Ultimate Guide to Business & Nonprofit Grants: Types, Eligibility, and How to Apply (2026)

Types of Grants Available for Businesses and Nonprofits

Business grants and nonprofit grants provide essential funding to fuel growth and innovation. The main types of grants include government grants (federal, state, and local), private foundation grants, and corporate grants. Each grant source has unique application processes and eligibility requirements. If you’re new to grants, start by understanding what a grant is, the different types of grants, and how to apply by reading our comprehensive guide on grants.

Federal grants are typically the largest but also the most competitive. State and local grants often target specific regions or industries, making them more accessible for small businesses and nonprofits. Private foundations and corporations fund projects aligned with their missions, such as education, health, or community development. For example, the Walmart Foundation supports hunger relief, while Google.org funds technology-driven social impact projects.

Federal vs. State vs. Local Grants: Key Differences

Federal grants are distributed by agencies like the U.S. Small Business Administration (SBA) and are listed on trusted platforms such as Grants.gov. These grants support research, innovation, and economic development nationwide. For example, the SBA’s Small Business Innovation Research (SBIR) program funds technology startups. For a detailed breakdown of the grant process and how to navigate these opportunities, see our step-by-step grant process guide.

State and local grants, managed by regional agencies, focus on community development, job creation, or specific sectors like agriculture or tourism. These grants are typically less competitive and can be a great fit for organizations serving local needs. For example, the California Small Business COVID-19 Relief Grant Program supported businesses impacted by the pandemic.

Private Foundation and Corporate Grants for Nonprofits & Small Businesses

Private foundations and corporations award grants to nonprofits and, occasionally, small businesses. These grants often support social impact, education, health, or community initiatives. For example, the Ford Foundation funds projects advancing social justice, while the Coca-Cola Foundation supports environmental sustainability.

To increase your chances, research each foundation’s priorities and tailor your grant proposal to their goals. Many foundations post opportunities on their websites or through directories like Candid’s Foundation Directory Online. Corporate grant programs, such as Target’s local community grants, are also worth exploring. If you want to learn more about the different types of grants and how to apply, check out our in-depth guide on what is a grant and how to apply.

Eligibility Criteria for Business and Nonprofit Grants

Eligibility requirements for grants vary by program. Common criteria include nonprofit status (501(c)(3)), business size, location, industry, and project purpose. Always review the grant guidelines thoroughly before applying. For a deeper dive into eligibility and how to prepare your application, read our guide on grant eligibility criteria.

Some grants specifically target startups, minority-owned businesses, or organizations serving underserved communities. Prepare documentation such as proof of tax status, financial statements, and a clear project proposal. For example, the Minority Business Development Agency (MBDA) offers grants exclusively for minority-owned enterprises.

How to Search for Grants Online: Best Practices

Begin your grant search on reputable databases. For federal grants, visit Grants.gov. The SBA’s Funding Programs page lists opportunities for small businesses. Nonprofits can explore resources like NerdWallet’s Grants for Nonprofits guide or Candid’s GrantSpace. For a step-by-step approach to finding and applying for grants, see our complete guide to the grant process.

Use filters to narrow results by location, industry, or funding amount. Setting up email alerts helps you stay informed about new opportunities. Always double-check deadlines and application requirements to avoid missing out.

Top Grant Databases and Directories for 2026

Top grant databases include Grants.gov, SBA.gov, and specialized nonprofit directories like Zeffy Grant Finder and OpenGrants. Many local governments and foundations also maintain searchable listings on their websites.

Consider using multiple sources to maximize your chances of finding the right grant. Some directories, such as Zeffy, offer free access, while others like Foundation Directory Online may require a subscription for advanced features. Comparing features and costs can help you choose the best tools for your needs. For more tips on finding and applying for grants, check out our guide to finding and applying for grants.

Tips for a Successful Grant Application in 2026

Carefully read all instructions and tailor your application to the grant’s objectives. Provide clear, concise answers and support your proposal with data and measurable outcomes. For example, include statistics that demonstrate your project’s potential impact.

Gather required documents early and submit your application before the deadline. If allowed, follow up to confirm receipt or request feedback. Keeping records of your applications can streamline future submissions and improve your success rate.

Frequently Asked Questions About Grants

Q: How do I find grants for my business?
A: Start with SBA.gov and Grants.gov, then look for state, local, and private opportunities relevant to your industry. Industry associations and local chambers of commerce may also share grant leads.

Q: Where can nonprofits search for grants?
A: Use directories like Zeffy Grant Finder, OpenGrants, and resources from NerdWallet and Foundant Technologies. Candid’s Foundation Directory Online is another valuable tool.

Q: Are there grants available for startups?
A: Yes, some grants specifically target startups, especially those in innovation, technology, or underserved communities. The SBIR and STTR programs are notable examples.

Q: How do I know if my business is eligible for a grant?
A: Review the eligibility criteria in each grant listing and ensure your organization meets all requirements. When in doubt, contact the grant administrator for clarification. For more on eligibility, see our detailed guide on who qualifies and how to apply for grants.

Q: What is the difference between federal and private grants?
A: Federal grants are funded by government agencies and often have stricter requirements, while private grants come from foundations or corporations and may be more flexible in their focus.