Grants for trucking business

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Page written by Ashlyn Brooks. Last reviewed on September 4, 2024. Next review due October 1, 2025.

The trucking industry plays a huge part in keeping the economy in balance. It’s one of the main industries responsible for transporting goods across the nation. That being said, starting a trucking business can be a lucrative venture, but it requires significant capital investment.

One way to secure funding without incurring debt is through grants.

We at the Swoop team have done some digging and will walk you through the various grants available for starting a trucking business, other financial resources, and the benefits and drawbacks of these grants.

Looking for a grant for your business? Contact us to learn more about all of the funding options at your disposal.

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What are trucking grants?

Trucking grants are funds provided by government agencies, corporations, and non-profit organizations to support new and existing trucking businesses.

Unlike loans, grants do not need to be repaid, making them an attractive option for entrepreneurs looking to reduce their financial burden. These grants can cover various expenses, such as purchasing trucks, hiring staff, and meeting regulatory requirements.

6 grants to start a trucking company

Below are seven notable grants that can help you start your trucking company.

1. SBA 8(a) business development program

The SBA 8(a) business development program is designed to assist small businesses owned by socially and economically disadvantaged individuals. This program offers:

Access to government contracting opportunities: The SBA helps 8(a) firms secure contracts with federal agencies.
Business training and counseling: Participants receive management and technical assistance to enhance their business operations.
Mentorship: Established businesses mentor new entrepreneurs to help them navigate the complexities of the industry.

To qualify, your business must be at least 51% owned by a socially and economically disadvantaged individual, meet the SBA’s size standards, and have a demonstrated potential for success.

2. FedEx small business grant contest

The FedEx small business grant contest awards grants to small businesses in various industries, including trucking. This contest offers:

Cash grants: Winners receive substantial cash awards to fund their business operations. Ten businesses will receive cash grants. One grand prize winner and nine runner-ups.
FedEx office services: Recipients gain FedEx credits for printing, copying, and other essential business services at FedEx Office locations.

To apply, businesses must submit an application detailing their story, their products/services, and how they would use the grant funds. This is done through a written entry and a short two-minute video.

The application period happens once a year typically in March. Check with FedEx.com for all of the details.

3. NASE Growth Grants

The National Association for the Self-Employed (NASE) offers Growth Grants to its members, providing financial support for business-related expenses. These grants can be used for most business needs including;

Purchasing equipment: Funds can be used to buy trucks, trailers, and other necessary equipment.
Marketing: Grant money can be allocated to advertising and promotional efforts to attract new clients.
Hiring staff: Use the funds to recruit and train new employees.

However, you can not use these funds for existing debt. To be eligible, you must be a member of NASE, and your business must demonstrate a clear need for the grant funds. If you’re looking to better your chances, be very thorough when explaining your business goals, products, and services.

4. Veteran owned business opportunities

If you are a former military member you may be eligible for specialty programs designed for Veterans, including grants for your trucking business. There are plenty of programs on the State and local government levels that offer free or low-cost services including;

State Health and Human Services
State Veterans Commission
Local Veterans Programs

Check with your local or state veterans programs. Also, the SBA that we mentioned in option number one has a section that holds exclusive opportunities for Veterans.

5. USDA rural business enterprise grants

The U.S. Department of Agriculture (USDA) provides Rural Business Enterprise Grants (RBEG) to support the development of small and emerging businesses in rural areas. Key features of these grants include:

Funding for equipment and infrastructure: Grants can be used to purchase trucks, trailers, and other critical infrastructure.
Business planning assistance: The USDA offers support in developing comprehensive business plans.
Job creation: Grants aim to stimulate economic growth and create jobs in rural communities.

Eligible applicants include small businesses located in rural areas with populations of 50,000 or less.

6. School grants

Some educational institutions offer grants to students and alumni who wish to start their own businesses, including trucking companies. These grants typically provide:

Seed funding: Initial capital to help get your business off the ground.
Mentorship: Access to experienced business professionals who can provide guidance and support.
Networking opportunities: Connections with potential investors, partners, and clients.

Check with the business school or entrepreneurial programs at your alma mater to see if they offer grants.

What about the NAV small business grant?

At Swoop we pride ourselves on being aware of the best opportunities for our clients, this also means being aware of opportunities that are no longer available. As of the time of publishing, The Nav grant has been discontinued. In its prime, it was a small business program that offered both loans and grants of up to $10,000 to eligible businesses.

Please check back later as we plan to update this publication if any changes are made.

Other Financial Resources to Start a Trucking Business

In addition to grants, there are other financial resources available to help you start your trucking business. These include SBA loans and fuel cards.

SBA loans

The Small Business Administration (SBA) offers various loan programs designed to support small businesses, including:

7(a) Loan Program: Provides financial assistance for various business purposes, including working capital, equipment purchase, and refinancing debt.
Microloan Program: Offers smaller loans up to $50,000 for startups and small businesses needing less capital.
CDC/504 Loan Program: Provides long-term, fixed-rate financing for major assets like real estate and equipment.

SBA loans often come with favorable terms and lower interest rates compared to traditional bank loans.

Fuel cards

Fuel cards are like credit cards specifically for fleet vehicles. They can help trucking businesses manage fuel expenses more effectively. Benefits of using fuel cards include:

Discounted fuel prices: Many fuel card providers offer discounts on fuel purchases, reducing overall operating costs.
Expense tracking: Fuel cards provide detailed reports on fuel expenses, helping you monitor and manage costs.
Convenience: Fuel cards are accepted at numerous locations nationwide, so drivers can refuel easily during their routes.

Is a trucking business grant right for you?

Grants for your trucking business are a great way to access funding without incurring debt but nothing is truly ‘free’. Applying and qualifying for large grant programs means a good amount of administration efforts upfront. While trucking business grants offer advantages, you need to determine if they align with your business goals and needs.

Here are some key benefits to consider:

No repayment necessary

One of the most attractive aspects of grants is that they do not need to be repaid. This allows you to invest in your business without the burden of debt, improving your cash flow and financial stability.

Multiple options

There are numerous grant opportunities available for trucking businesses, each with its own set of criteria and benefits. This diversity allows you to find grants that best match your business needs and qualifications.

Rapid growth

Grants can provide the necessary funds to accelerate your business growth. With access to capital, you can:

Expand your fleet: Purchase additional trucks and equipment to increase your service capacity.
Hire more staff: Recruit and train new employees to support your business operations.
Invest in technology: Implement advanced logistics and management systems to improve efficiency and customer service.

What are the drawbacks of trucking grants?

While grants offer several benefits, there are also some drawbacks to consider:

Competitive application process: Many grants have a rigorous and highly competitive application process, making it challenging to secure funding.
Specific eligibility requirements: Each grant has its own set of eligibility criteria, which may limit your ability to qualify for certain opportunities.
Restricted use of funds: Some grants have specific guidelines on how the funds can be used, which may not align with your business needs or goals.
Time-consuming: The application process for grants can be lengthy and time-consuming, requiring significant effort to prepare and submit the necessary documentation.

Get started with Swoop

Swoop Funding offers a comprehensive platform to help you identify and secure the best funding options for your trucking business. Here’s how we can assist you:

Access to multiple funding options: In addition to grants, Swoop connects you with various loan programs, equity financing, and other financial resources to support your business growth.
Expert advice: Swoop’s team of financial experts offers personalized advice and support to help you make informed decisions about your funding strategy.
Time-saving solutions: By streamlining the search and application process, Swoop allows you to focus on running your business while they handle the complexities of securing funding.

Explore Swoop’s funding options to discover a wide range of opportunities tailored to your trucking business needs.

Written by

Ashlyn Brooks

Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia.

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