Are There Small-Business Grants or Loans for New Businesses?

Are there grants to start a small business?

There are grants for some business-related work, but the SBA does not offer general startup or expansion grants to small businesses. Its grant programs generally support nonprofits, resource partners, and educational organizations. That distinction matters: a business owner searching for unrestricted cash to open a shop should not mistake a grant listing for a broadly available startup award.

According to the U.S. Small Business Administration’s grants guidance, eligible small businesses conducting scientific research and development may qualify for SBIR or STTR programs. These are tied to eligible research, not simply the fact that a business is new. The SBA also describes the State Trade Expansion Program, or STEP, which channels awards through state and territory governments. Eligible export activities can include trade missions, translation, trade shows, and export training.

Start with the planned use of funds. If the expense supports qualifying research or an export activity, look for a program built for that purpose. If funds are needed for inventory, working capital, or equipment, compare loan options as well. A grant does not have to be repaid under its terms, while a loan creates a repayment obligation; the two are not interchangeable.

Where can I find small business grants in my state?

To find state-level opportunities, search state and local government sources, then verify each program’s rules with its administrator. The SBA’s STEP program is one example of a state- and territory-based route for eligible export activities, not a general grant for every local business.

Location can shape the search. The SBA local assistance directory lets business owners and aspiring entrepreneurs search by ZIP code for nearby partner resources. It lists Small Business Development Centers (SBDCs), SCORE, Veterans Business Outreach Centers, and Women’s Business Centers. SBDCs provide counseling and training that can help with startup and expansion planning.

Use a local adviser to help identify credible programs and review an application, but confirm the funding rules with the agency or organization that runs the program. Before spending time on an application, check the details that determine fit:

• Location: Does the program serve your state, territory, city, or ZIP code?
• Stage and ownership: Does it accept startups, existing businesses, or particular ownership groups?
• Purpose: Does your project match the program’s stated goal, such as research or exports?
• Expenses and process: Are your planned costs allowed, and does the program specify an official application route?

These checks turn a broad search into a shortlist. For each candidate, build a simple budget that links each requested amount to a specific permitted expense. Gather the business and project information the program asks for, and do not assume one application’s requirements apply to another.

Can a new business qualify for an SBA microloan?

Yes. The SBA says its microloan program can help businesses start up and expand, and eligible borrowers include U.S.-based, for-profit small businesses that meet program requirements. A new business still has to fit the rules and show a viable purpose for the funds.

According to the SBA microloan program, loans are available for up to $50,000, with an average loan of about $13,000. Funds can cover working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. They cannot be used to pay existing debt or buy real estate.

Nonprofit intermediaries approved by the SBA make the loans. The SBA says rates generally range from 8% to 13%, and the maximum repayment term is seven years. The intermediary sets the loan details, so an advertised maximum is not a promise that every applicant will receive that amount or those terms.

Prepare before contacting a lender. Match the requested amount to a budget, separate eligible expenses from prohibited uses, and be ready to explain how the funds support the business. The SBA’s broader loan guidance says eligibility generally depends on business activity, ownership, and location; businesses normally need to meet size standards, be able to repay, and have a sound business purpose. SBA Lender Match can connect businesses with approved lenders, but lenders provide the specific requirements for their loans.