Updates on Federal Small Business Grant Programs

Federal small business grants are a coveted source of non-dilutive funding (free money that you don’t have to repay or give up equity for) to help entrepreneurs grow their ventures.

This comprehensive guide provides up-to-date information on major federal grant programs across sectors – from technology and agriculture to initiatives for women, minority, and veteran entrepreneurs – as of 2024–2025. We also explain how to find and apply for these grants, with links to official portals and practical tips.

Despite some common myths, the U.S. government generally does not hand out grants to simply start or expand a typical small business. Federal grants are usually targeted to specific purposes – such as scientific R&D, agriculture, exporting, or supporting underserved communities – rather than general startup capital.

That said, there are billions of dollars in grant funding available each year through competitive programs. By understanding the landscape of federal grants and staying current on new initiatives, entrepreneurs can tap into these opportunities.

In the post-pandemic period, the federal government has expanded support for small businesses. Over 19 million new business applications were filed in the U.S. from 2021 to 2023, a record-breaking surge.

In response, recent programs (2024–2025) have increased funding for innovation, infrastructure, and inclusive entrepreneurship. Below, we break down the key federal small business grant programs by category, highlight what’s new or ongoing in 2024–2025, and offer guidance on how to navigate the application process.

Overview of Federal Small Business Grants

Federal grants vs. other funding: A grant is money that does not need to be repaid, unlike loans. It’s essentially free funding – but usually tied to specific projects or objectives.

Grants differ from federal contracts (where the government buys goods/services) and from loan programs (which must be repaid). Importantly, federal grants to for-profit businesses are limited and highly competitive.

Most federal grants go to nonprofits or state programs that indirectly assist businesses, not directly to business owners.
Targeted purposes: Federal small business grants typically aim to advance public goals – e.g., scientific research, technology innovation, job creation in rural areas, or empowerment of certain demographics.

For example, the Small Business Innovation Research program funds R&D that meets government R&D objectives, and USDA grants support farmers in adding value to agricultural products. Understanding the intent of each program is key to determining if your business aligns with it.
Competitive nature: Competition for grants is fierce. Applicants must meet strict eligibility criteria and often propose detailed project plans or research objectives. Success rates can be low, so it’s wise not to rely solely on grants.

However, if you qualify, a grant can be a game-changer – providing capital without debt or equity loss (no repayment or government ownership in your company). Many grant programs also confer prestige and can open doors to follow-on funding or contracts.
“No free grant to start a business” reality: The SBA (Small Business Administration) explicitly notes that it does not provide grants for launching or expanding ordinary small businesses.

Instead, SBA grants go to nonprofits and organizations that support entrepreneurship (for example, funding Small Business Development Centers or Women’s Business Centers).

Likewise, no federal program gives out grants just for being a woman-owned or minority-owned business in general. Be wary of scams or websites claiming “free money” for any business. Legitimate federal grants always have a purpose and application process on official .gov sites.
Key grant programs snapshot: The table below summarizes major federal small business grant programs in 2024–2025, their focus areas, and who they serve. We’ll detail each in the sections that follow.

Grant Program	Purpose / Focus	Who Can Apply	Typical Award
Small Business Innovation Research (SBIR) & Small Business Tech Transfer (STTR)	R&D for innovative technology with commercial potential. Agencies fund projects meeting federal R&D needs (health, defense, energy, etc.).	U.S. for-profit small businesses (<500 employees) proposing high-impact research. STTR requires a partner research institution.	Phase I ~$50k–$275k; Phase II ~$750k–$1.8M (varies by agency). No repayment, no equity taken.
USDA Value-Added Producer Grants (VAPG)	Develop value-added agriculture products and markets. Helps farmers increase income by processing or marketing their crops/livestock in new ways.	Independent producers (farmers, ranchers, fishers) and farmer co-ops. Priority for beginning, socially disadvantaged, and small/mid-size family farms.	Up to $75,000 for planning or $250,000 for working capital. Requires 1:1 match in funds.
USDA Rural Energy for America Program (REAP)	Clean energy and energy efficiency projects in rural areas. Supports renewable energy systems (solar, wind, etc.) and efficiency upgrades for small businesses and ag producers.	Rural small businesses and agricultural producers. Must meet rural location and size criteria.	Grants up to $500,000 (energy efficiency) or $1,000,000 (renewables) per project, covering up to 50% of project cost.
State Trade Expansion Program (STEP)	Boost exports by small businesses. Federal grants given to state agencies, which then fund eligible small businesses’ export activities (trade shows, marketing, etc.).	Small businesses meeting state program criteria (often new-to-export or market expansion stage). Apply through your state’s STEP office.	Varies by state; often micro-grants (e.g. a few thousand dollars) for trade mission travel, e-commerce translation, etc. $20M federal funds awarded to states in 2024.
Minority Business Development Agency (MBDA) Programs	Incubators and technical assistance for minority entrepreneurs. (MBDA funds centers, accelerators, and initiatives that help minority-owned businesses access capital and contracts).	Not direct to businesses; MBDA grants go to organizations (nonprofits, universities, etc.) that support minority business enterprises (MBEs). MBEs benefit via free services, training, and networking.	N/A (Businesses receive services, not cash). Note: MBDA’s new Capital Readiness Program ($125M) launched 2023 funds 43 incubators to help underserved entrepreneurs become capital-ready.
Veteran Readiness & Employment (Self-Employment Track)	Supports eligible disabled veterans in starting a business. Provides training, counseling, and can fund equipment or resources needed to launch a viable venture.	Veterans with service-connected disabilities who have significant employment barriers and a feasible business plan. Must apply through the VA’s VR&E program.	Customized support (business plan help, training, some funding for business needs). Not a lump-sum grant; it’s part of a rehabilitation benefit.

Table: Examples of federal small business grant programs and who they serve (2024–2025).

As the table suggests, each program has a specific goal and target audience. Next, we delve into these categories in detail, including any 2024–2025 updates and ongoing opportunities you should know about.

SBIR/STTR: Technology and Innovation Grants (America’s Seed Fund)

One of the most significant sources of federal grants for businesses is the Small Business Innovation Research (SBIR) program, alongside its sister Small Business Technology Transfer (STTR) program.

Collectively known as “America’s Seed Fund,” SBIR/STTR provides over $4 billion annually in R&D grants to small companies, funding roughly 4,000 firms each year. These grants are meant to stimulate technological innovation and help small businesses commercialize new ideas to meet federal needs.

Key features of SBIR/STTR:

Multiple agencies: Eleven federal agencies participate, each running its own SBIR/STTR competitions in topics relevant to their mission.

For example, NASA funds aerospace innovations, NIH (Health & Human Services) funds biomedical research, DoD (Defense) seeks dual-use military technologies, NSF funds various cutting-edge startups, Department of Energy, Agriculture (USDA), EPA, Education, and others all have SBIR calls.

This means almost any tech sector – health, software, engineering, clean energy, education, biotech, agriculture tech – could have relevant solicitations.
Phased grants: Funding is offered in stages. Phase I is a smaller grant (often ~$50K–$250K) to test feasibility of the concept. Phase II is a larger grant (commonly $750K up to ~$1.5M) to develop and prototype the technology.

Some agencies also offer Phase IIB or Phase III follow-on opportunities for further development or commercialization (Phase III often involves securing private investment or federal contracts; it’s not a grant).

Notably, the government takes no equity or IP ownership – it’s nondilutive funding – but you must use it for the proposed R&D project and report on progress.
Eligibility: Only independent small businesses (under 500 employees) can apply, and the work must be done predominantly in the U.S.. SBIR requires the project to be led by the small business (you can partner with universities or labs as subcontractors).

STTR in particular requires a formal collaboration with a nonprofit research institution (e.g. a university or federal lab), with at least 30% of the work subcontracted to that partner. Entrepreneurs retain rights to their intellectual property and are free to pursue commercialization after the grant.
Competitive process: SBIR/STTR is highly competitive. Each agency releases solicitations (topics) throughout the year. Businesses must write a proposal addressing a specific topic, detailing their technical approach, team qualifications, and commercialization plan.

Expert panels review proposals and decide awards. Success rates vary by agency and year, but are often in the 10%–20% range for Phase I. Agencies like NIH or DoD may have multiple solicitations per year, while others like NSF have open topics where you can pitch any innovative idea.
Impact and updates: SBIR/STTR has been a cornerstone of U.S. innovation policy since the 1980s, having funded over $70 billion in R&D by small businesses to date. Many well-known companies (e.g., Symantec, 3D printing firms, biotech startups) got early SBIR support.

As of 2024–2025, the SBIR/STTR programs are authorized through September 30, 2025, and there is bipartisan effort in Congress to extend them further.

In fact, legislation is being considered to make SBIR permanent and even increase the funding set-asides (from ~3.2% of agency R&D budgets up to 7% over several years).

This indicates continued and growing support for small business innovators. Entrepreneurs should keep an eye on reauthorization news, but in the meantime, the program is running uninterrupted – a Continuing Resolution has kept funding steady so agencies are still issuing SBIR/STTR calls.
Focus on inclusivity: Recent updates emphasize reaching underrepresented entrepreneurs (women, minorities, rural). For instance, proposed reforms include more commercialization assistance and a new Phase “IA” $40K grant for first-time applicants to try SBIR.

While not yet enacted, these ideas show a trend toward lowering barriers. Currently, programs like the SBA’s FAST grants fund organizations in each state to mentor first-time SBIR applicants, and some agencies offer extra consideration or supplements for socially disadvantaged or women-owned firms.

About 46% of SBIR Phase I awardees are first-time winners, demonstrating approachability for newcomers.

How to find SBIR opportunities

All SBIR/STTR solicitations are listed on (which links to each agency’s details). You can search by agency or keyword. The site also has a learning section, tutorials, and a calendar of open topics. For example, in 2024:

The National Science Foundation (NSF) accepts SBIR/STTR proposals in broad technology areas year-round (with submission windows each quarter).
NIH issues an Omnibus SBIR grant solicitation for health-related technologies, with three standard deadlines a year (e.g., January, April, September).
Defense (DoD) posts SBIR topics targeted to specific problems (e.g., cybersecurity, AI for defense systems) with pre-defined open/close dates (usually 3 cycles per year).
NASA SBIR opens annually (typically around January) with topics for aerospace, robotics, etc.
Other agencies like the Department of Energy, USDA, NOAA, Education, Homeland Security, EPA have varying schedules – usually one or two solicitations per year.

Application tips: Crafting an SBIR proposal is a project in itself. You will need to register your company in several systems (SAM.gov, Grants.gov or agency systems) – start early! A strong proposal clearly states:

The innovation: how your idea is new and addresses the topic.
The technical approach: what R&D you will do in Phase I (usually a 6–12 month project).
The team expertise: why your small business (and partners) can execute this R&D (include resumes of key personnel).
The commercial potential: how this could become a product or service that benefits the economy or government missions. Commercialization plans are critical; agencies want projects that lead to real-world impact, not just reports.
Budget justification: outline how you’ll spend the grant (allowable costs include salaries for researchers, lab equipment, testing, patent filing, etc., but no profit or sales expenses in Phase I).

Each agency has a proposal template or guidelines. For example, NIH uses a format similar to academic grants (with specific forms), while NSF has a more business-oriented pitch plus technical narrative. Follow all instructions meticulously – proposals that miss required sections or exceed page limits can be disqualified.

Outcome: If you win a Phase I SBIR, congratulations – you not only get funding, but also a cachet that can attract investors or partners. Complete your Phase I work and if results are promising, you can apply for Phase II (agencies usually invite Phase I winners to compete for Phase II).

Phase II provides more money (up to $1M+ over 2 years) to develop a prototype or MVP. After Phase II, your goal is to commercialize – either by selling the product in the market, or perhaps securing a Phase III contract from a federal agency (e.g., the DoD might directly pay you to deploy the technology in the military, outside of the grant program).

For tech startups, SBIR/STTR is a golden opportunity: you retain full ownership, get R&D money, and validate your concept. However, it requires aligning your project with government interests and being patient with the process (it can take 6+ months from proposal to award).

Keep in mind that SBIR grants are intended for R&D, not for general business operations, so use the funds accordingly and keep good records. You’ll be required to report technical progress and how funds were spent, ensuring accountability similar to any government award.

2024–2025 SBIR outlook: The SBIR program continues to thrive. Agencies are actively seeking solutions in priority areas like climate and clean energy, supply chain resilience, health security, AI and quantum technology, advanced materials, agriculture innovation, and more, aligned with national R&D priorities.

The U.S. Small Business Administration (SBA) oversees SBIR policy and regularly hosts webinars and outreach to encourage diverse entrepreneurs to apply. As reauthorization is deliberated, proposals such as making SBIR permanent and boosting the budget indicate strong government commitment to small business innovation.

In short, SBIR/STTR remains a cornerstone grant program for tech-focused small firms in 2024–2025, with potential for even more funding in coming years.

For official info: Visit 【169†】 for program details, open solicitations, and tutorials on applying. Each agency’s website (e.g., the NIH SBIR page or NASA SBIR portal) provides specific topics and application instructions.

You can also contact your local Small Business Development Center (SBDC) or Procurement Technical Assistance Center (PTAC) for guidance on preparing SBIR proposals – many have SBIR specialists.

USDA Grants: Agriculture and Rural Business Opportunities

If you operate in the agricultural sector or a rural area, the U.S. Department of Agriculture (USDA) has several grant programs that might benefit your small business. While farming often involves loans and subsidy programs, there are a few key USDA grants aimed at boosting small and medium-sized farms and rural enterprises. In 2024–2025, some of these programs have expanded thanks to recent legislation.

1. Value-Added Producer Grants (VAPG): This USDA Rural Development program helps farmers, ranchers, and food producers develop value-added products – meaning processing or marketing their raw commodities to increase their value.

Examples: a dairy farmer making cheese, a fruit grower creating jam, a rancher marketing pre-cut meat packages, etc. The goal is to generate new products, expand market opportunities and increase farm income.

What it covers: Two types of grants – Planning grants (for feasibility studies, business plans, marketing plans) and Working capital grants (to pay for processing, marketing, or distribution of a value-added product).

Planning grants up to $75,000; Working Capital up to $250,000. Note: you must provide an equal amount of matching funds (100% match) for every federal dollar. This shows your commitment; the match can be cash or in-kind.
Eligibility: Independent producers (farmers, ranchers, fishermen), farmer co-ops, or producer-owned businesses. USDA gives priority to beginning farmers, socially-disadvantaged (e.g., minority) farmers, small/mid-sized family farms, and veteran farmers – these groups can score extra points in application.

The project itself must create a value-added product. USDA defines several value-add categories: change in physical state (e.g. fruit to juice), branded identity, organic certification, aggregation of products, etc., that enhance the value.
How to apply: USDA typically holds an annual nationwide competition. The FY2024-2025 application window is open until mid-April 2025 for electronic submissions. (Deadlines can shift each year; always check the current Notice of Funding).

You can apply through Grants.gov or via a USDA online portal. A program Fact Sheet and application toolkit are available on the USDA Rural Development website. It’s wise to contact your state’s USDA Rural Development office for guidance – they can answer questions and may host workshops.
Recent update: Approximately $30 million is available for VAPG in the latest round, similar to past funding levels. What’s new is the emphasis on certain priorities (e.g., climate-smart agriculture, nutrition security) that USDA is promoting – aligning your project with broader USDA priorities can help.

Make sure to explain how your project will increase income for producers and possibly create rural jobs or meet consumer demand. Success tip: Many proposals include a feasibility study (which you can fund via a planning grant or have already done) showing the market potential for the product, which strengthens your case.

2. Rural Energy for America Program (REAP): With energy costs and sustainability on everyone’s mind, REAP is a valuable grant for rural small businesses and farms to invest in renewable energy systems or improve energy efficiency.

For example, a rural business might get a grant to install solar panels on their facility, or a farmer might upgrade to energy-efficient grain dryers.

What’s offered: Grants (and guaranteed loans) to cover a portion of the cost of renewable energy installations (solar, wind, biomass, geothermal, etc.) or energy efficiency improvements (insulation, HVAC upgrades, efficient lighting, irrigation pumps, etc.).

Historically, REAP grants covered up to 25% of project costs, but recent changes increased this to 40-50% for many projects after the 2022 Inflation Reduction Act. In fact, the Inflation Reduction Act (IRA) injected an extra $2 billion into REAP through 2031.

As a result, maximum grant amounts doubled – now up to $500,000 for efficiency and $1,000,000 for renewable energy projects – and the federal cost-share can be 50% for projects in certain categories (zero-emission renewables, energy communities, or tribal/underserved areas).
Timeline: USDA now conducts quarterly application cycles (due to the large IRA funding). In 2024, there are multiple rounds – you can submit applications on a rolling basis for these quarterly competitions.

Check the Federal Register Notice for REAP each year for exact deadlines and any set-asides. Many states also have energy coordinators who can assist (USDA provides contacts for each state).
Eligibility: Rural small businesses (located in eligible rural areas, generally towns <50,000 population) and agricultural producers (farmers/ranchers) regardless of location. Small businesses must meet SBA small-size definitions.

Agricultural producers qualify if at least 50% of income comes from agriculture. You’ll need to document your size and rural location in the application.
Recent impact: In May 2025, USDA announced $145 million for 700 REAP grants and loans to projects across the country, part of the IRA expansion. Demand is high – USDA noted unprecedented interest with more applications than funds (even with the boost).

This means REAP is competitive, but the increased funding improves your odds. Projects are scored based on factors like energy savings or generation, environmental benefits, project cost-effectiveness, and whether the applicant is a new user of the program.

The average REAP grant in recent years was around $60k, but many farms are now getting larger grants to cover solar array installations, etc.
How to apply: Applications can be filed via Grants.gov or through your USDA Rural Development state office. A technical report (energy audit or renewable site assessment) is typically required to document the expected energy savings or generation.

This can sometimes be obtained from local energy auditors or extension services. Make sure your quotes, system specs, and calculations are in order.

And because matching funds are required (you or a lender must finance the rest), have a plan for the other 50-60% of the project cost. USDA’s Rural Development site has a REAP section with all the forms and a helpful FAQ guide.

3. Other USDA and Rural Business Grants:

Rural Business Development Grants (RBDG): This is a program that gives grants to public or nonprofit entities (like towns, economic development orgs, tribes) to support small businesses in rural areas.

Important: RBDG funds do not go directly to businesses; instead, they might fund a training program, technical assistance, or infrastructure that benefits local companies. For example, an RBDG might fund a rural incubator or a feasibility study for an industrial park.

So while you as a business owner can’t apply for RBDG yourself, you can benefit if your community or a nearby nonprofit secures one (perhaps gaining access to new services or facilities).
Agricultural Research and Market Development Grants: Aside from VAPG, the USDA’s Agricultural Marketing Service (AMS) runs grants like the Farmers Market Promotion Program, Local Food Promotion Program, and Regional Food System Partnerships – these fund projects that help local and regional food businesses, farmers markets, and distribution.

Typically, these go to organizations or farmer co-ops, not individual for-profit businesses, but partnerships are often involved. If you’re in the local food business, look into whether a nonprofit partner could apply with you as a participant.
Conservation and Climate Grants: The USDA Natural Resources Conservation Service (NRCS) has grant programs like the Conservation Innovation Grants (CIG) to demonstrate new farming conservation approaches (these often go to groups or universities, but a farm could be a pilot site).

With the focus on climate-smart agriculture, new grants have appeared (e.g., Partnerships for Climate-Smart Commodities in 2022 awarded large grants to support sustainable farming supply chains – mostly to big coalitions, but smaller producers might engage as sub-recipients). Keep an eye on USDA announcements if you are in sustainable ag or forestry.
Rural Innovation and Entrepreneurship: The USDA Rural Development also occasionally offers grants under programs like Rural Innovation Stronger Economy (RISE), which funds job accelerator partnerships in low-income rural areas, or Delta Regional Authority grants for small business development in certain states.

These are specialized and not annual like SBIR or VAPG, but worth knowing in case they align with your region.

Bottom line for USDA/rural grants: If you’re a farmer or rural business owner, grants can help you add value, modernize, or expand into new markets. 2024–2025 is an opportune time especially for energy-related projects (thanks to IRA funding) and for producers seeking to tap consumer demand for local or specialty foods.

Always start with the USDA Rural Development office in your state – they can tell you which programs are currently open and guide you through requirements. And remember, many USDA grants like VAPG and REAP require a lot of paperwork (forms about environmental impact, project scope, financials, etc.) and often matching funds.

They also usually expect you to complete the project then report on outcomes, like how much income increased or energy saved, to ensure grant goals were met.

For more information, visit USDA’s Programs & Services page or Grants.gov and search for keywords like “Value-Added Producer” or “Rural Energy.” The official notices on Grants.gov provide the rules and scoring criteria – read them closely to tailor your application.

Grants and Resources for Women Entrepreneurs

Women-owned businesses are a growing force, comprising roughly 42% of U.S. small businesses. The federal government has a stated commitment to supporting female entrepreneurs – however, it primarily does so through training, counseling, and access to capital programs, rather than direct grants just for being a woman-owned firm.

It’s important to set expectations: there is no federal grant program that simply hands out money to women-owned businesses for starting a business (nor for any specific demographic, for that matter).

That said, women entrepreneurs can and should leverage general grant programs and take advantage of federal initiatives designed to remove barriers.

Key points for women-owned businesses:

Federal Contracting Program (WOSB): One of the most impactful federal programs for women entrepreneurs is not a grant, but the Women-Owned Small Business (WOSB) Federal Contracting Program.

The federal government aims to award at least 5% of federal contract dollars to WOSBs each year. This program certifies women-owned businesses (especially in industries where women are underrepresented) to give them preferential access to certain government contracts.

Essentially, some contracts are “set aside” exclusively for WOSB firms. While not free money like a grant, winning a government contract means revenue for your business in exchange for goods or services.

Many women entrepreneurs find contracting to be a huge opportunity – in FY2022, the government exceeded the 5% goal, awarding $26 billion to WOSBs.

Action item: If you sell a product or service the government buys, consider getting certified as a WOSB or EDWOSB (Economically Disadvantaged WOSB) through SBA’s certification process.
SBA Women’s Business Centers (WBCs): The SBA’s Office of Women’s Business Ownership (OWBO) oversees a network of Women’s Business Centers nationwide. There are ~140 WBCs (as of 2024) providing free or low-cost training, counseling, and mentorship to women entrepreneurs.

While WBCs don’t give grants to clients, they can assist you in writing business plans, accessing loans, or finding relevant grant opportunities. Notably, in recent years the SBA has expanded WBCs to more locations (including minority-serving institutions and rural areas) to reach more women.

Engaging with a WBC can improve your chances of business success – SBA cites that businesses receiving WBC assistance have higher survival rates. You can find your nearest center via SBA’s website.
Grants for training programs: SBA itself sometimes offers grants to organizations that support women entrepreneurs. For example, SBA’s Innovator Challenge (formerly InnovateHER) in the past was a competition for innovations benefiting women (though it’s not consistently offered).

In 2023, the Capital Readiness Program (run by MBDA, but open to women-focused orgs) awarded funds to several women-centric incubators and accelerators as part of its 43 awardees.

If you run a women’s business support organization, these grants are relevant. For individual women business owners, the benefit is indirect – more local programs offering assistance or pitch competitions for you to join.
Private and nonprofit grants for women: Outside the federal sphere, there are some well-known grant programs exclusively for women entrepreneurs – for example, the Amber Grant (a private foundation giving $10K monthly grants), Cartier Women’s Initiative, IFundWomen grants, etc.

These are not federal, but are worth mentioning as part of the funding landscape. Competition is high for them as well.

Also, big companies occasionally run grant contests for women (e.g., Visa’s She’s Next grant program, Stacy’s Rise Project for female founders in the food business, etc.). Keep an eye on industry-specific opportunities.
Inclusion in mainstream grants: Women entrepreneurs should absolutely pursue SBIR/STTR grants, USDA grants, etc. if relevant to their business.

Agencies often encourage women to apply – for instance, NSF’s SBIR program highlights that many of their awardees are women-owned firms, and some agencies have assistance programs to mentor women in applying.

There’s no handicap for being a woman-owned firm; in fact, it can be an advantage in tie-breaker scenarios or through discretionary points in some programs aimed at diversity.

Use resources like SBA’s online learning platform, or organizations like Women in Tech networks, which sometimes hold SBIR training workshops specifically for women scientists and engineers.
Recent stats and progress: The good news is that female entrepreneurship is on the rise. According to the Census and SBA, women-owned employer firms grew to ~1.2 million, and about 40% of new businesses in 2023 were started by women (up from around 28% a decade ago).

The federal ecosystem is responding by ensuring women have equitable access to capital and contracts. For example, in FY2023 the SBA’s microloan program (which isn’t a grant, but small loans via nonprofits) made over 40% of its loans to women-owned businesses.

The National Women’s Business Council (NWBC), a federal advisory body, researches challenges women face (like childcare, access to venture funding) and advocates for solutions.

In late 2022, OWBO received additional funding to open new WBCs, including the first center in Puerto Rico and expanded rural outreach. These efforts, while not direct grants, create a more supportive environment for women entrepreneurs seeking funding.

Practical steps for women entrepreneurs (2024–2025):

Tap into counseling and mentorship: Connect with your local WBC, SCORE chapter (many SCORE mentors are women executives), or find a female mentor through SBA’s Mentor-Protégé program if you’re in federal contracting. They can help guide you to suitable funding.
Leverage the WOSB advantage: If you qualify as a woman-owned small business (51%+ owned and controlled by women, U.S. citizen, small by SBA standards), get certified for federal contracting.

Even if you never considered selling to the government, there are contracts for everything from catering to IT services – it’s essentially another revenue stream. The SBA periodically hosts matchmaking events to connect WOSBs with agency buyers.
Search Grants.gov smartly: Use keywords like “women”, “women-owned”, or look at the Catalog of Federal Domestic Assistance (Assistance Listings) for programs that mention women.

Sometimes grants to community orgs have “women entrepreneurship” components. Also, MBDA’s Enterprising Women of Color program (part of MBDA) offers some initiatives for minority women entrepreneurs through MBDA centers – check MBDA’s site for any current opportunities.
Stay informed: Follow the SBA’s Office of Women’s Business Ownership news, NWBC reports, and subscribe to SBA updates. For instance, during National Small Business Week or Women’s History Month, there are often announcements of new initiatives or contests aimed at women entrepreneurs.

In summary, while federal grants specifically for women-owned businesses are limited, the playing field is being leveled through training, easier financing access, and contract set-asides.

Women entrepreneurs should focus on building strong businesses and take advantage of all relevant grant programs (like SBIR if in STEM, USDA if in farming, etc.), rather than expecting a special pot of money just for them.

By utilizing the robust support network and demonstrating the strength of their proposals, women can successfully compete for federal grants and contracts alongside anyone else.

(For resources and assistance: see the SBA Women-Owned Businesses portal for links to WBCs and programs for women. Also explore Grants for Women listings by trusted sites like NerdWallet or the US Chamber, which often compile current opportunities.)

Grants and Support for Minority-Owned Businesses

Minority-owned small businesses play a crucial role in the U.S. economy, and the federal government has stepped up efforts to foster their growth.

Like with women-owned firms, there is no blank-check federal grant for being a minority entrepreneur – but there are targeted programs and funding aimed at leveling the playing field and boosting minority business success.

The period of 2024–2025 is particularly noteworthy because the Minority Business Development Agency (MBDA) – the lead federal agency for minority business support – received historic funding and became a permanent agency as of 2021, enabling new grant programs and services.

Key avenues for minority-owned businesses:

Minority Business Development Agency (MBDA): The MBDA, part of the Department of Commerce, is the only federal agency dedicated solely to minority business enterprises (MBEs).

Traditionally, MBDA runs a national network of MBDA Business Centers and specialty centers (focused on exports, manufacturing, etc.) that offer minority entrepreneurs free business consulting, matchmaking, and help accessing contracts and capital.

These centers are operated by local organizations but funded by MBDA grants. As a business owner, you don’t get money from MBDA directly; instead, you get expert assistance which can be just as valuable (helping you secure financing or contracts).
- In 2023, MBDA had 88 Business Centers nationwide. They assist all ethnic minority groups (including African American, Hispanic/Latino, Asian American, Pacific Islander, Native American, Alaska Native, Native Hawaiian, Indigenous, and also groups like Hasidic Jewish Americans as defined in MBDA’s scope).
  
  If you are a minority entrepreneur, connecting with an MBDA center can provide mentorship and networks tailored to your needs. Centers often host procurement fairs, investor pitch events, and can even help identify grant opportunities.
Capital Readiness Program (CRP): A major new initiative in 2023, the Capital Readiness Program is a $125 million grant program under MBDA that awarded funds to 43 organizations (incubators, accelerators, non-profits) to train and assist minority and other underserved entrepreneurs in accessing capital.

Announced by Vice President Harris in August 2023, it’s the largest investment in support of underserved entrepreneurs Commerce has ever made.

These grants (roughly $2-3M each) went to organizations across the country (including some targeting specific communities, e.g., Black entrepreneurs, Hispanic entrepreneurs, rural minorities, etc.).

How this helps you: the awardee organizations (once they launch their programs in 2024) will offer things like business incubation, mentorship, investor readiness training, and potentially sub-grants or pitch competition prizes to new startups.

They are meant to prepare minority businesses to utilize capital from the State Small Business Credit Initiative (SSBCI) and other sources. Essentially, the feds are funding infrastructure to make minority businesses “capital-ready.”

If you’re an entrepreneur from an underserved community, look out for these new programs in your area.

(E.g., an awardee might be a local Hispanic Chamber running an accelerator – you could apply to join that accelerator and benefit from its resources.) MBDA’s website lists the CRP winners; find ones in your state or community and reach out.
SSBCI and related funds: Mentioned above, the State Small Business Credit Initiative (SSBCI) is a Treasury program (funded by the American Rescue Plan) delivering $10 billion to states to expand small business financing.

SSBCI isn’t a grant to businesses per se; it mostly funds loan programs, venture capital programs, or credit support through state agencies. However, a portion of SSBCI money was earmarked for technical assistance – which includes the SBOP and CRP programs.

In October 2024, Treasury announced the Small Business Opportunity Fund (SBOP) awards: $75 million in competitive grants to 14 state and tribal organizations to help “connect underserved small businesses to financing and supply chains” in key industries like EV manufacturing, semiconductors, and clean energy.

This initiative, part of the Investing in America agenda, will help tens of thousands of entrepreneurs get legal, accounting, and financial advice to become contract- and investor-ready.

For minority entrepreneurs, this is promising – many of the SBOP awardees are focusing on minority and very small businesses.

For example, grants went to the Arizona Commerce Authority, to California’s Office of the Small Business Advocate (to start a procurement and capital program with a $10M grant), and even to tribal nations like Cherokee and Chickasaw to support Native American businesses.

These programs will roll out in 2024–2025, so check with your state economic development office or minority business agency to see if new support programs funded by SBOP or SSBCI are available.
SBA Community Navigator and other pilots: The SBA’s Community Navigator Pilot Program (launched with ARP funds in 2021) provided grants to dozens of nonprofits to act as “navigators” doing outreach in underserved communities (many minority-focused) and guiding businesses to resources.

That program (total $100M) was active through 2023. While it was time-limited, it left a legacy of strengthened networks. Some Navigator organizations may continue offering services or have other grants to do so.

The concept proved effective in reaching minority business owners who might not traditionally engage with SBA. Keep an eye out if Congress extends such programs or if similar outreach grants return.
8(a) Business Development Program: Though not a grant, the SBA’s 8(a) program is worth mentioning. It’s a 9-year business development program for socially and economically disadvantaged entrepreneurs (which often includes minorities) and gives them access to sole-source federal contracts and specialized training.

Many minority-owned firms have grown substantially through 8(a) contracts. If you qualify (based on disadvantage criteria and net worth/income limits), getting 8(a) certified can be transformative – effectively, the government becomes your customer.

The program also offers mentorship and procurement assistance. Recent update: The 8(a) program faced a legal challenge in 2023 affecting how social disadvantage is presumed; now each applicant must provide a narrative of their disadvantage.

But SBA is still accepting new 8(a) entrants, and in 2024 they are focused on adapting the program to remain a pathway for minority entrepreneurs into federal contracting.
Other Minority-Focused Resources:
- The SBA 7(j) Management & Technical Assistance program funds training for small businesses in 8(a) or other disadvantaged categories.
- HUBZone program (historically underutilized business zones) isn’t minority-specific but often aids minority-owned businesses in urban or rural distressed areas by giving them contracting preference.
- Minority Chambers of Commerce (like US Black Chambers, US Hispanic Chamber) often have corporate-sponsored grant programs or pitch competitions (e.g., the Black Chamber’s ByBlack grant with Google, etc.).
- Grants for specific minority groups: Occasionally, there are federally funded opportunities targeting specific communities – for instance, the USDA has grants for Native American community business development, the Department of Interior has programs for Native American entrepreneurs, etc. Watch for notices from agencies that serve certain ethnic communities.

Tips for minority entrepreneurs:

Utilize MBDA and SBA resources: Find your local MBDA Business Center (locations listed on mbda.gov) and reach out.

They can help with business plans, introduce you to investors or contract opportunities, and often know about relevant grants or programs in your area.

Similarly, SBA’s network (SBDCs, SCORE, etc.) is open to all, but some SBDCs have specialized services for minority clients or events in languages other than English if needed.
Stay informed on new programs: With MBDA now permanent and well-funded, 2024–2025 will likely see more grant competitions from MBDA.

For example, MBDA might fund more “Entrepreneurial Training Programs” or give out grants for projects like encouraging minority participation in manufacturing or exporting. Check MBDA’s “Grants” page periodically.

The MBDA 2023 Year in Review noted new initiatives like rural outreach (they gave $5.7M to centers for rural technical assistance). These might indirectly create opportunities for minority businesses in those rural areas to get help or even sub-grants.
Access to capital: Many minority entrepreneurs struggle with funding. Besides grants, look at loan programs with reduced barriers: SBA’s microloans and Community Advantage loans often serve minority borrowers.

Also, CDFIs (Community Development Financial Institutions) are lenders that focus on underserved communities – some have grant+loan hybrid programs or can pair with SSBCI-funded loan programs to get you affordable capital.

While a loan isn’t as nice as a grant, favorable financing can be a close second for fueling your business.
Peer networks: Engage with minority business owner networks. They can share experiences about what grants or programs helped them.

For instance, some MBEs have won SBIR grants – hearing their story could inspire you to try, or a fellow entrepreneur might alert you to a city or state grant for minority businesses that’s not widely advertised.

In essence, federal support for minority-owned businesses in 2024–2025 is strong and increasing, but often indirect.

By tapping into the infrastructure being built (MBDA centers, technical assistance programs, contract set-asides), minority entrepreneurs can position themselves to secure funding – be it through winning a grant on merits, landing a contract, or attracting investment.

The playing field is slowly becoming more equitable, and minority founders should take full advantage of these evolving resources.

(For more information: Visit MBDA.gov for program announcements and a directory of MBDA Business Centers. SBA’s site has a Minority-Owned Businesses guide with links to funding programs and certifications. Also check Advocacy. for stats and reports on minority businesses that can help when writing grant or loan applications to highlight the need or impact.)

Support for Veteran-Owned Small Businesses

Veterans are another key entrepreneurial group, often lauded for their leadership and discipline in business. In fact, about 5-6% of all U.S. business owners are military veterans, and “vetrepreneurs” employ over 5 million Americans.

The federal government offers robust support to veteran-owned businesses mainly through education, training, and preferential access to government contracts, rather than direct startup grants. Still, veterans should be aware of a few specific funding avenues and benefits available to them.

Federal programs for veteran entrepreneurs:

Veterans Business Outreach Centers (VBOCs): The SBA’s Office of Veterans Business Development funds a network of VBOCs – similar to SBDCs but focused on transitioning service members, veterans, and military spouses.

VBOCs provide free business training (including the popular “Boots to Business” course that’s part of the transition assistance program), counseling, and mentorship tailored to vets.

In 2023, the SBA expanded the VBOC network to all 50 states by awarding grants to create new centers. There are now 28 VBOCs nationwide. While VBOCs don’t hand out grants, they can help veterans develop business plans and navigate SBA loan programs or other funding.

If you’re a veteran with an idea, start at a VBOC – they will guide you through the resources available (and the training is free, already a benefit courtesy of Uncle Sam).
Veteran Readiness & Employment (VR&E) Self-Employment Track: For veterans with service-connected disabilities who have difficulty getting traditional employment, the Department of Veterans Affairs offers the VR&E Self-Employment program.

This is essentially a business launch support program under Chapter 31 (sometimes called Vocational Rehabilitation).

It’s not a cash grant you apply for in competition; rather, if you’re eligible for VR&E benefits, you work with a counselor to develop a viable business plan, and VA may provide services and funding to help implement that plan.

This can include paying for equipment, initial stock, training in small business operations, marketing support, etc. to get your business off the ground.

The key is you must have a significant disability that creates an employment barrier and demonstrate that self-employment is the best route for you.

For those who qualify, this program is a huge opportunity – it’s one of the few ways the federal government will essentially fund your startup costs (albeit under supervision and only for vets with certain disabilities).

As of late 2024, VR&E updated its processes, so ensure you get the latest guidance from VA or a veterans service officer.

Note: VR&E can be complex; a strong commitment and detailed planning are needed, but many vet entrepreneurs have succeeded (for example, a disabled vet starting a woodworking business got tools and a workshop set up via VR&E).
Federal contracting set-asides (VOSB/SDVOSB): Similar to the WOSB program, the federal government has goals for contracting with veteran-owned small businesses.

Specifically, there’s a government-wide goal to award at least 3% of contract dollars to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) each year. Many agencies exceed this.

Additionally, the VA has the “Vets First” contracting program which gives preference to VOSBs and SDVOSBs for VA procurement. If you’re a veteran business owner, consider getting certified through SBA as an SDVOSB/VOSB (as of 2023, SBA took over certification, replacing the old VA CVE system).

Once certified, you become eligible for certain set-aside or sole-source contracts. Winning contracts brings revenue which can be like earning a grant through work performed.

Some veterans have built entire businesses by supplying goods or services to the VA, DoD, or other agencies under these programs.
Veteran-focused loans and capital: While not grants, it’s worth noting SBA had a Patriot Express loan pilot in the past and now offers fee reductions on certain SBA loans for veteran-owned businesses.

Also, organizations like StreetShares Foundation (a veteran-run financier) provided some small business grant contests for vets (e.g., the Veteran Small Business Award grants of $4,000 – $15,000 in recent years) – these are private, but something vets can look into.

Another example: USAA (a veteran-serving financial org) sponsored a grant competition in Texas for veteran businesses. So keep an ear out in the veteran community for such opportunities.
Military Spouse Entrepreneurship: Not to forget spouses – the SBA has initiated programs recognizing the entrepreneurial challenges of military spouses (frequent moves, etc.).

Some VBOCs and DOD’s Spouse Education and Career Opportunities (SECO) programs give guidance for spouse-owned businesses. Occasionally there are foundation grants targeting military spouse businesses (e.g., the Military Spouse Entrepreneur Challenge).

Recent developments (2024–2025):

The SBA in November 2023 announced $4 million in new funding to expand outreach to veteran entrepreneurs, ahead of Veterans Small Business Week. This included more money for VBOCs and other veteran outreach initiatives. This means more free training programs and events for vets in 2024 – take advantage of them.
Transitioning service members interest: With record transitions happening as military end strength adjusts, the DoD’s Transition Assistance Program (TAP) has seen high enrollment in the “Boots to Business” entrepreneurship course.

Over 100,000 service members and spouses have taken it since launch. In 2024–25, SBA is refreshing the Boots to Business curriculum to include more on digital business, etc.

If you’re leaving the military, definitely attend this course on base – it’s a solid intro to starting a biz and opens follow-on courses (Boots to Business Reboot, for veterans of any era, is also offered).
Legislation watch: There’s bipartisan support for veteran businesses, so Congress occasionally introduces bills to create new programs.

One example was a proposal for a Veteran Entrepreneurship Grant Program that would have provided small grants to veteran-owned startups, but it didn’t pass.

Instead, efforts focus on expanding contracting opportunities and support services. Keep an eye on the annual Defense authorization bill or SBA reauthorization for any pilot programs involving veteran businesses.

Tips for veteran entrepreneurs:

Use your veteran status strategically: While it doesn’t entitle you to free money by default, it does open doors. Many communities have veteran business pitch competitions (often sponsored by local corporations or veteran-owned investment firms).

Winning one could net you a grant or equity investment. Also, large companies have supplier diversity programs seeking veteran-owned suppliers, which can indirectly increase your sales.
Networking: Leverage veteran networks like Bunker Labs (a nonprofit that runs veteran business incubators and courses), local Veterans Chambers of Commerce, or online communities.

Often, fellow vets share funding leads (for example, someone might share that XYZ Corp is giving grants to vet businesses).

Bunker Labs has a program called Veterans in Residence that provides co-working space and community; while not a grant, these kinds of programs can boost your venture and connect you to funding sources.
Certifications: If you pursue SDVOSB certification, also consider getting certified as a veteran-owned business by the National Veteran Business Development Council (NVBDC) or similar for corporate supplier programs.

This can increase access to corporate contracting and sometimes grants (some utility companies, for example, have small business grant programs that include vet-owned businesses in eligibility).
Tell your story: In grant applications or business competitions, your background as a veteran can be a compelling part of your story.

Many reviewers appreciate the leadership and resilience skills that come from military service. Don’t hesitate to mention your service and how it shapes your mission (especially if your business somehow serves veterans or national security, etc.).

In summary, veterans should approach federal grants by focusing on the programs that align with their business field (be it tech, agriculture, etc.) and leveraging the robust veteran support ecosystem for guidance.

While a veteran status alone might not yield a grant, the training and contract advantages available can be converted into capital for your business. As the saying goes, you’ve served your country, now let your country serve you – take advantage of these hard-earned benefits and programs.

(For more info: Check out SBA’s Office of Veterans Business Development page and /veterans for a rundown of programs. The VA’s OSDBU (Office of Small & Disadvantaged Business Utilization) has a site called Vendor Information Pages for veteran contracting support. And the Veteran Entrepreneur Portal on VA’s website links to financing and franchise info. Of course, the VBOC locator on SBA’s site will point you to local help.)

How to Find and Apply for Federal Small Business Grants

Finding the right grant and submitting a strong application can be daunting, especially for first-timers. Here’s a step-by-step guide to navigate the process:

1. Identify Suitable Grant Programs: Start by researching grants that match your business’s industry, project, or owner profile. Good places to search:

Grants.gov: This is the master database of federal grant opportunities. You can filter by category (e.g., “business and commerce”, “agriculture”, etc.) or search keywords.

Read each opportunity’s synopsis and eligibility criteria carefully – many are for nonprofits or specific types of organizations. Look for terms like “small business”, “for-profit”, or specific programs we discussed (SBIR, USDA, etc.).
SBA’s website: The SBA doesn’t give general business grants, but their site lists special programs (like SBIR, STEP) and provides links to them. The SBA local offices or resource partners might also know of state or local grants.
Agency websites: If you’re in a certain field, go straight to the source. For tech, as mentioned. For farming, the USDA Rural Development grants page. For exporters, SBA’s STEP page or Commerce Department. For minority/women/veteran initiatives, check SBA and MBDA pages.
Subscribe to newsletters: Agencies often have email newsletters. For example, USDA sends notices when VAPG or REAP funding opens. SBIR agencies post topic releases. You could also set up email alerts on Grants.gov for certain search terms.
Local and state grants: Not federal, but worth noting – many states use federal funds or their own funds for small business grants (especially in 2024, states are deploying ARPA and SSBCI funds).

Check your state economic development agency’s website for small business grants or relief programs.

2. Check Eligibility and Deadlines: Once you find a grant of interest, download the full Notice of Funding Opportunity (NOFO) or program announcement. Verify:

Who can apply: Is it only open to certain types of businesses or locations? Do you need to be in business for a certain time or have matching funds?
What projects or costs are allowed: Ensure your intended use of funds fits their guidelines (e.g., research, export promotion, equipment purchase, etc.). Federal grants generally cannot be used for personal expenses, debt repayment, or things outside the scope of the program.
Deadlines: Note the application due date and method (some require electronic via Grants.gov by 11:59pm ET on a date; others might allow paper submissions postmarked by a date).
Award size and match: Understand how much you can request and if you need to put in your own money. For instance, a NOFO might say “maximum award $100,000; 25% cost match required.”
Evaluation criteria: Many NOFOs outline how applications will be scored (e.g., 30 points for technical merit, 20 for team qualifications, etc.). This is gold – it tells you where to focus effort in your proposal.

3. Register and Prepare to Apply: All federal grant applicants must be registered in government systems. Key steps:

Get an EIN: If you don’t have an Employer Identification Number (free from IRS), get one – you’ll need it for registrations.
Unique Entity Identifier (UEI): As of 2022, the DUNS number was replaced by the UEI (generated in SAM.gov). You must obtain a UEI. If you haven’t registered your business in SAM.gov (System for Award Management), do so ASAP. SAM registration is required to apply for federal grants.

It’s free, but can take time for validation. In SAM, you’ll provide details about your entity and bank account for payments. Pro Tip: Use your exact legal name and address from official documents to avoid IRS/TIN mismatches.
Grants.gov account: Next, create an account on Grants.gov and link your organization (via UEI) to it. You’ll likely be the “Authorized Organization Representative (AOR)” for your company to submit applications.

Grants.gov has a downloadable Workspace for each funding opportunity where you fill out forms. Get familiar with the system by maybe trying a sample application or watching their tutorials.
Agency-specific regs: Some grants (like NIH SBIR) require additional registrations (e.g., NIH’s eRA Commons, SBA Company Registry for SBIR). The NOFO will list any such requirements. Start these early as well.

4. Gather Required Documents: Almost all grant applications will require at least:

Standard forms: e.g., SF-424 (Application for Federal Assistance) – your basic info form, SF-424A or C (budget forms), SF-LLL (disclosure of lobbying), etc. These are in Grants.gov packages.
Technical proposal/narrative: This is the meat – where you answer questions or provide a project description, usually with page limits. It could be a structured narrative or form where you describe the Who, What, When, How, and Why of your project.
Budget justification: You’ll need to break down how every dollar will be used. Federal grants often disallow certain costs (like entertainment, alcohol, bad debts). Permissible costs must tie directly to the project. Clearly justify each line item.
Supporting documents: Depending on the program: resumes of key personnel, letters of commitment from partners or match providers, past financial statements, etc.

For example, VAPG wants documentation of your matching funds and, if applicable, letter proving beginning farmer status, etc.
Certifications: You’ll have to certify things like you’re not debarred from federal contracts, you will comply with nondiscrimination laws, etc. Most of these are built into the SF-424 or SAM reps & certs you did.

Make a checklist from the NOFO of every item needed. Missing pieces are a common cause of rejection.

5. Write a Compelling Proposal: This is where you tell your story and make your case. Tailor your writing to the evaluation criteria:

Need/Opportunity: Explain the problem or opportunity your project addresses. Why is it important? (Agencies want to see the public benefit or alignment with their mission.)
Project Description: What exactly will you do with the grant funds? Provide a clear scope of work, with specific objectives and tasks. A timeline or milestones help.
Outcomes: Describe the expected outcomes – e.g., jobs created, revenue increased, new technology developed, exports grown. If you can quantify, great. If qualitative (like improved skills), mention how you’ll measure it.
Qualifications: Highlight your team’s experience or your business’s capability to execute the project. Why should they bet on you? If you have past successes (even small ones, like a pilot you self-funded), mention them.
Sustainability: Many grants, especially ones for business development, want to know what happens after the grant. Convince them that their investment won’t be wasted – e.g., the project will become self-sustaining or lead to long-term growth.
For competitive R&D grants (SBIR): Emphasize innovation and technical merit, but also the commercialization potential. For community-oriented grants, emphasize community impact.

Use clear, concise language (avoid jargon unless needed, or explain it). Keep paragraphs short and organized – perhaps use subheadings or bullet points (if allowed) to make it reviewer-friendly. Reviewers often have many proposals to read, so a well-structured, easy-to-follow proposal can score points.

6. Submit and Follow Instructions Precisely: Submit your application via the required channel (usually Grants.gov). Double-check that all forms are filled and uploaded. Grants.gov will give a confirmation and tracking number.

Don’t wait till the last minute – servers can get busy, or you might encounter an error that takes time to fix. It’s wise to aim for at least 48 hours before the deadline to hit submit. If a paper submission is allowed/required, send it with a tracking method and keep proof of sending by the deadline.

After submission, monitor your email for any updates. Some agencies might contact you for clarifications or to verify info (though this is not common; usually they evaluate as-is). In SBIR, you might get notified to submit additional documents if selected for an award (like a commercialization strategy or funding agreement).

7. Review and Award Process: Most federal grant reviews take 1-6 months. Scientific grants (SBIR, etc.) use peer review panels. Business development grants might use a committee of agency staff. Once decisions are made, you’ll get a notification:

If awarded, you’ll likely receive an award letter or agreement outlining terms. You may need to formally accept it. Then, funds are either advanced or reimbursed as you incur expenses, depending on the program. You must spend according to your budget and keep records; you’ll have reporting requirements (progress reports, financial reports).
If not selected, you might get a rejection notice. Many programs allow you to request feedback or a debriefing.

It’s valuable to learn where your application was weak, so you can improve and try again next time. Persistence pays off – many successful grant recipients applied multiple times or to multiple programs.

8. Avoiding Scams & Misinformation: Always remember:

No legitimate federal grant will ask you to pay a fee to get the grant. (Exception: some private grants have application fees like Amber Grant’s $15, but federal grants do not.)
Communication about federal grants will come from official emails (ending in .gov). For instance, SBA warns that if someone claims to be from SBA but emails from Gmail, it’s fraud. Unfortunately, there are scams targeting small businesses with promises of “guaranteed grants for a fee” – steer clear.
Use official websites (those ending in .gov or .mil) for information or application. When in doubt, contact the agency’s grant office or your local SBA office to verify.

9. Use Resources to Improve Your Application: You don’t have to do it alone. Free/low-cost help is available:

SBDC counselors can review your grant proposal or help gather market data.
SCORE mentors (often retired executives) might help polish your narrative or budget.
PTACs (Procurement Technical Assistance Centers) can help if it’s something like an SBIR or contract-related proposal.
Workshops/webinars: Many grant programs host webinars explaining how to apply (e.g., USDA often does webinars for VAPG; NIH does for SBIR). Attend those – you can ask questions directly.
Templates/examples: Some agencies post summaries of successful projects or even sample applications. While you must write your own, it’s instructive to see the level of detail or style that won in the past.

10. Plan Ahead and Stay Organized: Applying for grants can be time-consuming – treat it like a project. Mark calendar reminders for deadlines. Organize a folder with all needed docs.

If you plan to apply to multiple grants, keep a portfolio of common documents (like your business plan, team resumes, past performance, etc.) that you can reuse and tweak as needed.

Remember, grants are not a sure thing – integrate them as one piece of your funding strategy. It’s wise to pursue multiple opportunities (federal, state, private) and also consider loans or investment as fallback. But with due diligence and perseverance, you could land that grant that propels your business forward.

Frequently Asked Questions (FAQs)

Q1: Can I get a federal grant to start a small business?

A: Generally, no – the federal government does not provide grants just to start or open a typical small business. Most grants are given for specific projects (research, technology development, exporting, etc.) or to nonprofits that support entrepreneurs. If you’re launching a startup, you’ll usually need to rely on personal funds, loans, investors, or state/local programs.

However, if your startup involves innovative R&D, you could seek a grant like SBIR which, while not meant simply to cover startup costs, can fund development of your product. Always be cautious of anyone claiming “free government money to start your business” – it’s likely a scam.

Q2: What federal grants are available in 2024–2025 for small businesses?

A: Ongoing programs include SBIR/STTR (tech R&D funding across 11 agencies), USDA grants like VAPG (for value-added agriculture) and REAP (for rural energy projects), and the SBA’s STEP grants via states (for export promotion).

Updates in 2024–2025 have seen expanded funding for many of these: e.g., SBIR is active through 2025 with efforts to increase its budget, USDA’s REAP got a $2 billion boost from the Inflation Reduction Act, and new initiatives like the MBDA Capital Readiness Program ($125M) were launched to help underserved entrepreneurs.

While no brand-new universal grant appeared, these enhancements mean more opportunities under existing umbrellas.

Additionally, many states are rolling out grant programs using federal funds (ARPA, SSBCI) targeted at small businesses – those vary by state. It’s best to research by sector and check Grants.gov frequently for current competitions.

Q3: How do I apply for a federal small business grant?

A: First, identify a grant that fits (via Grants.gov or agency sites). Next, register your business in required systems: get a UEI and SAM.gov registration (this is mandatory for federal awards), and make an account on Grants.gov.

Then, carefully follow the application instructions in the grant’s NOFO (Notice of Funding Opportunity). You’ll typically need to write a proposal or fill out an application form, prepare a detailed budget, and submit via Grants.gov by the deadline.

Each program has specific requirements (for example, SBIR applications require a technical proposal, abstract, budgets, etc., while a USDA grant might require forms and a narrative). Be thorough and provide all requested information.

If possible, have someone review your application for clarity and completeness before submitting. (See the “How to Apply” section above for a detailed step-by-step.)

Q4: Do I have to pay back a grant, or what’s the catch?

A: Grants do not have to be repaid – that’s the beauty of them. And unlike investors’ money, you don’t give up ownership equity. However, grants come with strings attached in terms of usage and oversight.

You must use the funds exactly for the approved project and costs, and you’ll need to report on your progress and spending. If funds are misused (spent outside the project scope or budget), you could be required to pay them back or face legal issues.

Also, receiving a federal grant means you’re subject to audit; you need good record-keeping. Essentially, the “catch” is the effort required to win and administer the grant – but financially, it’s free money for your project as long as you comply with the rules.

Q5: Are there grants specifically for women, minorities, or veterans?

A: There are no unrestricted grants just for being a woman, minority, or veteran entrepreneur. The federal approach is more about providing targeted support and opportunities rather than direct cash.

For instance, women and minority entrepreneurs are encouraged to apply to general programs (and those programs might have initiatives to outreach to these groups).

There are also federal contracting programs (like WOSB and SDVOSB) that effectively give these businesses an advantage in obtaining government contracts.

That said, indirectly there are some grants: the SBA and MBDA fund organizations that support women/minority businesses (e.g. grants to run Women’s Business Centers, MBDA Centers, etc.), and those organizations may offer training, coaching, or even sub-grants.

Veterans have the VR&E self-employment program through VA which can fund business needs for disabled vets as part of rehab. Additionally, many private sector grants target these groups (such as foundation grants or corporate competitions for women-owned or Black-owned businesses).

Q6: What are my chances of winning a federal grant?

A: It varies widely by program and how well your proposal matches the priorities. Some stats: SBIR Phase I success rates typically range from 10% to 20% depending on the agency. USDA’s VAPG might fund roughly 20-25% of applications (this can fluctuate).

Highly competitive programs like NSF SBIR or NIH SBIR could be closer to 10%. Simpler programs (say a state-level small export grant) might have higher odds if the pool is smaller.

Remember, these grants are competitive, not entitlements – you’re usually competing against many other worthy applicants. The best way to improve your odds is to ensure eligibility, follow directions to the letter, and submit a high-quality application that clearly meets the program’s goals.

Also, persistence: if you don’t win the first time, use any feedback to strengthen your next attempt. Sometimes it takes a couple of tries or applying to multiple programs.

It’s often said in the grant world: “A+ project with a B proposal might lose to a B project with an A+ proposal.” So make your proposal excellent.

Q7: Where can I find help with grant writing for my small business?

A: Start with free resources: The SBA’s network (SBDCs, SCORE, WBCs, VBOCs) offers business counselors who can assist in reviewing proposals or finding data. PTACs can help with SBIR or government-related proposals.

Some universities or economic development agencies host grant writing workshops. There are also plenty of online guides (including on Grants.gov and SBA’s site).

If you choose to hire a professional grant writer, do due diligence – ensure they have experience with the program you’re targeting and watch out for anyone who “guarantees” you’ll get a grant (no one can honestly do that).

Also note, paying someone to write an SBIR proposal, for example, is allowed but all content must be truthful and from your ideas.

Another tip: You can often request copies of successful past proposals via Freedom of Information Act (FOIA) from agencies – these can serve as reference (with proprietary info redacted).

Finally, after you draft your application, try to get an unrelated person to read it – if they can’t quickly grasp what you’re proposing and why it matters, a grant reviewer might not either. Refine until it’s clear.

Conclusion

In conclusion, federal small business grant programs can provide a tremendous boost to entrepreneurs who align with their objectives.

From high-tech startups securing SBIR funds to farmers adding new revenue streams with USDA grants, these programs fuel innovation and growth in important sectors of the economy.

As of 2024–2025, there is a strong emphasis on inclusivity and economic impact – meaning opportunities for businesses owned by women, minorities, veterans, and those in rural or underserved areas are better than ever (often through specialized support channels).

However, pursuing grants requires strategy, patience, and attention to detail. It’s not “free money” for any use – it’s purpose-driven capital that comes with responsibilities.

We’ve discussed the major programs across technology, agriculture, exports, and more, and how to approach the application process. To recap a few takeaways:

Do your homework: Match your business needs to the right program and read all requirements. This ensures you don’t waste time on grants that aren’t a fit.
Use official resources: Always rely on official .gov portals (Grants.gov, , etc.) for information and applications to avoid scams.
Leverage support networks: Free counseling from SBA partners or MBDA can make a difference in crafting a winning proposal and accessing other financing.
Stay organized and compliant: Meet deadlines, save copies of everything, and if you win, follow the grant rules meticulously to achieve your goals and satisfy the funder.
Keep a broader funding plan: Grants should complement other funding methods. If you don’t succeed at first, refine your approach and consider other grants or financing as well. Many successful businesses use a mix of personal investment, loans, revenues, and the occasional grant or contract.

Ultimately, federal grants exist to advance broader goals – whether it’s technological leadership, economic equity, or rural development. If your entrepreneurial vision intersects with those goals, the federal government can become a valuable partner in your success story.

People-first planning, demonstrated expertise (and leveraging your team’s experience), authoritative data to back your plans, and trustworthy management of funds (EEAT principles) will all shine through in a strong application.

By focusing on creating real value – for customers, communities, and the economy – you increase both your chances of securing funding and of building a thriving business.

Stay informed, stay persistent, and you could be on your way to joining the ranks of businesses that have turned federal grant support into a catalyst for growth. Good luck on your funding journey!