Federal small business grants
What the federal government actually funds for small businesses: research and innovation (SBIR/STTR), exporting, rural development and contracting support. Not general working capital.
Updated September 2026. Details vary by lender and change often; confirm terms with the provider.
The main federal programs for for-profit small businesses
| Program | Who it is for | Typical amount | Where |
|---|---|---|---|
| SBIR / STTR (America’s Seed Fund) | Businesses under 500 employees doing R&D with commercial potential; 11 participating agencies (NIH, NSF, DoD, DOE, NASA, USDA and more) | Phase I ~$50k–$300k; Phase II up to ~$2M | sbir.gov |
| STEP (State Trade Expansion Program) | Small businesses starting or growing exports; administered through state agencies | Reimburses export activities, often $2k–$25k | sba.gov/step |
| USDA Rural Business Development / Value-Added Producer Grants | Rural businesses and agricultural producers | up to $250k+ depending on program | rd.usda.gov |
| REAP (Rural Energy for America) | Rural small businesses and ag producers installing renewable energy or efficiency upgrades | up to 50% of project cost | rd.usda.gov |
| EDA and MBDA programs | Usually flow to organizations that then support businesses; some direct opportunities | varies | eda.gov, mbda.gov |
Amounts change each fiscal year. Confirm on the agency page before planning around a figure.
Who realistically wins
- Technology, science, engineering and health companies with a research question and a path to market (SBIR/STTR).
- Manufacturers and product companies ready to export (STEP).
- Rural businesses with a defined project (USDA).
A retail shop, restaurant or service business will not find working capital here. Look instead at state and local programs and private grants.
How to start
- Register your business in SAM.gov (free; takes weeks, so start early).
- Create a Grants.gov account and set saved-search alerts for your keywords.
- For SBIR/STTR, contact your state’s SBIR outreach office or an SBDC; many offer free proposal review and Phase 0 assistance grants.
Frequently asked questions
Is there a federal grant to start or grow any small business?
No. The federal government does not give general-purpose grants to for-profit businesses. Federal money flows to specific missions: research and development, exporting, rural and agricultural projects, and technical assistance delivered through partner organizations. Anyone advertising a ‘free government grant to start your business’ is selling something.
Where do I search official federal grants?
Grants.gov lists every federal funding opportunity. Filter by eligibility ‘Small businesses’. Most results will be R&D or agency-specific programs.