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Discover small business grants offering non-repayable funding in 2025. Compare federal, state, corporate, and nonprofit options with requirements.
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Developing products, researching market trends, securing inventory—startup business costs add up fast. But for new entrepreneurs, securing business financing before you’ve proven your concept can be difficult.
That’s where grants come in. You don’t have to pay the money back, but the application process can be daunting, and they’re competitive—only around 10% of grant applicants receive funding.
If you’re applying, you’ll want to make it count. This article is your shortcut to finding the right fit. Inside, you’ll discover over 40 small business grants available in 2025, including government-backed grants and private funding for underserved groups.
Table of contents
Small business grants are non-repayable funds that help entrepreneurs grow their businesses. Some grants focus on innovation or expansion, while others exist to help overcome financial barriers for underrepresented groups.
Unlike startup business loans, grants don’t need to be repaid. This makes them ideal for preserving your cash flow. There are no monthly repayments to consider in your business plan.
That said, grants are typically more competitive than loans. Most issuers offer limited funding and have stricter eligibility criteria.
There are four main types of grants available to small businesses, based on who provides the funding and what the grant supports:
For example, entrepreneurs Niki and Ritika Shamdasani raised $100,000 from college grants and another $100,000 from a local startup accelerator program.
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The US Small Business Administration (SBA) is a federal government agency that supports entrepreneurs through funding, training, and resources. Its goal is to help small businesses grow and strengthen the nation’s economy.
In addition to Small Business Development Centers across the country, the SBA 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:
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.
The SBA offers a number of veteran assistance programs that provide grant funding for veteran-owned businesses.
The Women-Owned Small Business (WOSB) Federal Contract program helps businesses compete for federal contracts, where women entrepreneurs are underrepresented.
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.
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, minerals, coal, oil, gas, and real estate niches.
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.
There are 11 participating agencies including:
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Apart from the SBA, several other federal agencies offer grant programs for small businesses in the US (including hardship grants).
Grants.gov is a centralized database where entrepreneurs can find and apply for federal small business grants. The site is a one stop shop for 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.
The National Institutes of Health continues to offer a variety of funding grant opportunities for businesses developing biomedical research related to the COVID-19 pandemic.
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.
The US Department of Energy offers clean energy grants to businesses that previously received SBIR or SBTT funding. These grants help fund companies focused on combating climate change.
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.
Every state has a different way of providing grants to businesses in its area. To find state and local grant opportunities:
Here are some standout state-level grant programs to consider if you’re starting a small business this year:
📚Read more: 10 Best States to Start a Business in 2025
Government agencies aren’t the only source of small business grants and financing: Many private corporations and nonprofit organizations also offer private grant programs designed to help small business owners start and expand their companies.
The Comcast RISE Investment Fund offers assistance to help independently owned businesses grow by providing funds for advertising, marketing, business consultations, entrepreneurship education, commercial creative production services, and other technical assistance.
Activist-minded outdoor brand Patagonia offers funding for small businesses seeking to address the core causes of climate change and confront environmental injustice.
The National Association for the Self-Employed provides 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.
Hello Alice, in partnership with DoorDash, offers $10,000 grants via its Restaurant Disaster Relief Fund, to assist restaurants in recovering from natural disasters such as fires and floods.
Certain industries have tailored grant programs for small businesses operating within them. Here are some examples.
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.
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.
The Office of Advanced Manufacturing (OAM) provides funding for research and development. Eligible small businesses are manufacturers that increase energy efficiency.
The United States Environmental Protection Agency (EPA) has regular grant competitions to help small businesses improve children’s health.
Corporations, or their foundations, also provide small business grants to businesses closely aligned with their goals and mission. These types of grants may also offer more flexible eligibility compared to federal grants. Examples of corporate grants include:
The FedEx Small Business Grants Program is usually open to businesses with fewer than 99 employees and that have been in operation for at least six months. In the past, FedEx has awarded more than $230,000 in grants to small businesses, including $500 in FedEx print credits to awardees.
With the Venmo Small Business Grant, 10 small businesses are awarded $20,000 in grant funding and promotion on Venmo’s social media accounts. Plus, you get access to free technical resources and mentorship. To qualify, you must have a US Venmo account and valid business profile. You also must have less than $50,000 in annual sales and 10 or fewer employees.
Up-and-coming corporate grant schemes to have on your radar this year include:
💰 Success story: How these founders turned $900 into an 8-figure brand
Skin care brand Bushbalm launched with a mere $900 investment from its three founders. They then funded their massive growth through crowdfunding and pitching investors.
Some small business grants focus on women in business. These programs often aim to level the playing field by providing women entrepreneurs with funding, mentorship, and resources. Here are a few examples:
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, connects women-owned businesses with multiple grants through a single application. The organization has partnered with brands like Adidas, Caress, Botox, Visa, and more to offer grants tailored to different industries and growth stages.
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. Grant amounts range from $50,000 to $500,000.
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 $25,000 year-end grant to one recipient.
The Stacy’s Rise Project, a partnership between Hello Alice and Stacy’s Pita Chips, supports women entrepreneurs through $25,000 business grants, mentorship, and other resources. Eligible small businesses must sell consumer packaged goods and generate $25,000 to $1 million in annual sales.
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:
The BOSS Impact Fund focuses on financially elevating Black women entrepreneurs with $10,000 Invest In Progress grants. The program, a partnership between Hello Alice and The BOSS Network, also provides mentorship opportunities.
Founders First bills itself as “the largest national platform for growing businesses led by diverse founders.” In addition to providing coaching and accelerators, the org offers a variety of grant programs for founders who identify as Latinx, Black, or Asian and employ between two and 20 employees.
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:
If you’re a qualified US military veteran, explore these grants for veteran-owned businesses.
The Military Entrepreneur Challenge, run by the Second Service Foundation, awards capital grants to eligible applicants based on positive social and community impact. Grant amounts vary by event. To apply, you’ll need to register for one of its events, create a one-pager about your business, and give a two-minute pitch at the event.
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 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.
Entrepreneurs in the LGBTQ+ community can apply for the following grants to launch their own business:
Operated by the Human Rights Campaign (HRC) and SHOWTIME, the Queer to Stay initiative issues grants to at least 30 businesses each year with LGBTQ+ founders. It’s donated over $1 million in funding since the program’s start.
Founders First CDC runs the LGBTQIA+ National Grant. Each year, 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, between two and 100 employees, and less than $5 million in annual revenue.
The StartOut Founders Program aims to provide 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.
Businesses in rural communities face unique challenges, such as limited access to capital and technical support. Here are some of the best grants to apply for.
The US Department of Agriculture offers the Rural Business Development Grants (RBDG) 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. The business must have fewer than 50 new workers and less than $1 million in gross revenue.
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.
Applying for a small business grant takes time and planning, but can be well worth the effort. If you’re starting out as a small business owner and looking to apply for free business funding for your startup, here are six key points to prepare a stronger application:
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.
Focusing on one industry also builds buzz around your business and can help build connections with industry figures who may be able to offer guidance and investment opportunities.
Before investing time in an application, double check grant eligibility requirements. Read the requirements carefully and evaluate whether you qualify for the grant award. When in doubt, contact someone from the organization and ask.
Organizations fund businesses that help achieve a specific goal they care about deeply. 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 is hard to parse, you might want to consider applying for grants with another organization.
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 recent Shopify Masters episode. “Not crazy. 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.”
Organizations that issue small business grants typically favor for-profit businesses that they see as innovative, forward-thinking, and on a path to growth. 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. Emphasize what sets your business apart and how you plan to expand.
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.
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 some of the most frequent reasons grant applications get rejected—and how to prevent them:
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.
Tip: Include realistic financials, key milestones, and specific plans for the funding.
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.
Grant committees review dozens or 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 avoid your application falling to the wayside. 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.
The grant application process can span several weeks. Some programs also require you to go through a multistage submission process. Good time keeping and project management skills can help you throughout.
Here are some 2025 grant cycles to consider if you want to raise money this year:
If you’re applying for multiple awards, or your chosen grant program has a multistep application, here’s how to keep track of them:
Aside from small business grants, there are other ways for a new business to secure the startup funds it needs to grow. If you’re looking for other methods of financing your startup, here are a couple of options to look into:
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
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Want to know how much it will cost to take out a loan? Use Shopify’s free business loan calculator to see your monthly payments and interest.
Crowdfunding has become one of the most popular methods of raising money for startup businesses, largely due to online crowdfunding sites that make it accessible to nearly anyone.
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 ordinary people who believe in the potential of your own business. This option works well if you have a strong brand story.
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 crowdfunding, within limits. Previously, new businesses could sell shares only to accredited investors. This restriction was a huge barrier to entrepreneurship, since newer merchants are less likely to have built a network of wealthy investors.
With equity crowdfunding, investment and entrepreneurship have become more accessible.
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.
The biggest benefit of capital investors is that they can provide you with large sums of money in a relatively short amount of time. At times, they can also provide valuable mentorship as you work to grow your own business.
📚 Learn more:
Grants are a superb way to get money to grow your business. Yet they aren’t foolproof. Most programs are incredibly competitive and have high competition. You might be competing against thousands of entrepreneurs for the grant money. A diversified funding approach helps lessen the burden.
For example, you could combine small business grant applications with more accessible financing options like:
Small business grants offer a rare opportunity: funding you don’t have to repay. For a new entrepreneur, this can be a game changer—a vital 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 diligently and confirm you meet eligibility requirements. Plan for each deadline and prepare your application materials early. It’s the best way to make sure any time and effort you spend writing a grant proposal is well spent.
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Small business grants provide non-repayable funds to start or expand a business. They reduce financial risk and increase your credibility with lenders and investors.
The maximum grant amount varies depending on the grant program and funding entity. It can range from a few thousand dollars to hundreds of thousands, depending on the specific grant and eligibility criteria.
You can visit government agencies, non-profit organizations, and private foundation websites, as well as online grant directories and databases like Grants.gov, SBA.gov, and regional Small Business Development Centers (SBDCs). This guide also includes 40+ grant options.
Yes, small businesses can get free grants where they don’t have to pay back the money. These include federal grants, state grants, and funding offered by private foundations or nonprofits.
Grants are competitive—many programs receive more applications than they can fund. However, with a strong application and alignment with the grant’s mission, you can improve your chances.
Yes, an LLC can get grant funding if it meets the program’s eligibility criteria. Other corporations can also issue grants to smaller LLCs.
The California Dream Fund Grant Program issued grants of up to $10,000 for small businesses in California. It was established in 2021 and is tailored toward entrepreneurs in underserved communities.
No, you don’t have to pay back a small business grant. Unlike a loan, grant issuers provide money to entrepreneurs who want to start or grow their business.
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