How to Get Grants for a Business
Federal, state, and local governments award billions in grants annually to support business growth, innovation, and job creation. Unlike loans, grants don't require repayment. Below is a comprehensive guide to finding, applying for, and winning business grants—plus 2786 verified federal and state funding opportunities.
7 Steps to Get Grants for Your Business
Determine Your Business Eligibility
Federal grants have specific eligibility requirements. Check if your business qualifies:
- Business Structure: Sole proprietor, LLC, C-corp, nonprofit, cooperative all eligible (rules vary by grant)
- Business Age: Many grants require 1+ years in business; startup grants exist but are less common
- Business Size: Small Business Administration (SBA) defines "small" by industry (manufacturing: ≤500 employees; retail: ≤100 employees)
- Revenue: Some grants target businesses under $1M revenue; others serve larger businesses
- Industry: Some grants target specific sectors (agriculture, manufacturing, tech, clean energy, healthcare)
- Geography: Grants may be limited to rural areas, economically distressed regions, or specific states
- Ownership: Some grants prioritize women, minorities, veterans, or Native Americans as business owners
Identify Your Funding Goal
Different grants serve different purposes. Be specific about your need:
- Startup Capital: Initial funds to launch business (equipment, working capital, inventory)
- Growth Funding: Expansion, new product lines, market entry, hiring
- Working Capital: Day-to-day operations, seasonal cash flow, receivables management
- Research & Development: Product development, innovation, technology advancement
- Equipment/Facilities: Machinery, construction, property improvement
- Training & Workforce: Employee training, skill development, job creation grants
- Export/International: International market entry, export promotion
- Energy Efficiency/Sustainability: Green initiatives, renewable energy, environmental compliance
Research Available Grants
Multiple resources catalog federal and state business grants:
- Grants.gov: Official federal grant database. Search by agency, keyword, or deadline. Free access. Start here.
- SAM.gov: System for Award Management. Federal grants, contracts, and assistance. SAM registration required to apply.
- State Grant Databases: Most states publish business grant listings. Check your state's economic development agency.
- SBA.gov: Small Business Administration. Overview of federal small business grants and programs.
- SBDC & SCORE: Free consultations help identify grants matching your business.
- Industry Associations: Often track industry-specific grants (manufacturing, tech, agriculture, etc.)
- Local Economic Development: City/county offices often administer local and matched-funding grants.
- Nonprofit Grant Databases: Paid resources (Foundation Center, GrantStation) offer advanced search/alerts.
Prepare Your Application Materials
Successful grant applications require thorough preparation. Gather these documents:
- Business Plan: Executive summary (1 page), company description, market analysis, marketing strategy, financial projections (3 years), management team bios
- Financial Documents: Business tax returns (2-3 years), bank statements (3-6 months), profit/loss statements, balance sheet
- Project Details: Scope of work, timeline, budget breakdown, measurable outcomes
- Personal/Owner Info: Personal tax returns, credit check authorization, biographical summary
- Supporting Documents: Licenses, certifications, patents, letters of intent from customers, supplier quotes
- Evidence of Need: Market research, customer surveys, competitive analysis, community impact data
- Organizational Documents: Articles of incorporation, EIN documentation, ownership structure
- Collateral Documentation: If grant requires matching funds or collateral
Submit Your Application
Grant applications are submitted through specific portals. Follow instructions precisely:
- Read Requirements Carefully: Miss one requirement = automatic rejection. Check twice.
- Register on Required Platforms: Grants.gov, SAM.gov, state portals all require registration (can take 1-2 weeks)
- Use Required Formats: PDF, Word, specific templates—don't deviate
- Meet Deadlines: Applications close at specific times (often 5-6 PM). Submit early, not at deadline.
- Attach Supporting Documents: In exact order and format specified
- Proofread Everything: Typos, inconsistencies, or poor formatting hurt competitiveness
- Obtain Signatures: Required approvals from owners, accountants, etc. must be included
- Confirm Submission: Get confirmation receipt. Some systems don't confirm automatically.
Wait for Review & Respond to Questions
After submission, reviewers assess your application:
- Review Timeline: Typically 4-12 weeks (varies by grant and agency)
- Expect Follow-up Questions: Agencies often request clarification. Respond quickly and thoroughly.
- Check Email Regularly: Some agencies email through unusual addresses; check spam folder
- Financial Verification: Agencies may verify tax returns, bank statements, business registration
- Site Visits: For larger grants, agency representatives may visit your business location
- References Contacted: Agencies contact suppliers, customers, or business partners to verify claims
- Decision Notification: Official notification via email or letter (not phone call)
If Awarded, Manage the Grant
Grant awards require ongoing compliance and reporting:
- Award Notification: Outlines terms, conditions, funding timeline, payment schedule
- Use Funds as Approved: Grant funds must be used exactly as described in application. Deviations require written approval.
- Maintain Records: Keep detailed receipts, invoices, and documentation for all grant-funded expenses
- Quarterly/Annual Reports: Submit progress reports, financial statements, outcome metrics per grant requirements
- Audit Requirements: Larger grants require third-party audit of grant spending
- Compliance Monitoring: Agencies may conduct random audits 3-5 years after award
- Return Policies: Unused funds must typically be returned; misspending can trigger repayment
Types of Federal Business Grants
Competitive Grants
Agencies receive many applications and award to the strongest. These typically have higher visibility and more applicants but larger award amounts. Example: SBIR/STTR innovation grants.
Non-Competitive Grants
Eligibility-based grants awarded to all qualifying applicants (up to funding limit). Lower visibility but higher success rate. Example: Some SBA-designated community grants.
Matching Grants
Government matches your private investment (often 1:1 or 1:2 ratio). Requires you to raise funds first, but leverages your capital. Common in economic development grants.
Block Grants
Governments allocate funds to states, which distribute to local businesses. Administered at state/local level. Varies by location.
Pass-Through Grants
Federal money administered by nonprofit intermediaries or banks. Easier application but smaller awards. Example: SBA Microloan program.
Research/Innovation Grants
SBIR/STTR (Small Business Innovation Research) grants for R&D. Highly competitive but support product development and patents. $200K+ typical awards.
Frequently Asked Questions
How much money can I get from a business grant?
Grants vary widely: SBA grants (federal): typically $5K-$100K+ depending on program. SBIR/STTR grants: Phase 1 ($150K+), Phase 2 ($500K+). State economic development: $10K-$500K+. Local/community grants: $5K-$50K. Matching grants: based on your contribution. Typical SBA grant: $25K-$50K. Typical state grant: $25K-$100K+. Typical federal research grant: $150K-$1M. Most first-time applicants receive $25K-$50K if awarded. Larger awards typically require proven track record and larger projects.
What's the success rate for business grant applications?
Success rates vary dramatically: SBA grant programs: 10-30% (competitive). Eligibility-based grants: 50-80%. SBIR Phase 1: 10-15% (highly competitive). State economic development: 20-40%. Local grants: 30-50%. First-time applicants: typically lower success rates (5-10%) because reviewers prefer applicants with previous grant experience. Strategy: Apply to multiple grants (3-5 simultaneously) to improve odds of at least one award. Each additional application statistically improves chances. Most successful grant-funded businesses have applied to 5-10 grants before first award.
Do I need a business plan to apply for grants?
Yes—virtually all federal grants require a business plan. Even if not explicitly required, competitive applications include one. Minimum for grants: 5-10 page executive summary + 3-year financial projections + market analysis + management team info. Complete business plan (25-40 pages) strengthens applications significantly, especially for competitive grants. Many first-time applicants get help from SBDC (free) or SCORE (low-cost) to develop business plans. Investment: 40-80 hours to develop solid business plan. ROI: One successful grant ($50K) justifies hundreds of hours of planning effort.
Do startup businesses qualify for grants?
Most federal grants require 1+ years in business. However, startup-specific grants exist: SBA Startup grants (limited programs), state startup grants (varies by state), innovation grants (SBIR/STTR accept startups if strong R&D focus), nonprofit grants (nonprofits can receive grants to help entrepreneurs), accelerator grants (some states fund accelerators that fund startups). Strategy for startups: (1) Start business legally (even if just incorporating), (2) Get EIN from IRS, (3) Focus on startup-specific grants and innovation grants, (4) Consider SBA microloans (easier approval for startups than most grants), (5) Pursue matching grants (raise capital from investors/founder, apply for matching grant to leverage).
Can I apply for multiple grants simultaneously?
Yes! Most successful grant-funded businesses have multiple active applications. Best practice: Apply to 3-5 grants with staggered deadlines. Increase odds proportionally. Example: 20% individual success rate × 5 applications = ~64% probability of at least one award. Consideration: Different grants have different deadlines and requirements. Spend time on highest-potential grants first. Track all applications in spreadsheet: grant name, deadline, amount, status, follow-up date. One award ($50K) often unlocks subsequent awards because funders prefer businesses with proven grant management ability.
Are there grants for specific industries?
Yes. Industry-specific grants include: Agriculture (USDA), Manufacturing (Department of Commerce), Technology/Innovation (NSF, DOD SBIR), Clean Energy (DOE), Tourism (Department of Commerce), Export (Department of Commerce), Aerospace/Defense (Department of Defense), Biotech/Life Sciences (NIH, NSF), Construction (varies by state), Hospitality (varies by state), Childcare (Department of Health & Human Services). Strategy: Search "business grants [your industry]" on Grants.gov or check your industry association. Industry grants often have higher success rates because fewer applicants know about them—less competition.
Key Resources to Get Started
Grants.gov
Official federal grant database. Search 1,000+ federal grant programs. Free access. Register for SAM.gov required to apply.
SBA.gov Business Grants
Small Business Administration programs and grants overview. Includes SBIR/STTR, 7(a) loans, microloans, and disaster assistance.
SBDC (Small Business Development Center)
Free confidential business consulting in all 50 states. Help with business plans, grant research, application preparation.
SCORE Mentors
Free mentorship from experienced business leaders. Workshops on grant writing, business planning, financing.
State Economic Development
Each state offers business grants and programs. Check your state's economic development agency website for opportunities.
SBIR/STTR Program
Federal research grants for innovation. $150K+ Phase 1, $500K+ Phase 2. Competitive but higher awards.
Federal Business Grants & Funding Opportunities
Below are 2786 verified federal and state business grants currently open for applications:
Start Your Grant Search Today
Billions in federal grant funding are available to support business growth. The challenge is finding the right grants and submitting competitive applications. Don't let the process intimidate you—free resources like SBDC and SCORE provide expert guidance at no cost.
Many businesses are successfully winning federal grants and avoiding costly debt. Your business could be next. Start with Grants.gov, visit your local SBDC, and take the first step toward grant-funded business growth.