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Startup grants help new or soon-to-launch businesses access funding. If you’re a new or prospective business owner, startup grants can be a useful part of your funding plan to secure the seed capital you need.
Most startups and small businesses don’t apply for any startup grants. According to the University of Chicago’s Entrepreneurship in the Population Survey, 60% of small businesses that didn’t apply for any grant funding failed to do so because they didn’t know about any grant opportunities or how to apply for them. The same report states that as many as 81% of small businesses used personal financing to launch their business—which could have been covered by grant funding.
This article explores what startup grants are, how to take advantage of them, and some of the best grants available for startup and emerging businesses.
What are startup grants?
A startup grant is funding awarded to a new or emerging business that doesn’t have to be paid back. While many startup grants award direct grant funding, other grants provide resources and direct support such as networking, promotion, or development support like one-on-one mentoring or honing a business pitch. Startup grants can also include pitch competitions, which give emerging businesses the chance to gain exposure for their business, attract new investors, and compete to win cash prizes.
Although businesses may not be able to exclusively use funding to launch, grant funds can play an essential role in helping new entrepreneurs gain momentum and supplement their resources.
Real-world example: How a startup competition launched Spatula Foods
Startup grants can serve as a barometer for how feasible your business idea is and how interested potential investors may be in your product and your vision.
This was the case for the frozen food brand Spatula Foods. The company started as an idea for a grant pitch for a business school competition. The Spatula team won the competition and used the $60,000 prize to start the company.
But the competition also provided access to the panelists. “They had real VCs and people who were interested in what we were doing,” Spatula Foods cofounder Wallace Wong says on an episode of the Shopify Masters podcast. “Talks happened, and fast forward, we ended up getting our first fundraise of $1.5 million.”
13 startup grants to consider applying for
- Outta Excuses Grant
- Breva Thrive Grant
- Galaxy Grant
- Secretsos Small Business Grant
- Hustler’s MicroGrant
- Amber Startup Grant
- Transform Business Grant
- Freed Fellowship Grant
- Business Freedom Grant
- Nehemiah Davis’ Greatness Grant
- Kitty Fund Mompreneur Business Grant
- NASE Growth Grant Program
- America’s Seed Fund
These startup business grants offer direct funding to entrepreneurs with small businesses, micro-businesses, and business ideas in need of seed capital:
Outta Excuses Grant
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Grant award: $2,500, and an annual $10,000 grant for past winners
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How often: Every three months
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Who can apply: US-based businesses with less than $500,000 in annual income
The Outta Excuses Grant awards quarterly grants of $2,500 to startup and established businesses based in the US. The application is straightforward, with questions about your business and how you would use the grant money, plus a $15 application fee. Grant winners are automatically eligible applicants for Outta Excuses’ annual $10,000 grant.
Breva Thrive Grant
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Grant award: $5,000
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How often: Every three months
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Who can apply: US-based businesses that have generated revenue and have a positive impact in the community
The financial tech company Breva offers the Thrive Grant every quarter to small businesses that make a measurable difference in their community. Applicants must be registered businesses, having operated for at least a year, and preferably serving high-need areas. Applications can be submitted through the Breva website during announced application windows.
Galaxy Grant
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Grant award: $2,000 to over $4,000, and an annual $25,000 grant for past winners
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How often: Monthly
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Who can apply: Female and minority entrepreneurs in the US
The Galaxy Grant has been offered by Galaxy of Stars consistently for several years, awarding monthly grants that vary in size each grant cycle. The grant program is designed to support women and minority entrepreneurs at all stages of their business journey, from entrepreneurs hoping to realize their business vision to established and successful business owners. Applicants must set up a free or paid Galaxy of Stars account and submit an application through their website.
Secretsos Small Business Grant
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Grant award: $2,500
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How often: Every three months
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Who can apply: US-based businesses that may have been overlooked for banking loans and other traditional financing
The Secretsos Small Business Grant describes itself as a grant created to fill the gaps and reach under-resourced businesses. Businesses that have been overlooked for bank loans and other financial resources are encouraged to apply through their website. Secretsos describes the selection process as highly valuing each business’s story, the entrepreneur’s vision, and how the grant funding will positively impact future business plans.
Hustler’s MicroGrant
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Grant award: $1,000
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How often: Monthly
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Who can apply: Early-stage small business owners in the US
The Hustler’s MicroGrant is a joint venture by HerSuiteSpot and media personality Deja Vu Parker aimed at supporting businesses in need of early-stage capital. Grants are awarded monthly and favor recipients without generational wealth, bank loans, or traditional financial backing. The application is simple, with a small number of questions about the business, a required business logo and headshot, and a $15 application fee.
Amber Startup Grant
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Grant award: $10,000, and a $50,000 grant for past winners every four months
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How often: Monthly
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Who can apply: Business ideas and small businesses that are 50% women-owned and based in the US or Canada
Monthly Amber Grants are offered by WomensNet, a female entrepreneurship foundation that has awarded grants regularly for several years. The Amber Startup Grant is offered to female entrepreneurs with businesses that are at the idea stage or earn less than $10,000.
The same application makes you eligible for two additional monthly $10,000 grants. The Amber Grant for larger women-owned businesses and Amber’s Business Category Grants are awarded within selected industries, each listed on their website. Winners are also eligible for a $50,000 grant, awarded every four months. The application is straightforward and requires a $15 application fee.
Transform Business Grant
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Grant award: $1,000, with development and mentorship support
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How often: Once a year
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Who can apply: US-based entrepreneurs from systemically marginalized groups
Transform Business Grants are awarded to small businesses that are aligned with Transform’s values, including anti-racism, equity, and other values listed on their website. Eligible businesses must be owned by systemically marginalized groups, including entrepreneurs of color, women, and entrepreneurs from LGBTQ+ and disabled backgrounds. Applicants must apply through the website during announced submission windows.
Freed Fellowship Grant
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Grant award: $500, and an annual $2,500 grant for past winners
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How often: Monthly
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Who can apply: Small and micro-business owners in the US
The Freed Fellowship offers grants to US-based business owners with small and emerging businesses. It awards winners $500 microgrants, a 60-minute strategy session, and additional resources. Awardees are also eligible for an annual $2,500 grant. The application includes multiple short questions about your business and requires a $19 application fee. While the grant is open to all entrepreneurs, women and minority applicants are particularly encouraged to apply.
Business Freedom Grant
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Grant award: $1,000
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How often: Ongoing
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Who can apply: Entrepreneurs with a business idea or an existing small business
Offered by entrepreneur and business coach Darcy Bedford, the Business Freedom Grant describes itself as “a grant for dreamers ready to become founders.” Entrepreneurs at any stage of their business journey are eligible, with applications accepted on an ongoing basis. The application form includes several short questions about your business and future business plans.
Nehemiah Davis’ Greatness Grant
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Grant award: $1,000
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How often: Every three months
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Who can apply: Early-stage businesses and nonprofits with a clear business idea or plan
The Greatness Grant is offered by entrepreneur Nehemiah Davis to fund emerging businesses and nonprofit organizations that need initial capital to get off the ground. The application process is quick to complete. Winners are selected depending on the clarity of their business idea, passion, and potential impact.
Kitty Fund Mompreneur Business Grant
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Grant award: $1,000 and access to business-support programming
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How often: Offered regularly
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Who can apply: Small US businesses with budgets of less than $5 million that are 50% owned by mothers
The Kitty Fund Mompreneur Business Grant was launched in 2020 to support female entrepreneurs who identify as mothers and caregivers. The $1,000 microgrant is offered by the mission-driven platform Founders First, which also provides awardees access to its business-development programs. Applicants can apply during application windows, which are regularly posted on its website.
NASE Growth Grant Program
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Grant award: Up to $4,000
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How often: Every three months
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Who can apply: Small business owners based in the US
The National Association for the Self-Employed’s (NASE) Growth Grant offers grants of up to $4,000 to active members. While the NASE grant program allows members of any subscription type to apply, all membership tiers include fees, and monthly subscribers—the least expensive tier—must wait 90 days before applying.
NASE applications can be submitted through their website and require more documents than most other small business grants, including a business plan, photos, and a profit and loss statement or recent tax return.
America’s Seed Fund
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Grant award: Varies, with some Phase I grants up to $300,000
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How often: Offered regularly
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Who can apply: US-owned businesses with fewer than 500 employees
The Small Business Administration’s (SBA) America’s Seed Fund awards grants to startups and small businesses developing new and innovative technologies. This federal grant is a program within the National Science Foundation and requires a project pitch and considerable documentation. Full details are available on the website.
This is one of several government grants that offer financial resources to small businesses, including grants and loans by the SBA and the Minority Business Development Agency (MBDA) for business owners from minority backgrounds.
Tips for applying to startup grants
Here are some tips for applying to startup grants and standing out from your competition:
Research previous winners
Review the grant details and make sure that all the listed dates and upcoming deadlines are correct. It is surprisingly common for grants to appear active—with fully operational websites—months or years after the grant program has ended.
Grant websites that highlight previous grant awardees are a particularly good resource, allowing you to check how active the grant is and how many grants are awarded. This also offers a helpful window into what kinds of businesses are likely to win the award and what the grant’s judges are looking for in an applicant.
Use storytelling to paint a picture
Many grants ask questions about the business’s purpose, the entrepreneur’s mission and vision, or how grant funding would be used if awarded. Some grant applications require documents such as a business plan, financial documents, or uploaded images that highlight your business.
Each of these requirements is an opportunity to set your grant application apart and improve your odds of being selected. While facts and figures are essential for any good business pitch, a compelling story draws in your audience. Good storytelling can generate empathy and help the narrative of your business—and the problem it aspires to solve—resonate with the reader.
Tailor your narrative to your audience. If a grant application asks questions that require answers that are at least 50 words long, use this space to echo the values and interests of the organization offering the grant. This can include referencing the grant provider’s mission and values or emphasizing different aspects of your business.
Gourmet Délice, cofounder of the music company Bonsound, described tailoring his business’s story for a local arts council grant on an episode of Shopify Masters. “These arts councils, they’re not about the business at all,” says Gourmet. “It’s really about the philosophy that you have behind your art and what you want to do with it. They don’t want to hear about streaming numbers or crowds reached or something like that. It’s really about the art.”
Develop your business pitch
Startup grants, and especially pitch competitions, are great opportunities to hone your business pitch. See what works, what resonates with your audience, and what narratives fail to grab your audience’s interest. Reaching out for feedback if you don’t receive a grant can be a good way to get constructive notes on what worked and what didn’t, while allowing you to connect with a potential future funder directly.
Elavi cofounder Michelle Razavi describes how she shaped her business pitch on Shopify Masters, saying, “What really worked was what I like to call the three C’s—craft a concise pitch, make it compelling, and have a clear call to action at the end.” The key, Michelle says, “is making the offer, the ask, more focused on what value you can provide [the investor], versus them helping you out.”
Startup grants FAQ
How do you get a grant for a startup business?
You can apply for business grants of many sizes by sending in an application that describes you and your business. Small grants such as the Kitty Fund Mompreneur Business Grant and Hustler’s Microgrants can provide a quick infusion. Grants from government agencies, such as America’s Seed Fund, offer significant infusions of capital across a business’s development, but are time-consuming to apply for.
Can an LLC receive grant money?
An LLC can qualify for many business grants. To make sure an LLC is eligible for a specific grant, review the grant provider’s eligibility requirements, such as specific location requirements, industries, the stage and size of the LLC’s business, and the demographics and background of the business owner.
How do you get funds for a startup?
Startup funding can come from business grants and pitch competitions. For most startup businesses, though, startup funds come primarily from non-grant funding, such as personal savings, loans, crowdfunding, angel investors, venture capital, accelerators, and support from friends and family.
