Free Money: Small Business Grant Guide

Finding and Securing Funding You Don't Have to Repay

There's a saying in the business world that "the best funding is free funding." While I spent years helping small businesses secure loans at BriteCap Financial, I always encouraged owners to explore grant opportunities first. As someone who's seen thousands of businesses struggle with debt obligations, I can tell you that grant funding – money you don't have to repay – can be a game-changer for small businesses with limited resources.

What's particularly interesting about business grants is how often they align with what I call the Underdog Principles – especially Purpose and Positioning. Many grant programs are specifically designed to support businesses that serve particular communities (Positioning) or are mission-driven in ways that create positive social impact (Purpose). For small businesses already built around these principles, grants can be an ideal funding source that rewards rather than dilutes what makes you special.

The Business Grant Landscape

Grant funding for small businesses has expanded significantly in recent years. Following economic disruptions from the pandemic, many corporations, foundations, and government entities have created or expanded grant programs specifically targeting small businesses. The competition for these funds remains fierce – after all, who doesn't want free money? – but there are more opportunities than ever, especially for businesses with clear positioning and purpose.

While some grant programs require a minimum time in business (typically at least one year), there are growing options for newer businesses and true startups. Let's explore the best sources for small business grants and how to position your application for success.

Private Company and Nonprofit Grant Programs

Some of the most accessible grant opportunities come from corporations and large nonprofits that have created programs to support small businesses. Here are some notable options in 2025:

Freed Fellowship Grant

This monthly program offers $500 grants to small businesses, with winners automatically entered for consideration for an additional $2,500 grant at year's end. Beyond the financial support, recipients also receive two months of mentoring and all applicants get feedback on their business – making this valuable even if you don't win.

Eligibility: Any micro or small business in the U.S.

Underdog Advantage: The Freed Fellowship explicitly looks for businesses with a clear "why" behind their work – a perfect opportunity to highlight your Purpose as an underdog business.

The Amplifier Grant

Offered by The Outrage, an activism organization, this seasonal $5,000 grant targets companies making a difference in their communities. Awards are distributed quarterly (January, April, July, October).

Eligibility: Businesses or organizations actively working to make the U.S. a better place, including startups and grassroots efforts.

Underdog Advantage: This grant specifically rewards businesses built around Purpose – those creating positive community impact – making it ideal for underdog businesses driven by mission rather than just profit.

IFundWomen Universal Grant Application

While particularly focused on women-owned businesses, IFundWomen partners with multiple corporations to administer various business grants. Their universal application notifies you automatically when you're eligible for new opportunities.

Underdog Advantage: Many of these grants focus on businesses serving specific communities or addressing particular challenges – perfect for businesses with clear Positioning around who they serve.

Amber Grant for Women

WomentsNet offers three $10,000 grants monthly and three $25,000 grants annually. One of the monthly $10,000 grants specifically targets new businesses.

Eligibility: Businesses must be at least 50% women-owned and based in the U.S. or Canada.

Application Tip: One application makes you eligible for all their grant opportunities.

National Association for the Self-Employed (NASE) Growth Grant

NASE members can apply for quarterly grants of up to $4,000 with no time-in-business requirements.

Application Focus: You'll need to provide specific details about how the grant would help your business grow.

Underdog Advantage: As a focused, purpose-driven business, you can craft a compelling narrative about how even modest growth funding creates outsized impact because of your specialized focus.

Hustler's Microgrant

HerSuiteSpot offers a monthly $1,000 microgrant available to any small business in the U.S.

Application Requirement: Simple explanation of how you would use the funds.

Awesome Foundation Grants

This foundation offers monthly $1,000 grants through local chapters across the U.S. There's no minimum time in business requirement, and projects can span arts, technology, community development, and more.

Underdog Advantage: The local focus of these grants aligns perfectly with the Proximity principle, as they often reward businesses deeply connected to their communities.

Industry-Specific Grant Opportunities

Faire Small-Business Grant

For independent retailers that opened within the last year (or plan to open this year), this grant offers $5,000 in Faire credit for inventory purchases.

ZenBusiness Grant Program

This program offers $5,000 monthly to new businesses using ZenBusiness formation services that help their communities.

Venmo Small Business Grant

Venmo awards twenty $10,000 grants annually to business owners with Venmo business accounts, fewer than 10 employees, and less than $50,000 in annual sales.

FedEx Small Business Grant Contest

This annual competition awards one $50,000 grant and nine $20,000 grants to businesses that have been operating for at least six months with an active FedEx business account.

Tory Burch Foundation Fellows Program

Beyond a $5,000 business education grant, this program offers women entrepreneurs workshops, networking, and access to 0% interest loans. Eligible businesses should be women-owned, early-stage (1-5 years), and generating revenue (preferably $75,000+).

Jobber Grants

For home-service businesses (landscaping, painting, cleaning, plumbing, etc.), Jobber offers $10,000 grants that can be used for any business purpose.

Government Grant Programs

Government grants typically come with more requirements and longer application processes, but they can offer substantial funding. Here are the key sources to explore:

Grants.gov

This centralized database lists grant opportunities from various government agencies. While many focus on scientific research, you may find relevant opportunities for your business.

Reality Check: In my experience, many of these grants aren't well-suited for typical Main Street businesses, but they're worth checking if you're in fields like healthcare, technology, or environmental services.

State and Local Government Grants

These often-overlooked programs can be more accessible than federal grants. Many states and cities receive federal funding that they redistribute as small business grants, particularly for businesses creating jobs or revitalizing specific areas.

How to Find Them: Visit your state's economic development website or contact your local Small Business Development Center.

Underdog Advantage: Local programs often value businesses with clear community connections (Proximity) and focused service to local needs (Positioning).

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs

These highly competitive federal grant programs target businesses developing innovative technologies with commercial potential.

Eligibility: U.S.-based, for-profit businesses with fewer than 500 employees. The principal researcher must be employed by the business.

Grant Sizes: Phase I awards typically range from $50,000 to $250,000 for feasibility studies, while Phase II awards for further development can reach $750,000 or more.

Resources to Help Secure Grants

Finding and successfully applying for grants takes time and effort. These resources can help:

Small Business Development Centers (SBDCs)

These SBA-funded centers offer free business coaching and technical assistance, including help identifying grant opportunities and preparing compelling applications.

Personal Experience: When I was at BriteCap, we often referred businesses to their local SBDCs when they weren't quite ready for lending. Many came back not only stronger loan candidates but having secured grant funding with SBDC guidance.

Minority Business Development Agency (MBDA) Centers

Similar to SBDCs but focused on minority-owned businesses, these centers can connect you with grant organizations and help prepare applications.

Industry Associations

Many industry-specific associations maintain lists of grant opportunities and may offer application guidance.

How to Improve Your Grant Application Success Rate

As someone who's reviewed thousands of funding applications, I can tell you that certain approaches dramatically improve your chances of success. Here's how to make your grant applications stand out:

Lead with Your Purpose

Unlike loan applications that focus primarily on financial projections, successful grant applications often hinge on clearly articulating why your business matters. What problem are you solving? How does your work create positive impact beyond profits?

This is where Purpose-driven small businesses have a natural advantage. Grant reviewers are looking for compelling missions that align with their organization's values. Don't be shy about sharing your passion and the deeper reasons behind your business.

Highlight Your Specific Positioning

Many grant programs aim to support businesses serving particular communities or addressing specific needs. Clearly articulate who you serve and why your approach is uniquely valuable to them.

Small businesses with focused positioning often have an edge in grant applications because they can demonstrate deeper impact in their specific niche than businesses trying to serve everyone.

Demonstrate Community Connections

Your Proximity advantage – your close relationships with customers and community – can be a powerful differentiator in grant applications. Include testimonials, partnership letters, or evidence of community engagement to show how your business is embedded in and responsive to local needs.

Be Specific About Fund Usage

Grant providers want to know exactly how their money will be used and what outcomes it will produce. Instead of general statements like "working capital" or "growth," provide specific details:

• Exactly what the funds will purchase
• How these purchases directly support your business goals
• The measurable impacts you expect (jobs created, customers served, etc.)
• Timeline for implementation and results

Follow Directions Meticulously

This sounds obvious, but you'd be amazed how many applications get disqualified for simple oversights. Create a checklist for each application requirement and review it multiple times before submitting.

Tell a Compelling Story

Numbers matter, but narrative matters more in many grant applications. Craft a story that connects your business journey to the grant's mission and shows why you're the right recipient for their support.

Build Relationships Before Applying

When possible, connect with grant organizations before applying. Attend their webinars, engage with their social media, or reach out with thoughtful questions. This helps you understand their priorities and makes your application more memorable.

Beyond the Money: The Hidden Benefits of Grant Applications

Even if you don't win, the grant application process itself can strengthen your business:

Clarified Messaging

The process of articulating your business purpose and impact for grant applications often helps refine your overall business messaging and marketing.

Business Plan Refinement

Grant applications frequently require elements that strengthen your business planning, from market analysis to detailed financial projections.

Useful Feedback

Some grant programs provide feedback even to unsuccessful applicants, offering valuable outside perspective on your business model.

Network Expansion

The application process often connects you with new organizations, mentors, and peers who can support your business in other ways.

Practical Advice for Getting Started

Grant hunting can be overwhelming, so start with these practical steps:

1. Create a grants calendar with application deadlines to ensure you don't miss opportunities
2. Prepare a "grant toolkit" with frequently requested materials (business history, founder bios, mission statement, financial summaries) to save time on applications
3. Start small with local grants or micro-grants to build application experience before tackling larger opportunities
4. Set realistic expectations – grants should be part of your funding strategy, not your entire plan
5. Schedule regular time for grant research and applications, treating it as an important business development activity

Conclusion: Grants as Recognition of Your Underdog Advantage

The most successful grant seekers understand something important: grants aren't just funding; they're recognition of your business's unique value and impact. This is precisely why small businesses built on the Underdog Principles often have an advantage in the grant landscape.

While traditional lenders (including my former company) often evaluate businesses primarily on financial metrics, grant providers frequently look deeper – at your purpose, your community connections, and the specific value you create for those you serve. By leaning into what makes your small business special – your focused positioning, your close customer relationships, and your clear purpose beyond profit – you can stand out in a competitive grant field.

As you pursue grant opportunities, remember that you're not just seeking funding; you're finding partners who share your vision and want to invest in your unique approach. When you connect with the right grant providers, the funding becomes more than just capital – it becomes validation that your underdog approach is making a meaningful difference.