How US Business Grants Work
US business grants come from federal agencies (NSF, NIH, DOE, USDA, DOD), state economic development agencies, and local municipalities. Federal grants typically target specific research areas or policy objectives. Most require detailed proposals, budget justifications, and reporting. Unlike loans, grants do not need to be repaid, but they often come with strict spending rules, audit requirements, and milestone reporting.
SBIR and STTR Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are the crown jewels of US small business funding. Eleven federal agencies participate, setting aside a percentage of their R&D budgets for small businesses. Phase I awards ($50K–$275K) fund feasibility studies. Phase II awards ($500K–$1.5M) fund full development. Phase III is commercialisation using non-SBIR funds. The NSF, NIH, and DOD are the largest SBIR funders.
SBA Programs and Resources
The Small Business Administration (SBA) primarily offers loan guarantees rather than direct grants, but several SBA-adjacent programs provide direct funding. The SBA's Community Advantage program targets underserved markets. The SBA also administers disaster loans and connects businesses with SCORE mentors and Small Business Development Centers (SBDCs) for free advisory services.
State and Local Grants
Every US state operates its own economic development agency with grant programs targeting local priorities — job creation, workforce development, manufacturing modernisation, and clean energy. States like California (GO-Biz), New York (ESD), and Texas (TEDIF) offer substantial grants. Many states also offer tax credits, enterprise zones, and incentive packages that function as indirect grants.
The R&D Tax Credit (Section 41)
The federal R&D tax credit under Section 41 of the Internal Revenue Code allows businesses to claim a credit of up to 20% on qualifying research expenses. For small businesses (under $5M gross receipts), the credit can offset payroll taxes. Qualifying activities include developing new products, software, processes, or formulas — even unsuccessful research can qualify. Most states offer additional R&D credits.
How to Find and Apply for US Grants
Start at Grants.gov, the central federal grants portal, and SAM.gov for registration. For SBIR/STTR, check each agency's solicitation pages. For state grants, contact your state's economic development agency or small business development center. Applications typically require a DUNS number (now UEI), SAM registration, and a detailed project narrative. Federal applications can take 60–90 days to prepare properly.
Featured United States grants
Recently verified funding opportunities in United States
PRIA 5 Training Development
Any agency
PRIA 5 Training Development offered by Any agency.
PRIA 5 Training Development
Environmental Protection Agency
PRIA 5 Training Development offered by Environmental Protection Agency.
BJA FY25 John R. Justice (JRJ) Formula Grant Program
Any agency
BJA FY25 John R. Justice (JRJ) Formula Grant Program - Grant opportunity from Any agency
PRIA 5 Training Development
Category
PRIA 5 Training Development - Grant opportunity from Category
Alzheimer's Disease Programs Initiative (ADPI) - States and Community Grants (Winter 2025)
Administration for Community Living
Cooperative agreements under the ADPI Notice of Funding Opportunity announcement (NOFO), are intended to support and promote the development and expansion of dementia-capable home and community-based service (HCBS) systems in States and Communities.
Call for Proposals – Workshops to Stop the Spread of mis/disinformation
U.S. Mission to Cambodia
This is a Public Affairs Section’s small grant opportunity, outlining our funding priorities, the strategic themes we focus on, and the procedures for submitting requests for funding. All programs must include an American cultural element, or connect