10 Small Business Grants for Veterans

Securing funding is probably one of the most challenging parts of an entrepreneur’s journey. Small business grants are a popular funding tool for aspiring business owners, including veterans. A grant—unlike a traditional funding source like a loan—doesn’t need to be returned, nor does it require you to give up ownership interest, which is the norm with investors. 

However, small business grants for veterans is a competitive field. Here are some of the top veteran small business grants that can help you grow your business, including details about their application process, deadlines, and qualification criteria.

How do small business grants work?

Think of grants as financial aid gifted to startups and small businesses to cover operational, program, or capital expenditures. The beauty of small business grants is that they don’t have to be paid back. 

Grants can be funded by federal or state government agencies, private companies and foundations, or industry nonprofits. But, it’s not like they are giving out their money to anyone who asks—grants typically have stringent qualification criteria and the application process is often time consuming. 

A grant lifecycle or process usually consists of a three stage process: 

• Pre-award phase. Some granting organizations require you to submit a letter of intent explaining why you need a grant and how your business matches the grantor intent, mission, or demographic requirements. If you are deemed to be a match, the grantor will invite you to complete a full-fledged application or participate in their pitch competition.
• Award phase. After your application has been reviewed, you will be informed as to whether your grant request has been approved or not. If approved, the grantor will outline how the funds will be distributed. 
• Post-award phase. This phase deals with tracking progress and adhering to compliance measures. Grantors typically require reports or schedule audits to ensure the funds are being used appropriately.  

Types of small business grants

Not all grants are the same. Let’s dive into the different grant categories, who offers them, and how they work. 

• Federal business grants. Did you know that the U.S. Federal government has over 1,000 grant programs, many of which are geared towards veterans? These grants are distinct based on their purpose, eligibility, and distribution method. The Small Business Administration (SBA) is one of the most recognized federal business grant programs. 
• State business grants. Many state agencies also offer small business grants. These grants can be industry-specific or focus on broader economic development goals. To find state and local grant opportunities, contact your state’s economic development agency or a local business advocacy group.
• Research and development grants. These grants are exclusively geared towards sparking invention, creativity, and innovation in processes, products, and services. These grants are extremely competitive and their application process often involves presenting prototypes and scientific data. 
• Nonprofit and community development grants. Nonprofit grants are given to organizations that serve a social or community purpose. These grants, given for a specific program or purpose, can be funded by governmental agencies, private organizations, or individuals.
• Industry-specific grants. This kind of grant targets specific companies to promote innovation, research, and development.
• Private business grants. Many corporations, large companies, and foundations have philanthropic goals that include small-business grants, usually through some form of competition. While some provide grants only to nonprofits aligned with their cause, some also give to for-profit companies. These grants often offer more flexibility than federal or state grants. 

10 of the best small business grants for veterans in 2025

The following veteran business grants can help you set up a business or expand an existing one. 

The Second Service Foundation Military Entrepreneur Challenge

The Military Entrepreneur Challenge hosted by The Second Service Foundation is probably one of the most renowned funding programs dedicated to veteran entrepreneurs. Eligible veterans, military spouses, and surviving spouses or children of a military service member who died on active duty must first attend a sanctioned coaching event. After that, they will need to create a business one-pager. Selected participants then get a shot to pitch their business idea before a panel of judges and a live audience. The monetary award varies, but businesses have received anywhere between $1,000 to $10,000. You can subscribe to the foundation to stay informed on upcoming events and pitch competitions. 

StreetShares Foundation Veteran Small Business Award

Another foundation committed to increasing the veteran-owned business market in the U.S. is StreetShares Foundation. The foundation makes it easier for veterans to access capital through their Small Business Award. Three small business owners stand to receive between $4,000–$15,000 towards their small business. 

To be eligible for this award, veteran-owned businesses must demonstrate a social impact on the military veteran community while proving a valid business need. Applications are generally due in October of each year. 

Hiring Our Heroes Small Business Grant 

In 2011, the Chamber of Commerce Foundation launched Hiring Our Heroes, an initiative that champions the military community into the workforce. Every year, their Small Business Grant Program allocates $10,000 to five veteran-owned businesses (military spouses qualify under the criteria). The grant seeks out for-profit small businesses owned by veterans and service members that can demonstrate financial need or are located in an economically disadvantaged area. The deadline is usually in February. 

Warriors Rising Small Business Grant 

Veterans supporting veterans—that’s what prompted the creation of Warriors Rising, a nonprofit organization founded by veterans. The organization provides “vetrepreneurs” with assistance that goes beyond monetary investments. For instance, veteran business owners are put in touch with clients and investors, provided one-on-one mentorship, and advised on small business essentials, like building a website. Applications are accepted on a rolling basis and funds are awarded based on resource availability. 

Grand Valley State University Michigan Veteran Entrepreneur-Lab

Veterans and military spouses in Michigan have the chance to develop their entrepreneurial skills and build a solid business model through the Michigan Veteran Entrepreneur-Lab. This eight-week business accelerator not only connects budding veteran entrepreneurs with mentors and support services, but it also ends with a pitch competition where veteran entrepreneurs get a chance to showcase their business plans. The winners are offered up to $15,000 in financial capital. 

Texas Woman’s University Women Veteran Grant

Are you a woman veteran interested in business ownership? Consider applying for the Texas Woman’s University Women Veteran Grant. The grant, which aims to drum up innovation and stimulate the business economy, awards $5,000 to five for-profit businesses led by women entrepreneurs each year. Funds awarded can be used to cover your veteran business's startup expenses, build a marketing strategy, or invest in capital equipment. The application deadline is typically in May of each year. 

FedEx Entrepreneur Fund

Delivery giant FedEx, in partnership with Hello Alice and the Global Entrepreneurship Network, offers $300,000 in grants to military-connected businesses. The FedEx Entrepreneur Fund, launched in 2022, aims to connect military families and personnel to training programs, community partners, and capital that they can use to start and expand their businesses. Every year, approximately 30 veteran-owned small businesses get a grant of $10,000 each. 

Stephen L. Tadlock Veteran Grant

The Stephen L. Tadlock Veteran Grant, which is part of Founders First CDC, is a micro-grant for employer-based veteran businesses. The grant pool of $25,000 is equally awarded to 25 veteran entrepreneurs across the U.S. Any veteran who owns more than 50% of an active business in the U.S., with at least two or more employees, and an annual revenue of under $5 million is welcome to apply.

Farmer Veteran Fellowship Fund

Farmer Veteran Fellowship Fund, sponsored by the Farmer Veteran Coalition, has supported more than 930 veterans branching into farming or ranching. Since 2011, the program has offered financial awards of $1,000–$5,000 for veterans in this field. However, this is not a typical grant where the veteran-owned business receives the money. Instead, the money is given to third parties identified by the veteran, which will help their business. 

The application process opens once a year. The applications are scrutinized based on farming experience, strength of the funding request, business vision, and overall community impact. You can set up a notification for their upcoming funding cycle.

Veterans Support Foundation 

The Veterans Support Foundation is a nonprofit organization focused on improving the quality of life for veterans. As part of its services and support, the foundation offers grants for nonprofit organizations that run projects that directly benefit veterans and their families. Grants are accepted between October and March of each year. 

How to apply for a small business grant

Ready to apply for one or more small business grants? Follow the listed steps to increase your chances of a successful application. 

Step 1: Create a list of relevant grants

Start by making a list of grants you wish to apply for. You can identify grants that match your business’ values and mission through online grant databases such as GrantWatch or Instrumentl, government websites like Grants.gov, or industry associations you may be a part of. 

Other sources to look at for grants are: 

• Local town or county website
• Local chamber of commerce
• Local Veterans Business Outreach Center 
• SBA's Office of Veterans Business Development
• National Veteran Small Business Coalition (NVSBC)
• Your own network of veterans and military connects

It’s best to use an organization tool like a spreadsheet to keep track of grants, requirements, deadlines, and other important information.

Step 2: Double-check eligibility requirements

Certain grants may be restricted to disabled veterans, veterans residing in a certain area, those with honorable discharges, or those who served in specific branches or roles. Pay close attention to these requirements so you can thoroughly prepare your application, prevent yourself from spending time applying for the wrong grants, and reduce the chances of disqualification. 

Step 3: Prepare the required documentation

Most grant applications need to be supported with “evidence” or external documents. It’s likely that your small business grant will require you to submit one or more of the following: 

• A project proposal
• Financial statements
• Business plan
• Product prototype
• Client reviews or testimonials
• Tax returns 
• Military ID
• Certificate of Release

Ensure all the documentation is with you and in the correct format. Getting your ducks in a row will make the application process smoother. 

Step 4: Tell your business’ story

This is the meat of your grant proposal—the part that holds the most weightage and can significantly influence whether or not you secure the funding. When drafting this section, really think about why the funder would want to support you and your veteran-owned business.

Highlight your business’ journey, mission, and values. If yours is an existing business, include customer testimonials on how your product or service has made a difference to them or within the community.

Step 5: Submit your application 

While some grants have online application forms, others mandate you to submit your request via email. Use the method specified by the grantor and be sure to closely follow the instructions while filing the form. Ensure the additional documents are uploaded or attached in the correct format and size. 

Remember to send your application by the deadline. Also, don’t forget to keep a record of your application and the submission date for future reference.  

Step 6: Follow up (if necessary) 

Grantors usually mention when they will make their decision on the submitted grants. If you don’t hear from them during that time frame, don’t be afraid of reaching out to them through a concise email or phone call. In some cases, a thoughtful follow-up can show the grantors that you’re serious about your business.

Business grant vs. business loan: How are they different?

A business grant is a set financial amount gifted without any return obligations to a small business. In a business loan, the amount has to be repaid—with interest.

Other differences include the funding sources. Grants are given by foundations, government bodies, and/or individuals. Loans are typically sourced through banks, credit unions, and other official financial institutions. 

Veteran business grants generally have a more thorough review process than business loans. The grant amount, which is determined by the grantor, will only be given if your business meets its cause. They will also check to ensure the amount is used specifically for the reason outlined in your grant proposal. Loans can be used for a variety of purposes, and lenders aren’t as stringent about double-checking whether the loaned amount was used for the exact purpose stated in the loan application.

FAQs

Is a small business grant taxable?

Yes, in most instances money received through a grant comes with certain tax obligations at the state and federal levels. The grant income has to be reported on your personal income tax returns. 

Exception to this taxable income rule would be if you secured your grant through a federally recognized Tribal authority for the purpose of expanding a business that’s on or near an Indian reservation. 

A tax professional can help you determine your tax obligations. 

What are some other types of funding for small businesses? 

Small business owners can look at business loans and angel investors for funds. Some unconventional funding sources like crowdfunding, peer-to-peer (P2P) loans, and lines of credit are also gaining popularity amongst veteran-owned businesses. 

What can a small business grant be used for?

A small business grant can be used to assist with startup expenses, cover operational costs like salaries or rent, purchase equipment, or establish a marketing strategy. The grantor may specify how they want their funds to be used.

Do you have to pay back a small business grant?

No, you generally don't. However, certain grantors may have specific terms and conditions in their grant program that may require you to return the money if you fail to satisfy the grant requirements or misuse the funds.