Starting and growing a business requires capital, and many entrepreneurs look to loans or personal savings to fund their ventures. However, there’s another path worth exploring: US government grants for enterprises. The federal government sets aside billions in annual funding specifically designed to help small and mid-sized businesses expand, innovate, and create jobs. Whether you’re developing new technology, opening a manufacturing operation, or expanding into international markets, these opportunities can provide substantial financial support without the burden of repayment. This isn’t free money handed out to everyone. Still, if your business aligns with government priorities, you may be eligible for funding ranging from a few thousand dollars to millions of dollars.
The prospect of US government grants for enterprises has expanded significantly, with new programs and increased funding becoming available throughout 2025 and into 2026. From manufacturing initiatives backed by the “Made in America” push to research programs funded by agencies like the National Institutes of Health, there are numerous paths to securing grants. Understanding what’s available and how to position your enterprise increases your chances of getting the capital you need to succeed.
In this article, you’ll discover the central US government grants for enterprises available in 2025 and 2026, understand eligibility requirements, learn application strategies, and explore how to identify which programs fit your specific business needs.
Understanding Government Grants vs. Other Funding
Before discussing specific opportunities, it’s helpful to understand how grants differ from other funding sources. Government grants are non-repayable funds distributed by federal agencies to support specific initiatives that align with national priorities and objectives. Unlike loans, which require monthly payments with interest, grants give you money to invest in your business without the obligation to pay it back. This makes them extremely attractive for entrepreneurs and established companies alike.
However, government grants come with strings attached. You’ll need to prove that your business meets specific eligibility criteria, demonstrate how the funding will advance government objectives, and maintain detailed records showing how you spent the money. The application process is more involved than applying for a traditional loan, and competition is fierce, with only about 10% of applicants receiving funding.
1. Major Federal Agencies Offering Grants
Several federal agencies distribute grants to small and mid-sized enterprises. The Small Business Administration (SBA) is the primary source. Still, the National Institutes of Health, the Department of Agriculture, the Department of Energy, and the Department of Commerce also offer substantial grant programs. Each agency has different priorities, funding levels, and eligibility requirements. Understanding which agencies fund businesses in your industry is the first step toward success with US government grants for enterprises.
The SBA doesn’t directly issue grants to most businesses seeking startup or expansion funding, but it does fund nonprofits and educational organizations that support entrepreneurship. More importantly, the SBA administers the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which distribute billions in grants annually to companies focused on research and development.
2. Manufacturing Grants and Support
One of the most significant developments in 2025 is the renewed focus on manufacturing in America. The “Made in America Manufacturing Initiative” launched new grant programs, including the Empower to Grow (E2G) Manufacturing in America Grant. This program provides up to $1.1 million to small manufacturing businesses and nonprofits for technical assistance and workforce development in key industries like steel, timber, aluminum, and energy.
These manufacturing-focused US government grants for enterprises represent a significant opportunity for companies seeking to expand production capacity, upgrade equipment, or enhance their workforce. If your business manufactures goods or plans to increase domestic production, exploring these initiatives should be a priority. The application process typically requires a detailed business plan, financial projections, and a clear explanation of how the grant will create or retain jobs.
3. Research and Development Funding Programs
The SBIR and STTR programs are among the most significant sources of early-stage capital for small businesses in America. Together, these initiatives distribute over $4 billion annually across 11 federal agencies, including NASA, the National Science Foundation, the Department of Energy, and the Environmental Protection Agency. SBIR grants fund companies conducting their own research, while STTR grants require collaboration between a small business and a research institution.
These US government grants for enterprises typically come in phases. Phase I provides up to $150,000 to establish the feasibility of your technology or approach. If successful, companies can advance to Phase II, which offers significantly more funding—often up to $1 million—to develop and test prototypes or conduct expanded research. Phase III focuses on commercialization and bringing products to market.
4. Rural Business Development Grants
For enterprises located in rural areas, the US Department of Agriculture (USDA) offers the Rural Business Development Grants program. These grants support technical assistance, training programs, and non-technical activities, such as entrepreneur training and long-term business strategy planning. While the grants don’t directly fund business operations, they provide the support infrastructure necessary for rural businesses to succeed.
The USDA’s approach to US government grants for enterprises focuses on community development and economic growth in areas where private capital is limited. Businesses must have fewer than 50 new workers and less than $1 million in gross revenue to qualify. These grants are designed to help entrepreneurs navigate the unique challenges of operating in rural communities, such as limited access to capital and specialized expertise.
5. State Trade Expansion Program (STEP)
If your business wants to expand into international markets, the State Trade Expansion Program (STEP) can provide essential funding. This program distributes federal grants to state and territory governments, which then offer financial awards to eligible small businesses seeking to export. Grant funds can cover participation in foreign trade missions, market research, website development in multiple languages, and international marketing campaigns.
STEP represents one of the most practical applications of US government grants for enterprises because it directly supports business growth and revenue generation. Companies that have participated report significant increases in export sales and market penetration. The program is particularly valuable for small manufacturers and producers looking to enter global markets.
6. Grants for Specific Business Sectors
Beyond general small business programs, numerous federal agencies offer sector-specific US government grants for enterprises. The National Institutes of Health (NIH) continues funding research in biomedical technology and COVID-19-related innovation. The Department of Energy offers grants to companies developing clean energy solutions. The Environmental Protection Agency provides funding for small businesses working on environmental projects and initiatives that benefit children’s health.
If your business operates in technology, healthcare, energy, agriculture, or environmental sectors, sector-specific grants often have less competition than general programs. These grants typically align closely with your company’s mission, making the application process more straightforward. You’ll need to demonstrate how your work clearly advances the agency’s priorities.
7. Minority and Disadvantaged Business Grants
The US Department of Commerce Minority Business Development Agency (MBDA) administers numerous grant programs targeting minority-owned enterprises. These grants support business development, technical assistance, and capital access for entrepreneurs from underrepresented backgrounds. Similarly, the SBA operates programs specifically for women-owned businesses, veteran-owned businesses, and service-disabled veteran-owned businesses.
These specialized US government grants for enterprises exist because research shows that business owners from certain demographic groups face greater barriers to capital. Programs like the HUBZone initiative, which supports businesses in historically underutilized business zones, combine grant funding with preferential treatment for federal contracts. The 8(a) Business Development Program provides similar benefits for socially and economically disadvantaged businesses.
8. Community Development Financial Institutions Grants
The CDFI Fund, administered by the US Department of the Treasury, provides grants to certified lenders serving low-income communities. While the grants are technically allocated to financial institutions rather than directly to businesses, these organizations utilize the funding to provide loans and financial services to small enterprises in underserved areas. If your company is located in a low-income community or serves a disadvantaged population, accessing capital through a CDFI-certified lender may qualify you for special terms and conditions.
Application Strategy for US Government Grants for Enterprises
Success with government grant applications requires careful research and strategic planning. First, identify which programs align with your business model, industry, and goals. Not every program will be appropriate for your company. Review the eligibility requirements thoroughly before investing time in an application. Many applications require extensive documentation, financial records, and proof of business registration.
Second, craft your proposal around the grant’s specific objectives. Government agencies fund programs because those programs advance their missions. Your application should clearly outline how your business contributes to achieving the agency’s goals. If you’re applying for an SBIR grant, emphasize the commercial potential and innovation of your technology. If you’re seeking rural development funding, highlight the community benefits and job creation opportunities.
Third, assemble a strong team. Many grant applications require letters of support from business advisors, industry experts, or community leaders. If you’re applying for an STTR grant, your research institution partnership must be formal and clearly defined. Strong supporting documentation significantly increases your chances of success.
Common Mistakes to Avoid
Many grant applications fail not because the business is unqualified, but because the application is incomplete or doesn’t address what the grantor wants to fund. Reading the guidelines carefully is essential. Don’t assume you understand the requirements read them multiple times to ensure you fully comprehend them. Pay attention to formatting requirements, document limits, and submission deadlines. Missing even one required element can result in automatic rejection.
Another common mistake is applying for grants for which your business is not eligible. Eligibility requirements exist for a reason, and misrepresenting your business status can result in funding being rescinded. If you’re unsure about eligibility, contact the grant administrator before submitting your application.
Finally, don’t overlook the importance of professional presentation. Your grant proposal reflects your business’s professionalism and attention to detail. Poor writing, grammatical errors, or disorganization will be noticed by reviewers who evaluate dozens or hundreds of proposals. Invest time in making your application clear, concise, and compelling.
Finding Grant Opportunities and Resources
The primary source for information about US government grants for enterprises is Grants.gov, a centralized database where federal agencies post all available funding opportunities. You can search by agency, program type, funding amount, and eligibility criteria. Create an account to save searches and receive notifications about new opportunities in your field.
The SBA’s Small Business Development Centers (SBDCs) offer free assistance to entrepreneurs seeking grants. These centers provide personalized guidance on identifying suitable programs, understanding the requirements, and developing competitive applications. Many states also have economic development agencies that maintain lists of state and local grant opportunities.
Professional grant writers and consultants can also assist, although they typically charge fees. If you’re pursuing large grants (over $500,000), hiring professional support may be a worthwhile investment. For smaller grants, leveraging free resources like SBDC assistance is usually sufficient.
Changes to Grant Programs in 2026
As we enter 2026, several significant developments are anticipated in federal grant programs. The SBIR and STTR programs, which had authorization lapses in 2025, are expected to receive reauthorization with potential reforms and expanded funding. New Phase IA awards ($40,000 for first-time applicants) and enhanced commercialization support are under discussion. The manufacturing initiatives launched in 2025 are expected to expand, with additional industry sectors potentially becoming eligible for funding.
Additionally, federal agencies are increasingly focusing on sustainability, advanced manufacturing, and emerging technologies. If your business operates in these areas, the opportunities and funding available in 2026 will likely be more robust than in previous years.
Conclusion
US government grants for enterprises aren’t handed out randomly. They go to prepared businesses with solid plans. The competition is real, but so are the opportunities. Thousands of entrepreneurs access millions in federal funding every year because they took the time to research, plan, and apply. Your business has potential. The funding exists. What’s missing is action. Stop wondering if you qualify and start finding out. Spend an hour this week exploring Grants.gov. Reach out to your nearest SBDC. Make one phone call. That single step could change everything for your enterprise.
