Small Business Grants: A Comprehensive Guide to Unlocking Free

For entrepreneurs seeking funding without the burden of debt repayment, small business grants are a financial lifeline that fuels sustainable growth. However, accessing these supports requires a clear strategy. In the article below, join NextSky as we explore grant programs and practical approaches to boost your chances of securing funding.

What are small business grants?

Small business grants are non-repayable funding awards given to entrepreneurs to advance specific business goals, such as innovation, scaling, or creating positive community impact. Unlike loans, grants come without interest rates or repayment obligations, making them an ideal capital source for startups, sole proprietors, limited liability companies (LLCs), and even established businesses.

Grants are provided by various sources, including:

• Federal and state governments: Programs via Grants.gov or the Small Business Administration (SBA) support innovation, job creation, and economic growth.
• Private corporations: Companies like FedEx, Verizon, and Walmart fund businesses aligned with their missions.
• Nonprofits and foundations: Organizations like WomensNet and The Awesome Foundation focus on underrepresented groups or creative projects.

Read more: What is A Small Business? A Comprehensive Guide to Definition

Top small business grants available today

Below is a curated list of small business grant programs, organized by type and eligibility criteria, offering opportunities for every entrepreneur—from beginners to seasoned LLC owners.

General small business grants

These grants are open to various businesses, regardless of industry or demographics.

• The freed fellowship grant
  • Funding amount: $500 monthly, with a chance for $2,500 at year-end
  • Eligibility: U.S.-based small or micro-business owners
  • Details: Offers personalized feedback and two months of free mentoring through the virtual Freed Studio community. Ideal for businesses seeking both funding and guidance.
  • Apply at: The Freed Fellowship
• Skip grant
  • Funding amount: $1,000 to $10,000+
  • Eligibility: Varies by program; requires a free Skip account
  • Details: Provides instant grants and training programs with frequent opportunities (5–10 grants monthly). Follow updates via Skip's YouTube live streams.
  • Apply at: Skip
• NASE growth grants
  • Funding amount: Up to $4,000 quarterly
  • Eligibility: NASE members in good standing
  • Details: Funds can be used for marketing, hiring, or equipment. Requires 90 days of membership before applying.
  • Apply at: NASE
• Verizon Small Business Digital Ready Program
  • Funding amount: $10,000 per grant
  • Eligibility: Registered business owners who complete two courses and meet program criteria
  • Details: Includes free online courses, networking events, and funding to enhance digital capabilities.
  • Apply at: Verizon
• Secretsos™ Small Business Grants
  • Funding amount: $2,500 quarterly
  • Eligibility: U.S. residents over 21; businesses facing financial hardship, woman-owned, veteran-owned, minority-owned, or in economically distressed areas
  • Details: Flexible funding for hiring, operations, or new strategies.
  • Apply at: Secretsos™

Federal and government grants

Federal grants are highly competitive but offer substantial funding for businesses meeting specific criteria.

• Grants.gov
  • Funding amount: Highly variable
  • Eligibility: Businesses registered with a Unique Entity Identifier and an award management system
  • Details: A comprehensive database of federal, state, and local grants. Filter by industry or location for tailored opportunities.
  • Apply at: Grants.gov
• Small business innovation research (SBIR) program
  • Funding amount: Up to $2 million
  • Eligibility: For-profit businesses with fewer than 500 employees focused on technological innovation
  • Details: Part of America's Seed Fund, it supports research and development without requiring partnerships with research institutions.
  • Apply at: SBIR
• Small business technology transfer (STTR) program
  • Funding amount: Up to $2 million
  • Eligibility: For-profit businesses partnering with a research institution
  • Details: Similar to SBIR but requires formal research collaboration.
  • Apply at: SBIR
• Rural business development grant (RBDG)
  • Funding amount: Varies
  • Eligibility: Rural businesses with fewer than 50 employees and revenue under $1 million
  • Details: Supports rural areas' economic development and job creation through training, land acquisition, or infrastructure improvements.
  • Apply at: USDA
• State Trade Expansion Program (STEP)
  • Funding amount: Varies by state
  • Eligibility: Small businesses aiming to expand internationally
  • Details: Funds trade missions, website development, and international marketing. Apply through your state's STEP recipient agency.
  • Apply at: Contact your state's STEP coordinator.

Corporate grants

Large corporations often fund small businesses that align with their values or industries.

• FedEx Small Business Grant Contest 2025
  • Funding amount: $20,000–$50,000
  • Eligibility: U.S.-based for-profit businesses with a FedEx business account
  • Details: Awards one grand prize of $50,000 and nine secondary prizes of $20,000. Sign up for notifications to stay updated on application periods.
  • Apply at: FedEx
• Walmart Spark Good Community Grant
  • Funding amount: $250–$5,000
  • Eligibility: 501(c)(3) nonprofits, government agencies, or educational institutions with a Spark Good account
  • Details: Supports local community initiatives. Applications accepted quarterly.
  • Apply at: Walmart
• Lenovo Evolve Small Business Initiative Grant
  • Funding amount: $25,000 cash + $10,000 AI technology package
  • Eligibility: North American businesses (excluding Quebec) with revenue under $7.5 million and fewer than 75 employees
  • Details: Includes mentoring and AI-focused resources for business growth.
  • Apply at: Lenovo
• Amazon business small business grant contest
  • Funding amount: $15,000–$25,000
  • Eligibility: Businesses with an Amazon Business account and annual revenue under $1 million
  • Details: Offers major funding and business perks. Applications typically open in the spring.
  • Apply at: Amazon Business

Grants for specific demographics

These grants target underrepresented groups, including women, minorities, veterans, and LGBTQ+ entrepreneurs.

• Amber grant
  • Funding amount: $10,000 monthly, $25,000 annually
  • Eligibility: Women over 18 owning at least 50% of the business
  • Details: Simple application process with a $15 fee. Monthly winners qualify for a larger year-end grant.
  • Apply at: WomensNet
• Herrise microgrant
  • Funding amount: $1,000 monthly
  • Eligibility: U.S.-registered businesses majority-owned by women of color with revenue under $1 million
  • Details: Supports innovative community solutions. Applications close monthly.
  • Apply at: HerSuiteSpot
• Second service foundation military entrepreneur challenge
  • Funding amount: Varies
  • Eligibility: Businesses owned by veterans or their spouses
  • Details: Requires a one-page business summary and a two-minute pitch at an event.
  • Apply at: Second Service Foundation
• National pride grant
  • Funding amount: $1,000 for 25 recipients annually
  • Eligibility: LGBTQ+ business owners with 2–100 employees and revenue under $5 million
  • Details: Supports businesses operating for at least one year. Applications close May 20, 2025.
  • Apply at: Founders First CDC

Startup and first-time business grants

New entrepreneurs can access these grants to launch their ventures.

• 500 global flagship accelerator program
  • Funding amount: $150,000 for 6% equity
  • Eligibility: Early-stage startup founders
  • Details: A four-month program with mentoring and investor access. Applications accepted on a rolling basis.
  • Apply at: 500 Global
• ZenBusiness $5K grant program
  • Funding amount: $5,000
  • Eligibility: ZenBusiness customers who formed a business 3–6 months ago
  • Details: Supports new companies with funding and services. Applications close December 31, 2025.
  • Apply at: ZenBusiness
• Visa Everywhere Initiative
  • Funding amount: $10,000–$100,000
  • Eligibility: Tech startups integrating with Visa's network
  • Details: Provides recognition and significant funding for innovative payment solutions.
  • Apply at: Visa

Emergency and recovery grants

These grants assist businesses facing unexpected challenges, like natural disasters.

• Etsy emergency relief fund
  • Funding amount: Up to $2,000
  • Eligibility: Etsy sellers active for at least one year impacted by a federally declared disaster
  • Details: Applications accepted on a rolling basis for disaster recovery.
  • Apply at: Etsy Advocacy
• Restaurant disaster relief fund
  • Funding amount: $10,000
  • Eligibility: U.S.-based brick-and-mortar restaurants with revenue under $3 million and fewer than 50 employees
  • Details: Supports recovery from natural disasters or infrastructure failures. Applications accepted quarterly.
  • Apply at: Hello Alice
• Small business resilience Ready (R4R) program
  • Funding amount: $5,000
  • Eligibility: Businesses with fewer than 500 employees registered for the preparedness checklist
  • Details: Provides funding following a FEMA disaster declaration.
  • Apply at: U.S. Chamber of Commerce Foundation

Read more: Budgeting for Small Business: A Step-by-Step Guide to Success

Step-by-step guide to applying for small business grants

• Research and shortlist grants: Explore platforms like Grants.gov, SBA.gov, or industry directories to identify grants matching your business's field, location, and goals. Then, create a tracking spreadsheet with columns for:
  • Grant name
  • Application deadline
  • Funding amount
  • Eligibility criteria
  • Required documents
• Ensure eligibility: Review all program requirements, including business size, revenue, and demographic criteria. If anything is unclear, contact the grant provider directly for specific guidance.
• Prepare documents: Gather essential paperwork like business licenses, financial statements, tax returns, and proof of good standing. Remember, submitting in the required format speeds up review and avoids unnecessary rejections.
• Tell a compelling story: Numbers grab attention, but an inspiring narrative sets you apart. In your application, highlight:
  • Your business's mission, vision, and core values
  • How the funding will drive growth, create jobs, or benefit the community
  • Why your business deserves to be selected
• Submit early and correctly: Many programs close early once they hit application limits. Submitting beforehand avoids technical glitches and demonstrates your business's professionalism and commitment.
• Follow up after submission: After the stated response timeline, send a polite email inquiring about status (if the program allows) to show genuine interest in the funding opportunity.

Expert tips for successful grant applications

• Leverage technology: Use tools like Shopify to optimize e-commerce operations, making your business look polished and appealing to funders. NextSky's Shopify themes, like Glozin or Agile, enhance your online presence and strengthen grant profiles.
• Build local connections: Partner with SBDCs, women's business centers, or MBDA for personalized guidance and grant recommendations.
• Stay organized: Use Trello or Notion to track progress and deadlines and ensure every step is completed on time.
• Emphasize impact: Clearly articulate how your business creates value for the community, economy, or industry, especially for grants targeting social good.
• Prepare for reporting: Many grants require outcome reports on fund usage. Planning saves time and builds credibility for future applications.

Read more: How to Scale a Small Business Sustainability with 10 Steps

What's the difference between grants and loans?

Pro tip: Combine grants with other funding sources like SBA-backed loans, crowdfunding, or business credit cards to diversify your financial strategy.

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Small business grants are a golden opportunity to fund your entrepreneurial dreams without repayment burdens. With NextSky's guidance above, you can navigate the competitive landscape, align your business with funders' missions, and secure the capital needed to thrive.