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
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Air Force Defense Research Sciences Conference and Workshop Support
Air Force Office of Scientific Research
Air Force Defense Research Sciences Conference and Workshop Support offered by Air Force Office of Scientific Research.
Deployed Warfighter Protection (DWFP) Program for the Protection of Deployed Military Personnel from Threats Posed by Arthropod Disease Vectors
ACC-APG-Detrick
Deployed Warfighter Protection (DWFP) Program for the Protection of Deployed Military Personnel from Threats Posed by Arthropod Disease Vectors offered by ACC-APG-Detrick.
Innovations in Graduate Education (IGE) Program
U.S. National Science Foundation
Innovations in Graduate Education (IGE) Program offered by U.S. National Science Foundation.
Fiscal Year (FY) 2026 AmeriCorps Seniors RSVP Competition
AmeriCorps
Fiscal Year (FY) 2026 AmeriCorps Seniors RSVP Competition offered by AmeriCorps.
Groundwater and Streamflow Information Program, National Ground-Water Monitoring Network
Geological Survey
Groundwater and Streamflow Information Program, National Ground-Water Monitoring Network offered by Geological Survey.
Next-Generation Geothermal Field Tests and Geothermal Resource Characterization and Confirmation
Golden Field Office
Next-Generation Geothermal Field Tests and Geothermal Resource Characterization and Confirmation offered by Golden Field Office.