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Can I Get a Grant to Start a Business? The Honest Answer

By CalculateBenefits Editorial Team · Mark Phaneuf, Publisher
AI-assisted source check: November 3, 2026. What these dates mean.

No. The U.S. Small Business Administration (SBA) says, "SBA does not provide grants for starting and expanding a business." Most federal grants go to groups, not to one person. But some real help exists: free mentors, small loans, and a few narrow grants for research or export work.

CalculateBenefits is not the SBA or any government agency. We read each official page on November 3, 2026. Here is what is real, and what is a scam.

Does the government give grants to start a business?

No, not to start one. In its own words, the SBA gives grants "to nonprofits, Resource Partners, and educational organizations." Those groups then use the money to teach and advise business owners.

Grants.gov is the federal list of grants. It says, "Most of the funding opportunities on Grants.gov are for organizations, not individuals." It adds that "few are available to individuals, and none provide personal financial assistance."

So be careful with any ad that says the government will pay you to start a business. That is not how these grants work.

Which government business grants are real?

A few are real. Each one is narrow, and each one takes a lot of work to win.

• SBIR and STTR: These are for small firms that do science or tech research. The SBA says they "encourage scientific research that helps meet federal research and development objectives." SBIR.gov says 11 federal agencies fund them. A new tech company can apply. But the money is for research an agency wants done. It is not for opening a shop.
• STEP grants: STEP helps small firms sell to buyers in other countries. SBA gives the money to states, not to you. The SBA says STEP grants are "specifically for established U.S. small businesses." That means a firm that already runs. To ask about it, contact the state office that got STEP money. The SBA grants page lists them.

Are there business grants for women, minorities, or veterans?

Not as cash from the SBA. But each group has free or low-cost help. These programs give advice and classes, not money.

• Women: Women's Business Centers offer "free, to low-cost counseling and training," the SBA says. They focus on women who want to start or grow a business.
• Minority-owned firms: MBDA Business Centers are run by the Minority Business Development Agency, part of the U.S. Commerce Department. Its site says they give "expert guidance and support" to minority-owned firms that want to grow. That is advice and help, not cash. Its site lists seven centers, in Arizona, California, Colorado, Massachusetts, Minnesota, New Mexico, and New York. If none is near you, SCORE and Small Business Development Centers can still help.
• Veterans: Boots to Business is an SBA class for service members and military spouses. On bases that offer it, the SBA says it is "free of charge." Veterans of all eras can take Boots to Business Reboot. Veterans Business Outreach Centers also run workshops and match people with mentors. Questions? Call the SBA Office of Veterans Business Development at 202-205-6773.
• Anyone: SCORE mentors give advice "at no cost," the SBA says. Small Business Development Centers also help people plan and start a business.

To find an SBA partner near you, go to sba.gov/local-assistance. Type in your ZIP code.

What about private business grants?

Some companies and groups run their own grant contests. These do not come from the government. Each one sets its own rules and picks its own winners.

One example is the Amber Grant for women-owned firms. Its rules say three grants are given each month. It charges what it calls "a standard $15 application fee." Its rules also say the fee "is non-refundable, regardless of outcome." If the fee is a hardship, its rules say you can ask for a fee waiver before you apply.

We did not find on its site how many people apply. Before you pay to enter any contest, read its rules. And never pay anyone who promises you will win.

What can I use instead of a grant?

A loan is not a grant. You have to pay it back. Still, these are real options, and the advice is free or low cost.

• SBA microloans: The SBA says these are "loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand." Local nonprofit lenders make the loans. They set the terms and decide who gets one.
• Help with a plan: SBA partners offer "counseling, training, mentoring, funding recommendations and other small business help." A mentor can also point you to state or city help where you live.

How do I spot a business grant scam?

The FTC is blunt about it. It says, "Offers of free money from government grants are scams." The government "won't offer you free government grants of any kind," the FTC adds.

Watch for these red flags:

• A call, text, or post says you won a grant you never asked for. The FTC says, "The government won't get in touch out of the blue about grants."
• Someone asks for a fee to get a grant. The FTC says, "No government agency will ever contact you to demand that you pay to get a grant."
• Someone sells a list of grants. The FTC says, "Don't pay for a list of government grants." The full list of federal grants is at grants.gov, and the FTC says "that list is free."
• An email says it is from the SBA, but the address does not end in @sba.gov. The SBA says it "only communicates from email addresses ending in @sba.gov."

Never pay anyone to help you get a government grant. If you spot a scam, report it at ReportFraud.ftc.gov. Our guide to grant scam red flags lists more signs.

Where should I start?

1. Read the SBA grants page to see the few real business grants.
2. Find a free mentor near you at sba.gov/local-assistance.
3. Ask that mentor about loans and local help in your area.
4. If your firm does science or tech research, read SBIR.gov.
5. Skip any offer that asks for a fee to get government money.

Is there other help I can check?

Need help with bills, not a business? See real government grants for people or our honest list of hardship grants. The Money Finder can also help you look for programs. Not sure an offer is real? Read how to tell a real program from a scam.

CalculateBenefits is an independent site. We are not the SBA or a lender. We cannot give grants or loans. This is not legal or money advice.

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