10 Government Grants for Entrepreneurs in the USA to Grow Your Business

Starting and growing a business is surely an exciting journey, but it often comes with financial challenges. That's where government grants step in. These are like a boost button for your entrepreneurial dreams, offering not only the funding you need but also a wealth of support and guidance.

According to recent data shared by the Small Business Administration (SBA) shows that-

In 2022, the SBA awarded over 2 million grants to small businesses, totaling over $123 billion. Of these grants, approximately 20% were awarded to startups.

Based on the trend of the past few years, it is estimated that approximately 2.5 million small businesses will receive government grants in 2023.

So, if you have a startup and looking for government grants, you are in the right place. In this blog, we'll explore a list of the top government grants for entrepreneurs in the USA.

So, keep reading!

When Should You Take Government Grants for Your Business?

Government grants can be a great way to get funding for your business, but they're not always the right choice.

Here are a few things to consider when deciding whether or not to apply for a government grant:

• Do you meet the eligibility requirements?

Most government grants have specific eligibility requirements, such as the size of your business, the industry you're in, and the location of your business. Make sure you read the eligibility requirements carefully before you apply.

• Do you have a clear plan for how you'll use the funds?

Government grants typically have specific requirements for how the funds must be used. Make sure you have a clear plan for how you'll use the funds before you apply.

• Is the grant worth the effort of applying? 

Applying for a government grant can be a time-consuming process. Make sure the grant is worth the effort before you start the application process.

Here are some specific situations where government grants may be a good option for your business:

• You're starting a new business: Government grants can be a great way to get funding for your business without taking on debt.

• You're expanding your business: Government grants can help you cover the costs of expanding your business, such as hiring new employees, opening new locations, or developing new products or services.

• You're conducting research and development: Government grants can help you cover the costs of research and development, which can be expensive and risky.

• You're working on a social impact project: Government grants are often available to businesses that are working on social impact projects, such as creating jobs in low-income communities or developing sustainable technologies.

Related: Prepare Your Business Budget with Our Ecommerce Budget Template

Grants vs Loans – Key Differences You Should Know As an Entrepreneur

Grants and loans are two different kinds of funding. If you interchangeably use these terms, it's time to showcase the differences between a grant and a loan.

Let's get started!

Be reminded that grants are often more competitive than loans, as there is a limited amount of money available and many businesses apply. Also, it can take several months to get approved for a grant. On the other hand, loans can typically be approved more quickly.

So, if you are wondering which one would be a good option for you. Let us tell you:

If you have a specific project or initiative in mind that you can use the funds for, and you are eligible for a grant, then applying for a grant may be the best option for you. However, if you need funding for more general business purposes, or if you are not eligible for a grant, then applying for a loan may be the best option for you.

Now it's time to guide you on which government grants you can go for as an entrepreneur in the USA.

10 Government Grants for Entrepreneurs in the USA to Start a New Business

Without any further ado, let us share the list of the top 10 government grants for entrepreneurs in the USA:

1. Small Business Innovation Research (SBIR) Program
2. Small Business Administration (SBA) Grants
3. Rural Business Development Grants (RBDG)
4. Minority Business Development Agency (MBDA) Grants
5. Economic Development Administration (EDA) Grants
6. National Institutes of Health (NIH) Small Business Grants
7. Small Business Technology Transfer Program (STTR)
8. Department of Energy (DOE) Small Business Grants
9. USDA Value-Added Producer Grants (VAPG)
10. Department of Commerce's Economic Development Assistance Programs

These are the top government grants for entrepreneurs in the USA as of date. Now let's discuss more about each of the grants!

Note: We have also shared a list of the top government grants for female entrepreneurs as a bonus point, so don't forget to check that out.

1. Small Business Innovation Research (SBIR) Program

The Small Business Innovation Research (SBIR) Program is a highly competitive program that awards grants to small businesses to support the commercialization of innovative technologies. The program is funded by 11 federal agencies, and each agency has its own specific focus areas.

The SBIR Program has three phases:

• Phase I: This phase is for early-stage research and development. Grants are typically around $250,000 and last for six months.
• Phase II: This phase is for further research and development, and to prepare the technology for commercialization. Grants are typically around $750,000 and last for two years.
• Phase III: This phase is for the commercialization of the technology. Grants are not available in Phase III, but small businesses can apply for other government funding programs, such as the Small Business Innovation Research (STTR) Program.

Eligibility Criteria

To be eligible for the SBIR Program, your business must:

• Be a small business, as defined by the Small Business Administration (SBA)
• The business should operate on a for-profit basis.
• Be at least 51% owned and controlled by U.S. citizens or permanent residents
• Have a registered place of business in the United States
• Have a plan to commercialize the technology

Funding Amount

The funding amount for the SBIR Program varies depending on the phase of the program and the agency that is funding the grant. Phase I grants are typically around $250,000, and Phase II grants are typically around $750,000.

2. Small Business Administration (SBA) Grants

The Small Business Administration (SBA) offers a variety of grants to small businesses. These grants can be used for a variety of purposes, such as starting a new business, expanding an existing business, or conducting research and development.

Eligibility Criteria

To be eligible for SBA grants, your business must:

• Be a small business, as defined by the SBA
• The business should operate on a for-profit basis.
• Be at least 51% owned and controlled by U.S. citizens or permanent residents
• Have a registered place of business in the United States

Funding Amount

The funding amount for SBA grants varies depending on the specific grant program. However, most SBA grants range in value from $5,000 to $100,000.

3. Rural Business Development Grants (RBDG)

RBDG grants are specifically tailored to address the unique challenges faced by rural businesses. They focus on initiatives that contribute to job creation, business expansion, and overall economic improvement in rural regions.

Eligibility Criteria

To be eligible for RBDG grants, businesses must meet specific criteria, which typically include:

• Operating within a designated rural area, as defined by the USDA.
• Demonstrating a commitment to rural economic development.
• Possessing a viable business plan and a clear vision for how the grant funds will be used to enhance their operations.
• Meeting any additional requirements outlined in the RBDG grant program guidelines.

Funding Amount

The funding amount available through RBDG grants varies depending on the specific project's scope and purpose. These grants can provide essential financial support for various activities, such as infrastructure development, technical assistance, and business training, all aimed at strengthening rural businesses.

4. Minority Business Development Agency (MBDA) Grants

The Minority Business Development Agency (MBDA) offers a variety of grants to minority-owned businesses. These grants can be used for a variety of purposes, such as starting a new business, expanding an existing business, or conducting research and development.

Eligibility Criteria

To be eligible for MBDA Grants, businesses typically need to meet specific criteria, which may include:

• Being at least 51% owned and controlled by one or more individuals from minority groups, which can include African Americans, Hispanic Americans, Asian Americans, Native Americans, and other minority populations.
• Demonstrating a clear commitment to minority business development.
• Having a viable business plan and a vision for how the grant funds will contribute to the growth and success of the business.

Funding Amount

The funding amount for MBDA grants varies depending on the specific grant program. However, most MBDA grants range in value from $10,000 to $100,000.

5. Economic Development Administration (EDA) Grants

EDA Grants are a driving force behind economic transformation. They are strategically directed to foster innovation, infrastructure development, and sustainable business practices. The primary goal of EDA Grants is to empower communities and businesses, enabling them to thrive and contribute to the overall economic prosperity of their regions.

Eligibility Criteria

Eligibility for EDA Grants may involve specific criteria such as:

• Grants often target economically distressed or underserved regions, so businesses and communities within these areas may be eligible.
• Businesses or projects must demonstrate a clear need for financial assistance, typically tied to economic challenges or opportunities.
• Applicants should align their proposals with the goals and priorities outlined by the EDA, which may include job creation, innovation, and infrastructure development.

Funding Amount

The funding amount for EDA grants varies depending on the specific grant program and the size of the project. However, most EDA grants range in value from $100,000 to $10 million.

6. Veterans Business Outreach Center (VBOC) Grants

VBOC Grants are specifically designed to empower military veterans who aspire to become entrepreneurs. These grants provide financial assistance and critical resources to veterans looking to start their own businesses, providing a pathway to economic independence and success.

Eligibility Criteria

Eligibility for VBOC Grants typically involves:

• Applicants must be U.S. military veterans or service members transitioning to civilian life.
• Veterans should demonstrate a clear interest in entrepreneurship and business ownership.
• Grant proposals should align with the goals and priorities of the Veterans Business Outreach Center program, which include providing veterans with business training, counseling, and mentorship.

Funding Amount

The funding amount for VBOC grants varies depending on the specific grant program. However, most VBOC grants range in value from $5,000 to $25,000.

7. Small Business Technology Transfer program (STTR)

STTR is all about collaboration and innovation. It encourages partnerships between small businesses and research institutions, such as universities or federal laboratories. The core objective is to facilitate the transfer of cutting-edge technologies from research settings to the commercial sector.

Through STTR, small businesses can tap into the expertise and resources of research institutions to bring innovative products and solutions to market.

Eligibility Criteria

• Be at least 51% owned and controlled by U.S. citizens or permanent residents
• Have a registered place of business in the United States
• Each STTR project must establish a partnership with a research institution, combining their strengths and capabilities.
• STTR proposals should align with the specific mission and goals of the federal agency offering the grant.

Funding Amount

The funding amount for the STTR program varies depending on the phase of the grant program and the agency that is funding the grant. However, most STTR grants range in value from $225,000 to $750,000.

8. USDA Value-Added Producer Grants (VAPG)

The USDA Value-Added Producer Grant (VAPG) program provides grants to agricultural producers to help them develop and market value-added products. The VAPG program is funded by the United States Department of Agriculture (USDA) Rural Development.

Eligibility Criteria

• Be an agricultural producer, as defined by the USDA
• The business should operate on a for-profit basis.
• Be at least 51% owned and controlled by U.S. citizens or permanent residents
• Have a registered place of business in the United States
• Be proposing a value-added project

Funding Amount

• Planning grants: These grants are used to help producers develop business plans for their value-added projects. Grants are typically around $75,000 and last for one year.
• Working capital grants: These grants are used to help producers implement their value-added projects. Grants are typically around $250,000 and last for two years.

9. Department of Commerce's Economic Development Assistance Programs

The Department of Commerce's Economic Development Assistance Programs represent a cornerstone of economic growth and community development efforts across the United States.

These programs are designed to provide essential support, resources, and funding to regions and communities seeking to revitalize their economies and enhance their competitiveness on both national and global scales.

Eligibility Criteria

To be eligible for EDA funding, your project must be located in an economically distressed area. EDA defines economically distressed areas as areas with high unemployment rates, low per capita incomes, or declining populations.

Funding Amount

The funding amount provided through these programs varies significantly based on program objectives and the nature of the projects they aim to support. Grants and financial resources are often allocated based on project size, scope, and potential impact.

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

NIH Small Business Grants are at the forefront of scientific and medical advancement. They encourage small businesses to take the lead in developing innovative solutions that address critical health-related challenges.

These grants serve as catalysts for progress in areas such as medical research, pharmaceuticals, diagnostics, and medical devices.

Eligibility Criteria

• Applicants must qualify as small businesses according to the Small Business Administration's (SBA) criteria.
• Projects should align with the research priorities and mission areas defined by the NIH.
• Proposals should demonstrate a clear commitment to advancing healthcare solutions and technologies.

Funding Amount

The funding amount for NIH Small Business Grants varies depending on the phase of the grant program. However, most NIH Small Business Grants range in value from $275,000 to $750,000.

Bonus 01: Government Grants for Female Entrepreneurs in the USA

If you are a female entrepreneur and looking for grants that are only allocated for women, we have something special for you.

Here is a list of the top 3 Government grants for female entrepreneurs in the USA:

1. Women-Owned Small Business (WOSB) Federal Contracting Program
2. Eileen Fisher Women-Owned Business Grant Program
3. The Amber Grant for Women

Now let's find the eligibility criteria and funding amount of each Govt. grant for female entrepreneurs.

Women-Owned Small Business (WOSB) Federal Contracting Program

This program helps women-owned small businesses. It sets aside special contract opportunities. These opportunities are for businesses where women are underrepresented.

Eligibility Criteria

• Be a small business, as defined by the Small Business Administration (SBA)
• Be at least 51% owned and controlled by women who are U.S. citizens or permanent residents

Funding Amount

The funding amount for Women-Owned Small Business (WOSB) grants or contracts can vary widely. It depends on the specific contract or grant opportunity, the federal agency offering it, and the nature of the project.

Eileen Fisher Women-Owned Business Grant Program

The Eileen Fisher Women-Owned Business Grant Program is a grant program that provides grants to women-owned businesses in the United States. The program was created by Eileen Fisher, the founder of the clothing company Eileen Fisher, to support women entrepreneurs and to help them grow their businesses.

Eligibility Criteria

• Be at least 51% owned and controlled by women who are U.S. citizens or permanent residents
• Have been in business for at least two years
• Have annual revenue of less than $10 million
• Be located in the United States

Funding Amount

The Eileen Fisher Women-Owned Business Grant Program awards grants of up to $25,000. The grants can be used for a variety of purposes, such as funding business growth initiatives, hiring new employees, and developing new products or services.

The Amber Grant for Women

The Amber Grant is a monthly grant program that awards a small grant to a female entrepreneur. The grant's purpose is to help women start and grow their businesses. Each month, a recipient is selected to receive the grant.

Eligibility Criteria

• Be at least 6 months old
• Be owned and operated by a woman who is a U.S. citizen or permanent resident
• Have annual revenue of less than $1 million

Funding Amount

The Amber Grant for Women is a monthly grant of $10,000 awarded to a female entrepreneur in the United States.

Bonus 02: What Are the Government Assistance Programs for the Entrepreneurs?

Apart from government grants for entrepreneurs in the USA, the US government also offers a variety of assistance programs for entrepreneurs. Unlike the Govt. grants, these assistance programs also provide training and other resources apart from financial support to help entrepreneurs start and grow their businesses.

Some of the most popular government assistance programs for entrepreneurs include:

• Small Business Administration (SBA) Loans: We have already discussed about the SBA grants. But this one is SBA loans. The SBA offers a variety of loan programs to small businesses, including startups. These loans can be used to fund a variety of business expenses, such as startup costs, working capital, and equipment purchases.

• Small Business Development Centers (SBDCs): SBDCs are a network of non-profit organizations that provide free or low-cost consulting and training services to small businesses. SBDCs can help entrepreneurs with a variety of tasks, such as developing business plans, securing financing, and marketing their businesses.

• Women's Business Centers: Women's Business Centers are a network of non-profit organizations that provide business development services to women entrepreneurs. Women's Business Centers can help women entrepreneurs with a variety of tasks, such as starting and growing their businesses, accessing capital, and networking with other entrepreneurs.

So, if you need more than just grants, you can apply for Government assistance programs to grow your small businesses.

Apply for a Government Grant and Take Your Business to a Whole New Level

Seeking a government grant can be extremely helpful for your business. It's like unlocking a door to a whole new level of opportunities. These grants are not just about money, they come with valuable resources, support, and expertise that can propel your business forward.

Whether you're a woman, a veteran, or an entrepreneur with a groundbreaking idea, there's likely a grant program available for you. From the Small Business Administration to the National Institutes of Health, the U.S. government offers a variety of assistance programs to help you succeed.

So, don't hesitate to explore these options, do your research, and put your best foot forward when applying.

With determination, a solid plan, and the right government grant, you can take your business to heights you've never imagined.

It's time to seize the opportunities and make your entrepreneurial dreams a reality.

That being said, if you need any further help from us, feel free to let us know through the comment box below. Good luck!