The best small business grants up for grabs now
Looking for free money to boost your business? Here are nine small business grants available now, plus tips on writing a winning application.
Imagine if your business received an injection of $25,000… and you didn’t have to pay it back.
Earlier this year, the US government announced it was making $10 billion available to small-business owners, with certain funds targeted toward minority-owned businesses.*
It’s one of hundreds of grant programs currently open across the country, designed to help small businesses launch, grow and thrive.
These range from generalized programs run by the government to awards in the private sector, often tailored to specific groups and industries. The New York Fashion Week grant, for example, offers independent designers up to $500,000 to finance their fashion shows. Others, like the Coalition to Back Black Businesses and the Asian Women Giving Circle grants, focus on creating opportunities for under-represented communities.
"Businesses should always be pushing their comfort zone."
Caitlin Albritton’s jewelry business received a Halstead Grant award – offered to emerging artists working in silver jewelry – which she used to cover marketing costs and help fill a void in her business plan.
“I think many businesses don’t apply [for grants] because it does take a bit of extra time, and there is always the fear of not getting one – but businesses should always be pushing their comfort zone and trying to become the best versions of themselves,” she says.
“Each time you [apply] you ask yourself those business questions, [and] it helps you refine who and what your business is about.”
9 great grants to know about
FedEx Small Business Grant Contest
FedEx offers annual grants to US-based businesses with fewer than 100 employees that have been in business for more than six months, and have a FedEx account number. In 2022 it awarded $50,000 to three grand prize winners and $20,000 to seven first-place winners. Applicants are asked to provide a profile and photos of their business, products or logo, and have the choice of including an elevator pitch video.
Fast Break for Small Business
Sponsored by the legal services company LegalZoom in partnership with the NBA, WNBA and NBA G League, and offered by Accion Opportunity Fund, Fast Break awards $10,000 to 50 small businesses. Winners also receive a free LegalZoom product. Businesses must bring in less than $1 million, and application requires tax returns and other information.
The 2022 NBMBAA Scale-Up Pitch Challenge
The National Black MBA Association runs an annual program designed to offer businesses both funding and exposure. Businesses must have a Black founder and a team member who belongs to the Association.
The 2022 theme was “Make Big Ideas Bigger” and aimed to connect start-ups with early investors and venture capitalists. The top 10 contestants pitched their business to judges in a virtual session. Three finalists will attend the group’s Annual Conference and Exposition in Atlanta, where they will pitch again for a $50,000 grant as well as other prizes.
Amber Grant for Women
Founded by WomensNet, an organization for female entrepreneurs, the Amber Grant distributes monthly $10,000 grants and a yearly $25,000 grant to two winners. The monthly grants focus on different industries, including sustainability, hair care and products, wellness and fashion, each month. The brief application asks for a description of the business and plans for how the money would be used, and requires a $15 fee.
National Association for the Self-Employed Growth Grant
The association provides grants of up to $4,000 to members that are intended to be used for hiring, advertising and marketing, amongst other needs. Applicants must provide a business plan based on selection criteria that includes the need for the money, how it will be used, and how it might help the business to grow. Applications are reviewed on a quarterly basis.
Tory Burch Foundation Fellows Program
The Tory Burch Foundation offers a year-long fellowship for business owners, which includes a $5,000 grant, virtual business education, and entry to a network of peer founders. Applicants must be women-identifying entrepreneurs in a majority women-owned business; should be within the first five years of operations; and should be generating revenue ideally over $75,000. Stats provided by the foundation show that 29 per cent of previous fellows passed $1 million in sales, compared to an average of 4.2 per cent of other women-owned businesses.
U.S. Chamber of Commerce's Dream Big Awards
The Chamber of Commerce’s Dream Big Awards honor one Small Business of the Year with $25,000 and a membership to the U.S. Chamber of Commerce. Applicants submit in one of eight categories, which include Young Entrepreneur, Emerging Business, Green/Sustainable Business and a Community Support and Leadership Award. They're asked about the conception of the business, the ways in which it's different from others in its category, and its ability to weather challenges.
Small Business Readiness for Resiliency Program
Recognizing the threat that hurricanes can present to small businesses, the U.S. Chamber of Commerce Foundation and FedEx offer a program that both helps businesses prepare for a potential disaster and gives a $5,000 grant to some businesses after they’ve been affected. Owners must make an Emergency Action Plan and fill out an application. When a natural disaster occurs, businesses who have already submitted their applications are considered for grants.
State Trade Expansion Program (STEP)
Ready to start exporting your goods internationally, but lacking in funds? The STEP grant program, administered by the U.S. Small Business Administration, helps small businesses cover the costs associated with entering and expanding into global markets. Over the past decade, STEP has awarded 302 state grants to a total of $156 million, generating nearly $1.8 billion in exports.
5 secrets to securing a grant
What to know before you apply for funding
1 Do your research
“Read all of the eligibility and missions of whoever is hosting the grant,” says Albritton. “Really scrutinize whether you are a good fit for their grant – nothing is worse than spending hours on a grant that doesn’t fit your business. Keep good records so you know your numbers, and save all of your grant answers so you can come back to them and update them for future grants.”
2 Check the fine print
It's important to manage your expectations when it comes to grants. Many are extremely competitive and others have very specific criteria. “Grants come with a lot of strings and they aren’t always free money,” explains Cady North, a financial advisor and the CEO of North Financial Advisors. “Many require you to have seed money in the form of loans or other types of financing that the grant will match dollar for dollar.”
3 Ensure your application is future-focused
It’s also important to remember that grant funding is for the future, and cannot be used to pay for existing commitments or past projects, or to pay salaries or other regular business expenses – unless explicitly stated. Think long-term, because the process itself is lengthy; there is generally at least a six-to-nine-month turnaround between applying and the funds being disbursed, and many grants have multiple stages.
4 Be realistic
Competition is fierce. “The chances of you getting a grant for a for-profit endeavor are very slim since the majority go to charitable or non-profit causes,” says North. “Don’t turn down an opportunity to apply, by all means, but please don’t bet on getting a grant to fund your business.”
5 Consider a grant agency
It may be worthwhile to enlist the help of a grant agency at the beginning – to help define your application strategy and articulate your need for funding – and then again before submitting the application for review.
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