Overview
Grants do not require repayment but are rare and highly competitive with strict use restrictions. SBA loans must be repaid but are more widely available and can fund operations, equipment, and real estate.
Key federal and state programs
These are legitimate program types. Availability and funding vary by location and year — always confirm current details on official sites:
- SBA 7(a) — general business purposes
- SBA 504 — major fixed assets and real estate
- SBA microloans — smaller amounts through nonprofit lenders
- SBIR grants — research with reporting and milestone requirements
Who may qualify
Eligibility rules differ by program and state. Common factors for this topic include:
- Grants: narrow eligibility and extensive reporting
- SBA loans: credit, collateral, and business viability standards
- Both require legitimate business purpose and documentation
How to apply
Use only official government websites and portals. Federal agencies do not charge application fees for standard benefit programs, and no one can guarantee approval. Follow these steps for this topic:
- Decide whether your need fits a grant's restricted purpose.
- Compare SBA lender terms if you need flexible operating capital.
- Never pay upfront fees to "secure" a government grant.
Avoid scams
Protect yourself when researching assistance programs:
- Federal agencies do not charge application fees for standard benefit programs.
- Verify every program on an official .gov website before sharing personal information.
- Be wary of social media ads promising "guaranteed grant approval."
Official government sources
Verify program details, deadlines, and eligibility on these authoritative websites: