Small Business Grants
It's important to know that the U.S. Federal Government, as a rule, does not award small business grants to most private for-profit businesses. Unless you are a 501C3 non-profit agency that is organized for charitable purposes and tax exempt under the IRS tax code, your small business is not eligible for federal grants.
That's the bad news. The good news is there are federal resources available for qualified small businesses to apply for other than grants.
The U.S. Small Business Administration (SBA) is the federal agency created in 1953 to help Americans start, build and grow businesses. The SBA serves people in the United States, American Samoa, Puerto Rico, the U.S. Virgin Islands and Guam. Although the SBA does not award grants to start or expand small businesses, they do have loan, surety bond, and venture capital programs available.
The Small Business Administration is primarily a guarantor of loans, meaning that the federal government does not loan money directly to small businesses; they guarantee the loans made by lending institutions to qualified small businesses, making it easier for small businesses to qualify for loans they might not otherwise be eligible for. Below is just a portion of the SBA loan programs that may be able to help American small businesses.
- Basic 7(a) Loan Program: Loan proceeds can be used for
working capital, machinery and equipment, furniture and fixtures, land and
building (including purchase, renovation and new construction), leasehold
improvements, and debt refinancing under special conditions. Loan maturity
is usually up to 10 years for working capital and 25 years for fixed
assets. This loan targets start-up and existing small businesses.
- 504 Loan Program: Provides long-term fixed-rate financing to small
businesses to acquire real estate, machinery or equipment for expansion or
modernization. These loans are usually delivered through a Certified
Development Company (CDC) with liens placed on the collateral and a
contribution of 10% equity from the borrower.
- Microloan 7(m) Loan Program: These loans target small businesses
and nonprofit childcare centers needing small-scale financing and technical
assistance for startup or expansion. Provides short-term loans up to $35,000
for working capital, inventory, supplies, furniture, fixtures, machinery or
equipment. Proceeds cannot be used to buy real estate or to pay off existing
debt. The loans are not guaranteed by the SBA. The SBA makes or guarantees a
loan to an intermediary who then turns around and lends the money to a
qualified small business. Intermediaries are nonprofit agencies who have
experience in lending and technical assistance. The Microloan Program is
available in selected locations in most states.
- Loan Prequalification: Allows business applicants to have their loan applications of $250,000 or less analyzed and potentially sanctioned by the SBA before they are taken to lenders for consideration.
With the Surety Bond Guarantee Program (SBG), the SBA helps small businesses obtain surety bonds that they cannot obtain on their own. What is a surety bond? A surety bond is a type of insurance that protects a project owner in the case that a contractor cannot complete the project. Most large federal, state, and city construction grants require a surety bond. If a surety bond has not been acquired in advance, the contractor will not be awarded the grant money. As with business loans, the SBA does not directly issue surety bonds but they do work with surety companies to guarantee the bond.
Along with loans and surety bonds, the Small Business Administration also helps small businesses obtain venture capital. Venture capital is a cash investment directly into a small business in exchange for a percentage ownership in the business. The SBA's New Markets Venture Capital program (NMVC), in partnership with private investors, helps small businesses in low income areas obtain venture capital financing. The investment funds can then be used by the small businesses to employ residents within their low income area. To qualify, the business must be worth less than $6million and have a profit of less than $2million in the past 2 years. Also, the business must be located in a county with a poverty rate of at least 20%, a metro area where 50% or more of the residents receive the Low Income Housing Tax Credit, or a rural area where the median household income is less than 80% of the state's median household income.
The SBA does have an exception to the "no federal grants" rule for small businesses, but it is targeted to innovation research and high technology companies. The Small Business Innovation Research Program (SBIR) is a highly competitive program that funds the startup and commercial development stages of an innovative technology, product or service. The Small Business Technology Transfer Program (STTR) is another competitive program that awards small business grants to businesses which partner with nonprofit research institutions for the commercialization of technology products. You can research all available assistance at the Small Business Administration website at sba.gov.
You can also find SBA grants in our agency listing for Small Business Administration Federal Grants here at FederalGrants.com. Furthermore, a search of our database for "small business" grants will show hundreds of past grants for small and medium enterprises. Finally, the following is a list of small business grants that are accepting applications as of Tuesday, March 19th, 2024:
- F24AS00298 Cooperative Agriculture
Deadline: March 7th, 2029 - Academy for Women Entrepreneurs LESA
Deadline: April 26th, 2024 - Improving Undergraduate STEM Education: Computing in Undergraduate Education
Deadline: May 30th, 2024 - Ideas Lab: Advancing Cell-Free Systems Toward Increased Range of Use-Inspired Applications
Deadline: September 20th, 2024 - Academy for Women Entrepreneurs 2024 - DRC
Deadline: May 1st, 2024 - Ideas Lab: Use-Inspired Acceleration of Protein Design
Deadline: August 30th, 2024 - Ideas Lab: Breaking the Low Latency Barrier for Verticals in Next-G Wireless Networks
Deadline: September 30th, 2024 - Strengthening Inclusive Small Business Growth in Central America
Deadline: April 19th, 2024 - Women Veteran Entrepreneurship Training Program (wvetp) 2024
Deadline: March 21st, 2024 - Developmental Sciences
Deadline: July 30th, 2024 - Distributed Array of Small Instruments
Deadline: May 15th, 2024 - Promoting STEM Education and Youth Entrepreneurship
Deadline: March 28th, 2024 - Arkansas Technical Assistance Projects Supporting Inflation Reduction Act (IRA) Implementation
Deadline: April 1st, 2024 - Sustainable Regional Systems Research Networks
Deadline: May 15th, 2024 - Future Manufacturing
Deadline: April 11th, 2024 - Responsible Design, Development, and Deployment of Technologies
Deadline: April 22nd, 2024 - ROSES 2023: A.53 Instrument Incubator Program
Deadline: April 2nd, 2024 - NINDS Exploratory Clinical Trials for Small Business (R41/R42 Clinical Trial Required)
Deadline: September 5th, 2026 - Small Business Innovation Research and Small Business Technology Transfer Programs Phase II
Deadline: March 26th, 2024 - RFA-OE-18-000
Deadline: October 13th, 2025 - RFA-OT-18-000
Deadline: October 13th, 2025 - RFA-CD-18-000
Deadline: October 13th, 2025 - RFA-CC-18-000
Deadline: October 13th, 2025 - RFA-TP-18-000
Deadline: October 13th, 2025 - RFA-EH-18-000
Deadline: October 13th, 2025 - RFA-CE-18-000
Deadline: October 13th, 2025 - RFA-DP-18-000
Deadline: October 13th, 2025 - RFA-CK-18-000
Deadline: October 13th, 2025 - RFA-IP-18-000
Deadline: October 13th, 2025 - RFA-PS-18-000
Deadline: October 13th, 2025 - RFA-SH-18-000
Deadline: October 13th, 2025 - RFA-TS-18-000
Deadline: October 13th, 2025 - RFA-GH-18-000
Deadline: October 13th, 2025 - RFA-DD-18-000
Deadline: October 13th, 2025 - Long Range Broad Agency Announcement (BAA) for Navy and Marine Corps Science and Technology
Deadline: September 30th, 2024 - Ideas Lab: Personalized Engineering Learning
Deadline: May 8th, 2024 - Competition for the Management of Operation and Maintenance of the National Geophysical Facility
Deadline: June 13th, 2024 - Workplace Equity for Persons with Disabilities in STEM and STEM Education
Deadline: September 17th, 2024 - NSF Convergence Accelerator Phases 1 and 2 for the 2023 Cohort - Tracks K, L, M
Deadline: August 30th, 2024 - Rural Energy for America Program
Deadline: September 30th, 2024 - Devcom Analysis Center Broad Agency Announcement For Applied Research
Deadline: January 4th, 2028 - Devcom Army Research Laboratory Broad Agency Announcement For Foundational Research
Deadline: November 20th, 2027 - Blueprint Medtech: Small Business Translator (U44 - Clinical Trial Optional)
Deadline: June 20th, 2024 - NINDS Exploratory Clinical Trials for Small Business (R43/R44 Clinical Trial Required)
Deadline: April 5th, 2024 - NeuroNEXT Small Business Innovation in Clinical Trials (U44 Clinical Trial Optional)
Deadline: April 5th, 2024 - UNITED STATES MILITARY ACADEMY Broad Agency Announcement
Deadline: March 31st, 2025 - Army Applications Lab Broad Agency Announcement For Disruptive Applications
Deadline: May 1st, 2024
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