Growing an established business can require significant money for equipment, employees, technology, marketing, new locations, research, or entering new markets. For some businesses, grants may help cover specific expansion-related activities.
However, there is no general federal grant that automatically provides free money to any business that wants to expand. The U.S. Small Business Administration says it does not provide grants for starting or expanding businesses, although targeted grant programs exist for areas such as research and development, manufacturing, entrepreneurship support, and exporting.
Businesses may also find opportunities through state economic-development agencies, local governments, nonprofit organizations, corporations, and industry-specific programs.
Who May Qualify
Business expansion funding may be available to businesses that:
- Have been operating for an established period
- Are legally registered and in good standing
- Meet applicable size requirements
- Are expanding into new markets
- Are developing new products or technology
- Are involved in research and development
- Are manufacturers
- Are preparing to export
- Operate in a targeted geographic area
- Belong to a specific industry or eligible business group
Each grant or funding program has its own eligibility requirements.
Check What You May Qualify For
Finding business funding can involve checking multiple programs because expansion grants are often targeted to particular industries, locations, activities, or business types.
- ✓ Free eligibility check
- ✓ Free guidance if needed
Available opportunities vary based on your business, location, industry, expansion plans, and other factors.
Types of Business Expansion Funding
Research and Development Grants
Businesses developing innovative products, technologies, or solutions may qualify for research funding through programs such as Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). These programs support eligible small businesses conducting research and development with potential for commercialization.
Manufacturing Assistance
Some government programs support small manufacturers with training, technical assistance, workforce development, and other activities designed to improve their operations. Eligibility and funding availability depend on the specific program.
Export and International Expansion
Established businesses looking to enter international markets may find assistance through the State Trade Expansion Program (STEP). STEP provides awards to states and territories, which can then help eligible small businesses with certain export-related activities. Assistance may include trade missions, trade shows, market research, translation, and international marketing activities.
State and Local Business Grants
State and local economic-development agencies may offer grants or other incentives for businesses that create jobs, invest in communities, purchase equipment, or expand operations. Programs can be highly location-specific, so businesses should check their state, county, and city economic-development resources.
Industry-Specific Grants
Some grant opportunities are limited to particular industries, technologies, research areas, or business activities. A business that does not qualify for a general business grant may still find an opportunity designed for its specific industry or expansion project.
Private Business Grants
Corporations, foundations, nonprofit organizations, and business organizations sometimes operate grant competitions for small businesses. These programs can have very specific requirements, deadlines, and permitted uses of funds.
What Can Business Expansion Funding Pay For
Depending on the program, funding may support activities such as research and development, product development, export-related expenses, international marketing, trade shows, market research, website globalization, specialized equipment, workforce development, technical assistance, business training, job creation, and expansion into new markets. A grant can only be used for expenses allowed under its specific terms.
How Business Expansion Grants Typically Work
- Define your expansion project. Identify exactly what you want to accomplish.
- Determine your funding needs. Calculate equipment, staffing, marketing, technology, or other costs.
- Check eligibility. Look at business size, location, industry, revenue, and project requirements.
- Find matching opportunities. Search federal, state, local, nonprofit, and private programs.
- Prepare your application. You may need a business plan, financial statements, project description, budget, and supporting documents.
- Follow the funding rules. If awarded, use the money only for eligible expenses and follow reporting requirements.