Can I get a grant to buy equipment for my business?
Types of Equipment Grants
Equipment grants are often targeted to specific industries. For example, the USDA offers Rural Energy for America Program (REAP) grants for renewable energy equipment and energy efficiency improvements. Manufacturing Extension Partnership (MEP) centers may offer grants for advanced manufacturing equipment. Some state programs provide grants for machinery in agriculture or food processing.
Nonprofits and industry associations may also offer equipment grants. The National Association for the Self-Employed (NASE) offers growth grants that can be used for equipment. Corporate programs like FedEx may provide grants for equipment as part of a larger small business grant.
- USDA REAP: for renewable energy and energy efficiency equipment.
- State manufacturing grants: for machinery and technology upgrades.
- NASE Growth Grants: up to $4,000, can be used for equipment.
- Industry-specific grants: agriculture, healthcare, technology.
- Local economic development grants: for equipment in targeted industries.
How to Apply
You'll need a detailed quote for the equipment, a business plan explaining how it will improve your business, and financial statements. Some grants require matching funds. Be prepared to show the equipment is essential for growth or efficiency. Competition is high, so demonstrate a clear return on investment.
Check with your local Small Business Development Center (SBDC) or SCORE mentor for help finding and applying for equipment grants. They can also help you explore loans if grants aren't available.
Common mistakes
- Thinking all grants allow equipment purchases; many restrict funds to training, marketing, or payroll.
- Not providing a detailed equipment quote and justification; applications without specifics are often rejected.
- Ignoring loan options; equipment loans may be easier to get than grants.
