Grants are one of the safest ways to fund a startup. Because grants are essentially free money, you won’t have to add as many loan repayments to your new small business’s budget — or hand over partial control of your small business in exchange for equity. Federal funding for startups is limited, so consider applying for private grant through corporations and nonprofits as well.
Startup grants are highly competitive, time-consuming and offer a lower amount of financing than you’d get with most small business loans or investments. Consider these grant programs as a supplement to your other startup funding. If you need funds quickly, consider taking out a personal loan from a lender like Upstart to tide you over while you apply for grants.
There are a few federal small business grants available to startups:
Federal grant programs are usually project-specific — you can’t find funding for general startup costs. If you want seed money to launch a new business, consider a private grant instead.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs offer seed money to startups in the tech industry. These business grants are meant to fund technology innovation for the federal government, which companies can later sell for a profit. Here’s how it works.
Your research also must align with the federal government’s interest to qualify. This means you may not have as much control as you’d like over the first three or more years of your business.
The Small Business Administration (SBA) oversees both the SBIR and STTR. However, you’ll have to apply through one of the 11 federal agencies that participate in the program:
The application is complicated, but you can get assistance free assistance through an SBA resource partner that offers SBIR and STTR help. Go to the SBIR website to find a resource partner near you.
The Economic Development Administration’s Minority Business Development Agency (MBDA) offers a revolving list of small business grants to minority-owned businesses and startups. Visit the MBDA website to view current options and apply for a grant.
Its most recent program was the Minority Colleges and Universities Grant competition. This pilot program funded entrepreneurs who were recent graduates from a historically black college or university, tribal college or university or minority-serving institution.
The National Institute on Drug Abuse offers grants to biotech startups involved in research and development on substance use disorders (SUDs).
The NIDA expects winning startups to receive enough support to successfully win an SBIR or STTR grant from the agency in the future. You can get started by downloading out a registration form available on the NIDA website. Send your completed registration form to NIDAChallenge@nih.gov.
The US Department of Agriculture (USDA) offers grants to cover the cost of installing and maintaining energy-efficient energy systems through the Rural Energy for America program.
The USDA is changing the name of the program to the OneRD Guarantee Loan Initiative as of October 1, 2021. Contact your local USDA Rural Development office to get started on the application.
These corporations and nonprofit organizations offer business grants to startups for a variety of uses. Usually, they have fewer restrictions on how you use the funds — though they’re often smaller.
The 4.0 Essentials Fellowship program is for early stage entrepreneurs who want to address a problem with education in their local communities. It’s not just about funding. You can receive the following resources to help bring an idea to life.
Applications typically close in April and are available on the 4.0 website.
Each year, Visa runs a global startup competition to fintech startups that specialize in payment processing, digital services and security and small business recovery.
This competition is highly competitive — you’re competing with fintechs across the globe. But it offers exposure to potential investors and media coverage. This year, Visa has partnered with TechCrunch to livestream all regional and global finalists. You can apply on the Visa Everywhere website.
Each year, Business Owners Idea Cafe offers one $1,000 grant to a small business startup. Past winners are mostly consumer-serving businesses, like cafes and jewelry stores — but there’s no restriction on who can apply.
You’ll need to sign up as an Idea Cafe Regular to apply, but the application is free and simple: Unlike most grant programs, you don’t even need to submit a business plan.
Each year, WomensNet offers grants to female entrepreneurs with plans to grow or start a business.
You don’t need a formal business plan to apply, but you’ll need to demonstrate an understanding of your market and have a concrete plan for how you will spend the money. Applications are available on the WomensNet website.
The National Association for the Self-Employed (NASE) offers grants to help members of this nonprofit organization cover growth expenses for a startup or established business.
Generally, you’re restricted to using the funds for growth expenses — and you must prove that you’ve used the funds for an eligible expense.
Each year, Patagonia donates 1% of its yearly sales to projects by environmental organizations. This won’t offer seed money, but it can help you get started on an early project.
Currently, applications are only available by invitation. If your organization is eligible to qualify, Patagonia will reach out to your business.
FedEx runs an annual competition to offer small-dollar grants to small businesses that have been around one year old. While it won’t cover small business startup costs, it can help your startup grow.
The top 100 finalists also receive free training from Accion Opportunity Fund and access to other resources for entrepreneurs. Applications are available on the FedEx website.
Finder data suggests that men aged 25-34 are most likely to be researching this topic.
| Response | Male (%) | Female (%) |
|---|---|---|
| 65+ | 3.88% | 3.38% |
| 55-64 | 5.93% | 4.77% |
| 45-54 | 8.46% | 8.05% |
| 35-44 | 11.16% | 9.26% |
| 25-34 | 13.02% | 10.80% |
| 18-24 | 10.97% | 10.32% |
The federal government mainly offers small business assistance through the Small Business Administration (SBA). While the SBA doesn’t directly offer grants, it offers a wide range of resources for startups and small businesses.
Reach out your local a small business development center or another SBA resource partners for a free one-on-one session with a small business specialist. They can help you find funding opportunities and apply for a small business grant.
While only a small percentage of those responding to Finder’s Consumer Confidence Index were small business owners, about 30% of them said they were in the market for a small business loan, with 55% saying they’d explored government-backed projects. In terms of where these people got their loans, unsuprisingly, traditional banks was the top option at 33%.
A grant likely won’t cover all of your startup costs — even if you qualify. You might want to consider these alternatives if you need funding to start a new business.
Personal loans are a faster source of financing to startups than grants — though they aren’t cheap. Select Compare on up to four lenders to weigh APRs, credit score requirements and loan amounts available. Or, visit our guide to personal loans for startups to learn more about how this option works.
What is your primary need for a business loan?
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Bank of America offers secured and unsecured business loans and lines of credit for established small businesses.
Wells Fargo offers unsecured lines of credit, secured Prime Lines and SBA loans for small businesses.
OnDeck offers business term loans and lines of credit, but it’s not the cheapest option out there.
A review of Chase business loans, including term loans, lines of credit, commercial real estate financing and SBA loans.
Biz2Credit connects you with lenders to get a loan to grow your business. Compare the loan types offered and see how they stack up to other business loans.
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I want to start my own business and open bingo parlor up and need help getting started. Which is the best way to try and get some help for a grant to get it up n running?
Need a grant to startup my Go-cart and Sandrail company, to better my life and my family’s. Thank you!
Hi Timothy,
Thanks for getting in touch with finder. I hope all is well with you. :)
Upon checking, I could see that you’re on the right page. Please review this page and check out the list of grants that we have gathered here. You can directly get in touch with your chosen grant provider by visiting their website or office. Alternatively, you may also want to explore personal loans for startup businesses.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I have a new Aire Cleansing Technology that erradicates up to 99.99% Ozone damaging gases and contaminants at the source. I am in need of a Grant to assist in filling for patent submission
Hi Haydude,
Thank you for leaving a question.
With regards to your grant request, you may need to approach any of the organizations stated below. It is highly advisable to create a grant request letter which you could submit to the organization for them to review your proposal. Hope this helps!
Small Business Innovation Research (SBIR)
Small Business Technology Transfer (STTR)
NASE
FedEx Small Business Grant Contest
Street Shares Foundation
Amber Grant
Visa Everywhere Initiative
MBDA Grants
Idea Cafe Grants
Cheers,
Reggie