achieving this goal. For example, a woman-owned food brand applying for a community development grant could highlight how it sources locally and partners with neighborhood nonprofits.

If the answer isn’t clear, you might want to consider applying for grants with another organization.

4. Know how you’ll use the grant money

Some organizations stipulate allowable expenses for grant money. Even when not required, having a plan for the funds shows responsibility and initiative. If you’re applying for a research and development grant, for example, this could be as simple as: “We plan to use the money to find a manufacturer to develop a product prototype.”

When an organization is determining whether to issue your business a grant, having a solid business plan and knowing how the money will be spent will help them understand more clearly how your business aligns with their mission. Use a free business plan template to cover this component in yours.

“My advice to those folks would be to do the work, do all your product research, have some form of understanding of your financials,” says Bill Bachand, founder of Renu Therapy, on a Shopify Masters episode. 

“I’m not a financial wizard, but I know how to read a balance sheet and a profit and loss sheet. And I know where different charges get coded too so it all lines up. Because if you have good financials, then you can make good decisions,” he says.

5. Focus your pitch on innovation and expansion

Use action-oriented language in your grant application. “We’re entering a $2.3 billion market with no direct competitor” is more compelling than “We think there's a big opportunity here.”

Focus your pitch on how you plan to scale, any new technologies you might be developing, and what your business can do to help the organization with its mission. Lean into what makes your business unique, the specific problem it solves, and measurable growth goals to stand out to reviewers. 

6. Deliver on your promises

While grants aren’t loans, they come with expectations and incentives. Issuers aren’t expecting to own assets, but they still expect a return on investment, just not a monetary one. 

Be prepared to report on your progress or meet spending guidelines. Treat the grant as a partnership, where your success reflects positively on the grantor funding you.

Common reasons grant applications get rejected

Even strong grant proposals can be rejected. Understanding where applications tend to fall short can help you avoid common mistakes and improve your chances of success. Here are reasons why grant applications get rejected—and how to prevent them:

Weak or incomplete business plan

Grant issuers often have stipulations on how early stage startups spend the money. If your business plan has gaps, doesn’t clearly show how you’ll spend the money, or includes unrealistic plans, your pitch could get turned down.

“My sister got involved because my sister’s in marketing and communication,” says Myriam of Maguire Shoes. “So when I quit my job, she started helping me and building the business plan with me. We wrote a really good business plan."

Tip: Include realistic financials, key milestones, and specific plans for the funding.

Not meeting eligibility requirements

Read the eligibility requirements before you spend time writing a grant application. Most have stipulations on your business’s location, annual revenue, and employee count.

Tip: Read the fine print and don’t assume eligibility. If you aren’t sure, contact the grant provider.

No unique value proposition

Grant committees review dozens to hundreds of applications. If your business doesn’t explain what makes it different or how it solves a problem, it may not stand out.

Tip: Establish a unique value proposition to boost your application. Show progress, market need, or your innovative approach—even if your business is early stage.

For example, before entering the Knapp Venture Competition, the founders of Hiyo built a strong pitch by seeking out early feedback, gathering consumer research, and highlighting the growing demand for non-alcoholic beverages. Their deep preparation helped them stand out and win the competition’s $40,000 grant—before they had a physical product.

Grant application timeline and planning

The grant application process can span several months from application to funding. Federal grants take longer, while corporate grants move faster.

Some programs also require you to go through a multistage submission process. This means grants are better suited for planned expenses rather than urgent cash needs. Consider alternative financing options—like a business loan or line of credit—for short-term funding gaps.

Good timekeeping and project management skills can help you throughout the grant application process:

Key grant deadlines

Here are some grant cycles to consider if you want to raise money in 2026:

• April: National Pride Grant application opens
• May 1: Halstead Grant deadline
• June 16: Cartier Women’s Initiative deadline
• April 15, July 15, and November 30: Walmart Spark Good grant deadlines

How to track and manage multiple grant applications

If you’re applying for multiple awards, or your chosen grant program has a multistep application, here’s how to keep track of them:

• Create a spreadsheet. Track each grant you’re applying for in a spreadsheet with key columns: deadlines, eligibility, required documents, application status, and other useful information. Use a color-coding system to visualize your process (green = submitted; yellow = in progress).
• Use a project management tool. Trello, Asana, and Notion are free project management tools that can help you keep track of grant deadlines. Create a new task for each program and assign subtasks for each part of the application process.
• Add deadlines to your calendar. Set notifications to remind yourself of upcoming deadlines. That way, you’ll have enough time to supply supporting evidence or review your application before the grant deadline closes.
• Be proactive. Monitor official program pages, set alerts, follow grant providers, and subscribe to relevant newsletters. Discovering grants early gives you more time to prepare your application.

Other funding for small business owners

If you’re looking for other methods of financing your startup, here are several options to look into:

Small business loans

Small business loans are one of the most common ways that new entrepreneurs secure funding for their businesses. Unlike grants, term loans need to be repaid, so it’s important to understand how much money you need, what it will be spent on, and how you plan on making the money to pay the loan back.

Tip: Want to know how much it will cost to take out a loan? Try our free business loan calculator.

Read more: How to Get a Small Business Loan in 6 Steps

Crowdfunding for small businesses

Rather than seeking a large sum of money from an organization or angel investors, the advantage of crowdfunding is that it involves collecting small sums of money from individual backers who believe in the potential of your own business. Crowdfunding websites work well if you have a strong brand story.

Equity crowdfunding for small businesses

A little different from ordinary crowdfunding, with equity crowdfunding, backers receive a small ownership stake in your business in exchange for their investment.

Non-accredited investors can participate in equity crowdfunding, within limits. Previously, new businesses could sell shares only to accredited investors. This restriction was a barrier to entrepreneurship, since newer small business owners are less likely to have built a network of wealthy investors.

Capital investors for small businesses

Capital investors refer to both angel investors and venture capital funds. Accredited investors can help fund your business startup in return for equity ownership or convertible debt (a loan that may be converted into equity in the future). 

For example, Backstage Capital is a venture capital fund that invests in underrepresented groups in entrepreneurship, offering funds for small businesses owned by women, people of color, and LGBTQ+ founders.

Benefits of capital investors include shorter timespans to receive larger amounts of funding and mentorship opportunities as you work to grow your business. 

Learn more:

• How to Start an Ecommerce Business
• How to Choose the Right Business Bank Account

Combining grants with other funding sources

Grants provide valuable funding opportunities, but they aren’t foolproof. Most programs are incredibly competitive, with anywhere from dozens to thousands of applications for the same grant. A diversified funding approach reduces dependence on any single source.

For example, you could combine small business grant applications with more accessible financing options like:

• Startup business loans. If you have good business credit and can commit to repayments but aren’t willing to give up equity in your company, consider a small business loan.
• Business credit cards. Most banks offer rewards (such as points or cashback) when you make business purchases using credit cards.
• Lines of credit. Similar to a credit card, but instead of a card, you can withdraw loans or “draws” up to your arranged credit limit each time you need access to cash.
• Equipment leasing. If you plan to use grant money to buy equipment or machinery, consider leasing it to keep business expenses low.
• Merchant cash advance. Lenders purchase your business’s future sales in exchange for working capital you can use on inventory, payroll, or rent.

Fuel growth in your startup with a small business grant

Small business grants offer a rare opportunity: funding you don’t have to repay. For a new entrepreneur, this can be a game changer—an injection of funds without the pressure of repayment, giving up equity, or taking on debt.

Beyond the money, grants can also help to establish connections and networking opportunities in your industry and meet your business needs early on.

Use this list of grants to identify potential options, then narrow them down by eligibility and deadlines. Create a shortlist, read the application process carefully and confirm you meet eligibility requirements. Plan for each deadline and prepare your application materials early to ensure your time and efforts are spent well.

*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with more than two years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.