Are Grants for New Business Owners Harder to Get in 2026?

What are Grants for New Business Owners

A grant is financial assistance that is given to a person, business, nonprofit, or corporation from federal, state, county, or local governments, or private businesses or corporations. There are a number of companies, nonprofits, and government agencies providing essentially funding to small business owners in the form of a small business grant. And the best part? Grants for new business owners don’t require repayment of any kind.

Grants can be formed to target businesses based on a variety of factors, including minority-owned businesses, specific for-profit businesses as well as non-profit organizations, veteran-owned businesses, grants for women entrepreneurs, and more. For example, securing grants for a minority-owned business can help give your business a much-needed boost for growth and profitability.

You may not have to make your pitch on ‘Shark Tank,’ refinance your home, or take out small business loans to take the next step in your entrepreneurial journey. If you know where to look and how to apply for grants for new business owners, you may get money for small business needs through a business grant instead.

We’ve pulled together numerous resources for business owners searching for small business grant opportunities. The majority of these have broad grant application requirements, meaning many businesses qualify.

Why Competition is So Fierce for Grants for New Business Owners

Grants are often limited resources, and many funding organizations must allocate funds strategically to maximize their impact. This means that the competition for grants is fierce, with a wide range of organizations or individuals vying for the same pool of funds. The competitive nature stems from several factors:

High Demand, Limited Supply: Many sectors, such as healthcare, education, climate change, and poverty alleviation, rely on grants to fund their projects. With many organizations working on similar issues, the demand for funding exceeds the supply.

Potential for High Impact: Grantmakers often look for projects that generate transformative or scalable results. Because grants are intended to support initiatives that address pressing global issues, applicants are expected to propose solutions that can make a substantial difference.

Rigorous Evaluation Criteria: Funding bodies often have strict criteria, requiring detailed proposals that outline the project’s objectives, methodology, impact, and sustainability. Only those who meet or exceed these standards can receive funding for first time business owners.

Potential Perks of Grants for New Business Owners

You don’t need to repay grants

Grants are an earned type of funding given to your business under the premise you’ll spend it in a certain way. So while you do have to meet specific requirements and go through a lengthy application process to receive a grant, they are essentially a risk-free capital infusion once you’re approved.

You don’t have to dilute your business

With some types of business funding, you need to provide equity to outside stakeholders to increase your capital. For example, if you work directly with an investor, you’ll have to share a stake in your company, which entitles an investor to a percentage of your business’s profits.

If you qualify once, you may be eligible again later

Applying for grants for new business owners is never a simple process, but when you’ve done it once, you may become more appealing to other grantors because it shows you’ve done your work and know how to focus on a goal.

There are many grants for new business owners out there. Whether you’re looking through government resources or private grants, there are thousands available. In other words, you’ll never come up empty-handed when looking for grants for new business owners that work for you.

Risks of Grants for New Business Owners

Grant applications are time-consuming. The fact is that grant applications are no walk in the park: You need to find what grants you qualify best for, provide financial statements, and justify your purpose or intent, all while working against potentially thousands of other small business owners who are working for the same thing.

You may also like: Tips to Qualify for Tech Startup Grants

Eligibility requirements are strict

One of the more frustrating aspects of finding a grant is ensuring that you meet all their requirements. Some grants are only accessible to certain businesses, such as minority-owned or veteran-owned businesses. Even if you fit within a certain category, you might also have to align with a specific goal. For example, there’s a grant that only applies to women-owned businesses that impact social or environmental causes. You might not be eligible for a lot of these niche grants.

There are contingencies

Unlike donations, you can’t just spend your grant money on whatever you want for your business. Grants come with strings attached, and there are strict rules that you must follow if you’re granted the money. While you work closely with your grant coordinator, you’ll have to ensure you’re spending the money on what the grantors approved.

Grants are not always renewed

Receiving grant money for new business owners is an excellent thing but you need to be sure you’re spending it the best way possible because you won’t automatically get it again. Therefore, grants are not a steady source of capital in many cases and should not be relied on for ongoing funding.

Expert Tips and Popular Grants for New Business Owners

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

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR), collectively the Small Business Programs, are also known as America’s Seed Fund. By setting aside more than $1.4 billion from its Research & Development Funding specifically for our Small Business Programs, the NIH provides support to early-stage small businesses throughout the nation.

2. The Amber Grant for Women Entrepreneurs

Every month, WomensNet awards three $10,000 Amber Grants to women-owned businesses in the U.S. or Canada. One grant is given to a startup, one is for businesses in specific, rotating categories (the October category is creative arts, and the November category is STEM), and the final grant is for general small businesses. At the end of each year, monthly grant winners are eligible to receive one of three $50,000 annual grants.

3. National Association for the Self-Employed (NASE) Growth Grants

The NASE Growth Grants® program offers access to capital for micro-business owners who have a specific business need, but lack the finances to carry out that goal. The program was designed after an online NASE Member poll found that a majority of micro-business owners (57 percent) initially fund their businesses using personal savings, and many (40 percent) continue to use personal savings for ongoing financing.

4. Minority Business Development Agency (MBDA) Grants

The MBDA promotes the growth of minority business enterprises through the mobilization and advancement of public and private sector programs, policy, and research. MBDA has accomplished this mission by funding a network of centers that provide Minority Business Enterprises (MBEs) with a variety of business assistance services.

5. FedEx Small Business Grant Contest

The FedEx Small Business Grant is a game-changing opportunity for entrepreneurs in the US looking to scale their businesses and drive impactful growth. Launched in 2012, this annual initiative provides financial backing and tailored business solutions to US-based small businesses. From $50,000 grand prizes to specialized resources like shipping credits, marketing support, and sustainability consultations, the program equips businesses with the tools they need to thrive in competitive markets.

Conclusion

No matter where you are in your business journey, there may be a grant or loan available to help you take it to the next level. Grants for new business owners are different from small business loans in that small business loans attract interest and beneficiaries are required to pay back all the monies received plus the interest, whereas grants do not require recipients to pay back the money received.