How can I get a grant to start a small business?
Where to Look
The federal government rarely gives grants directly to for-profit startups, except in specific fields like research and development (e.g., SBIR/STTR). State and local governments may offer grants for certain industries or in economically distressed areas. Nonprofits like Amber Grant, FedEx Small Business Grant, and local economic development groups run competitions.
Many 'business grants' online are actually loans or contests. Be cautious of sites that charge fees to apply. Check with your local Small Business Development Center (SBDC) or SCORE chapter for legitimate opportunities.
- SBIR/STTR for tech and research firms
- State and local economic development grants
- Small business grant competitions (e.g., Amber Grant)
- Industry-specific grants (e.g., agriculture, energy)
- Minority- or women-owned business grants
How to Apply
You'll usually need a business plan, financial projections, and a clear explanation of how the grant will help. Some programs require you to be in business for a certain time, while others target pre-startups. Read eligibility rules carefully.
Competition is strong, so tailor each application. Highlight how your business solves a problem or creates jobs. If you don't win, ask for feedback and keep applying. Grants are just one funding option; consider loans, investors, and crowdfunding too.
Common mistakes
- Believing there are many easy grants for any small business—most are highly specific or competitive.
- Paying a fee to a company that promises grant money; legitimate grants don't require upfront fees.
- Ignoring loans or other financing because you're only focused on grants.
