If you’re an entrepreneur or small business owner looking to take your ideas to the next level, funding is often the first hurdle. One of the most overlooked sources of financial support is government grants for small businesses in USA. Unlike loans, these grants do not need to be paid back—making them one of the most attractive options for startups and expanding ventures.

In this 2025 guide, you’ll learn exactly where to find real, trustworthy government grants, how to apply, and how to boost your chances of getting approved—without falling into scams or wasting time.

What Are Government Grants and Who Can Get Them?

Government grants are funds provided by federal, state, or local agencies to individuals, organizations, or businesses for a specific public purpose. When it comes to small businesses, these grants are often aimed at:

• Driving innovation
• Supporting underrepresented groups
• Reviving local economies
• Expanding rural development
• Promoting green energy or tech

The U.S. government doesn’t typically offer grants for paying off debts or covering day-to-day expenses—but it does support new product development, job creation, and specialized services.

Types of Government Grants for Small Businesses in USA

Understanding which type of grant fits your business can save you time and effort:

1. Federal Government Grants – Offered directly through agencies like the SBA, NIH, and USDA.
2. State and Local Government Grants – Region-specific grants often designed to stimulate local economies.
3. Specialized Grants – Targeted at minority-owned, women-owned, or veteran-owned businesses.

Let’s dig into the details.

Best Federal Government Grants for Small Businesses in USA 

Federal grants are highly competitive but worth pursuing if your business has a strong mission, especially in tech, health, science, or rural industries.

1. Small Business Innovation Research (SBIR) Program

One of the top-tier programs that funds R&D-based businesses aiming to bring tech innovations to the market.

• Grant Size: Phase I grants up to $275,000; Phase II grants exceed $1 million.
• Eligibility: For-profit U.S. small businesses engaged in scientific or technical innovation.
• How to Apply: Visit https://www.sbir.gov

2. Small Business Technology Transfer (STTR) Program

Like SBIR, but requires the business to collaborate with a research institution or university.

• Focus: Tech innovation with academic partnerships.
• Eligibility: U.S.-owned small businesses with 500 or fewer employees.
• Apply at: https://www.sbir.gov/about/about-sttr

3. U.S. Department of Agriculture (USDA) Rural Business Development Grants

If your business operates in a rural area, the USDA supports infrastructure, training, and expansion.

• Use of Funds: Equipment, training, feasibility studies, and real estate.
• Eligibility: Nonprofits, municipalities, and small rural businesses.
• Learn More: https://www.rd.usda.gov/programs-services/business-programs/rural-business-development-grants

4. National Institutes of Health (NIH) Small Business Grants

Ideal for startups working on medical or health-related products and services.

• Focus Areas: Healthcare, biotechnology, diagnostics, and medical devices.
• Eligibility: U.S.-based health tech companies.
• More Info: https://grants.nih.gov

5. SBA State Trade Expansion Program (STEP)

This grant helps small businesses enter or expand into global markets.

• What It Covers: Trade show attendance, translation services, and export training.
• Eligibility: U.S. small businesses looking to grow internationally.
• Official Website: https://www.sba.gov/funding-programs/grants

State and Local Government Grants for Small Businesses

Many states and cities offer grant programs tailored to their regional needs. These are often less competitive and more accessible if you know where to look.

Examples of State-Level Programs:

■ California Small Business COVID-19 Relief Grant Program

Although originally pandemic-related, California continues to offer grants for small business recovery and growth.

• Grant Range: $5,000 – $25,000
• Details: https://business.ca.gov

■ Texas Skills Development Fund

Helps fund customized employee training for small businesses in partnership with colleges.

• Funding Size: Varies
• More Info: https://www.twc.texas.gov

■ New York Empire State Development Grants

Supports job creation and economic development through business expansion.

• Eligibility: Must retain or create jobs in New York.
• Details: https://esd.ny.gov

Grants for Minority, Women, and Veteran-Owned Small Businesses

The U.S. government recognizes the challenges faced by underrepresented groups and has built targeted programs to close the opportunity gap.

1. MBDA Business Center Grants

Run by the Minority Business Development Agency, these grants support business development for minority-owned enterprises.

• Services Offered: Capital access, contract opportunities, and consulting.
• Apply Here: https://www.mbda.gov

2. Amber Grant for Women

While privately funded, it’s often aligned with government initiatives to support women entrepreneurs.

• Grant Amount: $10,000 monthly; $25,000 annually.
• Official Site: https://ambergrantsforwomen.com

3. Veteran Entrepreneur Portal (VEP)

Offered by the U.S. Department of Veterans Affairs, this portal links veteran-owned businesses to funding opportunities, training, and government contracts.

• Explore Resources: https://www.va.gov/osdbu/entrepreneur/index.asp

How to Apply for Government Grants for Small Businesses in USA

Applying for a grant isn’t as intimidating as it sounds, but you need to be organized.

Step-by-Step:

• Register on SAM.gov – Before you apply, register your business at https://sam.gov and get a Unique Entity ID.
• Search for Grants – Use https://www.grants.gov to find all current federal opportunities.

Prepare Your Application – Include:

• Executive summary
• Business plan
• Budget forecast
• Statement of need

Submit on Time – Set reminders for grant deadlines. Late submissions aren’t accepted.

Track Progress – Use your grants.gov account to monitor application status.

Tips to Win a Grant

• Customize every application—don’t use a generic pitch.
• Use simple, clear language even if your project is technical.
• Highlight your business’s impact on the community or economy.
• Double-check eligibility before applying.
• Get free help from SCORE or your local SBA Development Center.

Avoiding Grant Scams

With so many people searching for free funding, scammers are everywhere.

Here’s how to protect yourself:

• Only apply through official platforms like https://www.grants.gov
• Never pay a fee to access or apply for a government grant.
• Report suspicious offers at https://reportfraud.ftc.gov

More safety tips: https://consumer.ftc.gov/articles/what-you-need-know-about-government-grants

What’s New?

The federal government has expanded funding in:

• AI and machine learning for small business applications
• Renewable energy in rural communities
• Veteran-owned startup funding
• Minority-led tech ventures

Check for updates weekly at https://www.sba.gov/funding-programs/grants

Final Thoughts

Navigating the world of government grants for small businesses in USA can feel overwhelming—but it doesn’t have to be. With the right strategy, official resources, and a solid business plan, you can unlock the financial support needed to grow your business—without taking on debt.

Whether you’re building tech, helping your local town thrive, or launching a mission-driven brand, there’s probably a grant out there for you.

READ MORE: Current Today News