SBA grants: what the SBA funds and what it does not

Does the SBA give grants to start a business?

No. The SBA's own grants page says the SBA does not provide grants for starting and expanding a business. USA.gov says the same for the whole federal government: there are no federal grants for starting a business, federal grants are typically only for states and organizations, and the government does not offer "free money" for individuals. There is no SBA small business grant you can apply for to open a shop, buy stock or cover your first months of costs.

SBA grants do exist, but the money goes to nonprofits, Resource Partners, and educational organizations. Those groups use it to support entrepreneurship through counseling and training programs. A small business owner benefits through the advice and classes those groups run. No money is paid into the business account.

Most federal grants work the same way. Grants.gov says most of its funding opportunities are for organizations, not individuals, and that none provide personal financial assistance. Where a federal grant is open to small businesses, it is for companies meeting the size standards established by the U.S. Small Business Administration (SBA). Real government grants require an application, and they’re always for a very specific purpose, such as one research project.

Small Business Administration grants and programs that do exist

The table lists the SBA programs people usually mean when they search for SBA grants, and marks the ones that pay a grant to the business itself.

SBIR, STTR and STEP are the programs in the table that can fund a small business's own project: SBIR and STTR for research, and STEP for export costs through the state. The others pay organizations that advise or train, or they are loans or a certification.

Federal grants for small business: SBIR and STTR

The SBA's grants page says a business doing scientific research and development may qualify for federal grants under the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Together they are run as America's Seed Fund, which is coordinated by the SBA and funded through 11 participating federal agencies. The awards are non-dilutive funding, so the business does not give up shares in return.

To apply, a business must meet these rules:

• It is a for-profit entity located in the U.S.
• It has fewer than 500 employees.
• It is owned and controlled by U.S. citizens or permanent residents.
• For STTR only, the small business must formally partner with a research institution.
• It has a Unique Entity ID (UEI) from SAM.gov before it can receive an award.

Awards come in phases. Awarded companies use Phase I funding to create proof-of-concepts for their innovations. As of April 2026, agencies can issue a Phase I award up to $323,090 and a Phase II award up to $2,153,927 without asking for SBA approval. For Phase II, SBIR.gov says that typically, only Phase I awardees are eligible for Phase II awards.

In Phase III the business pursues commercialization in the private sector and/or federal contracting marketplace, and SBIR.gov is clear on the money: No SBIR/STTR funding is awarded in Phase III. These programs fund new technology. A shop or brand that makes or resells existing products is unlikely to match an agency's research topics.

Government grants for small businesses from states and cities

Grants.gov splits grant programs into those awarded by the federal government and those awarded by non-federal entities. Its search covers federal funding opportunities. For the second group, Grants.gov says: State and regional directories can also be found with some research.

Some federal money reaches small businesses through the states. Through STEP, the SBA makes financial awards to state and territory governments. The states use it to help established U.S. small businesses cover costs associated with entering and expanding into international markets, such as trade missions and trade shows. For research companies, SBIR.gov notes: Some states have matching programs to cover the costs of creating a proposal.

To find what your area offers, check your state's economic development agency, your city or county small business office, and your local Small Business Development Center. Those centers give counseling and training to small businesses. Programs, eligibility and deadlines vary by state and city, and they change often. This page is general information, not legal or tax advice.

Grants for women-owned businesses: what exists and what does not

There is no federal grant for women to start a business. USA.gov's statement that there are no federal grants for starting a business applies to every founder. What the SBA offers women is advice, access to federal contracts and loans:

• Women's Business Centers are part of a national network of entrepreneurship centers. They give free, to low-cost counseling and training to women who want to start or grow a business. A center is a place for advice and training.
• The Office of Women's Business Ownership helps women entrepreneurs through programs coordinated by SBA district offices. The programs cover business training, counseling, federal contracts, and access to credit and capital.
• The WOSB Federal Contract program is a certification. It lets a business compete for federal contracts reserved for the program’s certified participants. Certification is through SBA’s free online certification process, and the benefits only apply to federal contracting opportunities, rather than those in the private sector.
• Women-owned small businesses can also use SBA loan programs. These are loans and must be repaid.
• The Women Veteran Entrepreneurship Training Program pays organizations that train women veterans, service members and spouses.

To join the WOSB program, a business must be a small business according to SBA size standards, be at least 51% owned and controlled by women who are U.S. citizens, and have women manage day-to-day operations who also make long-term decisions. The SBA works with federal agencies toward the government's 5% contracting goal for women-owned small businesses. The certification helps only if you plan to sell to the federal government.

This page lists government programs only. If you find a grant for women to start a business elsewhere, check it against the scam signs below before you share any details.

How to apply for small business grants

These steps cover federal grants listed on Grants.gov, including SBIR and STTR. State and city programs use their own forms and rules.

1. Check that the grant is open to your business

   Read who can apply before anything else. If a listing is open only to nonprofits, schools or governments, a business cannot apply for it.

2. Search the free federal list

   The FTC says a list of all available federal grants is at grants.gov, and that list is free. Do not pay anyone for a list of grants.

3. Register your business in SAM.gov

   You can’t start applying in Grants.gov until your organization is registered in SAM.gov. Registration is free, gives your business a Unique Entity ID (UEI) from SAM.gov, and must be renewed every year. Allow up to 10 business days for it to become active, or weeks or months if your details cannot be verified.

4. Read the whole solicitation

   SBIR.gov's advice is to read the entire solicitation carefully, which helps you avoid administrative mistakes that could disqualify your proposal. Check that you meet every eligibility rule in it before you start the proposal.

5. Apply before the deadline

   Submit through the agency's SBIR or STTR program, or the grant's own listing, before the submission closing date. Keep a copy of everything you send.

Free grants to start a business: the FTC scam warning

Be careful with offers of free grants to start a business. The FTC's guidance is short: Offers of free money from government grants are scams. These are the signs it and the SBA list:

• Someone contacts you first. The government won’t get in touch out of the blue about grants.
• You are asked to pay a fee. No government agency will ever contact you to demand that you pay to get a grant.
• You are asked to pay with cash, a gift card, a cash reload card, by wire transfer, or with cryptocurrency. No government agency asks for payment that way.
• You are asked for account numbers. Agencies never call, text or email to ask for your Social Security, bank account, or credit card number.
• The agency name sounds official but is made up. Scammers use names such as the Federal Grants Administration, which doesn’t exist.
• The email does not come from the SBA's domain. The SBA only communicates from email addresses ending in @sba.gov.

If you spot a grant scam, report it to the FTC at ReportFraud.ftc.gov.

Start up business grants: what to use instead

Since there are no federal start-up grants, USA.gov lists other ways to fund a new business: using personal funds, finding investors, or taking out small business loans.

SBA microloans help small businesses start up and expand, but they must be repaid. They go up to $50,000, the average is about $13,000, and the longest repayment term is seven years. They are made by nonprofit community-based organizations, and those lenders make all credit decisions and set all terms.

For a larger amount, a bank loan may still be possible. When a bank thinks your business is too risky to lend to, SBA may guarantee your loan.

Where Nation fits

Questions about SBA grants