8 Best Small Business Grants for 2023
This article is part of a larger series on Business Financing.
The best small business grants can provide funding with no repayment required. They can be difficult to obtain, as availability is often limited in comparison to the number of businesses applying for funds. However, the best grants will usually have multiple winners or offer a large funding amount for those selected.
Here are the eight best small business grants for 2023:
- FedEx Small Business Grant: Best for businesses with a high volume of shipping needs
- National Association for the Self-Employed: Best for growing startups
- Venmo Small Business Grant: Best for businesses using Venmo for payment processing
- Amber Grant: Best for women-owned businesses
- Visa Everywhere Initiative: Best for financial technology companies (fintechs) delivering innovative payment and commerce solutions
- Small Business Administration (SBA) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Grants: Best for companies involved in research and development
- United States Department of Agriculture (USDA) Value-Added Producer Grant: Best for farmers and agricultural businesses
- USDA Rural Energy for America Grant: Best for agricultural businesses that need energy-efficient improvements
Best Small Business Grants at a Glance
Maximum Grant Amount | Time in Business Required | Revenue Requirement | Eligible Businesses | |
---|---|---|---|---|
$30,000 | 6 months | None | For-profit companies with a shipping need | |
$4,000 | None | None | No restrictions | |
$10,000 | 3 months | $500 in the past 3 months | No restrictions | |
$25,000 | None | None | Women-owned businesses | |
$50,000 | None | None | Various fintech businesses | |
$750,000 | Varies | Varies | Research & Development companies | |
$250,000 | None | Must be profitable | Agricultural businesses | |
$1 million | None | None | Agricultural businesses | |
FedEx Small Business Grant: Best for Businesses With a High Volume of Shipping Needs
Grant Terms | |
Funding Amount | $30,000 |
Application Deadline & Selection Timeline |
|
Number of Grants Available | 10 |
Selection Criteria |
|
Application Fee | None |
Eligibility Criteria | |
Qualifying Industries | For-profit companies who can demonstrate a need for shipping |
Time in Business | 6 months |
Revenue | None |
Businesses with a high volume of shipping needs should consider the FedEx Small Business grant. Up to $30,000 in funds can be issued to businesses that can demonstrate recurring needs for shipping.
Up to 10 grand prize winners are selected, each receiving $30,000 in funding. An additional $20,000 is awarded to a US veteran, selected from one of the grand prize winners. Winners will also receive $1,000 in print credit to FedEx, 20% off an SEO monthly plan, access to a network of mentors, and more.
As with some grants, the specific eligibility criteria, terms, deadlines, and monetary prizes can change from one year to the next. Currently, business owners are eligible if they run a for-profit company, have been in operation for six months, and have fewer than 99 employees. Shipping with FedEx is not a requirement, although it can improve the odds of being selected as a winner.
Grand prize winners are selected based on a number of factors, including the quality of responses to questions on the grant application, a review of your company’s social media presence, your business products and services, and the amount of shipping you have done with FedEx. Companies with a unique or otherwise innovative product or service, regularly give back to the community, and have an environmentally-friendly business model, can have a greater chance of winning.
NASE Grant: Best for Growing Startups
Grant Terms | |
Funding Amount | $4,000 |
Application Deadline & Selection Timeline | None (applications accepted year-round) |
Number of Grants Available | Winners selected monthly |
Selection Criteria | Business need, business plan, intended use, and potential impact of funds |
Application Fee | As low as $12 monthly for three months, or $120 annually (membership fee) |
Eligibility Criteria | |
Qualifying Industries | No restrictions |
Time in Business | None |
Revenue | None |
The NASE grant is open to business owners who can demonstrate a need for funding and have a strong business plan detailing how it will help grow the company. There are no industry restrictions, applications are accepted year-round, and winners are chosen on a monthly basis.
If selected as a winner, you could receive up to $4,000. Funding is typically issued within 30 days of signing all required disclosures and agreements. Funds can then be used for a number of business purposes, such as hiring team members, improving office buildings, marketing, and more.
Applications for this grant can be completed online, but you must first become a member of the NASE. Among its more affordable memberships, you can choose the option to pay $12 monthly with a minimum three-month commitment or the annual membership option at $120 for the year for an even lower monthly average cost.
Venmo Small Business Grant: Best for Businesses Using Venmo for Payment Processing
Grant Terms | |
Funding Amount | $10,000 |
Application Deadline & Selection Timeline | Applications typically open July to August each year |
Number of Grants Available | 20 |
Selection Criteria |
|
Application Fee | None |
Eligibility Criteria | |
Qualifying Industries | No restrictions |
Time in Business | 3 months |
Revenue | $500 in the past 3 months |
Applications for the 2023 Venmo Small Business are not yet open. However, based on last year, it is expected that the program will begin accepting applications later this year in July.
While details of the 2023 program have not yet been released, Venmo offered a strong program last year, which is why we’ve selected it as a provider to consider. Additionally, many grants retain many of the same core qualification requirements and terms from one year to the next.
Last year, this program offered up to $10,000 in grant funds to 20 different businesses. Eligible companies were required to have a Venmo account in good standing, employ no more than 10 employees, have gross annual sales of less than $50,000, and have sold at least $500 worth of goods or services in the three months prior to the start of the program.
Grant applications were made online and winners were evaluated based on the quality of responses to questions in the application. Businesses were judged based on a demonstrated passion for the business, future plans for growth, and an explanation of how a partnership with Venmo would continue to benefit the company. Inspirational, innovative, and original stories also improved a company’s chance of winning.
Amber Grant: Best for Women-owned Businesses
Grant Terms | |
Funding Amount |
|
Application Deadline & Selection Timeline |
|
Number of Grants Available |
|
Selection Criteria | Winners selected based on business plan |
Application Fee | $15 |
Eligibility Criteria | |
Qualifying Industries | Women-owned businesses |
Time in Business | None |
Revenue | None |
To be eligible for the Amber Grant, your business must be at least 50% women-owned and based in the U.S. or Canada. Applicants must also be a minimum of age 18. For-profit and non-profit companies are both eligible.
This grant made our list of the best women-owned business grants because of the amount of funding and frequency of selecting winners. Applications are accepted year-round, with multiple winners being selected each month. This includes a single monthly winner who receives $10,000, along with four $1,000 prizes to finalists. There is also an additional monthly grant of $10,000 issued to the winner of a specified business category.
In addition to monthly winners, a $10,000 award is issued each quarter to a non-profit company and a startup company. An annual award of $25,000 is also available to business owners who were selected as a winner during the year.
Businesses are evaluated based on a company’s startup story and business plan. Inspiring and original stories have a better chance of being scored more favorably, and your business plan must indicate how additional funding will help you grow your business.
Visa Everywhere Initiative Grant: Best for Fintechs Delivering Innovative Payment and Commerce Solutions
Grant Terms | |
Funding Amount | Up to $50,000 |
Application Deadline & Selection Timeline | Application deadline: April through June (varies by region) |
Number of Grants Available | 18 |
Selection Criteria | Varies by category |
Application Fee | None |
Eligibility Criteria | |
Qualifying Industries |
|
Time in Business | None |
Revenue | None |
The Visa Anywhere Initiative grant is a popular choice for fintech companies delivering innovative payment and commerce solutions. Some examples include products for digital banking, digital wallets, authentication, security, and risk management.
A total of 18 separate grants are available. Awards include an overall winner, an audience favorite, and multiple geographic locations. Top prizes can be as much as $50,000, with other winners receiving no less than $10,000.
To be eligible for this grant, you must be an owner of your business and be age 18 or older. You must also be a startup operating in one of the following categories, the details of which can also be found in Visa Everywhere Initiative’s terms and conditions:
- Enabler of digital services and digital issuers
- Digital issuance
- Value-add for merchants and consumers in regard to finance
- Small/medium-sized business recovery
- Risk, urban mobility, or sustainable fintech
Application deadlines vary by region and can be viewed on the Visa Everywhere Initiative grant website. Deadlines currently range from April through June, and if you’ve missed the deadline, you can still provide your information to be notified of other opportunities in the future.
SBIR & STTR Grants: Best for Companies Conducting Research & Development
Grant Terms | |
Funding Amount |
|
Application Deadline & Selection Timeline | Varies |
Number of Grants Available | Varies |
Selection Criteria | Varies |
Application Fee | None |
Eligibility Criteria | |
Qualifying Industries | Companies engaged in research and development |
Time in Business |
|
Revenue | Varies |
The SBIR and STTR programs are federal grants that can be a good fit for companies conducting research and development on products that have the potential to be commercialized. To be eligible, businesses must meet the following criteria:
- Have fewer than 500 employees
- Be based in the US
- Operate as a for-profit company
- Have more than 50% ownership by a US citizen or permanent resident
SBIR and STTR awards have three phases, each with different award amounts. Phase 1 is the early stage of research and development, wherein the viability of a product or technology is evaluated, and amounts are typically capped at $250,000. Candidates for possible commercialization of a product or technology are then moved to Phase 2, where up to $750,000 in funding can be awarded. Finally, Phase 3 is reserved for businesses to pursue commercialization of the product or technology, although no additional funding is available.
To apply for funding, you can visit the SBIR website to locate agencies currently participating through the federal grant program. Each listing will have a description containing information to help you determine if you are eligible. The website is also regularly updated, with new postings being added on a rolling basis, so you can continually check back for updates.
USDA Value-Added Producer Grant: Best for Farmers & Agricultural Businesses
Grant Terms | |
Funding Amount | Up to $250,000 |
Application Deadline & Selection Timeline | Application deadline: Varies based on federal budget approval |
Number of Grants Available | 190 projected awards |
Selection Criteria | Business plan indicating past and projected impact for the generation of new products, marketing opportunities, and increasing income |
Application Fee | None |
Eligibility Criteria | |
Qualifying Industries | Agricultural businesses, such as farmers and rancher cooperatives |
Time in Business | None stated |
Revenue | Must be profitable |
The United States Department of Agriculture (USDA) Value Added Producer Grant is designed to help those working in the agricultural industry generate more income with new products or improved marketing. Farmers, ranchers, and farm workers can receive priority for this grant. Grants are awarded through a national competition.
Up to $250,000 in grant funds can be issued to a business, with a maximum program funding of $31 million for 2023. Funds can be used for a variety of working capital expenses, such as payroll, inventory, and other operational costs.
This program is not available in all locations, and you can determine your eligibility by visiting the USDA website to view state-specific information. Businesses interested in applying for this grant should allow at least one month before the deadline to allow sufficient time to complete the necessary paperwork.
USDA Rural Energy for America Grant: Best for Agricultural Businesses That Need Energy-efficiency Improvements
Grant Terms | |
Funding Amount | Up to $1 million |
Application Deadline & Selection Timeline | Applications accepted year-round |
Number of Grants Available | Varies |
Selection Criteria | Business plan indicating intended use and impact of funds |
Application Fee | None |
Eligibility Criteria | |
Qualifying Industries | Agricultural producers and small businesses in qualifying rural areas |
Time in Business | None stated |
Revenue | None stated |
Another grant offered through the USDA is the Rural Energy for America grant. This program is designed to provide funding to certain businesses needing to conduct energy-efficient improvements or acquire renewable energy systems. Common examples include solar- and wind-powered equipment.
Grant amounts can be issued up to $1 million. Renewable energy system grants can range from $2,500 to $1 million, while energy efficiency grants range from $1,500 to $500,000. Eligible businesses include agricultural producers, private for-profit entities, cooperatives, and electric utilities providing service to rural consumers. Companies must also have no delinquent federal debt.
Applications are accepted online year-round. We recommend that you visit the USDA website for additional information on this program and to obtain state-specific information that may apply to you.
How To Get a Small Business Grant
Grants for small business owners can be obtained in just a few steps. You’ll need to find a grant you’re eligible for, gather the required documents, and then submit a formal application. We also list some things to keep in mind for each of these steps.
Grants are offered by a wide variety of organizations. In addition to considering individual companies, there are organizations that provide a list of grant opportunities. Some of these companies also provide resources to assist you in improving the strength of your application.
Below are some additional resources you can use. Companies update available grants regularly, so it’s a good idea to check back frequently even if you don’t initially find a good fit.
- Grants.gov: This website provides a list of available federal grants. It also offers educational content on how grants work, how to apply for grants, and answers to frequently asked questions.
- Small Business Development Centers (SBDC): The SBA provides a tool you can use to locate the SBDC office closest to you. SBDCs provide training, mentoring, and other resources to help businesses with things like gaining access to capital, business planning, and more.
- Minority Business Development Agency (MBDA): This is a federal agency designed to assist minority businesses grow and was selected in our list of the best minority small business grant resources. It can provide business owners with resources to obtain working capital, analyze business strategies, implement marketing ideas, and more.
Getting a small business grant can be competitive. Although some organizations may not directly provide grant opportunities, the resources and educational content provided can improve your chances of being selected as a grant recipient.
Once you’ve found a grant, you’ll want to gather the information required. Grant instructions will indicate which documents are needed. Specific requirements will vary from one grant to the next, but common requirements include:
- Business plan: This document is used to provide a summary of various aspects of your business. A good business plan typically includes a brief description of your business, its products or services, strategies for marketing, and financial projections. Learn how you can create this document using our guide on how to write a business plan.
- Projected budget: Many grants will want to know how you plan on using the funds. A budget will help accomplish this, and you should also consider what outcome or impact you expect it to have.
- Financial statements: Commonly requested items may include cash flow statements, a balance sheet, and income statements.
Pros & Cons of Small Business Grants
PROS | CONS |
---|---|
Funds received do not need to be repaid | Some have strict eligibility criteria |
Many organizations offer resources for locating and applying for grants | Can be difficult to get due to competition from other businesses |
Most charge little to no application fees | Can take a long time to receive funds |
Alternatives To Small Business Grants
Getting a grant can be much more difficult than getting approved for a loan. If you can’t get a grant or want to consider other methods of funding without having to pay interest charges or fees associated with a traditional bank loan, here are some other options to consider, some of which have been taken from our guide on alternative funding options to startup loans:
- Venture capital: In exchange for giving up some equity in your company, a venture capital firm can provide you with funding. This is not a form of debt and no monthly payments are required, and the right partner can provide valuable insights in helping your business grow. To help you decide if this could be right for you and how to get it, view our guide on venture capital.
- Angel funding: With angel funding, you agree to give investors part-ownership of your company in exchange for funding. It’s similar to venture capital but is a less formal process. Head over to our article on what angel funding is and how to get it to learn about whether this could be a good fit for you.
- Rollover for business startup (ROBS): A ROBS allows you to use funds in your retirement accounts tax- and penalty-free. You’ll typically need a balance of at least $50,000. We have a list of the best ROBS providers that can walk you through the process.
- Startup business loans: Other types of loans that can be used for business purposes include home equity loans, credit cards, personal loans, equipment financing, and more. For details, you can view our list of different types of startup business loans.
Frequently Asked Questions (FAQs)
With rare exceptions, there is no limit to the number of grants you can apply for. Grants offered by the same organization may have restrictions on how often you can reapply for the same grant. Similarly, companies may not allow past winners to apply for the same grant.
Business grants provide funds that do not have to be repaid. They are offered by different organizations, including federal and privately owned companies. Grants will often specify eligibility criteria and evaluation methods for determining grant winners. Common criteria include a company’s impact on its community, business plans, and projected impact of grant funds.
In addition to receiving a monetary prize, grants can also connect business owners with a network of mentors. Other perks can include educational resources, leadership training, and other tools to help the business succeed.
Bottom Line
Small business grants don’t need to be repaid and rarely require you to pay any fees to apply. As a result, getting a grant can be a cost-efficient way to get additional funds to grow your business. However, it can be difficult to get due as there are usually numerous businesses competing for a limited amount of funding. If you opt for a business loan instead of a grant, we recommend heading over to our guide on how to get a small business loan for tips to improve your chances of getting an approval.