Looking for government grants for small business? The picture is narrower than many people expect. In the US, the SBA mainly funds support organizations, while research grants such as SBIR and STTR go to small firms.
This guide is part of the site’s series on business grants, and it maps the main categories of US federal grant funding.
| Item | Value |
|---|---|
| Federal SBIR and STTR awards per year | About $2.4 billion |
| Federal agencies in the SBIR program | 11 agencies |
| Federal agencies in the STTR program | 5 agencies |
| PRIME grant announcements on grants.gov | April or May of each year |
| Boots to Business grant support period | 5 years |
These figures come from SBDCNet (page last updated November 8, 2022) and the SBA’s legacy grants page (last updated August 1, 2025). Figures can change, so check the source before you rely on them.
Does the government give grants to start a small business?
According to a University of Chicago research administration page with a 2026 copyright notice, the SBA does not provide grants for starting and expanding a business. It says the SBA instead provides grants to nonprofit, Resource Partners and educational organizations that support entrepreneurship through counseling and training. You can read that wording on the University of Chicago toolkit page.
The same page notes that the agency was created in 1953. That background shapes the categories below: some grants go to firms that win competitions, while others fund the organizations that serve business owners.
Research and innovation grants: SBIR and STTR
The SBIR and STTR programs provide funding to small businesses for research and development leading up to eventual commercialization, according to SBDCNet. SBIR is for small businesses that perform independent research, while STTR is for small businesses that work with nonprofit research institutions.
SBDCNet’s page, last updated November 8, 2022, says the federal government awards about $2.4 billion a year through the two programs. As of that update, 11 federal agencies take part in SBIR and 5 take part in STTR.
SBDCNet’s agency list includes several departments that run their own programs:
- The Department of Agriculture
- The Department of Defense
- The Department of Energy
- The Department of Health and Human Services, through the National Institutes of Health
Competition is stiff. SBDCNet says there are thousands of applicants and limited funding, and the University of Chicago page says STTR requires a formal collaboration with a research institution in Phase I and Phase II.
Grants the SBA gives to support organizations
As of the SBA’s legacy grants page, last updated August 1, 2025, the agency lists funding opportunities for organizations rather than for individual owners. They fall into a few groups:
- Veteran-focused programs: Boots to Business, the Service-Disabled Veteran Entrepreneurship Training Program, Veterans Business Outreach Centers, the Veteran Federal Procurement Entrepreneur Training Program and the Women Veteran Entrepreneurship Training Program.
- Innovation support: the Federal and State Technology (FAST) Partnership Program.
- Resource partners: SCORE, Small Business Development Center host institutions and the Portable Assistance Program.
- Microenterprise support: the Program for Investors in Microentrepreneurs (PRIME).
Award lengths differ by program. The page says Boots to Business support runs for a period of five years, FAST is a one-year opportunity, and the Veteran Federal Procurement Entrepreneur Training Program has an initial 12-month period plus two option years of 12 months each.
Many of these are closed to newcomers. The SCORE opportunity, for example, is for current SBA SCORE recipients, and the page states that for-profit businesses are not eligible for it.
What is PRIME, and who does it fund?
On the SBA’s legacy page (last updated August 1, 2025), PRIME is described as a competitive grant offered yearly, subject to available funds. Announcements are posted to grants.gov in either April or May of each year.
The grant funds nonprofit microenterprise development organizations, whether run privately or by state, local or tribal governments or Indian tribes. Those organizations use it for capacity building, or for training, technical assistance and guidance to disadvantaged microentrepreneurs. The page adds that faith-based organizations meeting all PRIME eligibility criteria can compete too.
For background on the portal where such notices appear, see this explainer on what is grants.gov.
How owners can still benefit from grant-funded programs
Because the money flows to organizations, owners usually meet it as a service. SBDCNet says you can receive free professional business advice and free or low-cost training from your local Small Business Development Center.
If you are weighing grants against repayable funding, an explainer on grants vs loans for small business sets out the general differences.
What to check before relying on any grant listing
Use this short checklist whenever you see a grant mentioned online:
- Look for the date on the page, because programs and figures change.
- Confirm who may apply: many listings are for organizations or current recipients only.
- Read the terms. The SBA says to make sure you can meet the legal and administrative prerequisites before you apply, and to understand the uniform administrative requirements, cost principles and audit requirements for federal awards.
- Check the sender. The University of Chicago page says the SBA only communicates from email addresses ending in @sba.gov, and that other senders claiming to be the SBA should be treated as suspected fraud.
This guide covers only the US federal programs described in the cited sources. Terms vary by provider and country, so always rely on the official listing.
Frequently asked questions
Can the SBA give me a grant to start my business?
Show answer
Not directly, according to the University of Chicago page (2026 copyright notice). Its wording points to a different route: the agency funds the nonprofits, Resource Partners and schools that counsel and train owners, rather than paying owners themselves. The SBA’s legacy page lists those programs by group, and terms vary by provider and country, so read the latest listing for any program that interests you.
What is the difference between SBIR and STTR?
Show answer
The difference is who does the research. Under SBIR the firm carries out its own work, while under STTR it teams up with a nonprofit research body, and the Phase I and Phase II stages require that formal tie. Both programs point toward commercialization, and SBDCNet calls winning an award incredibly difficult because thousands of applicants compete for limited funding.
When is the PRIME grant announced?
Show answer
The SBA’s legacy page, last updated August 1, 2025, describes PRIME as a yearly competition with notices posted to grants.gov in April or May. Because it depends on available funds, check the official listing for the round you care about rather than assuming a fixed date.
How can I tell whether a message from the SBA is genuine?
Show answer
Start with the sender’s address. The University of Chicago page says the SBA only communicates from addresses ending in @sba.gov, and that anyone claiming to be the SBA from a different address should be suspected of fraud and reported. Avoid sharing sensitive details with a sender you have not verified.
This guide is for general information and education only and is not financial, investment, tax or legal advice.
