Scholarships and Grants for Small Business Owners: A Comprehensive Guide
Starting or expanding a small business can be an exciting venture, but one of the most significant hurdles entrepreneurs face is securing adequate funding. Fortunately, various scholarships, grants, and programs are available to assist small business owners in achieving their goals. This article provides a detailed overview of the numerous opportunities available, ranging from government initiatives to private sector grants and scholarships for aspiring student entrepreneurs.
Government Funding Opportunities
The government offers various avenues for small businesses to obtain financial support, though it's important to note that acceptance of government funds often involves considerable paperwork and ongoing reporting requirements.
Federal Government Grants
Grants.gov serves as the most comprehensive database for federal government grants. This site offers a multitude of opportunities for companies of diverse backgrounds. It is important to remember that not all federal assistance is directly provided to small businesses; some funds are allocated to state and local governments, agencies, nonprofits, and institutions of higher learning, which then distribute the funds locally through technical or educational assistance.
Community Development Financial Institutions (CDFI) Fund
The CDFI Fund is a government entity that offers financial support to certified lenders serving low-income communities. The CDFI is divided into several program areas, including Native initiatives that provide training and assistance to Native American communities, and the Capital Housing Fund that delivers affordable housing for low-income communities.
National Institutes of Health (NIH) Grants
The National Institutes of Health (NIH) offers grant opportunities related to COVID-19 research. These grants are reserved for small businesses that develop and research biomedical technology, with multiple grants available and deadlines extending through 2026 and beyond.
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Small Business Technology Transfer Program (STTR)
The Small Business Technology Transfer (STTR) program focuses on funding research in the R&D arena. A key requirement is that the small business must have a formal collaboration with a research institution. To qualify for STTR grants, you must operate a for-profit company and meet other specified requirements.
Small Business Administration State Trade Expansion Program (STEP)
The Small Business Administration State Trade Expansion Program (STEP) is designed to assist small businesses desiring to export products. STEP distributes federal funds through state entities.
Economic Development Administration (EDA)
The Economic Development Administration (EDA), part of the Department of Commerce, offers ongoing funding opportunities for projects that support regional and national economic development. Applicants can apply for a variety of EDA investments that fund projects in construction, non-construction, planning, technical assistance, research and evaluation, higher education, and more.
State and Local Government Grants
In addition to federal programs, state and local governments also offer grants to support small businesses within their jurisdictions.
Illinois Infrastructure Grants
In 2020, the Illinois government launched an initiative to improve the state's infrastructure, allocating approximately $3 billion for capital grants through the Illinois Department of Commerce and Economic Opportunity (DCEO). These grants are designed to support various projects that benefit local communities and businesses, with the DCEO maintaining a transparent list of general and specific project grants.
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Entrepreneur Loan Program (ELP) in Minnesota
ELP is an initiative aimed at supporting the growth of Minnesota businesses owned by minorities, low-income individuals, women, veterans, and persons with disabilities. The program provides grant funds to nonprofit lenders across the state, which in turn offer loans to startup and expanding businesses, fostering business development, creating jobs, strengthening minority-owned enterprises, and boosting economic growth in disadvantaged areas.
San Francisco Accessibility Grant
Small business owners in San Francisco can apply for a grant to enhance accessibility in their establishments. The grant can cover expenses like accessible equipment, construction to remove ADA barriers, CASp inspections, design services, and relevant permit fees, with a maximum grant amount of $10,000. Eligible businesses must be registered in San Francisco, have less than $2.5 million in gross revenue for a single location, and employ an average of 100 or fewer employees.
Texas Enterprise Fund (TEF)
The TEF offers "deal-closing" grants to companies competing with out-of-state sites for new projects in Texas. These grants are based on performance, encouraging significant capital investment and job creation. Eligible companies must meet criteria related to job creation, capital investment, financial stability, and local support, with grantees signing contracts committing to job and wage targets.
Other Government Assistance Programs
Department of Agriculture Rural Development Business Programs
The USDA's Rural Development Business Programs provide financial support and technical assistance to promote rural business growth.
Department of Commerce Minority Business Development Agency (MBDA)
The Department of Commerce Minority Business Development Agency (MBDA) offers targeted grants and loans designed to aid minority-owned businesses throughout the year.
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Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) is a federal tax credit that encourages companies to hire employees from groups who have historically faced significant barriers to gainful employment. This credit was extended in 2021 and can currently apply to wages paid through December 31, 2025.
Government Contract Assistance
The federal government spends billions of dollars on goods and services each year, and programs have been put in place to assist small businesses with the competitive bidding process.
Service-Disabled Veteran-Owned Small Business Program
The federal government seeks to award at least 3% of all federal contracting dollars to veteran-owned businesses annually. This federal contracting program offers assistance to small business owners who are service-disabled veterans. Eligible small businesses must be over 50% owned or controlled by one or more service-disabled veterans, have day-to-day operations and long-term goals managed by at least one service-disabled veteran, and have a service-connected disability.
Women-Owned Small Business Federal Contracting Program
The federal government seeks to award at least 5% of federal contracting dollars to women-owned small businesses annually. Through this SBA program, the Office of Women's Business Ownership provides support to women entrepreneurs by offering business training, counseling, federal contracts, and access to credit and capital.
8(a) Business Development Program
The purpose of this program is to assist small businesses owned by socially and economically disadvantaged entities by limiting competition for certain government contracts to businesses participating in the 8(a) business development program. To participate, a business must be certified as an 8(a) entity.
HUBZone Program
This program aids businesses in underutilized business zones by making them more competitive with some government contracts. Businesses that join the HUBZone program can compete for set-aside contracts and receive preference on others, including a 10% price evaluation preference in open contract competitions.
Natural Resource Sales Assistance Program
The SBA Natural Resource Sales Assistance Program sets aside a percentage of natural resources and surplus property for bidding by small businesses only. The five categories are timber and related forest products, strategic materials, royalty oil, leases involving rights to minerals, coal, oil, and gas, and surplus real and personal property.
Nonprofit and Corporate Grants and Assistance
Numerous nonprofit and corporate entities offer grants and other assistance to small businesses.
General Small Business Grants
2025 Credibly Small Business Award
The 2025 Credibly Small Business Award offers cash prizes of up to $30,000 to help small businesses accelerate their growth. Winners will be selected through a randomized raffle after submitting a short online application.
Awesome Foundation Grants
Each month, the Awesome Foundation awards grants of $1,000 to individuals and groups looking to fund various projects. The Awesome Foundation is made up of independently run chapters, with members contributing to a microfunding pool that goes towards grant projects.
Faire Small Business Grant
The Faire Small Business Grant provides $5,000 grants to select new retail businesses to help them stock their stores and cover their inventory expenses. Grants are awarded as Faire.com credit, which must be used within six months for inventory purchases on the platform.
The Freed Fellowship Grant
Applicants are evaluated based on the 5C Framework, which assesses various aspects of applicantsâ businesses. Along with the grant, applicants receive feedback on their business and a two-month free membership in the Freed Studio, a community of ambitious business owners. Grant recipients are also eligible for an end-of-year grant of $2,500.
Hustler's Microgrant
The Hustler's MicroGrant offers $1,000 in funding to support passionate entrepreneurs in their small business ventures. Presented by Deja Vu Parker of WBLS and HerSuiteSpot, this grant provides financial assistance and resources to promising small businesses across the United States.
Sheâs Connected by AT&T Small Business Contest
The grand prize includes a year of AT&T service with a new device and national exposure through an AT&T #ShesConnected feature; four runners-up will each receive $5,000. Those interested in applying or nominating an eligible small business owner can do so online through September 30, 2025.
Skip Instant Grants
Skip offers Instant Grants on a rolling basis, providing funding opportunities with shorter turnaround windows. These grants are announced a couple of days in advance and generally occur twice a week, with deadlines on Tuesdays and Fridays.
Square Cornerstone Grant
The Cornerstone Grant by Square awards four small businesses $10,000 each, along with a year of mentorship from financial and business experts. Recipients also benefit from increased exposure through Squareâs newsletters and platforms, which reach over a million people.
Start.Pivot.Grow. Micro Grant
The Start.Pivot.Grow. Micro Grant provides $2,500 in non-dilutive funding to small businesses for essential expenses like rent, inventory, or marketing. Winners will also receive a digital business growth planner and a Prep My Loan Planner to support their development.
Verizon Small Business Digital Readiness Program
In partnership with Verizon, National ACE has developed a digital readiness program to help small business owners succeed in a digital world. Those who register for the program and take two courses are eligible for a $10,000 grant.
ZenBusiness $5K Grant Program
The ZenBusiness $5K Grant Program is offering $5,000 grants to help small business owners fuel growth and innovation. Each recipient will also gain access to select ZenBusiness services designed to improve their business operations.
Disaster Relief Programs
Small Business Readiness for Resiliency (R4R) Program
The Chamber of Commerce Foundation and FedEx have teamed up to create the Small Business Readiness for Resiliency (R4R) Program. The program helps small businesses put plans in place to prepare for disaster and also provides immediate emergency funding when necessary.
Industry-Specific and Diversity-Focused Grants
Many small business grant programs are confined to a specific industry or cater to businesses owned by individuals from diverse backgrounds.
Grants for Women-Owned Businesses
Amber Grants
WomensNet founded the Amber Grant Foundation in 1998 to honor the memory of Amber Wigdahl. Today, WomensNet gives away at least $10,000 every month in Amber Grant money to women-owned businesses.
Cartier Womenâs Initiative
The Cartier Womenâs Initiative is an annual international entrepreneurship program that aims to drive change by empowering women impact entrepreneurs. The program is open to women-run and women-owned businesses from any country and sector.
Tory Burch Foundation
This is a year-long program to help women lead, grow, and scale their businesses, and includes a $5,000 grant to advance their business education.
Stacyâs Rise Project
Stacyâs Snacks is a women-led brand that launched the Rise Project to help women grow their businesses in the food industry. The project offers funding in addition to mentorship and opportunities for community and networking.
Grants for Minority-Owned Businesses
Mastercard Fearless Strivers
Mastercard will be awarding small businesses across the country with $20,000 grants.
WeBackBlackBusiness
From 2020 through 2023, the fund will distribute $5,000 grants to applicants each fall, followed by mentorship and training, and select few will receive $25,000 enhancement grants the following summer.
SoGal Ventures
SoGal Venturesâ mission is to bridge the gap in venture capital funding for women of color founders building scalable, growth aggressive companies.
EnrichHer Grant
EnrichHer aspires to connect companies led by women and founders of color to capital, coaching, and community. They are currently offering grants in the amount of $5,000. Note: $37 application fee.
Grants for Veteran-Owned Businesses
The Second Service Foundation Military Entrepreneur Challenge
The Military Entrepreneur Challenge is in partnership with the Samuel Adams Brewing the American Dream program. It is open to veterans, active duty members, or the spouse of a military veteran or active duty member.
Other Competitions
IdeaCafe $1K Business Grant
This grant is open to any business owner or person looking to start a business. $1,000 will be awarded to the most innovative business or business idea.
Navâs âLegitify Your Small Businessâ Grant
NAV is offering a $10,000 small business grant to the most deserving business that applies.
The Halstead Grant
Designed to help jewelry entrepreneurs create a strategy to kick-start their careers. The grand prize is a $7,500 cash grant plus other benefits.
Visa Everywhere Initiative
Global, open innovation program that tasks start-ups and fintechs to solve payment and commerce challenges of tomorrow. Four prizes annually, between $10k and $50k.
Bill and Melinda Gates Foundation Grand Global Challenges
The foundation awards its grants primarily to 501(c)(3) organizations, but if you run a business that is solving health and development problems through innovation, this grant could be yours.
Female Founders Fund
Female Founders Fund is an early-stage fund investing in the next generation of transformational technology companies founded by women.
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