Where to Look for Small Business Grants and How to Apply
A simple guide to help small business owners understand where to find grants, how to qualify and what to know before applying.
What are small business grants?
These small business grants usually require a formal application and specific eligibility criteria, and each program often has rules about how the money can be used.
Some support research and development. Others help small businesses buy equipment, create jobs or offer new services. Some grants are highly local and intended for specific communities, while others operate on a federal level and are open to a much larger pool of candidates.
Because every program is different, understanding the purpose of each grant can help you decide which ones are worth your time, and what makes the most sense for you. Grants also tend to be competitive. Having a clear plan and strong application will give you a better chance of being selected.
How can I qualify for a small business grant?
Each grant program sets its own eligibility rules. They may be based on location, specific industry, years in operation or community involvement. Some are designed to help start-up businesses, while others support owners who want to expand or bring new products or services to market.
Grants can also focus on helping groups that have historically faced barriers when seeking funding. These typically focus on women-owned, minority-owned and veteran-owned businesses. Rural business owners may also qualify for programs that invest in expansion and local economic growth.
Generally, grant applications will include a thorough explanation of their requirements. Understanding them will help you focus your efforts on the opportunities that best match your business goals.
The different types of small business grants
Small business grants will typically fall into a few main categories. The ones listed below are the most common types. Each serves a different purpose, so learning how they work will make it easier to choose the best grants for your goals.
Federal grants
Federal grants often support research, innovation or specialized projects. For example, the Small Business Innovation Research (SBIR) program funds scientific and technological work, while USDA programs support rural development and other agricultural and rural energy initiatives.
These grants tend to be larger and more competitive, but they can provide significant resources for businesses that qualify.
State and local grants
State and local governments typically offer grants that support job creation, “Main Street” improvements and overall community development. These grants may be easier to apply for than federal grant programs, primarily because they target specific regions or industries, so they’ll often be a bit less competitive.
All states also have economic development agencies that regularly provide new grant opportunities and other support for small and local businesses.
Private and non-government grants
Private companies, local businesses, foundations or industry groups also offer grants, often focused on innovation, community impact or helping small businesses such as women-owned, minority-owned or veteran-owned companies.
Private grants may be simpler to apply for because the requirements can be less formal than government programs, but they can still be competitive. These opportunities may come from national corporations, local foundations or nonprofit organizations that want to strengthen communities.
Searching online for private grant programs in your industry or region can help you identify ones that match your goals.
Industry-specific grants
Some grants are designed for certain fields—healthcare, manufacturing, creative arts or technology. They’ll often look for projects that solve a specific and relevant problem or introduce something new to the industry. These grants can come from the federal level, state level or private organizations.
Grants for underserved entrepreneurs
Other grants specifically aim to help business owners who may have fewer financial resources or had historical difficulty receiving funding—women-owned, minority-owned, veteran-owned or rural businesses. Programs like these aim to create more equitable growth across communities.
Like industry-specific grants, these grants can come from the federal or state level or other sources such as a private organization.
Where to find grants for your business
Finding the right grants takes time. Knowing where to look makes the process easier. Most businesses explore a mix of federal, state and local options.
Federal grant resources
Federal websites list open grant programs and explain who they are designed to help. Start by searching the sites below for your industry, business type or grant that you would like to receive.
- SBA.gov—Grants and guidance for small businesses.
- Grants.gov—A searchable database of government-funded opportunities.
- SBIR/STTR—Funding research and technology innovation.
- USDA.gov—Support for rural and agricultural development.
- Economic Development Administration (EDA)—Funding economic growth projects.
- Minority Business Development Agency (MBDA)—Fostering growth of America’s minority businesses.
- NIH Seed—Funding for small businesses in the life sciences fields.
Exploring them can also help you familiarize yourself with the types of grants that are available. These sites also include deadlines, requirements and purposes for each grant.
State and local grant programs
States, counties and cities offer economic development grants that strengthen local communities including downtown improvement programs, workforce initiatives and development funds. Because these programs serve a smaller region, they may be a better fit for businesses that want to stay local, are smaller in size or serve a specific community.
Consult your state’s economic development agencies or search the internet to find local and state-specific grant opportunities.
Local banks and foundations funding
Local financial institutions will sometimes invest in programs and provide grants and funding that support small business development and economic growth.
For example, the Associated Bank Foundation provides charitable grants to nonprofit partners that focus on small business development, workforce training, sustainability and economic empowerment. These grants don’t go directly to for-profit businesses, but they help build programs, networks and community resources that entrepreneurs rely on.
Learning about the nonprofits funded in your area can help you find training, mentorship or technical assistance to strengthen your business.
Applying for small business grants
Grant applications can vary, but most follow a similar structure. Understanding what reviewers are looking for can make your application stronger and help you better understand where to best focus your time.
- Find a grant program specific to specific business. Then meticulously review all eligibility requirements (industry, size, location, demographics, etc.) before starting on the application.
- If you’ve confirmed that you’re eligible, gather all basic information about your business: a clear description of what you do, why your project matters and a business plan for how the funds will be used. Some grants may also require more detailed financial information or other specifics.
- Finally, many programs will ask for tax documents, financial statements proof of business registration or letters of support. Grant reviewers need to know how your work will benefit your customers or community, and they want to best ensure that your business can complete the project successfully.
Before submitting, double-check the requirements. Completing your application ahead of the deadline gives you time to correct mistakes or upload missing documents.
Considerations before applying to grants
Grants can be a valuable resource for small business owners, but it’s helpful to first understand the process before getting started. Many applications require time and planning, and reviewers may take weeks or months to make decisions.
Some grants require follow-up reporting to show how the funds were used, while others may require your business to meet specific milestones. Additionally, some grants may carry other stipulations on how the funding is used. Because grants are competitive, it can be normal to apply for several before receiving an award.
Other ways to raise funds for your small business
Grants are only one path for small businesses to secure funds. Many business owners combine them with other funding sources while growing their company.
- Small business loans, traditional business loans and lines of credit can help with working capital or expansion.
- Community development financial institutions (CDFIs) may offer specialized loans for local businesses.
- Pitch competitions and crowdfunding platforms can also help you raise money while building community support.
Exploring several options at once can help your business stay flexible and prepared for different stages of growth when securing grants and funding.
Funding options for you
If you’re exploring funding options for your business, considering applying for a loan or exploring banking partners, connect with your local team at Associated Bank.
For Informational/Educational Purposes Only: The opinions expressed may differ from other employees and departments of Associated Bank N.A., or any bank or affiliate. Opinions and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. (1513)
