Free money! Small business grants you can qualify for in 2026

In this Article:

• How to apply for a small business grant
• How to find grants for your small business
• Grant opportunities for minority-owned businesses
• Grants for AAPI-owned businesses 
• Grants for LGBTQ+-owned businesses 
• Grants for businesses owned by people of color 
• Grants for women-owned businesses 
• Grants by state
• More resources beyond grants
• Frequently asked questions

Starting a business isn’t easy – and it isn’t cheap. But help is available in the form of grants. Grants are offered by various organizations to help businesses get started or grow. And the best part is, they don’t need to be paid back. The trick is to know where to find them and how to apply. Here’s what you need to know. 

How to apply for a small business grant

Applying for a grant can be time-consuming, but if you’re awarded one, the time spent may be well worth it. Set yourself up for success by following these steps. 

1. Apply early. Many grant programs are annual, so try to find out ahead of time when applications open. Apply as soon as you can so you’ll have time to deal with any hiccups you may encounter in the process.
    
2. Make sure you’re eligible. Check the requirements carefully to be sure that you qualify.
    
3. Gather your information. Each grant will have its own requirements, but if you have these items available, you’ll be well on your way:
   • Your business plan
   • Financial statements (balance sheet, profit and loss, income statement, etc.)
   • Payroll records. If you’re a sole proprietor, have a record of how much you’ve paid yourself
   • An idea of what you would use the grant money for.
      
4. Don’t be shy. This is the time to brag about your business and the potential it has.
    
5. Double-check your application before you submit it. Make sure you’ve submitted everything they’ve asked for and presented your business in the best possible light. 

More resources: 

How to apply for a grant
1 Killer business plan in 8 steps 

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How to find grants for your small business

Grants are offered by public and private non-profit and for-profit entities. Some grants are directed at specific types of businesses; others are more general and can be awarded to almost anyone. Here are some general grants that are open to most businesses. 

National Association for the Self-Employed (NASE)
This nonprofit trade association offers access to grants for entrepreneurs and owners of small businesses. Members of the organization can apply for up to $4,000. To apply, you’ll need to present documentation explaining how you plan to use the funds and how it will impact your business’s growth. Since the start of this program, the NASE has awarded almost $1,000,000 to members. 

Grants.gov
The grants.gov site offers guidance on over 1,000 programs from 26 grant-making agencies in the federal government. To apply, you will need to get a nine-digit number that’s unique to your business from Dun & Bradstreet, known as a DUNS number. This will register you as an entity that can conduct business through the US government’s  System Award Management program. The grants provide billions of dollars and are available to all types of businesses. 

Small Business Technology Transfer Program
The Small Business Technology Transfer Program provides grants for research and development needs for businesses with fewer than 500 employees. You can receive up to $250,000 during the startup phase, and receive an additional $750,000 for development if your research yields positive results.

USDA Rural Business Development Grant (RBDG)
The RBDG provides grants of up to $500,000 to businesses that serve an eligible rural area. The funds are intended for the benefit of regions that lie outside the “urbanized periphery” of a population center of 50,000 or more. These grants provide funds that can be used for land purchase, construction, renovation, feasibility studies, training, distance learning, and capitalization of revolving loans. Applications are accepted once a year.

Hello Alice
While they don’t issue grants, Hello Alice is a website that provides links to open grant opportunities as well as other types of small business funding. They will walk you through the application process. Subscribe to their newsletter to get up-to-date information on grant opportunities for your business. 

FedEx Small Business Grant Contest
Since 2012, FedEx has awarded over $1.5 million in cash grants and prizes in the FedEx Small Business Grant Contest. Any business with a FedEx shipping account can enter. The winners receive a $50,000 grant, a FedEx Office® print services credit, and more.  

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Grant opportunities for minority-owned businesses

Some grants are specific to businesses that are owned (or at least 51% owned) by those who are typically underserved by traditional financing options. These can include women, Blacks, Hispanics, Asian Americans and Pacific Islanders, the LGBTQ+ community, veterans, those with disabilities, etc. 

The Minority Business Development Agency provides programs, services, and initiatives to minority business enterprises (MBEs) to help them grow today and meet industry needs tomorrow. A national network of business centers and specialty centers provides general and specialized business assistance. In 2021, MBDA provided MBEs with access to over $708 million in capital, helped minority businesses secure over $2 billion in contracts, and helped facilitate over $330 million in export transactions in 2021. 

More grant resources for minority-owned businesses:

No-nonsense paths to grants for Hispanic small business owners
Grants for Black entrepreneurs
Small business grants and resources for veterans 

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Grants for AAPI-owned businesses

The AAPI Small Business Membership Grant (APACC) offers a one-year individual or business membership to the Asian Pacific American Chamber of Commerce, which grants access to business resources, programming, and networking opportunities.

However, that isn’t all: There are plenty of other grant opportunities for AAPI-owned businesses to discover. 

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Grants for LGBTQ+-owned businesses

StartOut is the largest non-profit organization for LGBTQ+ entrepreneurs. StartOut supports business founders from idea development through established companies, in any industry, provided the business is able to scale. At least one founder of the business must identify as LGBTQ+. Since it was founded in 2017, StartOut Growth Lab has accelerated 56 companies that have secured over $500 million in funding and created over 3,400 new jobs. 

Additional grants for LGBTQ+ small businesses include the Illuminations Grant, which awards $10,000 to Black transgender women in the visual arts field, the Equity Fund Program, Queer to Stay, and the Feed the Soul Foundation Cohort.  

If you’re looking for more grant opportunities, there are many other resources for LGBTQ+-owned businesses you can leverage.  

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Grants for businesses owned by people of color

BOSS Impact Fund is a program that focuses on investing in Black women entrepreneurs. Grant recipients will also receive marketing and support to promote their business, a mentorship program with business industry experts, and business resources for BOSS Impact Fund partners.

The Wish Local Empowerment Program helps Black-owned businesses with financial support in the form of grants between $500 and $2000. Applicants must have a Black-owned business, have 20 or fewer employees, and earn an average annual revenue under $1 million.

Women of color can apply for a HerRise MicroGrant, which awards $1000 monthly to U.S. businesses at least 51% owned by a woman of color. 

More grant resources for businesses owned by people of color:

Grants for Black women entrepreneurs
Grants for Black entrepreneurs  

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Grants for women-owned businesses

She’s Next is a business grant program for Black women-owned businesses offered through Visa. Eligible businesses must be owned by Black women, have been in business for two years or more, have at least $24,000 in revenue, and be a B2C company. 

Amber Grants are awarded monthly, and total at least $30,000 per month. This program features a super simple application – just describe your business and you’ll be considered for all suitable grants. 

The Cartier Women’s Initiative Award recognizes 21 female entrepreneurs.  Each winners receives one-on-one expert coaching, business workshops, media coverage, and prizes ranging from $30,000 to $100,000.

The IFundWomen program partners with lots of organizations to bring grant opportunities to small businesses that are owned by women. Opportunities are listed on their website, or you can apply directly to IFundWomen, which has a grant pool of over $8M. 

More grant resources for women-owned businesses:

Small business grants for women entrepreneurs
How Amber Grants fuel women’s business ventures
Grants for Black women entrepreneurs 

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Grants by state

If you’re looking for opportunities closer to home, here are state-specific roundups to start your search:  

• Texas small business grants
• Florida small business grants
• Illinois small business grants
• New Jersey small business grants  

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More resources

If you can’t apply for or don’t receive a grant, or if the grant you were awarded is less than you need, here are some other financing options you can consider. 

The US Small Business Administration guarantees loans, matches investors with businesses that need them, provides disaster assistance, and more. The SBA has several programs for businesses which are located in underrepresented communities or are owned by minority owners. The SBA can also help businesses with finding and winning contracts for government work. 

America’s SBDC (Small Business Development Centers) offers no-cost business consulting and low-cost training to current business owners and those who are considering starting a business, including advice on access to capital. There are nearly 1,000 local SBDC chapters.

The Minority Business Development Agency provides programs, services, and initiatives to minority business enterprises (MBEs) to help them grow today and meet industry needs tomorrow. A national network of business centers and specialty centers provides general and specialized business assistance. In 2021, MBDA provided MBEs with access to over $708 million in capital, helped minority businesses secure over $2 billion in contracts and helped facilitate over $330 million in export transactions in 2021. 

Having business insurance is a good way to show potential donors and lenders that you understand the risks involved in running a business, and you’re taking steps to protect yourself against them. Find out what kind of insurance you need and get a quote today. 

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Frequently asked questions

Can I apply for multiple grants at the same time?  

Yes, you can and should apply for multiple grants simultaneously to maximize your chances of receiving funding. Most grants don't have restrictions preventing you from applying to other programs. However, some grants may ask if you're receiving funding from other sources, so be transparent about other applications and awards. Keep detailed records of all applications, deadlines, and requirements since each grant program has different criteria. Applying to multiple grants requires significant time investment, so prioritize opportunities that best match your business needs and eligibility criteria. If you receive multiple grants, ensure you can meet all reporting and compliance requirements for each program.

Do I have to pay taxes on grant money I receive?  

Generally, yes. Most business grants are considered taxable income by the IRS, unlike personal grants for education or disaster relief. You'll need to report grant money as income on your tax return, though you can deduct business expenses paid with grant funds. Some grants, particularly those for specific capital improvements or equipment purchases, may have different tax implications. The tax treatment can vary based on the grant's purpose and the granting organization's status. Consult with a tax professional or accountant to understand your specific tax obligations and ensure proper reporting. Keep detailed records of how you spend grant money to support any business expense deductions you claim.

Are grants better than loans for small business funding?  

Grants and loans serve different purposes in business financing. Grants don't require repayment, making them ideal for businesses that can't take on debt or for projects that might not generate immediate revenue. However, grants are highly competitive, time-consuming to apply for, and often come with strict usage requirements and reporting obligations. Loans provide more funding options with faster approval timelines and fewer restrictions on fund usage, but require repayment with interest and may require collateral. Many successful small businesses use a combination of grants, loans, and other funding sources. Consider your business's financial situation, creditworthiness, and timeline when deciding between grants and loans. Grants work well for specific projects or initial funding, while loans provide more flexibility for ongoing operations and growth.

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Learn more about funding and protecting your small business

Why your LLC needs small business insurance – Discover why forming an LLC isn't enough to protect your business assets and learn how the right insurance coverage safeguards both your company and personal finances.

Home-based business insurance guide – Explore insurance coverage designed for businesses operating from home, including protection for business property, liability claims, and professional services.

General liability insurance: Why you need it – Understand the foundational protection general liability provides for small businesses, including real-world claim examples and comprehensive coverage details. 

This publication is intended for informational purposes only. Please refer to a trusted financial expert for advice related to grants and business finances.