Startup business grants

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Page written by Ashlyn Brooks. Last reviewed on June 28, 2024. Next review due October 1, 2025.

Starting a new business is an exciting venture, but finding the funds to get your startup off the ground can be challenging. Fortunately, there are numerous startup business grants available that provide free funding to help entrepreneurs launch and grow their businesses.

Here at Swoop we help you explore various types of grants, including those offered by the government, private companies, and nonprofits, as well as small-business incubator programs.

We’ll also discuss how to apply for these grants and consider alternative funding options if grants aren’t suitable for your needs.

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Government startup business grants and resources

Government grants are a big source of funding for startups, offering substantial financial support without the need for repayment. These grants often come with specific requirements and are designed to support various business activities, such as research and development, innovation, and support for minority-owned businesses.

Grants.gov

Grants.gov is the primary resource for finding and applying for federal grants. This platform is a comprehensive database of all grant programs offered by the U.S. government.

What is it? Grants.gov is like a hub where you can find information on over 1,000 grant programs and apply for them online.
How to use it: Create an account on Grants.gov, search for grants that match your business needs, and submit your application through the website. Then, make sure you meet the eligibility criteria and provide all required documentation.

State and local government grants

While the big federal grants may seem enticing, the state and local governments also offer various funding opportunities tailored to the needs of local businesses. These may be smaller awards but some can be still substantial and have less strict requirements.

State-specific grants: Many states have economic development agencies that provide grants to startups and small businesses. These grants may focus on specific industries or areas of economic growth.
Local incentives: Check with your city or county economic development office for grants and incentives available to businesses in your area. These can include tax credits, low-interest loans, and direct funding.

Small business innovation research (SBIR) and small business technology transfer (STTR) programs

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive but don’t let that deter you, they provide funding for small businesses engaged in research and development.

SBIR: This program encourages small businesses to engage in federal research and development with the potential for commercialization. It’s a three-phase program, starting with feasibility, followed by research and development, and culminating in commercialization.
STTR: Similar to SBIR, STTR requires collaboration with a research institution. It also follows a three-phase process and supports innovation and technology transfer.

Small business development centers

Small Business Development Centers (SBDCs) act similarly to the SBA by providing resources, mentoring, and training to help startups and small businesses grow.

Services offered: SBDCs offer free business consulting, training workshops, and access to market research. They can also guide you in finding and applying for grants.
Finding an SBDC: There are nearly 1,000 SBDC locations across the U.S., often hosted by universities or state economic development agencies. Use the SBDC locator on the SBA website to find one near you.

Minority business development agency centers

The Minority Business Development Agency (MBDA) focuses on the growth and competitiveness of minority-owned businesses.

MBDA Centers: These centers provide technical assistance, business consulting, and access to financing opportunities. They also help businesses navigate federal and state grant applications.
Special initiatives: The MBDA offers special grant programs for minority entrepreneurs, focusing on areas such as advanced manufacturing, global exports, and technology innovation.

Startup business grants from private companies and nonprofits

Many private companies and nonprofit organizations also offer grants to startups. These grants can provide more than needed capital; they typically include resources such as mentoring and networking opportunities. While this doesn’t have a direct monetary value, having guidance can be priceless plus, networking puts you in front of future investors, buyers, or business partners, so they are always worth consideration.

Fast break for small business

Fast Break for Small Business is a grant program supported by LegalZoom and is designed to support small businesses across various industries.

Grant details: Sponsored by LegalZoom and the NBA, this program offers $10,000 grants along with $500 in LegalZoom services to help businesses with legal and compliance needs.
Eligibility: Small businesses with a clear vision for growth and a plan to achieve it are encouraged to apply.

IFundWomen Universal grant application database

Grant databases are a treasure trove of opportunity, with most acting as hubs for multiple grant opportunities. IFundWomen (IFW) is a funding marketplace for women entrepreneurs, offering grants and crowdfunding opportunities.

One major benefit of IFW is their universal grant application that pairs you with multiple opportunities saving you time since sifting through so many can be a substantial task, especially for a startup with limited resources.

Grant database: By creating a profile and submitting an application, women entrepreneurs can be considered for multiple grant opportunities listed on the platform.
Additional support: IFundWomen also provides coaching and networking resources to help women-led businesses thrive.

Amber grant for women

The Amber Grant for Women is a monthly grant awarded to women-owned businesses.

Grant details: Each month, three winners receive $10,000, and at the end of the year, one winner receives a $25,000 grant.
Application process: The application is straightforward, requiring a description of the business and how the grant funds will be used.

National association for the self-employed growth grant

The National Association for the Self-Employed (NASE) offers grants to its members to support business growth.

Grant details: NASE Growth Grants provide up to $4,000 for business needs such as marketing, advertising, and hiring employees.
Membership requirement: To be eligible, applicants must be members of NASE, which offers additional resources and benefits for self-employed individuals.

Bizee’s fresh start business grant

Bizee offers grants to help new businesses get started and grow.

Grant details: Bizee’s Fresh Start Business Grant provides $500 to new entrepreneurs to cover startup costs.
Application process: Applicants must submit a business plan and a brief description of how the grant will be used to kickstart their business.

Venmo small business grant

Venmo’s Small Business Grant program supports small businesses that are active on the Venmo platform.

Grant details: The program provides $10,000 grants to 20 businesses, along with promotion and mentorship opportunities.
Eligibility: Small businesses with a Venmo Business Profile and a clear plan for growth are eligible to apply.

The amplifier grant

The Amplifier Grant supports businesses that focus on social impact and community development.

Grant details: Grants range from $5,000+, depending on the scope and impact of the project.
Focus areas: The grant supports projects that address social issues such as education, healthcare, and environmental sustainability.

FedEx Small business grant contest

The FedEx Small Business Grant Contest is an annual competition that awards grants to innovative small businesses.

Grant details: The contest awards a total of $250,000 in grants, with individual prizes ranging from $5,000 to $50,000.
Application process: Applicants must submit a business plan and a video describing their business and how the grant funds will be used.

Tory burch foundation fellows program

The Tory Burch Foundation Fellows Program supports women entrepreneurs with grants and resources to help them grow their businesses.

Grant details: The program offers a $5,000 grant, a one-year fellowship, and access to workshops and networking opportunities.
Eligibility: Women entrepreneurs with a strong business plan and a commitment to community impact are encouraged to apply.

Which business grants for Black women are there?

There are many types of business grant for Black women. Award sums, qualifying criteria and selection committee objectives vary from source to source.

Black girl ventures pitch program

The Black Girl Ventures Pitch Program is an entrepreneurial fund-raising model for Black and brown female business founders. Using a hybrid pitch and crowdfunding system, participants have three minutes to pitch their opportunity to an audience of community and professional investors. The three participants with the most votes win at each event. First prize is $10,000, second prize is $6,000, third prize is $2,000.

To qualify, your business must be at least 51% owned by Black or brown women, have been operating for one year or more and be generating revenues.

HerRise microgrant

Aiming to bridge the financial gap in funding for early-stage Black female entrepreneurs, the HerRise MicroGrant provides a monthly award of $1,000 to businesses that aim to positively impact their community. To qualify, your business must be at least 51% owned by women of color, be based in the US and have revenues of less than $1 million.

Corporate counsel women of color grant program

The Corporate Counsel Women of Color Grant Program equips female Black and brown entrepreneurs with the tools to compete in the 21st century marketplace – awarding small business grants to individual applicants who are women of color business owners. The Counsel provides five grants of $2,500 each per year, with award winners announced every January.

To qualify, your business must be a legal for-profit entity, be based in the US and have generated more than $25,000 in revenues since 01 January 2020.

NAACP powershift entrepreneur grant

The NAACP Powershift Entrepreneur Grant is an annual event held to celebrate Black Entrepreneurs Day. Since inception, the program has awarded more than $750,000 in small business grants. Black entrepreneurs and small business owners seeking financial support can apply for one of nine $25,000 grants awarded every year. Winners also get access to professional mentorships and resources to help them take their business to the next level.

Coalition to back black businesses enhancement grant

Having financially supported more than 1400 small businesses since the program began, the Coalition to Back Black Businesses provides several grants of $25,000 to Black-owned businesses per year. (There were 14 winners in 2023). The goal of the Enhancement Grant is to solidify the resilience and long-term success of the award-winning businesses and to help strengthen the communities that those businesses serve.

TL effect

US-based lingerie brand Third Love offers the TL Effect Grant Program to support female-identifying entrepreneurs. The company awards one $20,000 grant per year, plus a mentoring program, access to dedicated workspaces and exposure to the brand’s large consumer base to help drive awareness and sales for the winner’s business.

To qualify, you must identify as a woman of color with an early-stage startup that is at least 51% female owned. You cannot apply if your business has already received venture capital funding.

WomensNet amber grants

Offering a total of $435,000 in awards per year, this is one the most generous grants programs. The WomensNet Amber Grants awards multiple grants per year, with $10,000 being offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category.

You can apply for any of these grants by completing an online application and paying a $15 entrance fee.

Small-business incubator programs

Small-business incubator programs provide startups with the resources, mentoring, and networking opportunities they need to succeed.

What are they? Incubators are organizations that support the growth of new businesses by providing office space, mentoring, access to investors, and other resources.
Benefits: Participation in an incubator can help startups refine their business models, develop products, and connect with potential investors and customers.

Notable incubator programs

Y Combinator: One of the most well-known incubators, Y Combinator provides seed funding, mentorship, and networking opportunities to early-stage startups.
Techstars: This global network of accelerators offers mentorship and funding to startups in various industries, including technology, healthcare, and sustainability.
500 Startups: A venture capital firm and startup accelerator, 500 Startups invests in early-stage companies and provides access to a global network of mentors and investors.

How do I get a startup business grant?

To get a startup business grant, you must apply before the deadline and meet the application requirements. Applying for a startup business grant involves several steps, and you need to be well-prepared to increase your chances of success. Keep in mind that grants are attractive options for a great number of businesses, especially startups, so there is typically strong competition.

Steps to apply

Research: Identify the grants that best fit your business needs and eligibility criteria. Use resources like Grants.gov, state and local government websites, and private grant directories.
Prepare a business plan: A detailed business plan is crucial. It should include your business objectives, market analysis, financial projections, and how you plan to use the grant funds.
Gather documentation: Ensure you have all necessary documents, such as tax returns, financial statements, and legal registrations.
Write a compelling proposal: Explain why your business deserves the grant and how the funds will help you achieve your goals. Be clear, concise, and honest. Tailor your proposal to each grant application. This is not like a resume that can fit most job descriptions.
Submit applications: Follow the instructions for each grant application carefully and submit all required materials by the deadline.
Follow up: After submitting your application, follow up with the grant provider to confirm receipt and inquire about the timeline for decisions.

What are the alternatives to grants?

If you are unable to secure a grant, there are several alternative funding options available to help you finance your startup.

Term loans

What are they? Term loans are lump-sum loans that you repay over a fixed period with interest.
Benefits: They offer predictable repayment schedules and can be used for various business needs, such as purchasing equipment or expanding operations.

Business line of credit

What is it? A business line of credit provides flexible access to funds up to a certain limit. You only pay interest on the amount you draw.
Benefits: It’s useful for managing cash flow and covering unexpected expenses.

Invoice financing

What is it? Invoice financing allows you to borrow against your outstanding invoices, providing immediate cash flow.
Benefits: It helps businesses manage cash flow without waiting for customers to pay their invoices. This is particularly beneficial for businesses with long payment cycles, as it converts unpaid invoices into working capital quickly.

Equipment financing

What is it? Equipment financing is a loan specifically for purchasing business equipment.
Benefits: The equipment itself serves as collateral, which can make it easier to qualify for the loan. This type of financing is ideal for businesses that require significant machinery or technology to operate, as it spreads the cost of essential equipment over its useful life.

Merchant cash advance

What is it? A merchant cash advance provides a lump sum of cash in exchange for a percentage of future sales.
Benefits: It offers quick access to funds and flexible repayment tied to sales volume. So if you get a good income from credit card transactions, this can be particularly advantageous. Plus, for businesses with fluctuating revenues, repayments are aligned with income which is an added benefit.

Revenue based financing

What is it? Revenue-based financing provides capital in exchange for a percentage of your future revenue.
Benefits: Repayment is flexible and based on your business’s performance, making it easier to manage during slow periods. This method is especially suitable for high-growth startups with variable income streams, allowing them to secure funding without sacrificing equity.

SBA loans

What are they? SBA loans are government-backed loans provided by participating lenders.
Benefits: They offer favorable terms and lower interest rates, making them a popular choice for small businesses. SBA loans can be used for various purposes, including working capital, equipment purchase, and real estate, providing a versatile financing option with government support.

How Swoop can help

The amount of funding options available for startups can be daunting. Still, Swoop simplifies this process by helping you identify funding opportunities that align with your startup. This includes; grants, loans, and other financing opportunities. Our search tool, personalized support, and user-friendly platform streamline the application process, allowing you to focus on what’s important – growing your business.

By leveraging Swoop’s resources and expertise, you can confidently explore non-repayable grants, flexible loan options, and innovative financing solutions to bring your business vision to life. Book a call with a Swoop representative today to secure the capital you need to grow and thrive, and let us help you achieve your business goals.

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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