Starting and running a business is one of the most powerful ways veterans can achieve financial independence and continue serving their communities after military life. Yet, many veterans face challenges such as limited access to capital, networking hurdles, or the transition from service to entrepreneurship. Veteran small business grants provide crucial non-repayable funding designed to help veterans, service-disabled veterans, reservists, and even military spouses launch, expand, or sustain their businesses.

With over 2.5 million veteran-owned businesses in the United States, veterans play a vital role in strengthening the economy. According to the U.S. Small Business Administration (SBA)

These businesses employ millions of workers and generate billions in revenue every year. This guide explores the eligibility, types of grants, application process, and success strategies for veterans seeking financial support.

What Are Veteran Small Business Grants?

Veteran small business grants are non-repayable financial awards offered to veterans or their spouses to start or grow a business. Unlike loans, grants don’t require repayment, interest, or collateral—making them especially valuable for entrepreneurs with limited resources.

The U.S. government has long supported veterans in business, beginning with programs after World War II. Modern initiatives have since expanded under federal laws like the Small Business Act and the National Defense Authorization Act

with today’s focus on innovation, sustainability, and equity.

Who Is Eligible for Veteran Small Business Grants?

Eligibility requirements vary depending on the program, but common criteria include:

• Veteran Status: Proof of honorable discharge (via DD-214) is often required. Programs usually demand 51% ownership by a veteran, service-disabled veteran, or military spouse.
• Business Stage: Some grants target startups, while others support early-growth businesses generating under $5 million annually.
• Service-Disabled Focus: Special programs exist for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), which must be verified through the VA’s Vets First Verification Program
• Residency: Businesses must operate in the United States. Some state-level grants are residency-specific.
• Financial Need: Demonstrating economic hardship or operating in underserved communities may be required.

To access most federal opportunities, veterans must register with the SBA’s VetCert Program for official certification.

Types of Veteran Small Business Grants

Veteran business grants fall into three main categories:

1. Federal Grants and Programs

The U.S. government is the largest source of support for veteran-owned businesses:

• SBA Programs: The SBA funds training and entrepreneurship programs for veterans, such as Boots to Business (B2B) and the Women Veteran Entrepreneurship Training Program (WVETP). While these aren’t direct cash grants, they provide access to federally funded training, mentoring, and resources.
• VA Office of Small & Disadvantaged Business Utilization (OSDBU): Oversees the Veteran Entrepreneur Portal which connects veterans with contracting opportunities, financing, and resources.
• Grants.gov: The government’s central database for competitive grant opportunities. Veterans can search for targeted funding opportunities, including SBIR/STTR innovation grants worth up to $1.7 million. Apply via Grants.gov

2. State and Local Veteran Business Grants

Many states supplement federal resources with localized support:

• Texas Veterans Commission – Offers training and entrepreneurship tools. (Texas Veterans Commission)
• Maryland Veteran-Owned Small Business Program – Provides loans up to $50,000, some convertible to grants. (Maryland Commerce)
• Illinois Veterans Programs – Support through local Small Business Development Centers. (Illinois Department of Veterans’ Affairs)
• Minnesota and Pennsylvania – Offer loan-forgiveness and fee waivers for veteran entrepreneurs.

Each state’s Department of Veterans Affairs is the best starting point for exploring regional grants.

3. Private and Nonprofit Grants

Many nonprofit organizations and private initiatives provide grants specifically for veterans:

• Hiring Our Heroes Grant – Awards $10,000 to veteran or spouse-owned businesses. (U.S. Chamber Foundation – Hiring Our Heroes)
• Warrior Rising – Provides mentorship and startup grants for veterans. (Warrior Rising)
• Farmer Veteran Fellowship Fund – Grants for veterans in agriculture. (Farmer Veteran Coalition)
• Second Service Foundation – Pitch-based competitions awarding up to $15,000. (Second Service Foundation)

How to Apply for Veteran Small Business Grants

The application process can be competitive. To increase your chances of success:

1. Research Opportunities – Use Grants.gov , GrantWatch, or state veteran affairs websites.
2. Prepare Documents – DD-214, EIN, business plan, and financial projections.
3. Certify Veteran Status – Through SBA VetCert or VA verification.
4. Tailor Applications – Highlight leadership, discipline, and military-to-business skills.
5. Track Deadlines – Most grants have strict annual or quarterly cycles.

READ MORE: Little-Known Government Grants Every American Can Apply For

Tips for Winning a Veteran Business Grant

• Tell Your Story – Show how your military service shaped your business idea.
• Demonstrate Impact – Use measurable goals like jobs created or community benefits.
• Apply Broadly – Don’t rely on one program—apply to multiple.
• Seek Mentorship – Free support is available via Veterans Business Outreach Centers (VBOCs)
• Stay Updated – Subscribe to SBA newsletters for new opportunities.

Beyond Grants: Additional Support for Veteran Entrepreneurs

Grants aren’t the only option. Veterans can also access:

• Loans – SBA Express Loans with waived fees for veterans.
• Contracting Set-Asides – Exclusive bidding for SDVOSBs under Federal Contracting Programs
• Training Programs – Transition Assistance Program (TAP) for service members moving to civilian life.
• Networking – Join coalitions like the National Association for the Self-Employed (NASE) or Farmer Veteran Coalition

Success Stories

• Cybersecurity Startups – A Marine veteran used a Warrior Rising grant to launch a cybersecurity company, now employing 15.
• Food Business Growth – A woman veteran in Texas expanded her bakery using a Texas Woman’s University Veteran Entrepreneur Grant, doubling revenue in two years.

These stories show how grants can fuel veteran-owned businesses and create long-term community impact.

FAQs 

1. What’s the difference between a grant and a loan?
Grants are free funding; loans must be repaid with interest.

2. Can military spouses apply?
Yes—many programs include military spouses as eligible applicants.

3. Are there grants for service-disabled veterans?
Yes, including SBA’s SDVETP and VA’s verification-based set-aside programs.

4. Where can I find state-specific grants?
Start with your state’s Department of Veterans Affairs website.

Conclusion

Veteran small business grants are a powerful tool for turning service-honed skills into successful businesses. Whether applying through federal programs like the SBA , state opportunities, or nonprofit initiatives, veterans have unique pathways to funding in 2025.

If you’re a veteran ready to launch or expand your business, start by certifying your status through SBA VetCert, exploring grants on Grants.gov, and connecting with your nearest VBOC for free guidance.

Your service deserves recognition—and these programs exist to help you build a thriving business legacy.