9 Best Startup Business Grants

Grants are unique in that they don't have to be repaid and they don't require any equity in the company. This makes them an attractive option for entrepreneurs who are risk-averse or who want to keep full control of their company. Here are the best grants available for startups looking to obtain funding without having all the same risks as traditional methods:

Grant Amount: $4,000

The National Association for the Self-Employed (NASE) offers a small business grant of up to $4,000 every quarter. This is one of the few grants available to sole proprietorships. Qualifying small businesses must be a member of the organization, which has a $120 annual fee. As long as winners track how they use the money and it’s approved by NASE, the $4,000 is theirs to spend how they like.

General Requirements

• Must be a member in good standing with the organization
• Must submit application and business plan

Best For

• Startups that don't need large amounts of funding
• First-time grant applicants

Pros

• Grants are given every month
• Can use grants in multiple ways for the business
• Membership in NASE has additional perks like tax assistance

Cons

• Membership in NASE costs $120 annually
• Small amount of grant funding (≤ $4,000)

Grant Amount: $250,000-$750,000

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs offer highly competitive grants from 11 different federal agencies. These grants are for small businesses that are looking to commercialize new technologies and engage in research for the federal government. The SBIR and STTR programs have three phases: establish technical merit and feasibility, continue the R&D efforts of phase one, and pursue commercialization objectives resulting from phases one and two.

General Requirements

• Must be a for-profit company
• Must  be more than 50% owned by individuals who are US citizens or permanent residents
• Can’t have more than 500 employees

Best For

• Fast-growth startups that need large funding
• Science or tech-based businesses

Pros

• Offers large funding amounts
• Has three phases of funding support
• Provides support for research and development

Cons

• Very competitive field of applicants
• Only two industries are generally eligible

Grant Amount: $10,000 - $25,000

The Amber Grant honors the memory of Amber Wigdahl, who passed away at 19 before realizing her business dreams. It’s awarded every month to a women-led business in a variety of categories, including marketing and business. There’s also a year-end grant award.

General Requirements

• Business is at least 50% women-owned
• Business must be located in either the United States or Canada
• Applicant must be a minimum of 18 years old

Best For

• Women-owned startups
• Vision-based businesses

Pros

• Offers grant specifically for women-led businesses
• Grants are awarded every month
• Application process is simple and easy

Cons

• Low entry to apply means lots of competition

Grant Amount: Up to $50,000

Created for businesses that have a FedEx account for their shipping, the FedEx Small Business Grants Program is a way for FedEx to give back to its loyal customers. The grant is aimed at businesses that have already been in operation for at least six months, but that have fewer than 90 employees.

General Requirements

• Business must be for-profit companies
• Must have a FedEx shipping account that has been in operation for at least six months
• The business must have fewer than 90 employees

Best For

• Startups with a shipping need
• Startups with a FedEx account
• Startups that have already been in business

Pros

• Application process is simple
• Up to 12 applicants are selected to win funding
• Applicants can receive votes from fans to increase their chances of winning

Cons

• Very competitive grant
• The business must already be established to be eligible

Grant Amount: $10,000-$50,000

The financial startup industry can always apply to the Visa Everywhere Initiative if they are looking for funding. The grant is open to companies working on a payment solution, whether that be in-person, online, or for mobile payments. The goal is to push the possibility of payment processing worldwide by financing innovative tech. 

General Requirements

• Must be a business in the payment and commerce industry
• Applicant must be 18 years old

Best For

• Product-based businesses
• Payment and commerce solutions
• Blockchain businesses

Pros

• Offers large funding for startups
• Provides global access from several different areas of the world
• Provides prompts for applicants to follow

Cons

• Only available for payment startups

Grant Amount: Different grants provide different monetary awards

The US Economic Development Administration is a government organization that also provides grants to businesses to support economic development. The goal is to create jobs, help drive innovation, and provide training. It has many different types of grants available so it’s important for businesses to do their research before applying.

General Requirements

• Requirements will vary based on the different funding opportunities available

Best For

• Underserved communities
• Ecotech companies
• Indigenous communities

Pros

• Multiple types of grants available
• Supports businesses that help economic development

Cons

• Does not include a variety of business industries

Grant Amount: $1,000-$50,000

Created in 2017 as a way to help African American entrepreneurs take their businesses to the next level, the National Black MBA Association Scale-Up Pitch Challenge is a way for black-owned businesses to gain access to funding and resources. The organization has since expanded to include a virtual and collegiate version of the challenge.

General Requirements

• Pitch must be for a business in the initial or early stages of development
• Business must disclose funding they’ve already received
• Must be original work
• Applicants must be at least 18 years old and a US resident
• Have a founder who is Black or of African descent and maintains at least an equal stake in the startup 
• One member of the Scale-Up Pitch Challenge must be an active member of the National Black MBA Association

Best For

• Businesses with Black founders
• Scalable startups 
• Early stage startups

Pros

• Four different businesses will receive monetary prizes
• A collegiate edition is also available

Cons

• Large set of restrictions to apply

Grant Amount: $20,000

Warrior Rising is dedicated to helping veteran-owned businesses get the resources needed to become successful. More than just a grant, Warrior Rising provides business plans, budgets, and general education on obtaining startup funding

General Requirements

• Must have served or be active in the military

Best For

• Veteran-owned businesses

Pros

• Offers a Warrior Academy that includes instruction videos
• Offers bimonthly Zoom video coaching sessions
• Winners receive one-on-one mentoring

Cons

• Does not allow a variety of entrepreneurs to enter

Grant Amount: Varies

Small Business Development Centers (SBDC) are programs offered by the Small Business Administration (SBA). In addition to support with business planning, financial management, and more. SBDCs also offer grant programs of varying sizes and specifications to small businesses, depending on location. To find an SBDC near you, search for programs by ZIP code on the SBA website.

General Requirements

• Varies

Pros

• Access to a myriad of other business resources
• Potential for additional types of business financing
• Local grants may be less competitive

Cons

• Amounts may be smaller than other grant sizes 

The list above is only a peek into the world of startup business grants. Each one serves a business differently, so becoming educated on what options are available will give you a better chance of obtaining funding.

• Grants.gov
• Small Business Development Centers
• How to Start an LLC - Small Business Grants
• Small Business Administration Grants
• USA.gov grants

• Venture Capital Firms
• Angel Investor Groups
• Crowdfunding Sites
• Startup Accelerators