Grants to Start a Business: How to Find Startup Funding

Starting a business can require money for equipment, inventory, licenses, marketing, technology, supplies, and other early expenses. Many new entrepreneurs search for grants because they want to avoid taking on debt.

Business grants do exist, but they are usually designed for specific purposes, industries, locations, organizations, or types of businesses. There is no general federal grant from the U.S. Small Business Administration simply for starting or expanding a small business. That does not mean there are no opportunities. Depending on your business and circumstances, you may find targeted grants, local programs, nonprofit assistance, technical support, or other startup funding options.

Who May Qualify

Eligibility for business startup assistance depends on the program. Potential opportunities may be available for:

New entrepreneurs
Small business owners
Women-owned businesses
Veteran-owned businesses
Rural businesses
Minority or underserved entrepreneurs
Technology and research companies
Businesses serving specific communities

Some federal programs support entrepreneurship indirectly by funding organizations that provide counseling, training, and technical assistance to entrepreneurs.

Check What You May Qualify For

Looking for funding to start your business? OpenGrants Network helps you discover legitimate assistance programs that may match your situation.

✓ Free eligibility check
✓ Free guidance if needed

Check What You May Qualify For →

Programs vary based on your location, business type, industry, income, and experience.

Types of Startup Assistance to Explore

Depending on eligibility, entrepreneurs may find help through:

Targeted business grants, such as SBIR and STTR research funding
State and local economic-development programs
Business development programs through SBDCs, Women's Business Centers, and SCORE
Veteran Business Outreach Centers for military-connected entrepreneurs
Research and innovation funding for new technologies
SBA microloans of up to $50,000 for eligible small businesses

How to Look for Business Startup Grants

Define your business, including what you plan to sell, who you will serve, and where you will operate.
Calculate your startup costs, including equipment, inventory, licenses, marketing, and working capital.
Identify your eligibility based on industry, location, ownership, experience, and business stage.
Search targeted state, local, nonprofit, industry-specific, and federal programs.
Read the requirements carefully, prepare your business plan and budget, and check deadlines before applying.

If a grant does not fit your business, consider other legitimate funding options such as counseling, competitions, microloans, or investment.

Frequently Asked Questions

Can I get a grant to start a business?

Possibly. Some grants support specific industries, research activities, communities, or types of entrepreneurs. However, there is no general SBA grant simply for starting a small business.

Does the government give free money to start a business?

Some government programs provide grants or other assistance, but they generally have specific eligibility requirements and permitted uses. Be cautious of websites promising guaranteed government money.

Does SBA offer startup grants?

SBA states that it does not provide grants for starting and expanding a business. Its grant programs are limited and generally support areas such as research, exporting, manufacturing, or organizations that promote entrepreneurship.

What can I use a business grant for?

It depends on the specific grant. Some may support research, equipment, training, exporting, or other defined activities. Never assume a grant can be used for any business expense.

Can I get a business grant if I have not started my business yet?

Some programs may accept entrepreneurs at an early stage, while others require an established business. Always check the individual program's eligibility rules.

Are there grants for women starting businesses?

Some organizations and programs provide opportunities specifically for women entrepreneurs. Availability and eligibility vary by location and program.

Are there grants for veterans starting a business?

Veterans may find specialized business-development programs, training, counseling, and funding opportunities. Eligibility varies by program.

What if I cannot find a startup grant?

You can explore other funding options, including microloans, business counseling, competitions, investors, and state or local programs.

How do I know if a business grant is legitimate?

Check who operates the program, its eligibility requirements, official website, application instructions, and funding purpose. Be especially careful with anyone claiming that approval is guaranteed or demanding suspicious fees.

Helpful Tips

Do this

Search for grants based on your specific business type instead of only searching for "free business money."
Check state and local economic-development programs.
Look for opportunities designed for specific industries or communities.
Have a basic business plan ready.
Create a realistic startup budget.
Read every eligibility requirement before applying.

Common Mistakes to Avoid

Avoid this

Assuming every business qualifies for a government grant
Applying without checking whether startups are eligible
Using a grant for expenses that are not allowed
Ignoring local and state opportunities
Failing to prepare a business plan or budget

Additional Resources

You may also find support through:

U.S. Small Business Administration

SBIR and STTR programs

Small Business Development Centers

Women's Business Centers

SCORE mentoring

Veterans Business Outreach Centers