Securing funding for a business can be a long and arduous battle that requires much documentation and intricate processes. For small businesses, whether startups or those looking to expand, the kind of funding they get is crucial in managing business financials and capitalization—whether it be funding from small business loans or small business grants.
While most business owners usually consider small business loans to fund their business, they can have significantly high interest rates, especially private business loans. On the other hand, small business grants provide access to capital that doesn’t need to be repaid and are usually offered by private companies, foundations, or government institutions.
Some government institutions offer small business grants throughout the year to support small businesses, and corporations also provide business grants as part of their philanthropic and CSR initiatives. Whichever kind of grant you’re aiming for, here are some expert advice on how to secure small business grants in 2025:
Invest time in your application
Because grants are free money that sponsoring organizations provide to your business, many sponsors require extensive documentation to convince them that your business is worthwhile for them to invest in.
Typical business grant documentation your target sponsors may need includes:
- Extensive business plan
- Tax returns
- Bank statement
- Organizational charts
- Financial statements
John Grant, Founder & CEO at Premier Bidets, says, “Investing time in your application means creating a concrete and solid business plan and a compelling story supported by valid financial and nonfinancial data about your business, market, vision, and mission. This will help convince potential sponsors that you’ll use their money to positively impact the organization and the community.”
Look for industry-specific grants
Many small business grants are available everywhere—from federal to private corporate or foundation grants (the US Chamber of Commerce collates a list of small business grants here). Within these sponsoring organizations are industry-specific grants that cater to a specific kind of business.
Simon Healy, Director at Wardrobe Warehouse, says, “The advantage of prioritizing industry-specific grants is that organizations with in-depth knowledge of your business typically give these grants to you. Because of this, they can help you connect and network with customers, businesses, and stakeholders within the same industry, providing you with finances and valuable connections.”
Check the eligibility requirements carefully
The last thing you would want to happen when applying for a small business grant is to spend time and effort applying for a grant you’re not qualified for. It sounds basic, but many business owners overlook this critical step in the excitement of getting a business grant.
Derek Suckling, Founder at Shade Systems, says, “Not all grants have the same eligibility requirements. Some may require a certain number of years in operation, a revenue threshold, or an employee count requirement to qualify. Thus, it is important to carefully read eligibility requirements so you don’t waste resources on grant applications you were never qualified for from the start.”
Depending on the type of grant you’re applying for, sponsors may require industry-specific requirements. These are specifically federal grants, such as rural business development grants, which provide grants for businesses outside urbanized areas, and Minority Business Development Agency (MBDA) grants, which provide grants only to the socially and economically disadvantaged and minority individuals.
Some specialty small business grants are also provided only for a specific group of individuals, like the Queer to Stay Initiative which provides support for LGBTQ+ small businesses.
Maryanne Fiedler, Director of Marketing at Psychic Source, says, “Aside from industry-specific grants, there are also diverse small business grants and programs directed to lift the minority, like Amazon’s Black Business Accelerator Program and Backstage Capital. These grants provide financial aid and offer mentorship programs, business advice, and marketing support.”
Focus on profit, innovation, and impact.
Grant sponsors typically favor businesses with plans emphasizing profit, innovation, and overall business impact. Your pitches should focus on how you will use your potential capital to generate wealth and profit, expand operations, and scale the business.
Nick Esposito, Founder at NYCServers, says, “For small business grants offered by industry-specific organizations, emphasizing the grant’s use to start and scale the business and its positive impact on the industry your funder is in can also increase your chances of getting the grant.”
Get professional grant consultants’ help if needed
Professional grant consultants are your heroes if you are unsure how to go about a grant proposal or find the type of grants that fit your business.
As extensive as the grant application process can get, professional grant consultants can help you in the entire grant application cycle—from finding grant opportunities to grant funding management—or even when you simply need another set of eyes to check on your applications and business proposals.
Grant Aldrich, Founder of Online Degree, states, “Grant seeking is time-consuming, especially for businesses that lack manpower.” He emphasizes, “Getting the help of grant consultants allows you to allocate your business resources effectively and work more efficiently while securing business funding with the help of a more experienced professional.”
Follow through with the grant agreement
Jonathan Feniak, General Counsel at LLC Attorney, says, “The grant agreement may include the terms and conditions of the grant, including what it can be used for. If your grant was provided to expand and scale business operations, business owners are legally obligated to use it only for that purpose.”
While being awarded a grant doesn’t require a business to repay the funder, a grant agreement exists to outline the grantee and grantor’s expectations and obligations regarding the use of the resources given and whether there are any reporting obligations or KPIs necessary to be met with the grant.
