Best Small Business Grants

Getting free cash for your small business may seem like a stretch, but with

Small Business Grants - it is totally possible.

Small Business Innovation Research Grant (SBIR)

Common areas of activity for businesses receiving this funding include national security, clean drinking water, health care, environmental building, and others. The goal of this program is to support the excellence in science and innovation in technologies that will advance and strengthen the U.S. economy. For tech companies, SBIR programs provide significant seed funding and contracts to public agencies to assist in qualifying companies research and development of new technologies. Applicants must be for-profit businesses. Applicants must employ less than 500 people. Venture-owned companies, hedge funds, or private-equity firms. SBIR Business Grant winners may receive grants and contracts from 12 government agencies.

While grant amounts begin at $150,000, hopeful and successful applicants may be awarded as much as $1 million in additional funding. Each participating public agency sets their own guidelines and eligibility requirements, meaning that if you meet a particular agency's requirements, then your chances of getting funded are better. This grant is very competitive, meaning that only a few applicants will get funding from the grant as part of this program. The application process is long and time-consuming, which may prove to be challenging for small-business owners.

Economic Development Administration

The EDA is an agency within the U.S. Department of Commerce, providing grants, resources, and support to small business owners and entrepreneurs. The mission of this agency is to give small business owners the free tools and financing that they need in order to devote their time and energy towards innovation and entrepreneurship. To find grants from EDA, you can easily search through their database of available grants, and you can also look up local funding opportunities by searching the resources for your state. Because the EDA is a source for finding grants, eligibility will vary depending on which grants you are applying to.

Be sure to carefully review the requirements before proceeding with an application. Because loans are processed through Grants.gov, applicants should create an account with the website.

EDA provides an easy-to-search database of available grants, making it easy to find the right fit for your company. There are State-level resources for small businesses available through EDA. Grants are available at different times throughout the year, so you do not need to worry about meeting one specific deadline. Because it's not one particular grant offered by EDA, finding the best fit for your company can be overwhelming. This is a commonly used source among small businesses, which means grants may be very competitive. Read our complete list of the best small business grants from federal and state governments.

FedEx Grants

FedEx offers one of the most well-known small business grants. Designed to support businesses looking to scale up - This is an excellent grant option for businesses looking to grow their small business. Twelve contestants were chosen to win grant cash, and the grand-prize winner received $50,000 plus $7,500 worth of FedEx credits. Unlike other grants that have a formal application process, FedEx Small Business Grants require just a one-minute video, logo submission, photos capturing the essence of your business, and a brief bio to apply. Applicants must be in business for more than a year.

Applicants must have less than 50 employees. Applicants must have used commercial mailing services for at least 12 months prior to applying. Twelve winners are selected from among contest applicants, so if your company does not make it into first or second place, you will still have ten chances of winning thousands of dollars in funding. Winners also get FedEx printing and business services credits. Once you are entered, you can get the word out to fans of your business to vote, which will boost your chances of winning. Thousands of businesses enter this grants competition each year, with just twelve winners selected, making it one of the most competitive grants to win. FedEx Small Business Grants are available to businesses that are already established. Read our complete list of the best business small business grants.

Amber Grant Fund

In 1998, Womensnet created the Amber Grant Fund as a memorial to a budding entrepreneur whose life was cut short. Since then, the fund has awarded $10,000 to one female-owned business each month, and one of twelve winners each year received a further $25,000 grant. With the Amber Grant, women-owned businesses and would-be entrepreneurs are given an opportunity to explain and illustrate their business goals in order to apply for a grant every month of the year. Applicants must be a business owned by a woman. Applicants must be located in the United States or Canada.

Applicants are required to send an application fee of $15. Applying to an Amber grant is simple, the only requirements are telling the fund about themselves and their entrepreneurial dreams. There is no complicated application process and a large amount of paperwork. If you are one of the monthly winners, your dedicated customers get to vote on your business for an additional $25,000 yearly subsidy. There is no requirement as to what kind of business you are running, or want to run, in order to win this grant. This is a very sought-after grant for businesses, making the application process competitive. There is a cost of applying for this grant.

MBDA Grants

MBDA serves as a resource for minority-owned businesses seeking grants, consultation, and other forms of assistance with their businesses. Unlike others on this list, the MBDA operates by providing grants to its minority-owned business centers located throughout the United States. By searching for the nearest Minority Business Center, you can find grants your company is eligible for, along with a plethora of other resources available for minority-owned businesses.

Applicants need to get a data universal number system (DUNS) in order for their applications to be tracked. Applicants must be a minority-owned or controlled company. Applicants are required to register their applications in the System for Award Administration Registration (SAM). The MBDA serves as a resource for not just grants, but for a variety of other business services to minorities. There are minority-owned business centers across the United States that are willing to assist minority-owned businesses.

Alternatives to Small Business Grants

If you haven't found a grant that suits your business needs, feel like you've exhausted all options in the application process or just don’t have time to search for other funding sources—take heart! There are many other funding possibilities out there.

Most entrepreneurs start and maintain their small businesses without grants; you can too.

Loans: Like grants, loans are awarded to business owners by outside lending institutions or banks. Unlike grants, however, businesses must repay their loans.

Many small businesses use loans from friends and family to start or support their businesses. To avoid damaging your relationship with these people if the business fails, it’s important that you acknowledge what would happen if the enterprise isn't successful by drafting a repayment plan in writing before you take out any loan.

Bootstrapping is the method of starting or supporting a small business by dipping into personal savings. It requires self-discipline and financial commitment to be sustainable.

Venture capitalists and angel investors are two common sources of investment for small businesses.

Venture capitalists invest money in a business, but they typically have more control or influence than other investors.

A business line of credit is similar to a personal credit card, except the money can be used for business expenses.

Crowdfunding, a way to raise small amounts of money online from large numbers of people, has become increasingly popular among entrepreneurs. Unlike other fundraising methods (such as going to banks and investors), most crowdfunding campaigns don’t require repayment.

Small Business Grants FAQ

How do small business grants work?

Small business grants are essentially free money for your company—once you find and apply for a grant, if your business is selected, the organization that provided it will give you funding to support its growth.

Often, small business grants come with requirements for how businesses must spend the money.

How do I get a business grant?

The grant application process is different for every grantor. Some require video essays, while others ask that you fill out an online application form.

The most successful grant applications are those that match the values of a particular organization.

What are the benefits of small business grants?

The biggest benefit of small business grants is that you don’t have to pay them back. In addition, many grantors and programs offer more than just money—they also provide mentoring, networking opportunities and other benefits.

Most of these programs offer other business services such as business consulting, marketing services, or extra funding opportunities.

How do I determine which business grant is best for me?

When searching for a grant, find one that reflects your company’s values and personality. The more closely the grant matches what you need or want to do with it, the better chance you have of securing funding.

Additionally, look for grants created to help entrepreneurs like you in your community. Grant applications with a very specific set of qualifications are less competitive and provide greater opportunities than more general grant programs.