8 Best Startup Business Grants
Last Updated: By TRUiC Team
Obtaining funding may be the best chance at finding success for many entrepreneurs. The only problem with seeking funds is the large amount of equity or debt a business takes on. To avoid giving away a piece of the business, many entrepreneurs look to startup business grants because they don't require anything in return for the funding and are basically free money.
In this article, you'll learn what the top grants are for startups as well as some background on each one. You'll also get details about the different types of grants available, the application process, and who they might be best for.
Top Business Startup 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:
1. NASE Growth Grants
Grant Amount: $4,000
About
The National Association for the Self Employed (NASE) offers a grant of $4,000 to various small businesses every quarter. This is one of the few grants that are available to sole proprietorships. Businesses must be a member of the organization which has an annual fee of $120. As long as winners track how they use the money and it is 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 to NASE as additional perks like tax assistance
Cons
- Membership to NASE costs $120 annually
- Small amount of funding for the grant
2. Small Business Innovation Research (SBIR)
Grant Amount: $250,000 - $750,000
About
The Small Business Innovation Research grant is a highly competitive grant that is offered by 11 different agencies. This grant is for small businesses that are looking to commercialize new technologies. The SBIR program has three phases: establish technical merit and feasibility, continue R&D efforts of phase one, and to pursue commercialization of objectives resulting from phases I and II.
General Requirements
- Must be a company for profit
- More than 50% owned by individuals who are citizens or permanent residents of the United States
- Business has no more than 500 employees
Best For
- Fast-growth startups who need large funding
- Science or tech-based businesses
Pros
- Offers large funding amounts
- Has two phases of funding support
- Provides support for research and development
Cons
- Very competitive field of applicants
- Only two industries are generally eligible
3. Amber Grant
Grant Amount: $10,000 - $25,000
About
With a goal to honor the memory of Amver Wigdahl of passed away at 19 before her business dreams were realized, the Amber Grant was created. Now, the amber grant is given out every month to a women-led business in a variety of categories including marketing, business, and there is also a year-end grant reward.
General Requirements
- Business is at least 50% women-owned
- Business must be located in either the US 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 given every month
- Application process is simple and easy
Cons
- Low entry to apply means lots of competition
4. FedEx Small Business Grant Contest
Grant Amount: Up to $54,000
About
Created for businesses that have a FedEx account for their shipping, the FedEx Small Business Grant Contest is a way for FedEx to give back to their loyal customers. The grant is aimed at businesses that have already been in operation for at least six months but who have fewer than 90 employees.
General Requirements
- Business must be for-profit
- Must have a FedEx shipping account that has been in operation for at least 6 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 chances of winning
Cons
- Very competitive grant
- The business must already be established to be eligible
5. Visa Everywhere Initiative
Grant Amount: $50,000
About
The financial startup industry can always apply to the Visa Everywhere Initiative if they are looking for funding. The grant is open to companies that are working on a payment solution, whether that be in-person, online, or 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
6. The US Economic Development Administration (EDA)
Grant Amount: Different grants provide different monetary rewards
About
The U.S. Economic Development Administration has been around since 1965 and is a government organization that also provides grants to businesses in order to help with economic development. The goal is to create jobs, help with innovation, and provide training. They have many different types of grants available so it is 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
- Indigenous communities
Pros
- Multiple types of grants available
- Supports businesses that help economic development
Cons
- Does not include a variety of business industries
7. National Black MBA Association Scale-Up Pitch Challenge
Grant Amount: Up to $50,000
About
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 in the initial or early stages of development
- Business must disclose funding already received
- Must be original work
- Over the age of 18 and a U.S. 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
- Startups that are scalable
- Early stage startups
Pros
- Four different businesses will receive monetary prizes
- A collegiate edition is also available
Cons
- Large set of restrictions to apply
8. Warrior Rising
Grant Amount:
About
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 bi-monthly zoom coaching sessions
- Winners receive one-on-one mentoring
Cons
- Does not allow a variety of entrepreneurs to enter
Find More Startup Business Grants
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.
