The SBA does not provide grants for starting or expanding a business. Its SBA grants page says so directly.
Can the government pay you to start a business?
The SBA does not provide grants to start or expand a business, and Grants.gov is a centralized site for federal grant opportunities.
The grants that do exist often come with strings. Nevada’s business agency says grants “are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan.” Its grants and incentives page adds that federal grant authority “varies widely among agencies.” Nevada’s business agency says grants are not necessarily free money and usually require matching funds or another financing source, so check each program’s requirements.
What federal grants exist for small businesses?
The SBA’s grant list is mostly for research, manufacturing training, exporting, and the organizations that teach entrepreneurs. The SBA page lists limited opportunities involving research and development, manufacturing training, exporting, and organizations that support entrepreneurship. The Empower To Grow grant is part of the Made in America Manufacturing Initiative, and STEP helps businesses export.
| Program | Who receives the money | What the SBA page says |
|---|---|---|
| SBIR and STTR research grants | Small businesses doing scientific research and development | The programs “encourage scientific research that helps meet federal research and development objectives. If they are successful, they have high potential for commercialization.” |
| Empower To Grow (E2G) Manufacturing in America | For-profit or not-for-profit organizations that give hands-on manufacturing training | As of October 28, 2026, applications are closed and awards will be announced later. Applicants must have been in existence continually for at least the past three years. |
| STEP (State Trade Expansion Program) | State and territory governments, which then help small exporters | Awards are “managed and provided at the local level by state government organizations.” |
| Community organization grants | Nonprofits, Resource Partners and educational organizations | They “aim to support entrepreneurship through counseling and training programs,” including Small Business Development Centers and veteran programs. |
| PRIME | Nonprofit microenterprise development organizations | “A competitive grant that is offered yearly, subject to available funds.” |
Full details are on the SBA grants page. Each program lists its own eligibility, so read that section before you plan around any of them.
Are small business grants hard to get?
SBA calls PRIME a competitive grant. It funds eligible microenterprise development organizations to provide capacity-building or training, technical assistance, and guidance to disadvantaged microentrepreneurs.
Loans work differently, and the numbers are useful. The 2026 Small Business Credit Survey from the Federal Reserve Banks, based on the 2025 survey, found that 42% of applicants for financing received the full amount they sought, 36% received some or most, and 22% received none. Sixty percent of those that borrowed from online lenders reported that actual borrowing costs were higher than expected, while 4% found them lower.
Small business grants near California, Texas and your state
State programs change often, so start with your state’s business agency. California’s CalOSBA says it has no active direct-to-business grant programs, and it asks people to sign up for its newsletter to hear about new opportunities. Its closed programs included the California Small Business COVID-19 Relief Grant Program, which provided micro grants ranging from $5,000 to $25,000.
| State | Grant programs listed | Notes |
|---|---|---|
| California | No active direct-to-business grants; SBIR and STTR research grants and SBA-backed loans are listed | The SBA-backed loans listed include 7(a) multi-purpose loans, 504 loans and microloans of up to $50,000. |
| Minnesota | Launch MN Innovation Grants for technology startups: Business Operations Grants up to $35,000, and matching SBIR/STTR Phase 1 and 2 grants up to $50,000 | Minnesota’s startup and small business resources page. |
| Nevada | Rural Relief Small Business Grant; Clark County, NV District A Tenant Improvement Grant Program; Nevada Women’s Philanthropy | The page lists these without amounts. |
For Texas and every other state, your SBA district office and SBA’s Resource Partners can help. SBA says they offer assistance in person, online, or by phone, and SBA’s 7(a) loan page describes that help. Ask them which state programs fit your business.
Grants for women-owned businesses
SBA’s Boots to Business and Service-Disabled Veteran Entrepreneurship Training Program (SDVETP) are grants to organizations that support veteran-owned small businesses. That is a grant to a training provider, not to an owner. See the SBA grants page for the full list.
On lending, Section 1071 requires specified small-business lending data collection; the Consumer Financial Protection Bureau’s small business lending rulemaking notes that the CFPB finalized an extension of the compliance deadlines on October 2, 2025. It is a data rule, not a grant.
What owners use instead: SBA microloans and 7(a) loans
If you need money for the business, these are the SBA loan routes to compare. The SBA’s microloan page and 7(a) loan page list the terms below.
| Option | Maximum amount | How you apply | Terms the SBA lists (as of October 28, 2026) |
|---|---|---|---|
| Microloan | Up to $50,000; the average is about $13,000 | Through an SBA-approved intermediary, which makes all credit decisions | Repayment up to seven years; rates vary by intermediary and are generally 8% to 13%; proceeds cannot pay existing debts or buy real estate |
| 7(a) loan | Up to $5 million | Through a lender; SBA does not provide 7(a) loans directly, and you work with your lender | Most term loans are repaid with monthly principal and interest; on variable-rate loans the payment can change when the rate changes; uses include working capital, equipment, refinancing and changes of ownership |
| 7(a) Working Capital Pilot (line of credit) | Up to $5,000,000 | Through a participating SBA lender | Maximum maturity 60 months; SBA guarantee 85% for $150,000 or less and 75% above that; interest cannot exceed base rate plus 6.5% up to $50,000, plus 6.0% from $50,001 to $250,000, plus 4.5% from $250,001 to $350,000, or plus 3.0% at $350,001 and up; SBA says businesses may consider the program if they have at least one year of operating history |
Two details matter most. The microloan page says microloans help businesses start up and expand, but it also lists “be an operating business” as a requirement. Ask your intermediary how that applies to a business that has not opened yet.
Rates also move. The Federal Reserve’s H.15 selected interest rates release, dated October 27, 2026, notes that prime is one of several base rates banks use to price short-term business loans. Check the current prime figure there before you compare offers. NFIB’s September 2026 small business economic trends report says small business borrowers reported higher rates on their recently received loans.
For a 7(a) or 504 applicant business, SBA’s owner eligibility notice 5000-876626, effective March 1, 2026, says no 7(a) or 504 loan may be made if any direct or indirect owner or SBA-required guarantor is an “Ineligible Person” as defined in SOP 50 10 8. It also applies a six-month lookback, so an owner who was an Ineligible Person from six months before the loan number is issued makes the business ineligible unless that person fully divests before the loan number is issued. SBA’s SOP 50 10 8.1 notice says SOP 50 10 8.1 applies to applications issued an SBA loan number on or after October 1, 2026.
What is a merchant cash advance, and is it a loan?
A merchant cash advance (MCA) is commonly structured as sales-based financing: you receive an upfront payment in exchange for a share of future sales. The FTC describes MCA companies as providing funds “in exchange for a percentage of the businesses’ revenue,” and says they typically make daily withdrawals from the business’s bank account until the obligation is met, in its January 2022 release. A 2025 Texas bill analysis of H.B. 700 says MCAs are “structured as ‘sales-based financing’” and provide “an upfront cash payment in exchange for a percentage of future sales revenue.”
New York’s attorney general alleged that Yellowstone was providing loans rather than MCAs. Its settlement page says the settlement vacated certain Yellowstone judgments.
If an MCA or a line of credit is on the table, compare the terms with merchant cash advance alternatives and working capital loans vs lines of credit before you sign.
How grant and funding scams work
SBA says it only communicates from email addresses ending in @sba.gov. If someone claiming to be from SBA writes from a different address, check it, and report suspected fraud. The SBA grants page also says SBA does not provide grants for starting and expanding a business, so an offer that says otherwise needs a close look.
The following FTC matters describe alleged or adjudicated conduct involving business-financing providers:
- Upfront fees. In its January 2022 release, the FTC alleged that RAM Capital Funding and its owner required personal guarantees and upfront fees after representing they would not. Under the settlement, the two defendants will be permanently banned from the industry and must pay $675,000.
- Promised special access. In its November 2025 release, the FTC alleged that Seek Capital advertised “special relationships” with lenders and charged clients thousands of dollars to open credit cards, often without the promised 0% terms. Under the settlement, Seek and its CEO are permanently banned from business financing, debt relief and credit repair.
- Funding amounts and contracts. In its February 2024 release, the FTC reports a $20.3 million judgment against Jonathan Braun, after a jury found he knowingly violated the Gramm-Leach-Bliley Act by deceiving small businesses about the amount of funding. The FTC also alleged that contracts required businesses to sign confessions of judgment.
What to check before you apply or sign
- Get the program name and agency, find it on sba.gov or Grants.gov, and read its eligibility section.
- Get the rate, the base rate, the spread, and how often the rate can change in writing. Compare the base rate with prime in the H.15 release.
- Ask your SBA district office or a Resource Partner which options fit your stage. SBA says they help in person, online, or by phone.
This is general information, not financial or legal advice for your business.
Quick answers
Is there a $5,000 small business grant?
Amounts vary by state. Minnesota’s Launch MN Business Operations Grants go up to $35,000 for technology startups, and California’s COVID-19 relief microgrants, of $5,000 to $25,000, are closed. Check the program’s own page for its current amount.
What is the $10,000 SBA grant?
SBA says it does not provide grants for starting and expanding a business. Its microloans go up to $50,000, and they are loans. Check any offer labeled an SBA grant against sba.gov and an @sba.gov address before you pay anything.
Will the government pay you to start a business?
The SBA does not provide grants to start or expand a business.
What business will boom in 2026?
No grant or loan program can name the winning business. SBA’s 7(a) loan page says key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Start with who will pay you and how much.
How do I get business funding with no income?
The SBA’s 7(a) loan page ties eligibility to how the business receives its income and to credit history. A business with no income yet should ask an SBA district office or Resource Partner which route fits its stage before applying anywhere.
By USPatriotNews.com Editorial Team
