Business Funding

Small Business Grants: Where to Find Real Ones in 2026

We may earn a fee from partner links.
Full disclosure below.

Chris Scarfo, Co-founder, Lending Gurus
Ten years in business banking before co-founding Lending Gurus. · Updated Nov 3, 2026

Small business grants are money you don’t have to pay back, which is exactly why everyone wants one and why they’re so hard to get. The truth most “free money” sites skip: the federal government offers very few grants to simply start or grow a business. Real grants do exist, but they come from specific research programs, state and local agencies, and private organizations, and most have narrow rules. This guide covers where small business grants actually come from, who qualifies, how to find and apply for them, how to spot grant scams, and what to do while you wait. If you’re not sure whether a grant or a loan makes more sense, tell Guru what you need and get a straight answer.

Does the SBA give small business grants

Not the kind most people are looking for. The SBA says it directly on its grants page: “SBA does not provide grants for starting and expanding a business.” Instead, the SBA gives grants to nonprofits, resource partners and educational organizations that support entrepreneurs through counseling and training.

The SBA does run a few grant programs that can reach small businesses:

SBIR and STTR. The Small Business Innovation Research and Small Business Technology Transfer programs fund scientific research and development. Per SBIR.gov, these programs are coordinated by the SBA and funded through 11 participating federal agencies, and they award non dilutive funding to develop technology and move it toward commercialization.
STEP grants. The State Trade Expansion Program gives awards to states and territories, which then help established small businesses cover export costs like trade missions, trade shows, translation and international marketing.
Manufacturing grants. The SBA’s Empower to Grow program funds organizations that train small manufacturers. The SBA’s page says applications for the current round are closed.

If your business isn’t doing research and development, exporting, or manufacturing, federal grants probably aren’t your path. That’s okay. There are other places to look.

Where small business grants actually come from

Source	What it usually funds	Good to know
Federal agencies (Grants.gov)	Specific projects that meet an agency’s mission	Most opportunities are for organizations, and each has its own eligibility rules
SBIR and STTR	Research and development with commercial potential	Competitive and technical
State and local programs	Economic development, exporting, specific industries or areas	Check your state economic development agency and city
Private grants	Varies, often women owned, minority owned or local businesses	Read the rules and any fees carefully
Corporate programs	Contests and community grants	Often small and very competitive

How Grants.gov works for small businesses

Grants.gov is where federal agencies post their funding opportunities. Its eligibility guide says small business grants “may be awarded to companies meeting the size standards established by the U.S. Small Business Administration (SBA) for most industries in the economy.” It also says most opportunities on the site are for organizations, not individuals, and that none provide personal financial assistance.

Every federal opportunity comes with a notice of funding opportunity, or NOFO, which has a section that defines who’s eligible. Grants.gov’s advice is simple: read it first. If you’re not eligible, you’ll waste time and money on an application you can’t win.

Private grants for small businesses

Private organizations, foundations and companies run their own grant programs. These are often the most realistic option for a main street business. A well known example is the Amber Grant from WomensNet, which awards monthly grants to women owned businesses. WomensNet awards three $15,000 Amber Grants every month, plus three $75,000 year end grants. Read our full Amber Grant guide, and if you’re a woman business owner, see grants for women owned businesses.

With private grants, read the official rules, check whether there’s an application fee, and know how winners are picked. A real program will publish its rules, its judging criteria and its past winners.

Who qualifies for small business grants

There’s no single answer, because every grant sets its own rules. Common requirements include:

Being small under SBA size standards (for federal grants)
Being located in a certain state, city or area
Working in a specific industry, like research, manufacturing or agriculture
Ownership rules, like women owned or veteran owned
A clear project and a plan for how the money will be used
Registration and paperwork, which can be heavy for federal grants

How to find and apply for grants

Start with your goal. Write down exactly what the money is for. Grants fund projects, not general wish lists.
Search the right places. Grants.gov for federal opportunities, SBIR.gov for research funding, your state economic development agency, your city, and private programs that fit your business.
Read the eligibility section first. On Grants.gov, that’s in the NOFO. For private grants, it’s in the official rules.
Get free help. SBA resource partners like Small Business Development Centers, SCORE and Women’s Business Centers can help you plan and polish applications.
Write a specific application. Explain what the business does, the need it meets, how you’ll use the money, and what it changes.
Track deadlines. Many grants have short windows, and late applications aren’t considered.
Keep records. If you win, you may have reporting duties, and grants can have tax consequences. Ask your CPA.

Grant ideas by type of owner

Women owned businesses. Private grants like the Amber Grant, plus free coaching at Women’s Business Centers. See grants for women owned businesses.
Research and tech companies. SBIR and STTR are the big federal sources.
Exporters. Ask your state about STEP funds for trade shows and international marketing.
Manufacturers. Watch the SBA grants page for future manufacturing training programs, and check your state’s manufacturing extension and economic development programs.
Main street businesses. Look local first. City, county and state programs, chambers of commerce and community foundations often run small grants for local businesses.

How to spot grant scams

Grant scams are everywhere. The SBA warns that it “only communicates from email addresses ending in @sba.gov,” and that if someone claiming to be from the SBA isn’t using an official address, you should suspect and report fraud. A few more red flags:

Someone says you’ve won a grant you never applied for
They want a fee to “release” or “process” your grant
They ask for your bank login, Social Security number or payment by gift card or wire
They promise a federal grant to start or grow any business, which the SBA says it doesn’t offer
Pressure to act today

Legit private programs can charge an application fee, so a fee alone isn’t proof of a scam. But a fee to collect money you supposedly already won is.

Grants vs loans

Grants don’t get repaid, but they’re slow, competitive and usually tied to a specific project. Loans cost money, but you can usually get one faster and use it more freely. Plenty of owners apply for grants and line up a loan at the same time. Our grants vs loans breakdown compares the two. If a loan is on the table, start with SBA 7(a) loans and SBA microloans, and run the numbers through our business loan calculator.

Not ready to apply for anything yet

That’s normal. In the Ask Guru chat, you can tell Guru you’re not ready yet and get a short series of tips by email instead. No pressure, and you can come back when you are. For early stage funding ideas, read the startup funding guide and startup funding with no revenue.

If a grant won’t cover it

If you need funding sooner than a grant cycle allows, you can compare multiple business funding offers through 1West. That’s a loan, not a grant, so it has to be repaid. Partners make all funding decisions and set their own terms.

Ask Guru: grant or loan?

FAQ

Does the SBA give grants to start a business?

No. The SBA says it does not provide grants for starting and expanding a business. It funds nonprofits and resource partners, plus research, exporting and manufacturing programs.

Where can I find real small business grants?

Grants.gov for federal opportunities, SBIR.gov for research and development, your state and city economic development offices, and private programs like the Amber Grant.

Who qualifies for federal small business grants?

Grants.gov says small business grants may go to companies that meet SBA size standards. Each opportunity’s NOFO defines who can apply.

Do I have to pay back a grant?

No, but many grants come with rules on how you spend the money and what you report. Grants may also be taxable, so ask your CPA.

How do I know if a grant offer is a scam?

Be wary of anyone who says you won a grant you didn’t apply for, asks for a fee to release it, or contacts you claiming to be the SBA from an address that doesn’t end in @sba.gov.

This guide is general information, not financial, legal or tax advice. Lending Gurus is a referral service, not a lender. Lenders and grant programs set their own rules, and partners make all funding decisions. Talk with your CPA or attorney about your situation. Read our editorial policy and advertiser disclosure.

Sources

See your options in about 2 minutes

Ask Guru