For founders & owners

Small business grants

A practical guide to small business grants: where they come from, who qualifies, how to judge fit, and our program guides for corporate, local and federal grants.

Quick answer: Small business grants are non-repayable awards, mostly from corporations, local programs and foundations; federal grants rarely fund general business costs. Apply only where you clearly meet eligibility and verify terms on the funder’s site.

How do small business grants work?

Small business grants are awards that do not need to be repaid, but they are narrower and more competitive than most owners expect. Very few federal grants go directly to for-profit businesses for general operating costs. Most federal money for small firms flows through research programs (such as SBIR/STTR), export programs, or state and local agencies that pass funds through to businesses in specific places or industries.

Most of the grants an ordinary small business can realistically win come from three places: corporate and brand programs (often recurring, with small to mid-size awards and simple applications), local and regional programs run by cities, economic development agencies and community foundations, and industry or mission-specific funds. Each program sets its own rules on location, revenue, years in business, ownership and use of funds — so fit matters more than volume.

Treat grants as one part of a funding plan, not the whole plan. Keep a short list of programs you clearly qualify for, prepare reusable materials (business summary, budget, financials, impact statement), and track deadlines in a calendar. Always confirm current terms on the funder's official page before applying.

What steps should you take?

  • Confirm your basicsHave your legal entity, EIN, bank account and, for federal awards, a SAM.gov Unique Entity ID ready.
  • Filter by eligibility firstLocation, industry, revenue, years operating and ownership rules knock out most programs — check them before reading anything else.
  • Reuse a strong core applicationA clear description of what the money will do, a simple budget and measurable outcomes are asked for almost everywhere.
  • Watch for scamsLegitimate grants do not charge a fee to receive an award. Verify programs on official sites.

Which small business grants guides should you read?

All our in-depth guides on this topic (46):

Frequently asked questions

Does the federal government give grants to start a business?

Generally not for general startup costs. Federal programs for small businesses are mostly research, export or pass-through programs. Corporate, local and foundation grants are usually more accessible for everyday businesses.

Do I need an LLC to get a small business grant?

Many programs require a registered business, and some specify entity types. Requirements vary by program, so check each funder's eligibility rules.

Are small business grants taxable?

Often, yes — grants to businesses are generally treated as income unless a specific exclusion applies. See our guide on grant taxation and confirm with a tax professional.

Can AGA guarantee I will receive a grant?

No. AGA researches and matches opportunities and helps you prepare, but funders make all award decisions.

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