Small businesses are the backbone of the economy, but securing funding can be a major challenge. Government grants offer a valuable opportunity for entrepreneurs to access capital without the burden of repayment. In 2025, various federal, state, and local grant programs continue to support small businesses in innovation, expansion, and economic recovery.

This comprehensive guide outlines the top government grants for small businesses in 2025, their eligibility requirements, and how to apply successfully.

Understanding Small Business Grants

A small business grant is a financial award given by government agencies or nonprofit organizations to help businesses grow and succeed. Unlike loans, grants do not require repayment, making them an attractive funding option. However, grants are often competitive and come with strict eligibility criteria.

Types of Government Grants for Small Businesses

✅ Federal Grants – Offered by U.S. government agencies such as the Small Business Administration (SBA), Department of Agriculture (USDA), and Department of Energy (DOE).
✅ State & Local Grants – Available through state governments, economic development agencies, and local business programs.
✅ Industry-Specific Grants – Designed for businesses in technology, agriculture, healthcare, clean energy, and minority entrepreneurship.

Top Federal Grants for Small Businesses in 2025

The U.S. federal government provides some of the largest and most well-funded grant programs for small businesses. Below are the most promising options in 2025:

1. Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR) Programs

These two programs fund innovative technology and research-driven small businesses. The SBIR/STTR grants are ideal for startups working on cutting-edge scientific and technological advancements.

✅ Who Qualifies?

  • Small businesses engaged in research & development (R&D).

  • Companies in biotechnology, artificial intelligence, cybersecurity, energy, and manufacturing.

  • Businesses with fewer than 500 employees.

✅ Funding Amount:

  • Phase I: Up to $300,000 for feasibility studies.

  • Phase II: Up to $2 million for continued research and development.

✅ How to Apply?

  • Applications are submitted through SBIR.gov.

  • Businesses must work with a federal agency partner (e.g., NASA, NIH, DoD, DOE, etc.).

2. Small Business Administration (SBA) State Trade Expansion Program (STEP)

The STEP grant helps small businesses expand into international markets by covering the costs of exporting, trade shows, and global marketing.

✅ Who Qualifies?

  • Small businesses looking to expand internationally.

  • Exporters in industries like manufacturing, agriculture, and consumer goods.

✅ Funding Amount:

  • Varies by state (typically between $5,000 – $500,000 per business).

✅ How to Apply?

  • Applications are submitted through state trade offices (check SBA.gov/STEP for details).

3. USDA Rural Business Development Grants (RBDG)

This grant supports small businesses operating in rural communities, focusing on job creation and economic development.

✅ Who Qualifies?

  • Small businesses in rural areas with less than 50 employees and under $1 million in revenue.

  • Businesses in agriculture, food production, renewable energy, and local manufacturing.

✅ Funding Amount:

  • Typically $10,000 – $500,000.

✅ How to Apply?

  • Submit an application through the USDA Rural Development Office.

4. National Science Foundation (NSF) Small Business Grants

The NSF offers funding for small businesses involved in scientific innovation and engineering breakthroughs.

✅ Who Qualifies?

  • Startups and small businesses in technology, engineering, and science-based industries.

  • Companies working on AI, robotics, advanced materials, and clean energy solutions.

✅ Funding Amount:

  • Up to $2 million in non-dilutive funding.

✅ How to Apply?

  • Submit applications via NSF.gov/SBIR.

Top State & Local Grants for Small Businesses

Many state governments and local agencies offer grant funding tailored to businesses in their communities. Here are some ways to find state-specific grants:

✅ State Economic Development Offices – Most states provide small business grants and funding programs for local businesses. Visit your state’s economic development website to see available opportunities.

✅ City & County Grants – Many large cities have grants for small businesses, minority entrepreneurs, and green energy startups. Check your local chamber of commerce for details.

✅ Women- and Minority-Owned Business Grants – Many states offer diversity-focused grant programs to support underrepresented entrepreneurs.

🔹 Example:

  • California Small Business COVID-19 Relief Grant – Up to $25,000 for businesses impacted by economic downturns.

  • Texas Workforce Commission Grants – Funding for small businesses offering workforce training.

  • New York State Minority & Women-Owned Business Grants – Grants for underrepresented entrepreneurs.

✅ How to Apply?

  • Visit your state’s small business website or the U.S. Economic Development Administration (EDA) website for local grant programs.

Industry-Specific Grants for Small Businesses

Some government grants target specific industries to encourage innovation, economic growth, and job creation.

1. Clean Energy Grants

The Department of Energy (DOE) offers grants for businesses involved in solar energy, wind power, electric vehicles (EVs), and sustainable technology.

✅ Who Qualifies?

  • Small businesses in the renewable energy sector.

  • Companies developing sustainable technologies.

✅ How to Apply?

  • Visit energy.gov for available funding opportunities.

2. Healthcare & Medical Research Grants

The National Institutes of Health (NIH) provides grants for businesses focused on medical research, drug development, and healthcare technology.

✅ Who Qualifies?

  • Startups developing medical devices, AI healthcare solutions, and biotech innovations.

✅ How to Apply?

  • Submit applications through grants.nih.gov.

How to Successfully Apply for Small Business Grants

Winning a small business grant is competitive, but following these steps can increase your chances of success:

✔ Research Grant Opportunities – Visit Grants.gov, SBA.gov, and state economic websites to find suitable grants.
✔ Prepare a Strong Business Plan – Clearly outline your business goals, funding needs, and growth strategy.
✔ Meet Eligibility Requirements – Carefully read the grant criteria and ensure your business qualifies.
✔ Submit a High-Quality Application – Provide complete and accurate information, and meet all deadlines.
✔ Seek Expert Assistance – Work with small business advisors, grant writers, or SBA resource centers for guidance.

Final Thoughts: Unlocking Government Grants for Your Business

Securing a government grant can provide crucial funding to help your small business launch, expand, or innovate in 2025. Whether you're in technology, healthcare, rural business, or sustainability, there are many funding opportunities available.