{"id":5509,"date":"2016-04-04T10:48:00","date_gmt":"2016-04-04T15:48:00","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/small-business-grants.html"},"modified":"2026-05-12T00:32:00","modified_gmt":"2026-05-12T05:32:00","slug":"small-business-grants","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/small-business-grants.html","title":{"rendered":"Small Business Grants: Federal, State, and Eligibility Requirements\u00a0\u00a0"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Small Business Grants: Federal, State, and Eligibility Requirements  <\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw Staff<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 12, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Small business grants are financial awards provided by government agencies or charitable foundations to help economic development. Many grants are targeted for minority-owned businesses or businesses that promote scientific research, energy conservation, or community initiatives.<\/p>\n\n    <\/div>\n\n\n\n<div><p>You are a budding <span data-term-id=\"54206587\">entrepreneur<\/span>, hoping to change the world through <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-green-business.html\">sustainable business practices<\/a>. But you are facing several challenges. Your biggest hurdle is <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sources-of-small-business-financing.html\">cash flow<\/a>. You\u2019ve heard about <span data-term-id=\"54206589\">small business<\/span><span data-term-id=\"54206589\"> grants<\/span>, but aren\u2019t sure if you qualify. Follow along as FindLaw takes your through the various grants that may be available to you.<\/p>\n<p><b><i>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=small-business-grants-in-content\" rel=\"sponsored noopener\" data-cta=\"Biz LZ - LATL Callout\" data-cta-url=\"legalzoom.com\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n<h2><span data-term-id=\"54206589\">Small Business<\/span><span data-term-id=\"54206589\"> Grants<\/span><\/h2>\n<p>Grants are sums of money, usually public (i.e. taxpayer), given to <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/non-profit-organizations.html\"><span data-term-id=\"54206593\">non-profit organizations<\/span><\/a>, government entities or businesses to achieve certain goals considered socially and\/or economically beneficial. For example, a childcare center wishing to expand services may apply for a grant to help it get started. Some non-governmental organizations and foundations also offer grants.<\/p>\n<p>Grants are not easy to obtain, often require matching funds and must be used for specific purposes. <span data-term-id=\"54206588\">Federal grants<\/span> typically are not available to <span data-term-id=\"54206623\">for-profit businesses<\/span>, although some state and local grants are. Grants, unlike loans, do not have to be repaid as long as the applicable obligations are met.<\/p>\n<p>The following types of <span data-term-id=\"54206584\">grant programs<\/span> may be available to <a href=\"https:\/\/www.findlaw.com\/smallbusiness.html\"><span data-term-id=\"54206578\">small businesses<\/span><\/a>:<\/p>\n<ul>\n<li>\n<p>State programs to re-train workers displaced from declining industries, such as autoworkers in Michigan or loggers in Oregon;<\/p>\n<\/li>\n<li>\n<p>Programs to develop a depressed downtown area by attracting new businesses;<\/p>\n<\/li>\n<li>\n<p>State or county-wide program to become more energy-efficient;<\/p>\n<\/li>\n<li>\n<p>Federal programs to transfer military or space technology to commercial use (i.e. &#8220;memory foam&#8221; first used on the space shuttle).<\/p>\n<\/li>\n<\/ul>\n<p>Obligations of organizations as a condition of accepting grants may include the following:<\/p>\n<ul>\n<li>\n<p>All project expenditures subject to government audit, at least annually;<\/p>\n<\/li>\n<li>\n<p>All <span data-term-id=\"54206597\">grant funds<\/span> must be spent (leftover funds must be returned);<\/p>\n<\/li>\n<li>\n<p>Must develop detailed goals, get approval, and carry them out exactly as described on <span data-term-id=\"54206601\">grant application<\/span>;<\/p>\n<\/li>\n<li>\n<p>Project phases must be completed on schedule.<\/p>\n<\/li>\n<\/ul>\n<p>Many states have <span data-term-id=\"54206594\">Small Business<\/span><span data-term-id=\"54206594\"> Development Centers<\/span> with details about grants and <span data-term-id=\"54206603\">eligibility<\/span>.<\/p>\n<h2><span data-term-id=\"54206588\">Federal Grants<\/span><\/h2>\n<p><span data-term-id=\"54206588\">Federal grants<\/span> are not offered to for-profit entities wishing to start or expand a business. However, a wide variety of research grants are available to <span data-term-id=\"54206578\">small businesses<\/span> engaged in scientific research and development (R&amp;D) under the <span data-term-id=\"54206606\">Small Business<\/span><span data-term-id=\"54206606\"> Innovation Research<\/span> (<span data-term-id=\"54206595\">SBIR<\/span>) and <span data-term-id=\"54206612\">Small Business<\/span><span data-term-id=\"54206612\"> Technology Transfer<\/span> (<span data-term-id=\"54206598\">STTR<\/span>) programs. To be eligible, <span data-term-id=\"54206578\">small businesses<\/span> must meet federal R&amp;D objectives and show a high potential for commercialization should the project prove successful.<\/p>\n<p>The <a href=\"https:\/\/www.sba.gov\/\" target=\"_blank\" rel=\"noopener\">U.S. <span data-term-id=\"54206592\">Small Business<\/span><span data-term-id=\"54206592\"> Administration<\/span><\/a> provides links to various <span data-term-id=\"54206614\">federal agencies<\/span> offering <span data-term-id=\"54206595\">SBIR<\/span> and <span data-term-id=\"54206598\">STTR<\/span> grants. Also, you can <a href=\"http:\/\/www.grants.gov\/web\/grants\/search-grants.html\" target=\"_blank\" rel=\"noopener\">search for <span data-term-id=\"54206588\">federal <\/span><span data-term-id=\"54206600\">grant<\/span><span data-term-id=\"54206600\"> opportunities<\/span><\/a> by category, agency or more specific criteria. If you find one or more grants that match your needs, you must go through a registration process before applying.<\/p>\n<h2>State Grants<\/h2>\n<p><span data-term-id=\"54206578\">Small businesses<\/span> that are not directly involved in R&amp;D activities may have more luck finding state or local grants than <span data-term-id=\"54206588\">federal grants<\/span>. In fact, some states offer grants for starting or expanding your <span data-term-id=\"54206578\">small business<\/span> or target minority or <span data-term-id=\"54206590\">women-owned businesses<\/span>.<\/p>\n<p>Illinois, for example, <a href=\"http:\/\/www.illinois.gov\/Business\/Pages\/financetaxes.aspx\" target=\"_blank\" rel=\"noopener\">offers grants<\/a> related to coal, technology, tourism, <span data-term-id=\"54206578\">small business<\/span> job creation and other categories. The <a href=\"https:\/\/egrants.gov.texas.gov\/Default.aspx\" target=\"_blank\" rel=\"noopener\">State of Texas<\/a> also offers grants in various categories for <span data-term-id=\"54206578\">small businesses<\/span>. Contact your state government\u2019s business development office for more details.<\/p>\n<h2>Hiring an Attorney<\/h2>\n<p>If you need help locating or applying for a <span data-term-id=\"54206578\">small <\/span><span data-term-id=\"54206599\">business<\/span><span data-term-id=\"54206599\"> loan<\/span>, contact a <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/\" target=\"_blank\" rel=\"noopener\">business law attorney<\/a> to assist you. A trained legal professional can help you through the red tape you are likely to encounter and help you apply for the grant which is right for your business.<\/p>\n<p>Looking to start your own business? Use <a href=\"https:\/\/www.findlaw.com\/forms\/business-formation.html\">online DIY forms<\/a>\u00a0to get a legal business entity set up in minutes.<\/p><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g 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height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div 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