Grants to Start a Home Health Care Business: Funding for New Care Providers
December 02, 2025 | Last Updated on: December 03, 2025
By Nick Perry
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In this article:
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Breaking down federal, state, and non-profit options for grants to start a home health care business.
- Understanding what grants can cover and how they can support a home care business.
- Exploring how grants for assisted living businesses and other home health care services can be combined with other financing options to cover startup costs.
The home health care industry is experiencing significant growth, driven primarily by an aging population and technological advances. There’s significant opportunity for entrepreneurs, but the initial startup phase has upfront financial hurdles. From licensing fees to staff training, aspiring healthcare providers or home health care agencies have major costs before they can even begin offering services. That’s where grants to start a home health care business come in.
While traditional funding sources, like small business loans and lines of credit, are available, they burden new businesses with debt. Grants for home health care businesses can be a much more effective form of financial assistance. Grants allow entrepreneurs to focus on quality patient care and compliance rather than immediate loan repayment. But knowing where to find these funding opportunities can be challenging. Here, we look at federal agencies, state development offices, or localized non-profit foundations to break down the most accessible pathways for entrepreneurs looking for grants to start a home health care business.
Federal Funding Grants
The federal government offers very few direct grants for private home health care businesses. However, several health-focused funding pools may still be relevant.
HHS and HRSA Grant Resources
The U.S. Department of Health and Human Services (HHS) and its subsidiary, the Health Resources and Services Administration (HRSA), are the largest sources of health-related federal grants. They do not typically provide grants to private, for-profit businesses, but some programs may apply.
Rural health grants: The HRSA offers various targeted programs designed to improve access to care and establish new health services in underserved, rural communities. By showing that a rural area lacks adequate home care, you might qualify for grants to start a home health care business.
Workforce development and training grants: One of the most significant barriers to starting a home health business is securing and training a qualified workforce. The HRSA may offer grants focused on health professions training and education. New business owners can partner with community colleges or vocational schools, when applying for these funds.Grant money may support staff training and certification. That could significantly offset the company’s initial payroll and training costs.
Small Business Administration (SBA) Grant Resources
The U.S. Small Business Administration doesn’t typically provide direct grants to commercial businesses. It does, however, direct funding to partner organizations that may offer grants to start a home health care business.
Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs): These SBA-funded centers often have access to local grant programs and can provide guidance on preparing a competitive application. They can be useful resources for entrepreneurs looking to get grants to start a home health care business.
State and Local Government Grant Programs
State and municipal governments may offer more accessible grants to start a home health care business since they’re directly invested in improving local health care.
State Economic Development Agencies (EDAs) Grant Resources
Every state has an agency dedicated to promoting economic growth, job creation, and retention. These agencies allocate grant funds to businesses that can employ a significant number of local people. There may be two ways to qualify for EDA grants:
Job creation incentives: Home health care is a fast-growing job sector. Agencies that commit to hiring a specific number of full-time employees within a defined timeframe, may qualify for EDA grants to start a home health care business.
State-specific health initiatives: Many states allocate funds to specific health mandates, like fighting the opioid crisis or improving palliative care services. Grants for elderly care businesses may be possible, if you frame your application as specialized in a specific, targeted area that the state is trying to address.
Community Development Financial Institutions (CDFIs)
State and local CDFIs typically offer low-interest loans, but many are funded by federal grants themselves. In some cases, they may have an allocated grant component, especially for businesses serving low- to middle-income communities. A home health provider establishing services in a historically underserved neighborhood should consider CDFIs as a source of grants to start a home health care business.
Nonprofit and Corporate Grant Opportunities
Beyond government sources, business owners should explore nonprofit foundations and corporations whose missions are aligned with the new business’s. These may offer the quickest access to grants to start a home health care business.
Local Community Foundations
Every major city and county has a community foundation dedicated to improving the quality of life locally. It’s worth researching foundations that are particularly focused on improving senior services, aging in place, or family support. Small agencies offering dementia care or respite support may be able to position themselves for relevant grants to start a home health care business. Local grants tend to be smaller than state or federal ones, but they can still help cover some immediate needs.
Disease-Specific and National Healthcare Foundations
Foundations dedicated to combating specific diseases, like the American Cancer Society or Alzheimer's Association, sometimes offer grants to local service providers who are focused on serving those patients. You may qualify for grants for an assisted living business or specialized care, by showcasing how your company will service these specific needs and support the non-profit’s mission.
How You Can Use Grants
Unlike loans, grants have strict rules on fund use. New home care providers can typically use grant funding for the following critical startup expenses:
Staff training and certification: Funds can cover course fees, CPR/First Aid training, and specialized care certifications, such as for dementia or hospice care.
Licensing and compliance fees: Funds can cover the high upfront costs of getting licensed at both the state and federal levels. They can also cover background check costs and initial insurance premiums.
Specialized equipment: Funds can help purchase durable medical equipment (DME), diagnostic tools, patient monitors, or non-traditional tools for care documentation. (You might also consider specialized equipment financing.)
Payroll:Some grants may support early staffing costs, but only when allowed in the grant terms.
To maximize your chances of securing grants to start a home health care business, it’s important to clearly delineate exactly how you plan to use the funds. It is also crucial to demonstate how they will contribute to the grant maker’s mission.
How to Apply for a Grant Successfully
To be successful applying for grants to start a home health care business, you’ll need to do three things:
Demonstrate a critical need: You must clearly articulate the specific problem your agency solves. From a shortage of bilingual caregivers to a lack of palliative care services in a rural area, you should be able to quantify the gap and position your agency as a logical, localized solution.
Prove sustainability: Grant makers don’t want to fund a business that’s going to collapse after the money runs out. You should provide a realistic three-to-five-year financial model that shows how your agency will achieve financial independence after the grant money is gone. The grant should be a catalyst when you’re starting out, not essential for long-term sustainability.
Align with the grant-making mission: Your application must directly align with the grant maker’s mission to remain competitive. Use the funder’s own language to show how the grant will translate into a measurable community impact.
You may also like: Small Business Grant vs Loan, What is Small Business Grant Guide
Final Thoughts
Launching a home health care business can be both a personally and financially rewarding endeavor. It’s also an expensive one. Grants to start a home health care business from federal, state, and non-profit sources can help offset some of the startup costs and financial risks, without incurring any debt. There are multiple ways to strengthen eligibility, such as applying for state training funds or aligning your mission with relevant non-profits. Getting a grant requires rigorous preparation and clear demonstration of community impact. The effort is worthwhile because it can offset substantial startup costs.
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FAQs About Grants to Start a Home Health Care Business
Can federal grants cover all my startup costs?
Federal grants are typically restrictive and targeted for specific purposes. They’re very unlikely to cover all startup or operational costs but they can help cover critical, specific expenses like training, specialized equipment, or general overhead.
Is it better to apply for grants or loans first?
Although grants are harder to obtain, it’s worth pursuing them first because they don’t have to be repaid. If you can secure initial grant funding, it may strengthen your application for loans and financing.
How long does the grant application process take?
It depends on the grant organization. Smaller, local non-profit grants might take a few month from submission to funding. Larger federal or state grants may take as long as a year due to their complex review and approval cycles.
If I receive a grant for equipment, can I change my mind and use the money for staff training instead?
Grant funds are legally bound by the terms of the grant agreement. Any shift in how you use the money requires formal written approval from the grantor, or you might have to return the funds.
How often do I need to look for grants to start a home health care business?
Grant seeking should be an ongoing part of your agency's financial strategy, not a one-time thing. Funding opportunities frequently change, often tied to legislative cycles or new foundation initiatives. Check state and federal grant portals like grants.gov and community foundation websites regularly for new openings.