Small Business Grants: Finding Free Money

Grants are free money you DON’T have to pay back! Unlike loans (debt) or investors (equity), grants let you keep 100% ownership with zero repayment. This guide shows you exactly how to find and win grants for your business.

What Are Business Grants?

Simple Definition: Money given to your business that you never have to repay - no interest, no giving up ownership, no strings attached (mostly).

Where Grants Come From:

• Federal government agencies
• State and local governments
• Private foundations
• Corporations
• Non-profit organizations

Why They Give Free Money:

• Economic development (create jobs)
• Support specific industries (tech, agriculture, clean energy)
• Help underserved groups (minorities, women, veterans)
• Research and innovation (SBIR/STTR)
• Community improvement

The Truth About Grants (Reality Check)

The Good News:

• ✅ Completely free money
• ✅ Don’t give up equity
• ✅ No repayment required
• ✅ Validates your business (competitive to win)
• ✅ Can get $5,000 - $1,000,000+

The Reality:

• ⚠️ VERY competitive (acceptance rate: 10-20%)
• ⚠️ Time-consuming to apply (10-40 hours per application)
• ⚠️ Strict requirements and qualifications
• ⚠️ Must use money for specific purposes
• ⚠️ Lots of reporting and compliance
• ⚠️ Can take 3-12 months from application to receiving funds

Bottom Line: Grants are amazing but shouldn’t be your only funding strategy. Apply while pursuing other options!

Types of Business Grants

1. Federal Government Grants

SBIR (Small Business Innovation Research)

• Amount: $50,000 - $1,000,000+
• For: Research and development in tech/science
• Requirements: U.S. company, 500 or fewer employees
• Phases:
  • Phase I: $50,000-$250,000 (6-12 months, prove feasibility)
  • Phase II: $750,000-$1,000,000 (2 years, develop it)
  • Phase III: Commercialization (private funding)

Who Should Apply:

• Tech startups
• Scientific research companies
• Product development
• Innovation-focused businesses

💡 Example: A biotech startup gets $150,000 Phase I SBIR to research a new medical device. After proving it works, gets $1M Phase II to build it.

STTR (Small Business Technology Transfer)

• Amount: Similar to SBIR
• For: Tech development with university partnership
• Requirements: Must partner with research institution
• Difference from SBIR: Requires university collaboration

Who Should Apply:

• Startups working with universities
• Research commercialization
• Academic spin-offs

USDA Grants (Agriculture)

• Amount: $5,000 - $500,000
• For: Rural businesses, agriculture, food production
• Types:
  • Rural Business Development Grants
  • Value-Added Producer Grants
  • Beginning Farmer Grants

Who Should Apply:

• Farmers
• Rural businesses
• Agricultural businesses
• Food producers

EDA Grants (Economic Development)

• Amount: $100,000 - $3,000,000
• For: Businesses creating jobs in economically distressed areas
• Requirements: Demonstrate economic impact

How to Find: Grants.gov (search all federal grants)

2. State and Local Grants

Every state offers different grant programs!

Common State Grant Types:

Economic Development Grants

• Create jobs in your state
• Bring business to underserved areas
• Typically $10,000 - $250,000

💡 Example: New York’s START-UP NY offers tax-free zones and grants for businesses creating jobs in specific areas.

Training Grants

• Help pay for employee training
• Upskill your workforce
• Typically $5,000 - $50,000

Export Grants

• Help businesses sell internationally
• Market research, trade shows
• Typically $5,000 - $25,000

Clean Energy/Green Grants

• Solar, wind, sustainable businesses
• Energy efficiency improvements
• Typically $10,000 - $100,000

How to Find State Grants:

• Google: “[Your State] small business grants”
• State economic development agency website
• Local Small Business Development Center (SBDC)
• State commerce department

3. Grants for Specific Groups

Women-Owned Businesses:

Amber Grant

• Amount: $10,000/month, $25,000/year
• No industry restrictions
• Simple application
• Website: AmberGrant.com

Cartier Women’s Initiative

• Amount: $100,000
• For women-led startups
• International program
• Very competitive

Eileen Fisher Grant

• Amount: Up to $100,000
• For women-led businesses in apparel/textiles
• Sustainable/social impact focus

Minority-Owned Businesses:

NASE Growth Grants

• Amount: $4,000
• For micro-businesses
• Simple application
• Multiple awarded per year

Halstead Grant

• Amount: $7,500
• For jewelry designers
• Business development focus

SBA 8(a) Program

• Not a grant, but set-aside contracts
• Preference for minority-owned businesses
• Access to government contracts

Veteran-Owned Businesses:

StreetShares Foundation

• Amount: $4,000 - $15,000
• For veteran entrepreneurs
• Quick application

FedEx Small Business Grant

• Amount: $25,000 (grand prize)
• Open to all, but veteran category
• Contest-based

Veteran-Specific Resources:

• SBA Veterans Advantage
• Boots to Business program
• VetBiz.gov

4. Corporate & Private Foundation Grants

Major Corporate Grant Programs:

FedEx Small Business Grant Contest

• Amount: $7,500 - $50,000
• Annual contest
• Vote-based + judging
• Good publicity even if you don’t win

Chase for Business Mission Main Street Grants

• Amount: $250,000 total pot (varies per winner)
• For established businesses (2+ years)
• Focus on community impact

Walmart Community Grant

• Amount: $250 - $5,000
• Local Walmart stores
• Community-focused businesses
• Apply at local store

Google for Startups

• Amount: Varies (up to $100,000)
• For tech startups
• Also includes mentorship and cloud credits

Hello Alice Grants

• Amount: $10,000 - $25,000
• For Black and Latinx-owned businesses
• Monthly grants
• HelloAlice.com

Private Foundation Grants:

Many industry-specific foundations offer grants:

• Fashion: CFDA/Vogue Fashion Fund
• Food: Good Food Foundation
• Social Impact: Echoing Green
• Environment: Patagonia Grants

How to Find:

• Foundation Center Database
• Candid.org
• Industry associations
• Trade publications

5. Local/Community Grants

Don’t overlook local opportunities!

Sources:

• City economic development offices
• Chamber of Commerce
• Community foundations
• Local banks and credit unions
• Regional business competitions

💡 Example: Many cities offer $5,000-$25,000 grants for businesses in specific neighborhoods to revitalize areas.

Benefits:

• Less competition than federal grants
• Faster approval process
• Decision-makers are local (easier to network)
• More forgiving requirements

How to Find Grants

Free Resources

1. Grants.gov

• THE database for all federal grants
• Search by keyword, category, agency
• Set up alerts for new grants
• 100% free

2. SBDC (Small Business Development Centers)

• Free counseling
• Help find grants
• Assistance with applications
• Located in every state

3. SCORE

• Free mentoring
• Grant search help
• Application review
• Score.org

4. Your State Website

• Google: “[State] small business grants”
• Economic development agency
• Commerce department

5. Industry Associations

• Trade groups for your industry
• Often have grant programs
• Less well-known = less competition

Paid Resources (Optional)

GrantWatch ($44-399/year)

• Comprehensive grant database
• Email alerts
• Worth it if you’re serious

Foundation Directory ($20-200/month)

• Private foundation grants
• Very detailed search

💡 Tip: Start with FREE resources first. Only pay if you’re applying to many grants.

Grant Application Process (Step-by-Step)

Step 1: Find Eligible Grants (Week 1-2)

Create a Spreadsheet:

Focus On:

• Grants you actually qualify for
• Deadlines you can meet
• Amount worth the effort ($5K+ usually)

Step 2: Read Requirements CAREFULLY (Week 2)

Before you invest time, confirm:

• [ ] You meet ALL eligibility requirements
• You can use money for allowed purposes
• You have required documentation
• Deadline is realistic
• Match/contribution required? (some grants require you to match 25-50%)

💡 Pro Tip: If you’re missing even ONE requirement, don’t waste time applying. They’ll reject you automatically.

Step 3: Gather Documentation (Week 3)

Common Requirements:

• Business plan
• Financial statements
• Tax returns (2-3 years)
• Proof of business registration
• Budget for grant funds
• Project timeline
• Letters of support
• Proof of impact

Get Organized:

• Create digital folder
• Scan all documents
• Save templates (use for multiple applications)

Step 4: Write the Application (Week 4-6)

Typical Sections:

Executive Summary (Most Important!)

• What you’ll do with money
• Why it matters
• Expected impact
• Keep it clear and compelling

Business Background

• What you do
• How long in business
• Revenue and employees
• Why you’re qualified

Project Description

• Specific use of grant funds
• Timeline
• Measurable goals
• Budget breakdown

Impact Statement

• Jobs created
• Economic benefit
• Community impact
• Innovation/research outcomes

Budget

• Detailed line items
• Justify every expense
• Show it’s reasonable

Writing Tips:

• ✅ Be specific, not vague
• ✅ Use numbers and data
• ✅ Show clear ROI/impact
• ✅ Follow instructions EXACTLY
• ✅ Have someone proofread
• ⚠️ Don’t use jargon
• ⚠️ Don’t exaggerate
• ⚠️ Don’t skip any questions

Step 5: Submit Application (Week 6)

Before Submitting:

• Read entire application one more time
• All required documents attached?
• Met page/word limits?
• No typos or errors?
• Submitted to correct portal/email?
• Got confirmation receipt?

💡 Tip: Submit 2-3 days before deadline. Systems crash on deadline day!

Step 6: Follow Up (Week 8-12)

After Submission:

• Note decision timeline
• Check application portal regularly
• Respond quickly if they request more info
• Be patient (grants take 2-6 months)

If You Win:

• 🎉 Celebrate!
• Read award letter carefully
• Understand reporting requirements
• Use funds EXACTLY as proposed
• Track everything meticulously

If You Lose:

• 😔 Don’t get discouraged
• Request feedback if possible
• Apply to more grants
• Improve based on feedback
• Try again next cycle

Reality: You’ll get rejected 70-90% of the time. Keep applying!

Common Grant Myths (Debunked)

Myth: “Free money is easy to get”

• ❌ Reality: Very competitive, lots of work

Myth: “There are grants for any business”

• ❌ Reality: Most are for specific industries/groups

Myth: “You need to pay someone to find grants”

• ❌ Reality: All info is free. Scammers charge for what’s already free.

Myth: “Once you get a grant, you can use it however”

• ❌ Reality: Must use for stated purpose. Strict compliance.

Myth: “Grants are quick funding”

• ❌ Reality: Takes 3-12 months from application to funds

⚠️ SCAM WARNING: Legitimate grants NEVER require:

• Upfront fees to apply
• Bank account info to see if you qualify
• Payment to “guarantee” approval

If they ask for money, it’s a scam!

Tips to Increase Your Chances

1. Apply to Many Grants Don’t put all eggs in one basket. Apply to 5-10 at a time.

2. Start with Smaller Grants $5,000-$10,000 grants are less competitive than $100,000. Build experience.

3. Match Grant Goals Only apply if you genuinely match their mission. Don’t force it.

4. Show Clear Impact Grants want measurable outcomes:

• “Will create 5 jobs”
• “Will serve 200 customers per year”
• “Will reduce carbon emissions by 20%”

5. Tell a Story Numbers matter, but so does compelling narrative. Why does your business matter?

6. Use the Free Help Available SBDC and SCORE will review your application FREE. Use them!

7. Leverage Past Wins “Previously awarded [X Grant]” shows you’re credible. Mention it!

8. Create Grant Template Save your best answers. Reuse for multiple applications (with customization).

9. Pay Attention to Scoring Criteria Many grants show point allocation:

• Innovation: 25 points
• Impact: 30 points
• Budget: 20 points
• Experience: 25 points

Focus most on highest point areas!

10. Submit Early Don’t wait until deadline. Shows you’re organized and serious.

Alternative “Grant-Like” Programs

Not technically grants, but free resources:

1. Contests and Competitions

• $10,000 - $100,000+ prizes
• Publicity and exposure
• Example: FedEx Small Business Grant Contest, SXSW Pitch Competition

2. Accelerator Programs

• Free training + small investment ($25K-$100K)
• Mentorship and connections
• Some equity taken (5-10%)
• Examples: Y Combinator, Techstars

3. In-Kind Support

• Free software (AWS credits, Google Workspace)
• Free legal help
• Free office space
• Value: $10,000 - $100,000+

4. Tax Credits (Not Grants, But Free Money)

• R&D Tax Credit
• Work Opportunity Tax Credit
• New Markets Tax Credit
• Can save $10,000 - $100,000+

Sample Grant Application Timeline

Month 1:

• Week 1-2: Research and identify 10 potential grants
• Week 3: Narrow down to 5 best fits
• Week 4: Gather all required documents

Month 2:

• Week 1-2: Write first draft of application
• Week 3: Review with SBDC mentor
• Week 4: Revise and polish

Month 3:

• Week 1: Final review
• Week 2: Submit applications
• Week 3-4: Start on next round of grants

Months 4-6:

• Wait for decisions
• Follow up as needed
• Apply to more grants

This is a LONG process. Be patient!

Resources to Get Started

Free Help:

• SBDC (SBA.gov/tools/local-assistance/sbdc) - Free counseling
• SCORE (Score.org) - Free mentors
• Grants.gov - Federal grant database
• Foundation Center (Free at libraries)

Grant Databases:

• Grants.gov (federal)
• Your state economic development website
• HelloAlice.com (minorities, women)
• GrantWatch.com (paid but comprehensive)

Application Help:

• Local SBDC (free application review)
• University business centers
• Non-profit small business support orgs

Your Grant Application Checklist

Before Applying:

• I meet ALL eligibility requirements
• Grant amount is worth the effort (>$5,000)
• I can meet the deadline comfortably
• I have all required documents
• I understand reporting requirements

Application Quality:

• Followed instructions exactly
• Answered every question
• Stayed within word/page limits
• Proofread 3+ times
• Had someone else review it
• Budget is detailed and justified
• Impact is measurable and specific

After Submitting:

• Got confirmation of receipt
• Saved copy of entire application
• Noted decision timeline
• Set calendar reminder to follow up

Key Takeaways

✅ Grants are real - Billions awarded each year

✅ Free money exists - You never have to pay it back

✅ Very competitive - 10-20% acceptance rates

✅ Time-intensive - 10-40 hours per application

✅ Not fast money - Takes 3-12 months

✅ Worth pursuing - But not your only strategy

✅ Start small - Build experience with $5-10K grants first

✅ Use free help - SBDC and SCORE are incredibly valuable

✅ Apply to many - Expect 70-90% rejection rate

✅ Keep trying - Each application improves your skills

Next Steps

1. Research Phase (This Week):

• Visit Grants.gov and search your industry
• Google “[Your State] small business grants”
• Contact local SBDC for one-on-one help

2. Preparation Phase (Next 2 Weeks):

• Gather standard documents (business plan, financials)
• Create digital folder with everything
• Identify 5-10 grants you qualify for

3. Application Phase (Next 1-2 Months):

• Start with smallest/easiest grant
• Get SBDC to review before submitting
• Submit and move to next one

4. Ongoing:

• Set Google Alerts for new grants in your industry
• Apply to 1-2 grants per quarter
• Build relationships with grant officers

Related Reading:

• Financing 101 - Understand all funding options
• Bootstrapping Guide - Fund yourself while waiting for grants
• Debt vs Equity - Compare funding options

Remember: Grants are a marathon, not a sprint. Start applying now, keep applying regularly, and eventually you’ll win. The effort is worth it - it’s free money!

Need help finding or applying for grants? Visit our contact page for resources and guidance.