If you’re a small business owner looking for funding that you don’t have to repay later, you might be wondering whether SBA grants are the answer. While most entrepreneurs are familiar with SBA loans, not everyone knows that the U.S. Small Business Administration also offers grants to small businesses. Yet although SBA grants represent an attractive source of business funding, these federal grant opportunities are often difficult to access due to competition and strict eligibility requirements. 

This guide breaks down how SBA grants work, who qualifies, and the top funding programs currently available. You’ll also find guidance on how to apply, additional funding options if you don’t qualify, and answers to some of the most frequently asked questions about federal small business grants. 

What is an SBA Grant?

An SBA grant is a type of federal funding that’s available through the U.S. Small Business Administration. Unlike SBA loans—which lenders issue and businesses must pay back over time with interest—you don’t have to repay SBA grant funds. However, SBA grants are less flexible than loans and are only available to eligible organizations that must use the funds for specific projects which align with the SBA’s mission. 

In general, SBA grants don’t fund general business expenses or startups. The typical purpose of these grants is to support organizations and programs that help small businesses thrive—such as educational institutions, nonprofits, community organizations, and scientific research and development efforts.

Who is eligible for SBA grants?

SBA grants aren’t available to most individual business owners. Eligible grant applicants usually include:

  • Nonprofit organizations
  • Universities and colleges
  • SBA resource partners (like SCORE and Small Business Development Centers)
  • Community-based organizations supporting underserved business owners
  • Small businesses conducting qualified scientific or technical R&D

Of course, each grant features its own eligibility rules. To qualify, your organization must meet specific requirements that may include the community your business serves, your mission, the proposed project, etc.

Types of SBA Grants

Although the SBA doesn’t offer grants for general business operations, the federal agency does offer support through a variety of specialized grant programs to promote innovation, manufacturing, and entrepreneurship for eligible small businesses and organizations throughout the United States. Below are some of the key SBA grant opportunities available at this time.

1. Manufacturing grants

Empower to Grow (E2G) Manufacturing in America Grant

As part of the new (as of April 2025) Made in America Manufacturing Initiative, this new grant provides funding support for small manufacturing businesses and nonprofit organizations. Eligible recipients can receive up to $1.1 million for technical assistance and workforce development in key industries like steel, timber, aluminum, and energy. 

2. Research and development grants

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs

These highly competitive federal grant programs fund small businesses in technology and scientific research and development (R&D)—provided those companies show strong potential for commercialization. They’re ideal for startups and tech firms that are developing innovative products and services. The SBA distributes these grants, alongside 11 federal agencies, and invests around $4 billion per year.  

3. Grants for community organizations supporting small business 

The SBA offers grant funding to mission-driven organizations so they can provide education, training, and other resources to small business owners, especially underserved groups. Below are some examples of SBA grants for community organizations.

Organizations supporting veteran-owned businesses

  • Boots to Business (B2B): Boots to Business is a free entrepreneurial training program for active duty service members, veterans, and military spouses. The program empowers eligible participants with skills and resources to start and manage successful businesses. 
  • Service-Disabled Veteran Entrepreneurship Training Program (SDVETP): Veterans who are injured in the line of duty have access to several SBA resources to support startups and existing businesses. The SDVETP program features training programs for entrepreneurs through Oklahoma State University, St. Joseph’s University, Warrior Rising, and the Veteran Entrepreneurial Training & Resource Network. 
  • Veterans Business Outreach Centers (VBOC): The VBOC offers no-cost entrepreneurial development services to eligible service members, veterans, military spouses, and family members who want to start or grow a small business. There are 31 locations nationwide that provide free business development services to eligible participants.
  • Veteran Federal Procurement Entrepreneur Training Program (VFPETP): This training program teaches eligible veterans how to secure and manage federal job contracts. Since 2010, graduates of the program have received over $41 billion dollars in federal prime contract awards. 
  • Women Veteran Entrepreneurship Training Program (WVETP): Women veterans and service members have access to targeted entrepreneurship training programs through institutions like Syracuse University, Utah Veteran Business Resource Center, and ONABEN.

4. Grants for organizations supporting innovation

  • Federal and State Technology (FAST) Program: The FAST Program provides funding to groups that support small businesses in the scientific and technological R&D space that are applying for federal innovation grants (like SBIR and STTR). FAST grants may help with proposal preparation, team development, and the eventual commercialization of new technology. 

5. SBA resource partner grants

The following grants fund SBA-backed organizations that support entrepreneurs.

  • SCORE: SCORE is a non-profit organization that receives funding from the SBA and offers free mentoring and business education to small businesses. Current recipients of the SBA SCORE Award can apply for this grant opportunity. For-profit businesses are ineligible. 
  • Small Business Development Centers (SBDCs): Specific funding is available for SBDCs in Northeast California and Pennsylvania to help fill critical vacancies in those areas. 
  • Portable Assistance Program: Funding is available for regions facing economic hardship due to a business or government facility closing or downsizing. The goal of this grant is to encourage small business success through technical assistance supporting job creation, employee retention, access to capital, etc.

6. Program for Investors in Microentrepreneurs (PRIME)

The PRIME program is a competitive federal grant for eligible low-income nonprofit organizations and microenterprises (typically with fewer than five employees). PRIME grant recipients are often microenterprise development organizations (MDOs) and similar organizations that use the funds to provide training and technical support to other small businesses—including low-income entrepreneurs who lack access to conventional loans, equity, and other banking services. 

How to apply for an SBA grant

Applying for an SBA grant takes time and planning. If you believe your small business or nonprofit organization may be eligible for an SBA grant, here’s a step-by-step guide to help you start the process.

  1. Search for grants. Visit SBA.gov and Grants.gov to look for active opportunities that seem like a good fit for your business or organization.
  2. Review eligibility criteria. Make sure your organization qualifies before you spend time filling out an SBA grant application.
  3. Register your organization. Typically you need to register your business with the federal government (SAM.gov) to apply for federal grants.
  4. Complete the grant application. Applications often require a detailed project proposal, business plan, budget, and supporting documentation. Follow the instructions and be sure to submit a complete application without skipping any steps.
  5. Meet the application deadline. Submit your grant application before the deadline since late or incomplete applications are typically disqualified.

SBA grants are highly competitive. So, it may be wise to consult with grant writing experts or review previously funded proposals for additional insight if possible.

Additional resources for small business funding

If your business isn’t eligible for an SBA grant, or if you’re looking for faster, more flexible funding, there are alternative options to explore. Below are several additional business funding resources to consider.

Non-grant SBA funding opportunities

  • SBA Microloans: Borrow up to $50,000 for working capital, inventory, equipment, and other eligible business expenses.
  • SBA 7(a) Loans: Receive up to $5 million for real estate, working capital, furniture, and business supplies. 
  • SBA 504 Loans: Borrow up to $5 million for fixed assets like land and buildings. (Up to $5.5 million is available for eligible energy projects.)

Other business funding opportunities

  • Minority small business grants: Minority entrepreneurs, who often face additional barriers, can apply for grant opportunities for startups and existing businesses.
  • Women-owned business grants: Small business grants for women offer funding to help start or grow women-owned businesses—companies that often receive far less access to capital compared to male-owned enterprises.
  • Online business loans: These flexible funding solutions provide capital for startups and established businesses to support a wide variety of business financing needs.

Final thoughts

SBA grants offer key support for nonprofits, educators, researchers, and community partners who help America’s small businesses succeed. These federal grant programs can be a powerful tool for driving innovation and expanding entrepreneurship throughout the country.

If your business doesn’t qualify for this type of funding, don’t be discouraged. There are many other funding paths to explore. You can research other business grants or financing options to help launch or expand your business. The right capital at the right time can make all the difference in growing your business sustainably both now and in the years to come.