Best Small Business Grants for Veterans in 2024
Published March 25, 2024 at 1:07 pm
Veterans of the armed forces play a major role in the landscape of small businesses. According to data from the Small Business Administration, veterans owned more than 1.9 million businesses and employed nearly 5.5 million Americans across the country.
Getting a business off the ground can be difficult, especially if you don’t have a lot of cash saved up. To help, there are small business grant programs that award funds you can use to start a new business. Many of these programs specifically target veterans.
Whether you’re freshly discharged from the military or served years ago, if you want to start a business, these grants can help.
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Small Business Grants for Veterans
The Second Service Foundation Military Entrepreneur Challenge
Why we chose it
The Second Service Foundation’s Military Entrepreneur Challenge (MEC) challenges veterans. Participants pitch their business ideas to a panel of judges as well as a public audience at multiple events. Multiple grants are available, running from $1,000 for regional semi-finalists to $15,000 for the national winner. Training and mentoring programs are available to help during the process. You’ll need to subscribe to the newsletter to receive a notification when applications open for the next pitch competition.
Application process
There is a five-step process to apply. Participants must:
- Register for an MEC event in their area.
- Create a business one-pager for their idea
- Submit their one-pager to apply for a pitch competition
- Prepare a two-minute pitch
- Participate in a Military Entrepreneur Challenge by giving a pitch to a panel of judges and audience
Small Business Innovation Research Program
Why we chose it
The Small Business Innovation Research (SBIR) Program isn’t designed specifically for veterans, but the funding available makes it well worth pursuing if you’re a veteran of the armed forces. If you have an innovative idea for a product or service, the SBIR Program offers two rounds of funding: up to $250,000 to develop your concept and up to $1.5 million to develop a prototype. Nearly half of the grants come from the Department of Defense, so veterans are a natural fit for the program.
Application process
The SBIR Program has a six-step application process:
- Confirm your eligibility
- Develop your proposal
- Find a grant opportunity on SBIR.gov
- Submit your application through the portal
- Wait for the government agency to review your proposal
- If selected, follow any post-funding requirements
VetFran
Why we chose it
Building your own business can be incredibly difficult. In addition to coming up with cash to build up your operations, you need to invest in branding, advertising and more. Through VetFran, veterans can get help with purchasing a franchise of a major business, such as 7-Eleven, Ace Hardware, or SpeeDee Oil Change & Auto Service. Each franchisor offers a different benefit for veterans, such as a discount on initial franchise fees or grants to help get your franchise off the ground.
Application process
Each franchisor has a different application process that involves applying for a franchise, finding a location, and training. VetFran offers resources that can assist veterans throughout the process regardless of the franchise they select.
Kitty Fund Mompreneur Business Grant
Why we chose it
The Kitty Fund Mompreneur Business Grant may be a good fit for women veterans who have children. The program has 25 awards of $1,000 each available, meaning there’s a good amount of funding available.
Application process
You can apply for this grant online by filling out a short application form. To qualify, you must:
- Be a CEO, president or business owner
- Be based in the U.S.
- Have annual revenues of $5 million or less
- Have a minimum of one year in business
- Have between 2 and 100 employees
Beyond Open Grant Program
Why we chose it
The Beyond Open Grant Program has a very small geographic focus, only offering grants to small business owners within specific Corridors of Opportunity as identified by the city of Charlotte, North Carolina. But it can offer a large amount of funding. Round two grantees received awards ranging from $10,000 to $150,000. The grant is open to LQBTQ+, disabled, and minority, women, and veteran applicants.
Application process
Round three is expected to open in 2024. You can apply for the grant through Beyond Open’s website. Before applying, you must attend or view a Beyond Open workshop.
Texas Woman’s University Veteran Woman Entrepreneur Grant
Why we chose it
The Texas Woman’s University Veteran Woman Entrepreneur Grant is highly specific, focusing on women veterans living in Texas. It offers five grants of $5,000 each to veteran entrepreneurs across the state. In addition to grant funding, applicants can access a variety of coaching and other resources to help them start or grow their businesses.
Application process
Closed for 2024. In the future, applicants can apply on the Texas Women’s University website. Applications must include:
- Proof that the business is woman’s owned.
- A DD214 showing discharge date or current Reserve/National Guard enlistment contract.
- Details company background and project information describing how you’ll use the grant funds.
- Documentation that you’ve invested at least $500 of your own money in the business
- A budget showing sources and uses of funds, including the grant funds.
NASE Growth Grants
Why we chose it
The National Association for the Self-Employed (NASE) runs a Growth Grants program that reviews applications and makes awards quarterly. Winners can receive up to $4,000 to use for their business. To apply, you must join NASE. Most new members must wait 90 days after joining to apply but veterans are allowed to apply for a grant immediately upon joining, giving them faster access to funding.
Application process
You can apply for a NASE grant through the website’s online portal. To apply, you will need to provide:
- A statement describing your business need
- How you plan to use the funds and an overall business plan
- How that use of the funds will satisfy your company’s need
- How the grant will impact the overall growth and success of your business.
Warrior Rising
Why we chose it
Warrior Rising offers more than just small business grants. The organization is a non-profit that aims to be a one-stop shop for business. Veterans can apply to join the program and participate in Warrior Academy, which offers online training on how to translate the military decision-making process into the world of business. Applicants also receive monthly coaching and mentoring. At the end of the process is a “business shower” where new business owners receive assistance ranging from equipment, clothing, website services or business grants.
Application process
Warrior Rising accepts applications through its website. To apply, you’ll need to provide a variety of personal information, service information, and details about your business and your business plan.
FedEx Grant
Why we chose it
The FedEx Small Business Grants program is operated by the package carrier company. It isn’t focused specifically on veterans but offers a large amount of funding, up to $50,000. Nine additional winners will receive $20,000, so there’s a lot of funding available to go around. To qualify, you’ll need to be based in the U.S., have fewer than 99 employees, have six months of operating history, and ship using FedEx.
Application process
FedEx customers can apply for the grant online. During your application, you’ll need:
- A description of your business and the products or services you sell
- How you plan to use the grant funds to grow your business
- How FedEx currently supports your business
- A short video sharing your story as a small business owner and how FedEx has helped your company succeed
Farmer Veteran Fellowship Fund
Why we chose it
The Farmer Veteran Fellowship Fund offers an annual small grant program that aims to assist veterans who are starting or in the beginning years of their careers in farming or ranching. Applicants can receive between $1,000 and $5,000, with the organization having awarded nearly $4 million since 2011.
Application process
To apply, you must first join the Farmer Veteran Coalition. You can then fill out the application. The application includes both short answer and essay questions relating to:
- Military service
- Educational background
- Farming experience
- Business and financial planning
- Short and long-term goals
Applicants will need to provide a written business plan and proof of their military service.
Michigan Veteran Entrepreneur Lab
Why we chose it
The Michigan Veteran Entrepreneur Lab is more than just a grant program. It offers a free three-month program for veteran entrepreneurs and military spouses. This accelerator program offers hands-on education and experience that you can use to launch your business. Participants get to work with other veteran entrepreneurs, mentors, and business experts to learn more about running a business and to build a network. At the end of the program, participants can join a pitch showcase that awards at least $20,000 in prize money to winners.
Application process
Applicants can attend an in-person intro night to ask questions and get more information about the program. The program then accepts applications online.
Grants.gov
Why we chose it
Grants.gov isn’t a grant program. It’s an online database that you can use to search for grants offered by various government departments. That makes it easy to search for grant opportunities in a single place. Many of these grants are offered by the U.S. Department of Defense and the VA, meaning they’re intended for veterans. Some will also offer preferential treatment to veteran applicants.
Application process
You can apply for grants online after creating a Grants.gov account. Each opportunity will have different application requirements, so be sure to read each grant’s details closely.
Stephen L. Tadlock Veteran Business Grant
Why we chose it
The Stephen L. Tadlock Business Grant is a grant program operated by Founders First that awards $1,000 to 25 different veteran-owned small businesses each year. Applicants can take advantage of networking opportunities and get exclusive access to webinars and other resources to help grow their businesses. The grant is also appealing because the funds are not restricted. You can use the money for almost any purpose related to your business.
Application process
Applicants can apply on the Founders First website. To be eligible, your company must:
- Have a CEO, president, or business owner who is a veteran
- Have an annual income of no more than $5 million
- Have between 2 and 100 employees
- Be based in the U.S.
- Have been in business for at least 1 year
Southern California Jobs Creator Grant
Why we chose it
The Southern California Jobs Creator Grant is a program targeted at business owners in Southern California. It does not exclusively focus on veterans, but offers grants to underserved demographics. Founders must identify as Latinx, Black, Asian, Women, LGBTQIA+, be a veteran, or be located in a low- to moderate-income area. In addition to awarding $50,000 in grant funds, all recipients get a scholarship to the Founders First accelerator program, a series of programs designed to help companies speed their growth.
Application process
You can apply for the grant online. Your application must contain:
- A plan to add 1 to 2+ net new premium wage jobs in the next year
- A 90-second video narrative about the business
- A narrative on how COVID impacted your business and how you’re sustaining the company
- An agreement to provide information on intended use of funds, financial documentation to verify revenues, and current organizational charts.
Small Business Resources for Veterans
Grants are a great way to get funding for a new business, but you need more than cash to run a company. Coaching, workshops, training events, and a strong network can all help you succeed.
Just like there are many grants focused on veterans who want to start a business, there are small business resources targeted at veterans.
Veteran Business Outreach Centers
Veteran Business Outreach Centers are backed by the Small Business Administration. There are 28 centers located across the country and each provides veteran business owners and entrepreneurs with coaching, workshops, counseling, and mentorship opportunities.
Participating in these programs is a great way to get educated on how to run a business and build a network with other veteran business owners. Because the centers are backed by the SBA, they can also be a good way to learn about financing opportunities through the SBA and its partner lenders.
Boots to Business
Boots to Business is another SBA-backed program that offers education and training to veterans as part of the Department of Defense’s Transition Assistance Program.
The program offers both in-person and online classes. Each class is a two-day introduction to business ownership and self-employment, helping participants learn about evaluating business ideas, how to come up with a business plan, and resources for raising start-up funds.
After completing the introductory course, you can pursue further education through the B2B Revenue Readiness course, which is offered through a partnership with Mississippi State University. This virtual course lasts six weeks and walks veterans through how to take a business concept and turn it into an executable plan.
Office of Small & Disadvantaged Business Utilization
Another SBA-backed program, the Office of Small & Disadvantaged Business Utilization (OSDBU) helps veterans find a variety of webinars and training sessions.
The Office also hosts the Veteran Entrepreneur Portal. This service helps connect veterans with federal services that can assist with starting, funding, and growing a business. The portal can also connect veteran business owners to government contracts for their businesses.
Veteran Women Igniting the Spirit of Entrepreneurship
Designed specifically for women veterans, Veteran Women Igniting Spirit of Entrepreneurship (V-WISE) is a training program that helps both female veterans and military spouses/partners learn about entrepreneurship and running a business.
The program is broken into three phases:
- An intensive 15-day online course
- A three-day in-person residency experience
- 12 months of ongoing support focused on business creation and growth
The program states it has 3,400 graduates, of which 81% are in business today.
Business Grant Alternatives
Because you don’t have to pay back the money you receive, getting a grant is one of the best ways to fund your new business. Unfortunately, grants can be highly competitive and odds are that grant funding won’t be enough to cover all of the costs of starting your business.
The good news is that there are many other options available to veteran business owners.
- Angel investment. Angel investors help fund new businesses in exchange for an ownership stake. If you have a highly compelling business idea and can convince investors that you have a chance to grow, you might be able to find willing investors. Some angel investing groups, such as Hivers and Strivers, focus specifically on veteran-owned businesses, giving veterans a good place to look for investment funding.
- Microloans. Microloans are small loans, usually for $50,000 or less, that are typically targeted at helping new entrepreneurs start a business. These loans usually come from community-focused banks, non-profit organizations, or governmental entities and may have programs aimed specifically at veterans. The SBA also works with lenders to offer SBA microloans, which may be more accessible than other types of SBA loans.
- SBA loans. The SBA works with banks to offer a few different types of loans. SBA loans can be appealing to business owners for their large limits (as much as $5.5 million for some projects), competitive rates, and long payment terms. But the underwriting process can be lengthy and it may be hard to qualify, especially as a brand new business.
- Traditional business loans. Another great way to secure funding for your company is to apply for a small business loan. Many banks, both physical and online, as well as specialized business lenders, offer loans to entrepreneurs and startups. Just be ready to sign a personal guarantee, meaning you’ll be on the hook out of your personal funds if your business can’t make the loan payments.
Additional Resources for Small Business Owners
There’s a lot that goes into starting and running your own business. Here are some additional resources and guides that can help you on your journey.
Business Formation
If you’re still in the early stages of forming your business, the following resources can help you decide how to structure your business:
- Sole Proprietorship vs. LLC
- How To Set Up an LLC
- How Much Does It Cost To Start an LLC?
- Best LLC Services
Banking
The right bank for your business will have few or no fees. And some can help you earn a generous annual percentage rate (APY). The following resources can help you find the best place to park and manage your finances:
- Best Banks for Businesses
- Best Business Checking Accounts
- Best Business Savings Accounts
- Best Banks for Nonprofits
Website Builders
If you don’t have the resources to hire a digital marketing or web design agency, the following guides can help you get your own website up and running:
Frequently Asked Questions
Are There Benefits to Being a Veteran-Owned Business?
Yes, there are many benefits to being a veteran-owned business. You get access to a number of funding opportunities and resources aimed specifically at veterans. Some government contracts also offer a preference to veterans who bid for the contract, making it easier to win business.
What Credit Score Do You Need for a VA Business Loan?
The VA does not directly offer business loans. Many veteran entrepreneurs instead work with SBA, which does not have a set credit score requirement. SBA partner lenders can set their own minimums, with many lenders expecting credit scores of at least 600 but preferably 680 or higher.
Can You Use a VA Loan to Buy a Business?
No, the VA does not offer business loans. VA loans are instead intended to help veterans purchase a home. But other loan programs that veterans are eligible for may be used to purchase existing businesses.
Article Sources
At Newsweek Vault, our team of dedicated writers and editors are not just experts in their respective fields but also committed to delivering content that meets the highest standards of journalistic integrity. We analyze primary sources, including peer-reviewed studies, authoritative government sites and insights from leading industry professionals and ensure that every piece of information is researched, fact-checked and presented with accuracy and relevance.
- Facts About Small Business: Veteran Ownership Statistics. U.S. Small Business Administration. Accessed on March 21, 2024.
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