Startup Business Grants: Best Free Funding Options
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Startup business grants provide free funding to help small businesses grow without debt. Competition for small-business grants is fierce, however, and many awards require a minimum time in business — often at least six months.
In some cases, newer businesses or true startups may be able to access grant funding, but these options can be more difficult to find. Nevertheless, it can pay to know where to look for future financing.
Here are the best business startup grants, plus alternative funding sources to consider.
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Startups may be able to qualify for small-business loans with just six months in operation. If you need more than grant funding can offer, explore our roundup of the best startup business loans.
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Startup business grants from private companies and nonprofits
Many corporations and large nonprofits, like the National Association for the Self-Employed, offer startup business grants or organize grant competitions. Some national opportunities include:
Faire Small-Business Grant
If you own an independent retail store that opened within the last year — or plan to open this year — you may qualify for the Faire Small-Business Grant. This new business grant offers $5,000 in Faire credit to independent retailers based in the U.S. The credit can be used to purchase inventory through Faire.com.
Applications are open until August 31, 2024 and winners will be announced in September. You can apply through Faire’s website.
Fast Break for Small Business
This grant program is funded by LegalZoom, the NBA, WNBA and NBA G-League and administered by Accion Opportunity Fund. You can win a $10,000 business grant plus $500 worth of LegalZoom services.
To qualify, you have to be a U.S.-based business with at least three months in business. If you have less than three months in operation or haven't started your business yet, you can apply to receive a LegalZoom product of your choosing (up to $500).
Applications for the 2024 cycle are open until Sept. 13, 2024.
ZenBusiness Grant Program
The ZenBusiness Grant Program offers $5,000 each month to new businesses that offer products and services that help their communities. To qualify, you must be at least 18 years old and have used ZenBusiness formation services within the last three to six months.
ZenBusiness evaluates applications on a monthly basis and winners receive a $5,000 grant, access to the company’s Money Pro services, as well as “ask me anything” office hours with the ZenBusiness team. If you apply for a certain month and don’t win, you can reapply for the following month. Winners are not eligible for subsequent grants, however.
The program will accept applications through December 31, 2024.
IFundWomen Universal Grant Application Database
IFundWomen partners with other corporations to administer business grants. The company generally focuses on small-business grants for women, but also offers startup grants, crowdfunding and coaching, among other resources.
You can fill out a universal application to receive automatic notifications when you’re eligible to apply for a grant.
Amber Grant for Women
WomensNet gives three $10,000 Amber Grants each month and three $25,000 grants annually. Although startups are eligible for all grants, one of the monthly $10,000 grants is specifically geared toward new businesses.
Filling out one application makes you eligible for all Amber Grants. To qualify, businesses must
be at least 50% women-owned and based in the U.S. or Canada.
National Association for the Self-Employed Growth Grant
Join NASE, and you can apply for quarterly Growth Grant opportunities. There are no time-in-business requirements for these grants of up to $4,000, but you’ll need to provide details about how you plan to use the grant and how it will help your business grow.
Hustler’s Microgrant
HerSuiteSpot is a digital platform that provides training and coaching to women-owned small businesses. The company offers the $1,000 Hustler’s microgrant each month that’s available to any small business in the U.S. To apply, you need to provide basic information about your business and explain how you would use the grant funds.
Bizee’s Fresh Start Business Grant
If you plan to start a business — or have just launched a new endeavor, you may be able to get a $2,500 startup business grant from Bizee, formerly Incfile. Bizee’s Fresh Start Business Grant can be used to cover startup costs and also includes free formation services from the company.
To qualify, you’ll need to be at least 21 years old, a U.S. resident and planning to start or grow your business in a significant way. Applications require a sample business plan, as well as a two-minute video.
Bizee has not yet announced its next grant cycle, but updates will be posted to its website.
Venmo Small Business Grant
The annual Venmo Small Business Grant offers $10,000 grants to 20 business owners. This program also provides mentorship from industry leaders and the opportunity to be featured on Venmo’s social media pages.
To qualify, you need to have a U.S. Venmo business account in good standing. You also need to have fewer than 10 employees, less than $50,000 in annual sales and have sold $500 or more in goods and services at least three months before the start of the grant program.
Winners for 2024 were announced in May. You can receive the latest updates about the 2025 cycle through your Venmo business profile.
The Amplifier Grant
The Outrage is an activism organization that offers a $5,000 new business grant to companies making a difference in their community. The Amplifier Grant is available on a seasonal basis; funding is awarded in January, April, July and October.
To qualify for this grant, you must be a business or organization actively working to make the U.S. a better place. The Outrage accepts applications from startups, grassroots organizations, and nonprofits, among other small businesses.
FedEx Small Business Grant Contest
This annual competition awards grants to small-business owners in a variety of industries. To be eligible, you’ll need to have been in business for at least six months, and have had an active FedEx business account during that same timeframe. One winner will receive a $50,000 grant, and nine additional small businesses will get $20,000 grants. Winners for the 2024 cycle were announced in May. Stay tuned for updates on the 2025 application cycle.
Tory Burch Foundation Fellows Program
The Tory Burch Foundation Fellows Program is designed to provide funding, education and other resources to women-owned startup businesses.
Each year, the program chooses 50 small-business owners to participate in a yearlong initiative that includes workshops, networking groups, a $5,000 business education grant and a culmination presentation. Tory Burch Fellows participants also receive access to 0% interest loans through Kiva.
To qualify for this startup grant program, you must be a women entrepreneur who owns 51% or more of your business. You also must be an early-stage company (ranging from one to five years in business) that generates revenue (the program prefers a minimum of $75,000).
Applications are closed for the 2024 Fellow cycle, but you’ll be able to find updates for the following cycle on the Tory Burch Foundation website.
Freed Fellowship Grant
The Freed Fellowship grant program offers a $500 grant to small-business owners each month. All applicants get feedback from the Freed Studio and recommendations on how to grow their business. They also receive two months of free mentoring in the Freed Studio virtual community.
Grant winners are automatically entered into consideration for an additional $2,500 grant at the end of the year. Any micro or small business in the U.S. is eligible to apply. You can start the application by providing your name and email address on the Freed Fellowship website.
Government startup business grants and resources
Some government programs offer direct funding to startups looking for new business grants, but those that don’t may point you in the right direction or help with applications.
Grants.gov
Government agencies routinely post new grant opportunities on this centralized database. If you see an opportunity relevant to your business idea, you can check if startups are eligible. Many of these grants deal with scientific or pharmaceutical research, though, so they may not all be relevant to Main Street businesses.
State and local government grants
The federal government awards a variety of grant funding to other governments, like states or cities, or to nonprofit economic development organizations. Those entities then offer grants to local businesses. Plugging into your local startup ecosystem can help you stay on top of these opportunities. For example, New York state’s website offers a consolidated list of business grants and incubators organized by region.
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs
These federal grant programs are designed for businesses with innovative technology or scientific research ideas. Federal agencies list the types of research they’re hoping to fund, and if you think your idea qualifies, you can submit a proposal. Unsolicited proposals aren’t allowed.
Small Business Development Centers
These resource centers funded by the Small Business Administration offer business coaching, education, technical support and networking opportunities. They may also be able to help you apply for small-business grants, develop a business plan and level up your business in other ways.
Minority Business Development Agency Centers
The MBDA, which is part of the U.S. Department of Commerce, operates small-business support centers similar to SBDCs. The MBDA doesn't give grants to startup businesses directly, but these centers can connect you with grant organizations, help you prepare applications and secure other types of business loans.
Small-business incubator programs
Business incubators or accelerators are designed to help companies in various phases of the startup stage — providing education, workspaces and mentorship. Some also provide funding in the form of grants, pitch competitions with cash prizes or access to investors upon completion of their program.
Although there are a range of programs for general startups, certain incubators target specific demographics, like underserved business owners. Head Boss in Charge Headquarters (HBICHQ), for example, is a Seattle-based nonprofit that serves women and minority-owned startup businesses. It offers merit-based grants for graduates of several of its educational programs.
Other programs are designed to offer support for certain industries. Accelerate Long Island, for instance, is a nonprofit designed to help high-growth biotech and health technology companies.
The program may provide startup grants to participants in conjunction with funding partners on a case-by-case basis, and it helps new businesses navigate New York state tax incentives and find workspace by partnering with local universities.
To find these types of institutions near you, you can do an online search for “[Your City] business incubator.” Even if you don’t see a grant program, it can be helpful to sign up for their email newsletter or follow them on social media. Like SBDCs and MBDAs, startup incubators often provide business coaching, courses and lectures that can help you develop and grow your business idea.
» MORE: How to fund your business idea
Alternatives to startup business grants
Finding and applying for new business grants can be difficult and time-consuming — plus, not all startups will qualify. If you’re looking for other ways to fund your business, you might consider these alternatives:
SBA microloans. These loans offer up to $50,000 to help your business launch or expand. So far in fiscal year 2024, the average SBA microloan is $16,528. The SBA provides microloans through intermediary lenders that administer, underwrite and issue their own microloans. As a result, SBA microloan requirements vary largely by lender. Many intermediaries are willing to work with startups, however. In fact, startup businesses have received 25.1% of all SBA microloans issued so far in fiscal year 2024. You can find a lender in your state on the SBA's website.
Friends and family funding. Asking friends and family to provide an investment for your business is a common form of startup funding. This type of arrangement can place a strain on relationships, however, so you’ll want to be careful. You’ll want to define each person’s investment — is it a loan or are they getting equity in your business? If you’re receiving a small-business loan, you’ll want to lay out the rates and terms and detail how you’re going to pay it back. You should put all agreements in writing, if possible.
Business credit cards. You can qualify for a business credit card with your personal credit score and some general information about your business, like your business name and industry. Startup business credit cards often earn rewards for spending, making them great for daily expenses, but they aren’t typically suited for larger purchases. If you make a large purchase on your credit card and can’t pay it back right away, you’ll start accruing interest on your balance, which can become expensive and difficult to manage. Keep in mind that you’ll likely need to sign a personal guarantee with your application — which means you’ll be held responsible for paying back the debt if your business can’t.
Crowdfunding. If you have a dedicated customer base, they can help finance your business through crowdfunding. In exchange for capital, businesses usually offer something for their supporters, like debt notes, equity shares or access to an exclusive event. You can compare a variety of crowdfunding platforms that offer different terms, such as Kickstarter, Indiegogo and StartEngine, to find the model that works best for you.
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