Government Programs That Support Small Businesses (US)

Small businesses are the backbone of the American economy, making up 99.9% of all U.S. businesses and employing nearly half of the private workforce. Recognizing their importance, government at both the federal and local levels offers a wide array of programs to help small businesses start, grow, and thrive. 

These government programs that support small businesses include funding options like loans and grants, assistance in securing government contracts, free business counseling services, tax incentives, and special initiatives for businesses owned by women, minorities, veterans, and others. 

In this comprehensive guide, we’ll explore the key federal programs (through agencies like the Small Business Administration, USDA, etc.) as well as state and local government programs. 

We’ll also highlight specialized programs for different types of small businesses – from tech startups to retail shops, minority-owned companies, women entrepreneurs, agricultural enterprises and more – so you can identify the best support available for your needs. 

By understanding these programs and how to access them, small business owners can take advantage of valuable resources to fuel their success.

Federal Government Programs for Small Businesses

The U.S. federal government provides extensive support to small businesses nationwide. Many of these programs are coordinated through the U.S. Small Business Administration (SBA), while others are offered by various federal agencies. 

Federal small business programs generally fall into a few categories: financial assistance (such as loans and grants), federal contract opportunities, technical assistance and training, and tax incentives. 

Below, we break down the major federal programs that support small businesses, along with updated information on each.

SBA Loan Programs for Small Businesses

One of the primary ways the federal government supports small businesses is by improving access to capital through SBA loan programs. The SBA itself does not typically lend money directly (except in special cases like disasters); instead, it guarantees a portion of loans made by banks and other lenders to small businesses. 

This government guarantee reduces the lender’s risk, encouraging them to approve loans that small businesses might not otherwise qualify for. SBA-backed loans can be used for a variety of purposes, including working capital, purchasing equipment or real estate, and refinancing debt.

• 7(a) Loan Program: The SBA 7(a) loan is the flagship loan program and the most widely used. It provides general-purpose loans for small businesses, with a maximum loan amount of $5 million.
  
  The SBA typically guarantees 75% to 85% of the loan (depending on the loan size) to the lender. Interest rates are negotiated between the borrower and lender but are subject to SBA caps.
  
  These loans can be used for business expansion, purchasing inventory, equipment, or real estate, or simply for working capital. Because of the government guarantee, 7(a) loans often offer longer terms and lower down payments than conventional bank loans, making financing more accessible to small enterprises.
  
  To qualify, businesses must meet SBA size standards (typically based on number of employees or revenue), be for-profit, and demonstrate the ability to repay.
  
  The application process involves preparing a detailed loan package (business plan, financial statements, etc.) and working with an SBA-approved lender.
  
• CDC/504 Loan Program: The 504 loan program is focused on helping small businesses acquire major fixed assets like commercial real estate or heavy equipment.
  
  It provides long-term, fixed-rate financing through Certified Development Companies (CDCs) – nonprofit partners of the SBA.
  
  A typical 504 project is funded by a combination of a loan from a private lender (covering 50% of the project), an SBA-guaranteed loan through a CDC (covering 40%), and a 10% down payment from the business.
  
  504 loans can be sizable (often up to $5–5.5 million from the SBA portion) and offer below-market fixed interest rates for 10 to 25 year terms, which is very attractive for small businesses making large capital investments.
  
  These loans require that the project will create or retain jobs or meet other public policy goals. By supporting expansion in facilities and equipment, the program helps businesses grow and contributes to local economic development.
  
• SBA Microloan Program: For very small businesses and startups that need a smaller amount of capital, the SBA’s Microloan program offers loans up to $50,000 (the average microloan is around $13,000).
  
  The SBA provides funds to nonprofit community-based lenders (intermediaries) who then make the microloans to entrepreneurs. These microloans can be used for working capital, inventory, supplies, and equipment, but not to buy real estate.
  
  They often come with shorter terms (up to 6 years) and carry slightly higher interest rates than larger SBA loans (reflecting the smaller size and higher risk).
  
  However, microloan intermediaries frequently combine lending with technical assistance – they may help borrowers with business training or mentor support.
  
  This program is especially helpful for new startups, home-based businesses, and entrepreneurs in disadvantaged communities who may not qualify for traditional bank financing.
  
  By delivering micro-capital and guidance, the government helps nurture very small businesses until they can grow and qualify for larger financing.
  
• SBA 7(a) and 504 Loans – Recent Updates: As of 2025, SBA loan programs are seeing continued strong demand. The SBA has also made program updates to expand access: for example, it has been working with more fintech lenders and mission-based lenders to reach underserved markets.
  
  Loan caps remain at $5 million for 7(a) (standard) and roughly $5.5 million for 504 loans, and interest rate policies were adjusted in 2023 to accommodate economic changes.
  
  It’s worth noting that during the 2020–2021 pandemic, special SBA loan relief was offered (like debt relief payments and increased guarantees) – those have largely ended, but they demonstrated the importance of SBA lending in crises.
  
  Currently, even in the event of federal budget issues or shutdowns, the pipeline of SBA loans is substantial – in late 2023 the SBA was guaranteeing on the order of $170 million in small business loans per day before a brief suspension due to a government shutdown.
  
  This underscores how significant SBA-backed lending is for small business financing. If you are seeking a loan, SBA’s Lender Match tool can help connect you with participating lenders, and the SBA provides a detailed checklist of loan application requirements on its website.

Aside from these core programs, the SBA also oversees specialized loan initiatives such as Community Advantage (aimed at lending in underserved markets), Export Loans (for businesses expanding into international markets), and Disaster Loans (covered in a later section). 

Overall, SBA loan programs are a crucial pillar of government support, enabling tens of thousands of small businesses each year to obtain affordable financing to start or expand their operations.

Federal Small Business Grants and Innovation Programs

Unlike loans, grants provide funding that does not have to be repaid – essentially free money for your business, if you can get it. 

The federal government does offer small business grants, but these are generally targeted to specific purposes (such as scientific R&D or exporting) or channeled through partner organizations rather than given directly to any entrepreneur to use freely. 

It’s important to set realistic expectations: most federal grants are competitive and come with strict eligibility and reporting requirements. Still, if your business meets the criteria, government grants can be a fantastic source of support. Here are some key federal grant programs and related initiatives:

• Grants.gov – Federal Grant Database: A good starting point to find federal grants is Grants.gov, the official online portal listing thousands of federal funding opportunities. You can search by category or agency to identify grants relevant to your business.
  
  Many grants are offered by agencies to support broader goals (education, technology, public services, etc.), and some may require partnering with a nonprofit or university.
  
  Keep in mind that not all federal funding flows directly to businesses – in some cases, the government gives money to state or local agencies, who then either re-grant it or use it to provide services to small businesses.
  
  So, when searching, consider that you might apply through a local entity if the funds are distributed locally.
  
• Small Business Innovation Research (SBIR) and STTR Programs: For technology startups and innovative small firms, the SBIR/STTR programs are a marquee opportunity.
  
  These are competitive grant (or contract) programs that fund small businesses to perform research and development (R&D) with commercial potential. The SBA coordinates SBIR, but 11 federal agencies (like NIH, DoD, NSF, Department of Energy, etc.) participate by issuing solicitations in needed research areas.
  
  SBIR is often nicknamed “America’s Seed Fund” because it provides early-stage funding (typically Phase I grants around $50k–$250k and Phase II up to $1M+) to prove high-risk ideas.
  
  The Small Business Technology Transfer (STTR) is a sister program that requires the small business to collaborate with a nonprofit research institution (like a university) on R&D.
  
  Together, SBIR/STTR inject billions of dollars each year into innovative small companies in sectors like health, defense, environment, and energy. These grants do not require equity or repayment, but they are highly competitive – only roughly 1 in 10 applicants win an award.
  
  If you have a technology-driven business, however, getting an SBIR/STTR grant can provide not only funding but also validation and intellectual property that help you scale up.
  
  As of 2025, the SBIR/STTR programs are authorized through 2025 and continue to release new funding opportunities across agencies. Tip: check SBIR.gov for a searchable database of solicitations and past awards.
  
• Federal Grants for Export Expansion (STEP): Small businesses looking to expand into international markets can benefit from the State Trade Expansion Program (STEP).
  
  This is an SBA-run initiative that provides federal grant funds to states, which in turn offer grants to local small businesses for export development activities.
  
  For example, a small business may receive a STEP grant (usually a few thousand dollars) to attend an overseas trade show, translate their website for a foreign market, or participate in an export training.
  
  Each state administers its STEP funds a bit differently – with their own application process and criteria – but the goal is to help businesses start or increase exports.
  
  If you plan to go global, check your state’s trade office or the SBA’s export assistance center to see if STEP grants are available and how to apply. This program, funded by the federal government, has helped many small companies offset the cost of finding customers abroad.
  
• Economic Development Grants (EDA): The U.S. Economic Development Administration (EDA), part of the Commerce Department, offers various grants to spur regional economic growth.
  
  While EDA grants often go to nonprofits or local governments, they indirectly support small businesses by funding innovation hubs, business incubators, skills training programs, infrastructure improvements, and more.
  
  In some cases, EDA grant programs like Build to Scale provide funds to organizations that then give grants or investments to tech startups and entrepreneurs.
  
  The EDA frequently announces funding opportunities for projects in distressed communities or to develop certain industries. Small businesses can benefit by participating in EDA-funded programs or collaborating with EDA grant recipients.
  
  It’s worthwhile to keep an eye on EDA’s website for announcements of funding opportunities – if your region or industry aligns, you might tap into those resources via local channels.
  
• Department of Agriculture (USDA) Grants and Loans (Rural Development): For businesses in rural areas or those related to agriculture, the USDA has programs under its Rural Development arm to provide funding and support.
  
  The USDA Rural Development Business Programs include loans, grants, and loan guarantees aimed at improving economic opportunities in rural communities.
  
  Examples include Rural Business Development Grants (RBDG) for projects like training and technical assistance for small rural businesses, Value-Added Producer Grants (VAPG) to help agricultural producers expand into value-added products, and the Business & Industry (B&I) Loan Guarantee program which can guarantee loans by banks to rural businesses (somewhat analogous to SBA loans).
  
  USDA also offers microloans and farm loans through the Farm Service Agency for farmers and ranchers who are essentially small business owners in agriculture. Each of these programs has specific eligibility rules (often based on rural location criteria and size limits) and application processes.
  
  If you operate in a rural area or in the farming/agricultural sector, exploring USDA’s offerings is crucial – the agency’s mission is to spur rural entrepreneurship and job creation by easing access to capital and innovation outside urban centers.
  
  As of the latest updates, USDA has been emphasizing support for rural energy projects and local food systems, aligning with broader initiatives to revitalize rural economies.
  
• Minority Business Development Agency (MBDA) Grants: The Minority Business Development Agency is a federal agency (under the Department of Commerce) devoted to the growth of minority-owned businesses.
  
  MBDA provides funding for a network of MBDA Business Centers across the country and periodically offers targeted grants for projects that help minority entrepreneurs.
  
  For instance, MBDA runs competitions for grants to organizations that will train and assist minority business owners in access to capital, contracts, and markets.
  
  They also had a Capital Readiness Program funded in 2023 to support incubators and accelerators that serve minority businesses. Minority-owned firms can connect with MBDA Business Centers to receive counseling and help finding financing opportunities.
  
  Additionally, MBDA sometimes partners in delivering special loan programs or support services. According to the U.S. Chamber of Commerce, MBDA offers targeted grants and loans throughout the year aimed at aiding minority-owned businesses, and entrepreneurs can find local MBDA centers for assistance.
  
  In 2021, MBDA’s role was elevated by Congress, giving it permanent authorization and expanded funding to reach more minority enterprises – a recent development that underscores the government’s commitment to minority business success.
  
• Other Notable Federal Grant Opportunities: Beyond these, various federal departments have niche grant programs that small businesses might tap into.
  
  For example, the National Institutes of Health (NIH) has grants for small firms doing biomedical research (including some specifically related to COVID-19 technologies).
  
  The Department of Energy offers grants for clean energy small businesses, often to companies that previously received SBIR awards, helping them further develop climate-related innovations.
  
  The Community Development Financial Institutions (CDFI) Fund (via the Treasury) doesn’t give grants to businesses directly, but it grants funds to mission-driven lenders which then provide loans and investments in low-income communities – so if your business is in an underserved area, finding a local CDFI could open doors to financing supported by that government fund.
  
  Keep in mind also that some federal relief grants pop up in extraordinary situations (for instance, in 2020 there were emergency grants for COVID-affected businesses).
  
  Currently, most of those emergency programs have sunset, but the legacy of programs like the Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loans (EIDL) showed how the government can roll out large-scale grant/loan forgiveness initiatives when needed. In normal times, however, federal grant help will be more targeted and require effort to obtain.
  
• Tips for Grant Success: If you aim to secure a government grant, be prepared for a detailed application and possible long timelines. Always ensure you meet eligibility criteria before applying, as grant applications can be time-consuming.
  
  Many grants require a well-defined project plan or some kind of matching funds. It’s helpful to leverage resources like your local Small Business Development Center (SBDC) or SBA office for guidance on grant applications – they can sometimes review proposals or point you to the right opportunities.
  
  Finally, beware of scams – the government does not charge fees for you to apply for its grants (aside from your own costs of preparing materials), so avoid any “guaranteed grant” offers that look too good to be true.

Federal Contracting Programs and Certifications for Small Businesses

The U.S. federal government is the largest purchaser of goods and services in the world, spending hundreds of billions of dollars each year. Through its procurement programs, the government actively seeks to allocate a share of contracting dollars to small businesses. 

In fact, there are government-wide goals to award certain percentages of federal contract spending to small businesses, including specific sub-goals for categories like women-owned, socially disadvantaged, and veteran-owned businesses. To help achieve these goals and even the playing field, the government has created several contracting assistance programs. 

These programs don’t give money outright, but rather give small businesses preferential access or exclusive opportunities to win government contracts, thereby supporting their revenue growth. The major federal contracting programs for small businesses include:

Small Business Set-Asides: By law, many federal contracts (especially those under certain dollar thresholds) are automatically reserved or “set aside” for small business competition only. This means only small businesses can bid, which eliminates having to compete against corporate giants. 

In addition, each agency strives to meet the goal of awarding at least 23% of its prime contract dollars to small businesses each year (this is a government-wide benchmark). So, simply being a certified small business (meeting SBA’s size standards) can qualify you for these set-aside opportunities. On top of that, there are dedicated programs for specific subgroups:

• 8(a) Business Development Program: Commonly called just “8(a)”, this is a program for small businesses owned by socially and economically disadvantaged individuals (which often includes minority-owned firms and others who face systemic disadvantages).
  
  Companies must go through a certification process to prove their eligibility (social disadvantage can be presumed for certain minority groups or proven on a case-by-case basis, and economic disadvantage is shown via net worth/income limits).
  
  Once certified, 8(a) firms can receive exclusive contracts that are not open to others – federal agencies can award contracts up to certain sizes directly to 8(a) companies (sole-source contracts) or limit competitions only among 8(a) participants.
  
  The program also provides business development support and mentorship opportunities. It lasts for 9 years for each participant, during which time the firm is supposed to grow and graduate from the program.
  
  The advantage: 8(a) firms have a significantly better chance at winning federal contracts because agencies want to channel work to them to meet the government’s goal of boosting disadvantaged businesses.
  
• Women-Owned Small Business (WOSB) Program: This program aims to funnel more contracts to women-owned small businesses. The federal government’s goal is to award at least 5% of contracting dollars to WOSBs each year.
  
  Under this program, certain contracts are set aside exclusively for certified WOSBs (or Economically Disadvantaged Women-Owned Small Businesses, a subset) in industries where women have been historically underrepresented.
  
  To participate, a firm must be at least 51% owned and controlled by women who are U.S. citizens, and go through a certification process (either through SBA’s free certification or authorized third parties). Once certified, WOSBs can bid on reserved contracts in eligible NAICS categories.
  
  This program, supported by the SBA’s Office of Women’s Business Ownership, not only opens contract opportunities but also provides business training, counseling, and assistance in accessing credit and capital for women entrepreneurs. It’s a key initiative to level the playing field for female business owners in federal procurement.
  
• Service-Disabled Veteran-Owned Small Business (SDVOSB) Program: To honor those who served, the government seeks to award at least 3% of contract dollars to SDVOSBs (businesses owned by service-disabled veterans) each year.
  
  There is a program that allows agencies to set aside or even sole-source contracts specifically for SDVOSBs, provided the small business is 51% owned and controlled by one or more veterans with a service-connected disability.
  
  The Department of Veterans Affairs (VA) in particular has a strong commitment to contracting with veteran-owned businesses (through its Vets First program, which includes both SDVOSB and VOSB set-asides).
  
  Starting in 2023, the certification for veteran-owned businesses has moved under the SBA’s purview for consistency. For veteran entrepreneurs, this program is an important avenue – it gives them a preferred pathway to compete for government work in recognition of their service.
  
• HUBZone Program: The Historically Underutilized Business Zones (HUBZone) program is designed to stimulate economic development in distressed areas by giving businesses in those areas preferential access to federal contracts.
  
  To qualify, a business must be small, at least 51% owned by U.S. citizens (or certain entities like a tribe or CDC), and have its principal office located in a designated HUBZone with at least 35% of its employees residing in HUBZone areas.
  
  In return, HUBZone-certified firms can compete for contracts set aside specifically for HUBZone businesses and receive a 10% price evaluation preference in full-open contract competitions (meaning their bids can be up to 10% higher in price and still be considered equal to non-HUBZone competitors).
  
  The government’s goal is to award 3% of contract value to HUBZone firms each year, though this goal is sometimes not met due to challenges in program participation.
  
  If your business is in a qualifying area, HUBZone certification can be a significant advantage for federal work, and it also signals to other partners that you’re contributing to community development.

In addition to these, the SBA offers programs like the Mentor-Protégé Program, which pairs small businesses with experienced government contractor firms to help them build capacity and win contracts together. 

There are also subcontracting opportunities – large prime contractors on big federal projects often need to subcontract portions to small businesses, and the government tracks this through subcontracting goals.

Government Contract Assistance: To navigate federal contracting, small businesses can seek help from Procurement Technical Assistance Centers (PTACs), now rebranded as APEX Accelerators as of 2023. These centers (funded by the Defense Department) provide free guidance on how to register in SAM.gov, find opportunities, and prepare bids. 

The SBA also has Procurement Center Representatives and an annual scorecard tracking each agency’s small business contracting performance. The landscape can be complex, but the rewards of securing government contracts can be huge, providing steady business revenue. 

These contracting programs are a cornerstone of government support, essentially using federal purchasing power to drive small business growth.

Business Development and Training Resources (SBDCs, SCORE, etc.)

Financial programs aside, the government also supports small businesses through knowledge and expertise. Starting or growing a business can be daunting, and not every entrepreneur can afford consultants or MBA advice. 

That’s where free or low-cost counseling and training programs come in, funded by government agencies to bolster small business capabilities. Notably, the SBA and other federal agencies sponsor a nationwide network of resource partners and centers dedicated to small business development:

• Small Business Development Centers (SBDCs): SBDCs are one of the most far-reaching resources – there are over 900 SBDC locations across the country, often hosted by universities or economic development agencies but funded in part by the SBA.
  
  An SBDC provides free one-on-one business counseling and training workshops to aspiring and existing small business owners. Whether you need help writing a business plan, researching your market, managing finances, or strategizing growth, SBDC advisors are available to guide you.
  
  They can also assist with navigating loan applications or government contracting processes. SBDCs deliver “high quality, individualized business advising and technical assistance” on topics ranging from accessing capital to marketing and export assistance.
  
  These services are often at no cost or very low cost, thanks to federal and state funding. According to the SBA, SBDCs have been a critical support system, contributing to thousands of new business starts and job creations each year.
  
  To find your nearest center, you can use the SBA’s online lookup tool or ask at a local college business extension.
  
• SCORE Mentors: SCORE is a nonprofit organization, partly funded by SBA, that taps the expertise of volunteer business mentors (many are retired executives or experienced entrepreneurs).
  
  Through SCORE, you can be paired with a mentor for free and confidential counseling. They can help you brainstorm ideas, review your plans, and provide seasoned advice. SCORE also offers a wealth of online resources, webinars, and workshops on small business topics.
  
  With over 250 chapters nationwide, SCORE has been coaching small businesses for decades and is often called “Counselors to America’s Small Business.”
  
  If you prefer mentorship from someone who’s walked the path, SCORE is a terrific program to support your journey.
  
• Women’s Business Centers (WBCs): As the name suggests, WBCs focus on helping women entrepreneurs succeed. There are around 140 WBCs across the U.S., funded by the SBA’s Office of Women’s Business Ownership.
  
  These centers offer training, coaching, networking events, and assistance in accessing capital, all through a lens of the unique challenges women in business might face. They often help women prepare loan applications, find investors, or get certified for the WOSB federal contracting program.
  
  Notably, the SBA has expanded the WBC network in recent years to ensure there is at least one WBC in every state. The goal is to provide equal opportunities and resources for all women in business.
  
  Any entrepreneur can use their services (you don’t necessarily have to be female to attend their training), but they specialize in empowering female-led enterprises and sometimes have programs for specific groups (like socially disadvantaged women, veterans who are women, etc.).
  
  If you are a woman looking to launch or grow a business, your local WBC can be a supportive ally and guide you toward both government and private resources.
  
• Veteran Business Outreach Centers (VBOCs): For military veterans, service members transitioning to civilian life, and military spouses, the SBA funds a network of VBOCs.
  
  These centers provide entrepreneurial training (including the popular Boots to Business program for transitioning service members), counseling, and referrals.
  
  Veterans often have access to unique programs (for example, some SBA loans have fee reductions for veterans, and there are contracting opportunities as discussed).
  
  VBOCs help navigate those and translate military skills into business success. They can assist with developing business plans, navigating VA programs, and connecting with other veterans’ initiatives.
  
  The camaraderie and understanding of military culture make VBOCs a comfortable place for vets to seek business help.
  
• Minority Business Development Centers: In addition to the SBA’s general programs, the MBDA runs Minority Business Development Centers in many cities, which specifically help minority-owned businesses with growth strategies, export assistance, securing capital, and procurement opportunities.
  
  They often have ties to corporate and government buyers and can connect minority entrepreneurs with contract opportunities or certification help.
  
  MBDA centers operate similarly to SBDCs but with a targeted focus on minority business challenges and opportunities, such as helping firms scale to compete for larger contracts.
  
• Other Training and Support Programs: The federal government also periodically offers specialized training initiatives.
  
  For example, SBA’s Emerging Leaders (now renamed T.H.R.I.V.E.) is an intensive executive training series for small businesses poised for growth. The SBA also runs online learning platforms with free courses on everything from start-up basics to cyber security for small business.
  
  Some agencies have sector-specific assistance – like the U.S. Department of Commerce’s Export Assistance Centers that help small businesses ready to export, or the National Science Foundation’s I-Corps program that trains researchers in entrepreneurship (for SBIR applicants).
  
  Additionally, many states supplement these with their own small business training programs or incubators (discussed more in the local section).

Overall, these business development services form a support ecosystem around the entrepreneur. They are government-sponsored because stronger small businesses lead to job creation and a more robust economy. 

Don’t hesitate to leverage these free resources – whether you need a sounding board for your idea, help with bookkeeping software, or guidance on how to improve your marketing, there’s likely a program that can assist. 

The best part is that these advisors often have a network; they can direct you to relevant loan programs, grants, or other opportunities you might not find on your own.

Tax Incentives and Other Federal Support Measures

Another way the government supports small businesses is through the tax code and related incentives. While not “programs” in the same sense as loans or grants, these incentives can save businesses money or encourage certain beneficial activities:

• Work Opportunity Tax Credit (WOTC): This is a federal tax credit for businesses that hire individuals from certain groups that face high barriers to employment – such as veterans, recipients of government assistance, ex-felons, or the long-term unemployed.
  
  If a small business hires and retains someone from these target groups, it can claim a tax credit up to a certain amount based on the worker’s wages. The WOTC effectively lowers a business’s tax bill dollar-for-dollar for qualifying hires.
  
  This credit was recently extended by Congress through the end of 2025, meaning businesses can continue to use it for current hires.
  
  For a small business, this credit not only reduces costs but also incentivizes expanding your team with diverse, qualified individuals who might need a second chance or extra support.
  
  Keep in mind there’s paperwork involved – you must certify new hires through your state workforce agency within a short window of hiring – but it’s worth it for the credit.
  
• Small Business Health Care Tax Credit: For small employers that offer health insurance to employees, there is a tax credit available (under the Affordable Care Act) if you have under 25 employees with moderate incomes and you contribute a significant portion of the premium.
  
  This can cover up to 50% of your premium contributions (35% for tax-exempt small employers). It’s intended to encourage small businesses to provide health coverage by offsetting costs.
  
  The credit is only available if you buy insurance through the SHOP marketplace and it can be claimed for two consecutive years, but it’s a notable support for those who qualify.
  
• R&D Tax Credit (for Startups): The federal Research & Development tax credit allows companies performing R&D to get a credit against taxes owed.
  
  Importantly for startups, if you have little to no income tax because you’re not yet profitable, a provision allows qualifying small businesses (under $5 million revenue) to apply the R&D credit against payroll taxes instead.
  
  This means even pre-revenue companies can get a cash flow benefit from their development activities – effectively a subsidy for innovation.
  
  If your small business is working on new technology, processes, or products, make sure to explore this credit with your accountant. It can save tens of thousands of dollars over the first few years, which is a big support as you grow.
  
• Energy Efficiency and Sustainability Incentives: There are various tax deductions and credits to encourage businesses (including small ones) to invest in energy-efficient property or renewable energy.
  
  For instance, a small business that installs solar panels might qualify for the federal Investment Tax Credit (which, after the Inflation Reduction Act of 2022, often covers 30% of the cost).
  
  There are also deductions for making commercial buildings more energy efficient. These incentives indirectly support small businesses by reducing the net cost of upgrading facilities or equipment, which lowers operating costs long-term.
  
• State and Local Tax Incentives: While federal tax programs are significant, remember that state and local governments also offer tax incentives – such as credits for creating jobs, abatements for locating in enterprise zones or Opportunity Zones, or exemptions for certain industries. We’ll touch on local incentives in the next section, but it’s part of the broader picture of support.
  
• Regulatory Relief and Advocacy: It’s not a financial program, but worth noting that the SBA’s Office of Advocacy and the National Ombudsman exist to help ensure small businesses aren’t overly burdened by regulation.
  
  They work to give small businesses a voice in rule-making and help resolve issues with federal compliance or enforcement. While this might not seem like direct support, a fair regulatory environment saves small businesses money and hassle, which is indeed supportive.
  
• Federal Disaster Assistance: Lastly, a key support program we should mention is federal disaster assistance. When natural disasters strike (hurricanes, floods, wildfires, etc.), the SBA provides low-interest Disaster Loans to help businesses recover – even to individuals for home losses, but for businesses it covers physical damage and economic injury.
  
  For example, after a declared disaster, small businesses can apply for Physical Disaster Loans to repair or replace damaged property, and Economic Injury Disaster Loans (EIDL) to help cover operating expenses during a disruption.
  
  These loans can be vital to the survival of small businesses in disaster-hit areas, offering interest rates as low as 4% and long repayment terms. The SBA also has a Military Reservist Loan program to help if an essential employee is called to active duty.
  
  We saw how significant disaster assistance can be during the COVID-19 pandemic, when the SBA’s special COVID EIDL program provided capital to millions of businesses and the Paycheck Protection Program (administered with Treasury) effectively gave forgivable loans to keep businesses afloat.
  
  Those were extraordinary measures (now closed), but they exemplify the government’s role in emergency support. In normal times, if your area is hit by a disaster, checking in with FEMA and SBA for aid programs is critical.
  
  Also, the SBA has a mitigation assistance component – if you take measures to prevent future disaster damage (like elevating a building or installing storm shutters), you can sometimes qualify for additional loan funds for those projects.

In summary, beyond the obvious grants and loans, government support for small businesses also comes via reduced taxes or credits, preferential contract opportunities, and safety nets in emergencies. Smart business owners will take advantage of these where applicable – it can improve your bottom line and resilience.

State and Local Government Support Programs for Small Businesses

While federal programs often grab the spotlight, state and local governments also play a pivotal role in supporting small businesses. Every state (and many cities/counties) has its own set of initiatives, which can include direct loans or grants, tax breaks, incubator programs, training, and more. 

These programs are typically tailored to the specific economic priorities of that state or community – for instance, one state might focus on manufacturing firms, while a city might create incentives for retail and “Main Street” businesses. 

In this section, we’ll cover the landscape of state and local government programs for small businesses, with examples and guidance on how to find these resources.

State-Level Funding Programs and Initiatives

State Small Business Credit Initiative (SSBCI): One of the biggest recent boosts to state-level financing programs came from the federal government via the State Small Business Credit Initiative (SSBCI). 

Reauthorized and funded with nearly $10 billion in 2021 (as part of the American Rescue Plan), SSBCI provides money to states, U.S. territories, and tribal governments to set up or expand small business financing programs. 

Essentially, the U.S. Treasury gives funds to states, and states have flexibility to use them for things like loan guarantee programs, loan participation (where the state co-lends or buys part of loans), venture capital funds, collateral support programs, or capital access programs. 

The idea is to catalyze up to $10 of private investment for every $1 of SSBCI funds, making a little public money go a long way. As of 2025, all states have launched their SSBCI-funded programs – meaning small businesses should definitely explore what new funding options their state might have. 

For example, some states are using SSBCI to provide seed funding to startups, others to help banks lend to more small businesses by mitigating risk. You can usually find info on your state economic development agency’s website or via a Treasury list of SSBCI contacts. 

This infusion is a transformational investment in small business by enabling more local-tailored funding streams. If you struggled to get a bank loan before, check if your state now offers a loan guarantee or capital access program that could make your bank say “yes” (with the state essentially backstopping part of the loan).

State Loans and Loan Guarantees: Even outside of SSBCI, many states have long operated their own small business loan or microloan programs. These might be run by a state finance authority, economic development department, or a partnering nonprofit. 

For instance, a state might have a revolving loan fund to provide gap financing for businesses expanding facilities or buying equipment. Interest rates can be low and terms favorable since the aim is economic development, not profit. 

Other states provide loan guarantees (similar to SBA) so that local banks can lend to higher-risk companies with the state sharing the risk. An example is California’s Small Business Loan Guarantee Program, which through a network of finance centers helps small businesses that can’t get a conventional loan by guaranteeing a portion.

State Grants and Innovation Funds: Free money at the state level does exist, usually for specific goals. Some common state grant programs include:

• Startup/Innovation Grants: e.g., accelerator or incubator grants, proof-of-concept grants, or matching grants for businesses that win federal SBIR awards.
  
  A notable example: the Florida High Tech Corridor offers grants to small tech businesses that partner with local research institutions – this spurs innovation and university collaboration.
  
  Another example: Colorado’s Advanced Industries grants provide funding to startups in aerospace, bioscience, etc., to accelerate commercialization.
  
• Workforce Training Grants: Many states will offset the cost if you train new employees or upskill your workforce.
  
  For instance, the Texas Workforce Commission grant program helps small businesses (<100 employees) cover training costs for full-time workers. This encourages job creation by reducing the burden of training on the employer.
  
• Minority/Women Business Grants: Some states set aside funds to seed minority-owned or women-owned businesses, recognizing the importance of inclusive growth.
  
  For example, Minnesota’s Emerging Entrepreneur Loan Program (ELP) provides funds to nonprofit lenders to make loans to businesses owned by minorities, women, veterans, low-income individuals, etc., aiming to create jobs and economic vitality in disadvantaged areas.
  
  While called a “loan program,” it effectively is a grant to lenders who then offer favorable loans to targeted entrepreneurs.
  
• Sector-Specific Grants: Agriculture grants (beyond USDA) – e.g., some states give grants for value-added agriculture or agritourism. Or arts and cultural grants for creative businesses.
  
  Infrastructure or Site Improvement grants if you’re rehabbing a property or moving into a distressed area – for instance, Illinois launched infrastructure grants for communities and businesses as part of a state capital initiative.
  
  If a small business expansion ties into those projects (like building a new facility), they might tap those grants.
  
• COVID-19 Relief Grants (State): During 2020-2022 many states created small business emergency grant programs (using federal relief funds). By 2025, most of those are closed, but some states continue with recovery grants for certain industries (e.g., tourism or restaurants).
  
  Always check if any one-time programs are still taking applications, especially if your business was hard-hit and not fully recovered.

Tax Incentives and Exemptions: On the non-cash side, states often support small businesses by reducing tax burdens in various ways. This can include:

• Tax credits for job creation or capital investment: e.g., a credit per new job created, often used in economic development deals.
  
• Sales tax exemptions: for buying manufacturing equipment or for certain industries like R&D.
  
• Enterprise Zone or Opportunity Zone incentives: if your business is in a designated zone, you might get state income tax credits, property tax abatements, or other perks for a number of years.
  
• State R&D Credits on top of federal ones, or angel investor tax credits to encourage investment into local startups (indirectly helping those companies raise money).
  These incentives vary widely, but they’re an important form of support by lowering costs of doing business in that state.

Examples of State Initiatives: To make it concrete, here are a few examples of state programs:

• California – via the Office of the Small Business Advocate (CalOSBA), runs grant programs such as the California Dream Fund (a grant for new entrepreneurs coming out of certain training programs), and others for technical assistance. California also has a robust loan guarantee program and the IBank which offers direct loans.
  
• New York – Empire State Development offers various funding programs, from grants to interest-free loans, and innovation challenges. They had initiatives like the New York State COVID-19 Pandemic Small Business Recovery Grant Program (now closed) and ongoing ones for specific sectors.
  
• Texas – aside from the above-mentioned workforce training grants, Texas has the Product Development & Small Business Incubator Fund and the famous Texas Enterprise Fund (TEF) which gives large “deal-closing” grants for companies creating jobs in Texas. Also, Texas uses SSBCI funds for venture capital investments in Texas startups.
  
• Illinois – as mentioned, infrastructure grants were deployed, and the state runs Advantage Illinois (loan program) and other targeted funds.
  
• Georgia – has small business loan programs and often provides grants or support for businesses in entertainment (film, music) via tax credits, benefiting small production companies.

Every state brands its programs differently. Therefore, to find what’s available for you, visit your state’s official economic development or commerce agency website. Look for sections like “Business Resources” or “Small Business Programs.” 

Also, many states have a Small Business Development Center network, and the state SBDC lead office often knows about state-specific aid. As a quick strategy: search “[Your State] small business grants” or “[Your State] small business loan program.” 

And don’t forget your state legislators’ offices – they often know about grant programs or can help point you in the right direction.

Local Grants, Incentives, and Resources

Local governments – counties, cities, towns – also run programs especially to boost community-level entrepreneurship and revitalize their economies. 

These can be hyper-local and sometimes time-limited or funded by local budgets, but they make a real difference for businesses that qualify. Some common local support programs include:

City Small Business Grants: Many city governments offer small business grant programs, which might be annual or one-off. These are often geared towards specific goals like:

• Facade Improvement or Commercial Corridor Grants: to help retail shops and restaurants improve their storefronts, signage, or make other upgrades that beautify the neighborhood. For example, a city might reimburse 50% of the cost of a new awning or storefront renovation up to $5,000.
  
• Business Startup or Expansion Grants: some cities have competitive grant contests or allocations for promising new businesses, particularly in under-served neighborhoods. Applicants might have to submit a business plan or pitch.
  
• Minority/Women-owned Business Grants at City-level: similar to state efforts but targeted to the city’s demographics and needs.
  
• COVID-19 Recovery Grants: as noted, many cities had these and some extended into recovery programs for things like making outdoor dining permanent, etc.

A notable example: San Francisco’s Access to City Hall program included an Accessibility Grant for small businesses to upgrade for ADA compliance – offering up to $10,000 for things like wheelchair ramps, accessible restrooms, etc., with a quick application and response time. 

Eligibility was limited to businesses under a certain revenue and size, ensuring it helped truly small local shops. This is a great illustration of a city identifying a specific need (accessibility improvements) and directly supporting small businesses to meet it.

Local Tax Incentives: Just as states do, cities might abate property taxes or give local tax credits to encourage small businesses to open or expand. Some cities waive business license fees for new small businesses, or have “holidays” from certain taxes to boost local commerce. 

Local jurisdictions in states with high taxes sometimes have special carve-outs for small firms, acknowledging their more fragile nature.

Entrepreneurship Centers & Incubators: Local economic development agencies frequently support incubators, co-working spaces, or innovation hubs by providing funding or public-private partnerships. 

While not direct cash in your pocket, getting accepted into a city-supported incubator can provide free/low-cost office space, mentorship, and exposure to investors or grants. 

For example, a city might work with a local university to run a tech startup incubator or a kitchen incubator for food entrepreneurs. The city’s contribution might be covering some operating costs or providing grants to the incubator, indirectly benefiting the businesses housed there.

Main Street Programs and Downtown Revitalization: There is a national Main Street program (nonprofit) focusing on revitalizing historic downtowns, and many cities participate. 

Local governments may offer incentives to businesses that open in designated “Main Street” districts, such as grants, low-interest loans, or technical assistance for things like storefront design. 

If you’re a retail or restaurant business considering a certain city, check if they have a downtown revitalization fund or facade improvement program. 

Sometimes, Community Development Block Grant (CDBG) funds (federal money given to cities) are used to support small businesses with low-interest loans or microgrants, especially for those that create jobs for low-income residents.

Examples of Local Support:

• New York City – offers programs like NYC Small Business Services grants for storefront improvement, women entrepreneur training (WE NYC), and has financing programs in partnership with local CDFIs.
  
• Chicago – runs the Small Business Improvement Fund (SBIF) which uses TIF (tax increment financing) money to give grants to businesses for facility improvements in certain districts, and a Retail Thrive Zone program with local incentives.
  
• Atlanta – has a Resurgence Grant Fund (created with federal ARP money) providing grants to small businesses recovering from COVID, as well as local loan programs via Invest Atlanta.
  
• Rural towns – some rural counties offer small grants to any new business that opens on the once empty main street, to encourage occupancy and job creation.

Because local programs are so varied, your best approach is to contact your city’s economic development office or chamber of commerce. They usually know current grants or can help you with local permit fee reductions, etc. Additionally, local SBDCs know about city programs as well and can assist with applications.

How to Find and Apply for Local Programs

Finding local government support programs isn’t always straightforward, since they may not be well-publicized. Here are some tips to uncover these opportunities:

• Search your State/City Official Websites: Many states and cities have a business or economic development section. Try searching “[Your City] business grants” or “[Your County] small business programs”. Also, search your state’s official site for “small business grants” or incentives. States often list resources or link to different initiatives.
  
• Economic Development Offices: Identify the economic development authority/department at the state and city level. Their websites often list financing programs, tax incentives, and contacts for more information.
  
  For instance, a state might have a page listing “Access to Capital” options and include state loan programs and links to federal ones.
  
• Local Chamber of Commerce and Business Associations: Chambers often keep track of local support and may even administer some grant programs in partnership with government or foundations. They can also be a conduit to ask other business owners what programs they’ve used.
  
• SBDC and Other Resource Partners: As mentioned earlier, your local SBDC, WBC, or SCORE chapter will likely know the lay of the land. They often help clients apply for these programs, so they hear about what’s available.
  
  Don’t hesitate to reach out and ask “Are there any local grants or subsidized loan programs I should know about?”
  
• Subscribe to Newsletters or Alerts: Some city and state agencies have small business newsletters that announce new programs or grant competitions. Social media pages of these agencies can be a source too.
  
• Attend Local Events/Workshops: City agencies or nonprofit groups might host “Access to Capital” workshops where they present all the local funding sources including government ones. These events can be valuable for discovery (and networking with program administrators).
  
• Read Local News: Sometimes new programs are covered in the local press when launched. A new mayor, for example, might announce an initiative for small businesses in certain neighborhoods, and local newspapers or blogs would write about how to apply.

When you identify a program, carefully note the eligibility criteria, deadlines, and application requirements. Local grants might have short windows or specific targeting (e.g., “businesses in operation for at least 2 years in X corridor”). 

Prepare the needed documentation (business plan, financials, etc.) – often similar to what you’d need for a loan application. If it’s a competitive grant, treat it like a pitch for why your business deserves the funding and how it meets the program’s goals (job creation, community benefit, etc.). 

Don’t get discouraged if you miss out on one opportunity; many of these local efforts have multiple rounds or recurring funding cycles.

Finally, remember that local support isn’t always about money. Zoning assistance, fast-tracking permits, reduced license fees, free marketing in city promotions – these are also ways local governments help. 

For instance, a city might have a “shop local” campaign website where they’ll list your business for free, or offer pro-bono design services for a new business’s logo via a partnership with a design school. All these little things, while not cash, are valuable support that can save you money or increase your revenue.

Government Support Programs for Specific Types of Small Businesses

Small businesses are diverse – they range from tech startups in Silicon Valley, to family-run retail shops in small towns, to farms in the Midwest, minority-owned construction companies, women-led consulting firms, veteran-owned manufacturing companies, and beyond. 

The government recognizes that some groups of entrepreneurs or certain industries face unique challenges, so there are specialized programs aimed at leveling the playing field or spurring growth in those segments. 

Below, we outline targeted support for several types of small businesses: minority-owned, women-owned, veteran-owned, rural/agricultural, technology-focused, and retail/Main Street businesses. 

Each of these categories can tap general programs described above, but also have additional resources or set-asides earmarked for them.

Minority-Owned Small Businesses

Minority-owned small businesses (generally defined as at least 51% owned by individuals who are part of racial or ethnic minority groups) are crucial to economic inclusion and community development. 

Yet, minority entrepreneurs can face barriers in accessing capital and opportunities. To address this, multiple government programs focus on empowering minority-owned firms:

• MBDA Business Centers and Grants: As discussed earlier, the Minority Business Development Agency (MBDA) operates a nationwide network of Business Centers that specifically assist minority entrepreneurs with business consulting, financing, and contracting opportunities.
  
  These centers can help develop growth strategies and connect clients to larger corporate and government supply chains.
  
  Additionally, MBDA periodically offers grants for initiatives like supporting minority business incubators, or programs like the Capital Readiness Program (which in 2023 awarded grants to organizations helping minority and other underserved entrepreneurs become capital-ready).
  
  Minority business owners should visit MBDA.gov to find local center information and stay updated on grant opportunities.
  
• 8(a) Business Development Program: Many minority-owned businesses pursue 8(a) certification through the SBA, since socially disadvantaged status is a core eligibility (and certain minority groups are presumed to be socially disadvantaged under
  
  SBA rules). Once in 8(a), these businesses get access to exclusive federal contract opportunities as described in the contracting section. This can be transformative – some 8(a) certified firms grow from small to mid-size due to winning substantial government contracts with limited competition.
  
  The program also provides mentorship and training to participants. It’s essentially a federal diversity program to ensure minority and disadvantaged businesses can thrive as federal vendors. If you qualify, this is an opportunity you shouldn’t overlook.
  
• Community Development Financial Institutions (CDFIs): While not exclusively for minorities, many CDFIs were created to serve minority communities and low-income areas.
  
  The CDFI Fund from the Treasury supports these mission-driven lenders. They often offer flexible loans and credit to minority entrepreneurs who might be declined by traditional banks. CDFIs sometimes pair their loans with technical assistance.
  
  Examples include institutions like LISC, Accion Opportunity Fund, and Grameen America. Governments at federal and state levels channel money through CDFIs (like SSBCI or other grants) to reach minority businesses.
  
  So, seeking out a local CDFI or minority-focused loan fund can be a smart move if you need financing.
  
• State and Local Minority Business Programs: Many states have their own Minority Business Enterprises (MBE) certification and goals for state procurement. For instance, a state might aim to award X% of state contracts to MBEs (minority-owned firms).
  
  Getting certified at the state or city level as an MBE can open doors to contracts for providing goods or services to government agencies or even large companies that have diversity supplier programs.
  
  Some states also mirror the federal 8(a) with their own development programs or provide state grants like the Minnesota example which targets minority-owned business growth. Check if your state has a Minority Business Office or similar.
  
• Training and Networking: Besides financial help, minority entrepreneurs can benefit from government-affiliated networks like the SBA’s Small Business Development Centers and SCORE, which often hold targeted workshops (like how to do business with the government for minority contractors).
  
  Also, MBDA organizes networking events and the National Minority Enterprise Development (MED) Week conference annually to celebrate achievements and connect minority businesses with opportunities.

Recent updates in this space: The Bipartisan Infrastructure Law in 2021 made MBDA a permanent agency and provided it more funding, meaning more grants and services for minority businesses are rolling out. 

Also, SSBCI (mentioned earlier) mandated that a portion of funds focus on socially and economically disadvantaged-owned businesses; many states set up specific loan or equity programs under SSBCI for minority businesses. For example, some states launched new venture capital funds targeting minority founders.

Bottom line for minority entrepreneurs: leverage these targeted programs in addition to general ones. You might find a more receptive lender or specialized training that understands your context. 

The government’s goal is not charity, but to unlock the full economic potential of minority business owners – which in turn creates jobs and wealth in communities that need it.

Women-Owned Small Businesses

Women-owned businesses are a fast-growing segment of entrepreneurship. The government provides various programs to encourage and support women entrepreneurs, focusing on access to capital, contracts, and counseling:

• Federal WOSB Program: The flagship federal effort is the Women-Owned Small Business (WOSB) Federal Contracting Program we discussed.
  
  With the aim of awarding at least 5% of federal contracting dollars to women-owned small businesses, this program levels the playing field in industries where women have been underrepresented.
  
  As a woman business owner, getting WOSB certified (or economically disadvantaged WOSB, if applicable) can qualify you for those set-aside contracts.
  
  Even outside of set-asides, many agencies seek out women-owned firms to meet their goals, so being in the WOSB repository and visible is helpful. The certification process can be done through SBA’s free online system now.
  
  Once certified, keep an eye on FedBizOps (SAM.gov) for WOSB-specific solicitations. Additionally, the Office of Women’s Business Ownership (OWBO) within SBA oversees this and other women’s initiatives, ensuring women entrepreneurs have advocacy within the federal government.
  
• Women’s Business Centers (WBCs): As mentioned, WBCs are a major resource. They provide training in business planning, financial management, marketing, and more – all tailored for women who may face unique social hurdles (like balancing business and family, or overcoming lack of investor networks).
  
  WBCs often run cohorts or programs like startup accelerators for women, pitch competitions, and networking events with successful female founders.
  
  They also often partner with microlenders or grantmakers – for instance, a local WBC might administer a small grant program for women entrepreneurs funded by a private sponsor or city.
  
  The environment at WBCs is very supportive, aiming to build confidence and skills. By connecting with a WBC, you not only learn, but also join a sisterhood of businesswomen sharing experiences and opportunities.
  
• Access to Capital Initiatives: A persistent issue reported is that women-owned firms receive a disproportionately small share of venture capital and sometimes have difficulty getting loans. To combat this, there are now several loan programs and funds focused on women.
  
  For example, SBA in the past had a program called 504 Refinancing for women-owned firms, and some CDFIs focus on lending to women of color (e.g., Grameen America for Latina entrepreneurs).
  
  Some states have specific loan programs for women. Also, the Amber Grant (though not government) is a well-known monthly grant for women entrepreneurs – while not official, WBCs often encourage clients to apply for such opportunities.
  
  The government indirectly supports many of these efforts (for instance, SBA’s microloan intermediaries often prioritize women borrowers – historically well over half of microloans go to women).
  
• Training and Mentorship: Beyond WBCs, SBA has programs like “Empowerment Zone” or “Aspire” (names vary) that partner with the private sector to train women in business skills.
  
  SCORE also has many women mentors and dedicated women entrepreneur initiatives. And the Women’s Bureau of the Department of Labor sometimes offers grants for training programs that benefit women business owners (for example, helping women get into non-traditional sectors).
  
  If you’re a female founder in the tech realm, note that SBIR/STTR agencies have been tasked to increase outreach to women-led firms (as they are underrepresented in those programs too). So you may find SBIR workshops aimed at women or minorities via SBA or NSF.

A recent development: The Infrastructure Investment and Jobs Act (2021) allocated funding to expand the WBC program, and as a result, SBA announced new WBCs in 20 more states where coverage was missing – now there is at least one in every state. 

Additionally, OWBO launched the Women’s Business Center Resiliency and Recovery Demonstration Grant to strengthen WBC services post-pandemic.

In summary, women entrepreneurs should take advantage of the robust support network – from specialized training and mentorship to exclusive contracting opportunities. 

The playing field has improved, but gaps remain in areas like equity financing; however, with government and private programs combined, women business owners today have more support than ever to pursue their ventures.

Veteran-Owned Small Businesses

Military veterans often have the self-discipline, leadership, and grit that make for strong entrepreneurs. To honor their service and harness their potential in business, there are several programs for veteran-owned small businesses (VOSBs), especially those with service-connected disabilities (SDVOSBs):

• Federal Contracting for Veterans: As detailed earlier, the Service-Disabled Veteran-Owned Small Business Program reserves a portion of federal contracts for SDVOSBs, aiming for at least 3% of contracting dollars to go to them.
  
  Both the SBA and the Department of Veterans Affairs (VA) have roles here. The VA, in particular, has a robust program (the “Vets First” law) that gives preference to veteran-owned firms for VA procurement – they have historically exceeded 20% of VA contract dollars to veteran businesses.
  
  If you are a veteran business owner, getting verified/certified as an SDVOSB (or VOSB for VA purposes) is crucial to access these opportunities. As of 2023, SBA’s new Veteran Small Business Certification program handles this verification (taking over from a VA center).
  
  Once certified, you can bid on SDVOSB set-asides across all agencies and VOSB set-asides at VA. Veterans bring a mission-oriented approach that many agencies value, and you’ll find a supportive community within government contracting for vets.
  
• Veteran Business Outreach Centers (VBOCs): These SBA-funded centers provide veterans and military spouses with training (notably the Boots to Business program which is offered to transitioning service members on military bases) and one-on-one business counseling.
  
  They help with everything from concept refinement to navigating loan applications. Many VBOCs are run by veterans, creating an environment of trust and understanding.
  
  If you’re just coming out of the service and interested in entrepreneurship, start with Boots to Business classes and link up with a VBOC – you’ll get a tailored introduction to business fundamentals and resources.
  
• Access to Capital for Veterans: The SBA used to have a Patriot Express Loan program specifically for veterans; it has ended, but SBA 7(a) loans still offer incentives – currently, SBA offers fee reductions on certain loans for veteran-owned businesses (for example, no guaranty fee on loans under a certain amount for veterans).
  
  Also, some microlenders or banks have products for veterans. There are nonprofits like StreetShares Foundation (which had grants/competitions for vets) and Warrior Rising that provide funding or support.
  
  In 2023, the Veteran Entrepreneurial Act was proposed to permanently waive some loan fees for vets – worth watching legislative updates. Additionally, SSBCI funds in some states are being directed to veteran loan programs as well.
  
• Training and Networking: Veterans can also leverage the broader SBA resources (SBDCs, SCORE). SCORE even has a Veteran Fast Launch initiative and many veteran mentors.
  
  The VA’s Office of Small & Disadvantaged Business Utilization (OSDBU) holds an annual National Veterans Small Business Engagement (NVSBE) conference, which is a huge networking and learning event connecting vets with government and industry buyers.
  
  Moreover, programs like DoD’s Transition Assistance Program (TAP) now include entrepreneurship tracks. There are also vet-focused accelerators like Bunker Labs (privately run but often collaborating with govt resources) that can plug you into a network of veteran entrepreneurs.
  
• Franchising for Veterans: Not directly a government program, but worth noting: the Veterans Franchise Transition Initiative (VetFran) is supported by the government whereby many franchises offer fee discounts to veteran franchisees.
  
  This is more of an industry initiative but endorsed by the SBA as another pathway for veterans to business ownership.

The government recognizes that helping veterans succeed in business not only rewards their service but also capitalizes on their skills to create jobs. If you wore the uniform, be sure to utilize these programs – you’ve earned them. 

And note: military spouses often can access training through VBOCs, and with frequent moves, some programs focus on portable businesses for spouses as well.

Rural and Agricultural Small Businesses

Rural America has unique challenges – sparse populations, infrastructure gaps, and heavy reliance on agriculture or single industries. To ensure rural communities thrive, there are targeted programs for rural and agricultural businesses:

• USDA Rural Development Programs: The U.S. Department of Agriculture (USDA) is the lead agency serving rural communities (typically defined as towns under a certain population, often <50,000, though it varies by program). Under USDA Rural Development (RD), there’s an array of programs:
  
  • Business & Industry (B&I) Loan Guarantees: Similar to SBA loans, USDA can guarantee commercial loans made to rural businesses (not just farms, any business in a rural area).
    
    This encourages local banks to lend by reducing their risk. The loans can be up to $25 million in some cases and used for many purposes (real estate, equipment, working capital).
    
  • Rural Business Development Grants (RBDG): Grants typically given to nonprofits or public entities which then support small businesses (e.g., a rural town might get a grant to build a business incubator or provide technical assistance to local micro-businesses). Small businesses indirectly benefit through those services or facilities.
    
  • Value-Added Producer Grants (VAPG): Grants to agricultural producers (farmers, ranchers, fishermen) to create value-added products – for instance turning milk into cheese on site, or fruits into jam. These help boost farm income by expanding into processing and marketing.
    
  • Rural Microentrepreneur Assistance Program (RMAP): Provides loan funds and grants to organizations that in turn make microloans (up to ~$50k) to rural microenterprises and provide business training. If you have a very small business in a rural area, finding an RMAP lender could secure you a microloan.
    
  • Rural Energy for America Program (REAP): Grants and loan guarantees to rural small businesses and farms to install renewable energy systems or make energy efficiency improvements (e.g., help purchase solar panels, upgrade to efficient HVAC).
    
  • Telecommunications and Broadband Grants/Loans: To expand broadband in rural areas, which indirectly helps all rural small businesses to have better connectivity.
    
• USDA’s focus is on “improving economic opportunities and quality of life in rural America”. That often means helping a small town’s businesses modernize, or a cooperative to form, etc.
  
  If you operate in a rural area, consider both SBA and USDA options – sometimes you can use both (e.g., an SBA loan for part of a project and a USDA grant for another part).
  
• Farm Service Agency (FSA) Loans: For farmers and ranchers (who are small business owners too), the USDA’s FSA provides direct farm ownership and operating loans, including special programs for beginning farmers, minority and women farmers, and veterans.
  
  While these are geared to agricultural production rather than, say, a main street retail shop, they support the agricultural small businesses that underpin many rural economies.
  
• Rural Outreach through SBDCs and Extension: Many land-grant universities (which have Cooperative Extension Services) collaborate with SBDCs or have their own small farm/small business programs to support rural entrepreneurs.
  
  Some Extension programs help farmers diversify into agritourism or direct marketing, etc., effectively small business coaching. There are also SBA’s SBDCs specifically serving rural regions, ensuring that even far-flung communities get business advice.
  
• State Rural Programs: States often have offices of rural development or agriculture that run grant or loan programs. For example, a state might provide low-interest loans to encourage businesses to locate in rural counties, or tax credits for creating jobs in those areas.
  
  Some have rural “opportunity funds” or venture capital funds to invest in rural startups. If you’re rural, look at both USDA and your state’s agriculture/economic development websites.
  
• Infrastructure and Main Streets: A lot of federal support flowing to rural areas is indirect but still critical for small businesses – like grants to improve water systems, roads, or revitalize downtown through the Community Development Block Grant (CDBG) program. A nicer, well-lit main street or improved highway can help a rural small business attract more customers.

A recent emphasis: The federal government, through legislation like the 2022 Inflation Reduction Act and the Bipartisan Infrastructure Law, has earmarked significant funds for rural broadband, rural energy transition, and resilience. 

This means more grants and financing for projects that could benefit rural small businesses (like broadband co-ops, or funding a rural factory to adopt new tech). It’s an evolving area, but the bottom line is that rural businesses have not been forgotten – there’s arguably more attention now on bridging the rural-urban economic divide.

Technology and Innovation Startups

Tech startups and innovative small businesses drive competitiveness and high-quality job growth. However, they often need significant capital and R&D resources which can be hard to come by in early stages. The government has stepped in with programs uniquely suited to high-growth, high-tech small businesses:

• SBIR/STTR Programs: Reiterating from earlier, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are the primary funding source for deep-tech, high-risk research by startups.
  
  Each year, over $3 billion is awarded across 4,000+ projects nationwide through SBIR/STTR. If you’re a tech startup developing a new product or technology (from biotech to aerospace to software), you should see if any agency has SBIR topics that match your work.
  
  Winning an SBIR grant not only gives you non-dilutive funding but also credibility and often relationships with government customers. The process involves writing proposals in response to specific topics (Phase I to prove concept, Phase II to develop prototype).
  
  Some agencies even have a Phase III (commercialization stage, often through procurement contracts). In 2025, agencies like NASA, DoD, NSF, DOE, NIH, etc., are actively seeking small innovators to solve problems.
  
  STTR in particular encourages partnerships with research institutions, so if you have a university collaboration, that can be an advantage in those calls.
  
  Keep track on SBIR.gov for solicitation openings. Also note, some states give SBIR matching grants – e.g., your state might grant you $50k if you win a federal Phase I, to add to your project budget.
  
• Technology Incubators and Accelerators (Public-Private): Many local governments and universities support incubators that cater to tech startups. For example, EDA’s Build to Scale program provides grants to accelerators and investment funds to boost regional innovation.
  
  If you’re in a city with a growing tech scene, chances are some of the incubators or pitch competitions you see are funded in part by government grants. Participating can get you not just mentorship but potentially grant money or introductions to investors.
  
  There are also government-run accelerators in some sectors (e.g., FedTech, which commercializes federal lab tech with entrepreneurs).
  
• Federal Technology Transfer and Commercialization Programs: Beyond funding R&D, the government also tries to commercialize the innovations.
  
  Initiatives like the Lab-Embedded Entrepreneurship Programs (at national labs, funded by DOE) give entrepreneurs a chance to work in a lab with stipend support to develop clean energy tech.
  
  The NSF’s I-Corps program offers training (and a small grant) to scientists on how to get customer discovery and turn their research into a business – many SBIR applicants go through I-Corps. If you’re in cutting-edge tech, look out for these opportunities to leverage federal R&D assets.
  
• Patent and Intellectual Property Assistance: The U.S. Patent & Trademark Office (USPTO) has programs like the Pro Bono Patent Program (free legal help for inventors/startups who qualify) and fast-track options for small entities to get patents quicker (Track One program, albeit with a fee). Securing IP can be crucial for a tech startup, and these supports lower the barrier.
  
• VC and Investment Programs: The government, via SBA, runs the Small Business Investment Company (SBIC) program – not directly giving money to startups, but licensing and funding investment funds that then invest in small businesses (often later-stage than seed).
  
  However, one new development: the SSBCI initiative we mentioned has a focus on state-run venture capital programs. Many states are using part of their SSBCI money to create or bolster venture funds that invest in local startups.
  
  For example, Ohio might use SSBCI to fund a new early-stage tech fund focusing on biotech, etc. If you’re raising equity, check if your state has an SSBCI-backed investment program or angel match program.
  
  Some states also give investor tax credits for those who invest in qualified small businesses (e.g., Angel Investor Credit), indirectly encouraging more venture funding for startups.
  
• Tax Credits for Innovation: We touched on the R&D tax credit – for tech startups, this is a must-use if you have any kind of payroll (it can yield up to $250k/year back on your payroll taxes for up to 5 years if you spend enough on R&D).
  
  Also, the Orphan Drug Credit for developing drugs for rare diseases (if you’re a biotech) can be sizable. The government uses these tax levers to reduce the burn rate of innovative companies tackling big challenges.
  
• Industry-Specific Initiatives: Depending on your field, there might be special programs. For instance, health tech startups can look at HHS’s BARDA for public health-related innovation funding.
  
  Education tech companies might find grants from Dept of Education’s SBIR or IES programs. Defense startups can use programs like AFWERX (Air Force’s innovation arm) which awards contracts to startups for defense solutions (somewhat like SBIR but more procurement-focused). The landscape is rich if you drill down by sector.

Given how fast tech evolves, staying updated is key. As of 2025, the U.S. government is pushing investment in semiconductors (with the CHIPS Act – though most of that goes to large companies, some to workforce and small suppliers), clean energy tech (via DOE grants and the climate bill incentives), and biotech (with ARPA-H and others). 

If your startup aligns with national priorities (AI, cybersecurity, clean energy, etc.), there could be even more support available now or on the horizon.

Retail and Main Street Small Businesses

Not every small business is high-tech or eligible for special certifications – millions of entrepreneurs run retail stores, restaurants, cafes, and service businesses that form the fabric of Main Streets across America. 

While these retail and Main Street businesses might not have dedicated federal programs just for them (since they can access the general programs like any small business), they are often the focus of state and local support efforts:

• Local Grants and Revitalization Programs: As discussed in the local programs section, retail businesses can benefit greatly from city programs like façade improvement grants, commercial rent subsidies, or district revitalization grants.
  
  For example, a city might grant a new storefront $10,000 to renovate a long-vacant space, or provide a year of discounted rent in a city-owned market hall for a startup retailer.
  
  Many downtown areas, through their economic development authorities or Business Improvement Districts (BIDs), have small grant or loan programs to attract boutiques, restaurants, and other foot-traffic generators.
  
  If you run a retail or food business, plug into your local Main Street organization or BID – they often manage such programs or can advocate on your behalf for city support.
  
• Main Street America & Preservation Grants: If your retail business is in a historic downtown, check if your community is part of the Main Street America network.
  
  Sometimes grant money (from the state or foundations) flows through those channels to help rehab old commercial buildings, support marketing events (like shop local campaigns), or even mini-grants to businesses for things like new signage or point-of-sale systems.
  
  The National Trust for Historic Preservation also occasionally offers grants or tax credits that benefit small businesses fixing up historic properties.
  
• SBA Loans for Retail: Retail shops often need capital for inventory, renovations, or to recover from seasonal swings. SBA 7(a) and microloans are very much geared to these needs.
  
  In fact, many SBA loans go to franchises, independent stores, and restaurants. If a bank says no to a small retailer for a loan, an SBA guarantee could turn that into a yes. Microloans (up to $50k) are commonly used by small retail or crafts businesses to buy inventory or equipment (e.g., a new oven for a bakery, or stock for a boutique).
  
  During COVID, retailers were major beneficiaries of PPP loans and EIDL, demonstrating how crucial government-backed financing is in a crisis. While those specific programs ended, the SBA loans remain a safety net.
  
  Also, some SBA lenders specialize in certain industries (for example, there are SBA loans tailored for gas stations, hospitality, etc.). It can help to find a lender with experience in your type of retail for smoother processing.
  
• Training: Customer-Facing Business Skills: Retail and hospitality businesses thrive on customer service, merchandising, and adapting to trends (like e-commerce integration).
  
  While not a cash program, SBDCs and SCORE often offer workshops on modernizing your retail business – from social media marketing to inventory management software.
  
  Post-2020, there have been many initiatives to help small retailers establish an online presence (like get an online storefront or improve their online ordering for restaurants). Some state programs or local chambers partnered with tech companies to offer free tools or training on this.
  
  So, look out for those resources – for example, a state might have a “Grow with Google” series or a local nonprofit offering free website building for mom-and-pop shops funded by a grant.
  
• Consumer Incentive Programs: Occasionally, local governments create programs to drive customers to small businesses, which indirectly supports retail stores.
  
  One example is during the pandemic, some cities gave residents vouchers or “bucks” that could be spent at local small businesses (the city reimbursed the businesses). Others ran marketing campaigns or contests (e.g., “shop at 5 local stores and get entered to win a prize”).
  
  While these aren’t direct to the business, they stimulate sales which is the lifeblood of retail. Stay engaged with your local community’s events and campaigns – they often come with some backing from city hall or tourism boards.
  
• Adaptation and Resilience Programs: After facing disruption (like COVID or natural disasters), small retailers might access special assistance.
  
  For example, there were programs to help restaurants build outdoor dining (with grants for buying parklet equipment, heat lamps, etc.). Disaster recovery grants or loans might help a store rebuild after a flood.
  
  Some states have business interruption grant programs for hard times. Always check after any event that impacts your business if there’s governmental help available.
  
  Even now, in some places, ARPA funds are still being used for things like downtown recovery – perhaps a grant to hold a festival that benefits businesses or direct aid to tourist shops that lost revenue.

Retail and service businesses should remember: while you may not have a label like “high-growth tech” or “certified minority-owned” to unlock specialized federal grants, you are the cornerstone of local economies and many public programs exist to keep Main Street vibrant. 

Use the general programs (loans, SBDC advice, etc.) and make noise locally – often, local officials are very keen to retain and attract storefront businesses and might tailor solutions if they know the needs.

In summary, whatever type of small business you run, from a high-tech startup to a hometown retail shop, there are government programs that support your venture. 

It might be through funding, reduced competition in contracts, expert guidance, or creating a favorable ecosystem for you to operate in. The key is to identify which programs align with your business type and stage, and then to take full advantage of them.

Frequently Asked Questions

Q: How do I know if my business qualifies as a “small” business for these programs?

A: The definition of “small business” can vary by program, but generally, the SBA’s size standards determine if your business is small. 

These standards are usually based on your number of employees or annual revenue, and they differ by industry (for example, a manufacturing company might be considered small with up to 500 employees, while a retail store might have a revenue cap in the millions). 

Most small businesses easily qualify since 99.9% of all businesses in the U.S. are considered small. Specific programs might have additional criteria – for instance, 8(a) requires demonstrating social/economic disadvantage, and WOSB requires 51% ownership by women. 

It’s best to consult the program guidelines or use the SBA’s Size Standards Tool on their website. If you’re in doubt, reach out to an SBA office or SBDC – they can help confirm your eligibility.

Q: Are there government grants to start a small business?

A: Many people hope for a no-strings-attached grant to start a business, but direct startup grants from the federal government are rare. The government typically doesn’t give grants to individuals to start ordinary businesses. 

Most federal grants are for specific purposes like R&D (SBIR for tech development) or community programs. However, there are other avenues: you might find local grants for startups. 

Additionally, there are private and nonprofit grants (like pitch competitions or foundation grants) that aren’t government but serve small business founders. 

Your best bet is to leverage government-backed loans and free counseling when starting out, and if you’re in a special category (tech innovation, minority, etc.), pursue the targeted grants available there. 

Remember, any grant will involve an application demonstrating how your business aligns with the grant’s goal (innovation, community development, etc.). Always be cautious of scams – the government won’t ask you to pay for a grant list or guarantee you money; if an offer sounds too easy, double-check its legitimacy.

Q: How can I apply for an SBA loan, and how long does it take to get approved?

A: To apply for an SBA loan, you actually apply through a participating lender (bank, credit union, or online lender) – not directly to the SBA. The process is similar to a regular business loan: you’ll need to prepare financial statements, a business plan, tax returns, and other documentation. 

The lender will underwrite the loan and then submit it to the SBA for a guarantee approval. SBA 7(a) loans can take a few weeks to a couple of months from application to funding. Some lenders are part of SBA’s Preferred Lender Program (PLP), which means they can approve loans in-house and expedite the process. 

Microloans are often faster and handled by local nonprofits. The new SBA Lender Match tool (on ) is a great way to connect with SBA-approved lenders by filling out a short form. To speed up approval, ensure your paperwork is complete and addresses common questions (like how you’ll use the funds and repay the loan). 

During times of high demand or if the loan is complex (larger loans, startups with no history, etc.), it might take longer as more underwriting and SBA review are needed. Some SBA loans (like Express loans) have quicker turnarounds but typically smaller amounts. It’s wise to start the loan process well before you desperately need the money.

Q: What resources are available for someone who wants to start a business but doesn’t know where to begin?

A: The government offers excellent free resources for aspiring entrepreneurs. A great starting point is the SBA’s online 10-step Business Guide on , which walks through planning, registering, and funding a business. 

In-person (or virtual) help is available through Small Business Development Centers (SBDCs), which provide one-on-one counseling to develop your business idea. There’s likely an SBDC near you (often at a local college or development agency). 

SCORE is another resource – you can get a mentor who has business experience in your industry to guide you. The SBA also hosts regular webinars and has a Learning Center with courses on writing a business plan, marketing, etc. 

For specific groups: if you’re a young entrepreneur, check out programs like Youth Entrepreneurship courses some states have; if you’re a woman, Women’s Business Centers can help with startup basics in a supportive environment; veterans can take the Boots to Business workshop when transitioning out of the military, and so on. 

Additionally, USAGov (usa.gov) has a small business section with links to resources for planning and starting. The key is you don’t have to figure it all out alone – there are experts, templates, and checklists available at no cost. Start by reaching out to one of these organizations and they will help you chart a path.

Q: I run a small business and want to sell my products to the government. How can I do that?

A: Selling to the government (becoming a federal contractor) can be a lucrative opportunity. Here are the basic steps and resources:

1. Register Your Business: You must register on SAM.gov (System for Award Management), which is the official government vendor database. It’s free to register, and you’ll get a Unique Entity ID and CAGE code assigned.
   
2. Research Opportunities: Federal contract opportunities are listed on SAM.gov as well (under the Contract Opportunities section). You can search by keywords or set up email alerts for the kind of products/services you offer.
   
   Also, check if there’s a GSA Schedule applicable to you (a pre-negotiated contract for common products/services many agencies use).
   
3. Certifications: If you qualify for any small business certifications (like 8(a), WOSB, HUBZone, SDVOSB), get those as they can make you eligible for set-asides. Certification processes are through certify. for most programs.
   
4. Marketing and Networking: Government contracting often requires marketing to agencies. Identify which agencies buy what you sell (each agency has forecast lists and small business offices).
   
   You can reach out to agency Small Business Specialists. Also utilize Procurement Technical Assistance Centers (APEX Accelerators) – they provide free help on how to bid, and how to navigate contracting rules.
   
5. Start Small: It may help to start as a subcontractor under a larger prime contractor to get past performance experience. Websites like SubNet list subcontracting opportunities, or you can network with primes at industry days.

It can take time to win your first contract. The process involves reading solicitations (RFQs, RFPs), preparing proposals, and complying with specifics. PTACs/APEX can guide you through proposal writing and ensure you meet requirements. 

Once you win, deliver quality and you’ll build a track record. Note that the government pays as per contract terms, and you’ll need to invoice through systems like WAWF for DoD or others – all things a PTAC can help explain. 

Many small businesses successfully sell to the government, but patience and persistence are key in breaking in.

Q: Are there special programs for small businesses during economic downturns or emergencies?

A: Yes, the government often rolls out temporary programs during crises to support small businesses. A recent example was the Paycheck Protection Program (PPP) and the special COVID-19 EIDL loans in 2020-2021, which were massive federal efforts to keep small businesses afloat during the pandemic. 

Those programs provided hundreds of billions in forgivable loans and low-interest disaster loans. While those specific programs have ended, they show that in events like recessions or disasters, the government can act quickly to help. 

For natural disasters, SBA’s Disaster Loan program is permanent and ongoing – whenever there’s a federally declared disaster, small businesses can apply for loans to rebuild and for economic injury. 

In economic downturns, the Federal Reserve and SBA sometimes work to encourage bank lending (for instance, SBA might reduce fees or increase guarantee percentages temporarily, as seen in past recessions). 

Also, during the COVID era, many local governments used relief funds to start grant programs – a playbook that could repeat if future emergencies occur. In short, if there’s a big economic challenge affecting small businesses broadly, keep an ear out for emergency legislation or programs. 

It’s a good idea to maintain a relationship with your local SBDC or chamber who can notify you of such programs, because they often come with tight application windows. 

Outside of crisis-specific programs, remember that SBA’s standard programs were introduced in 2020, showing an expanding view of how to aid small business owners directly. The government learns from each crisis, so support mechanisms are constantly being refined.

Conclusion

Small businesses in the U.S. have access to an impressive range of government support programs – arguably more now in 2025 than ever before. 

The federal government provides essential pillars of support: guaranteed loans that ease credit access, grants for innovation and expansion into new markets, set-aside contracting programs that open lucrative opportunities, free mentoring and training to build entrepreneurial skills, and even tax credits and safety nets in times of disaster. 

Meanwhile, state and local governments add another layer, tailoring programs to regional needs – from state-backed loan and venture capital funds to local revitalization grants and technical assistance. 

For every type of small business owner, there are relevant initiatives: minorities, women, and veterans can leverage targeted certifications and centers; farmers and rural entrepreneurs can tap USDA and state rural programs; tech innovators can fuel their R&D with SBIR grants; and your everyday main street businesses can benefit from community-level support and general small business aid.

To maximize these opportunities, small business owners should stay informed and proactive. Research and reach out – check official websites, talk to SBDC or SBA district offices, and network with peers who might have used a program. 

Oftentimes, the biggest hurdle is simply awareness. The programs do require effort but the payoff can be game-changing – whether it’s securing a low-interest loan instead of a costly one, winning a contract that doubles your revenue, or getting expert advice that saves you from a costly mistake.

Also, keep the timing in mind: some programs are year-round, some have annual deadlines or limited funding windows. Mark calendars for things like grant application periods or contract proposal deadlines. 

Develop relationships with local officials or reps from SBA/MBDA/etc., as they can alert you to new initiatives (for instance, if your city launches a new grant, an insider tip can give you a head start).

By utilizing government programs, you essentially have a partner in your corner – one that wants your small business to succeed because your success drives job creation, innovation, and community well-being. 

It’s a virtuous cycle: government programs support small businesses, and thriving small businesses strengthen the economy. So, take advantage of these resources and don’t hesitate to ask for the help that’s available. 

As this guide has shown, whether you need capital, knowledge, or opportunities, there’s likely a government-backed solution ready to assist. With determination and the support of these programs, your small business can not only survive but truly flourish.