Alabama Small Business Development Center Network
Alabama SBDC Network

How can I get a grant to start or expand my business in Alabama?

Unless your business involves the development of new technology or is a non-profit organization, it is difficult to find a grant to start or expand a small business. The Alabama SBDC does not provide grants.

Every day, Small Business Development Centers (SBDCs) and the Small Business Administration (SBA) receive calls from individuals that heard on social media – usually on Tik-Tok or Instagram Reels – that there is free grant money available to start a business.  It just isn’t true.  Grant money to start a business is incredibly rare.  Most entrepreneurs have better odds at winning the lottery than finding grant funding that is adequate to start a business.  (And Alabama doesn’t have a lottery…)

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How do I get started?

Yes, there is some grant money available from private foundations and government entities. No, it is generally not available to individuals to start for-profit businesses.  There are a few private sector competitions listed below.

Starting a small business in Alabama, or taking steps to save or grow it, is a lot easier after you’ve talked with a small business expert. 

Even though many publications and talk shows publicize grants to small businesses, there are only certain types of government grants available to small businesses.  SBA, for instance, offers “Small Business Innovation Research” (SBIR) and “Small Business Technology Transfer” (STTR) grants.  Grants from other agencies may also be available for new technologies, inventions, or products.  In general, the U.S. government does not provide grants for starting or expanding a small business.

Finding and identifying government agencies that give grants for specific purposes or in specific subject areas requires considerable time, effort, and research.  Getting a grant is hard work.  Don’t be fooled by advertisements and promotions that state that you can get “free money” just by asking for it. Where grant funds are available, competition is fierce.  To be successful in winning a grant, you must provide the funding agency with a well-written proposal that clearly states your objectives and sets forth a plan and budget for your activities.  Grants are “free” in that you do not have to pay back the money. However, if you are awarded a grant you may be required to provide periodic progress, program evaluation, and/or financial reports to the government.  The SBDC does not write grant proposals.

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Advising and Technical Assistance

Business Plan or Idea Pitch Competitions

Pitch Competitions are available throughout Alabama, and provide an opportunity to compete for prize money (a grant). Each competition has its own rules and requirements.  Some are designed to help companies that are developing new technologies; others are restricted to a specific industry sector. Awards can range from $500 to $50,000 or more. A list of pitch competitions in Alabama is available here.

Private Sector Grant Competitions

There are a few highly competitive private sector grants for certain types of businesses, and a few specifically for woman-owned businesses. Given the frequency at which these competitions change, we suggest that you investigate each of them carefully to determine if you might be eligible to compete, and understand how  and when to apply.

Available Competitions

  • Verizon Digital Ready: Take two of their online classes to submit an application to compete for $10,000. Ten businesses are selected each month. There is a random drawing, and then further application review.
  • Amazon Small Business Grants: Amazon Business is awarding over $250,000 in monetary grants and prizes to support the growth of 15 small businesses. Existing Amazon Business small business customers based in the US with annual revenues of $1 million or less and have made a purchase on Amazon Business within the 12 months preceding May 1, 2025 can apply for a grant.
  • FedEx Small Business Grant Contest. Ended in 2024, but you are welcome to check on the current status. FedEx will award ten winners with $30,000 each, plus one US veteran winner will receive an additional $20,000 from USAA.  The People’s Choice winner will receive $1,000. The application window is 3-week period in January/February, so prepare for your applications in advance. You’ll need to capture your business’s story via video.  Learn more about the FedEx competition here. Good for existing businesses.
  • Ladies Who Launch.  Their grant competition ended in 2023, but they maintain a list of other grant competitions with awards from $1,000 to $500,000.
  • National Association for the Self-Employed (NASE) Growth Grants. NASE Growth Grants are offered to NASE members looking to take their business to the next level. NASE grants are worth up to $4,000 and can be used for all types of activities, like purchasing new equipment, hiring help, and creating promotional material.
    Good for: existing businesses.
  • Main Street America: Closed in 2025. The Backing Small Businesses grant program, supported by American Express, provides support to locally significant small businesses with community reach. In 2025, the program provided grants of $10,000 to fund projects that promote sustainable growth, enhance long-term resilience, and increase local impact.
  • MasterCard Fearless Strivers. Permanently closed.  Black women-owned businesses are vital to our economy yet receive less than one percent of venture capital funding. The 2023 Fearless Strivers Grant Contest is a skill-based contest.  
  • The Second Service Foundation Military Entrepreneur Challenge.  (Shut down; transitioning to a faith-based organization. Formerly the StreetShares Foundation.) The Military Entrepreneur Challenge is in partnership with the Samuel Adams Brewing the American Dream program. Open to veterans, active duty members, or the spouse of a military veteran or active duty member. 
  • HelloAlice. No longer offers grants, just access to credit cards and microlenders. Hello Alice is awarding small business owners with $5,000 grants to help them make their next big move. To be eligible, a business must have less than $1M in annual revenue, a commitment to their customers and community, and a clear plan to use the grant funds.
  • US Chamber Dream Big Award. The Dream Big award has been discontinued, but the site offers articles on searching for grants.
  • Nav’s “Legitify Your Small Business” Grant. Closed. NAV is offering a $10,000 small business grant to the most deserving business that applies. 
  • Amber Grants. WomensNet founded the Amber Grant Foundation in 1998. The Foundation was set up with one goal in mind: to honor the memory of a very special young woman, Amber Wigdahl, who died at just 19 years old — before realizing her business dreams. Today, WomensNet carries on that tradition, giving away at least $30,000 every month in Amber Grant money, with three year-end awards for $50,000.
  • Cartier Women’s Initiative. The Cartier Women’s Initiative is an annual international entrepreneurship program that aims to drive change by empowering women impact entrepreneurs. Founded in 2006, the program is open to women-run and women-owned businesses from any country and sector that aim to have a strong and sustainable social and/or environmental impact. Applications for 2027 closed in June 2026.
  • The Halstead Grant. Designed to help jewelry entrepreneurs create a strategy to kick-start their careers. The grand prize is a small cash grant plus other benefits. The deadline is May 1st each year.
  • Tory Burch Foundation. Grant program discontinued, but you can apply to receive coaching assistance.
  • Visa Everywhere Initiative.  Closed.
  • Women Founders Fast Pitch Competition.  $50 application fee.  Two $25,000 awards each year.
  • WeBackBlackBusiness. Closed.  From 2020 through 2023, the fund distributed $5,000 grants.
  • Bill and Melinda Gates Foundation Grand Global Challenges. The foundation awards its grants primarily to 501(c)(3) organizations, but if you run a business that is solving health and development problems through innovation, this grant could be yours. Check here for their open applications and keep in mind that the open grants are usually specific to a particular problem.  Good for: nonprofits or businesses solving health and development problems.
  • Female Founders Fund: Female Founders Fund is an early-stage fund investing in the next generation of transformational technology companies founded by women. Since 2014, Female Founders Fund has put money toward “category-defining female leaders with a strong community to fuel their success,” mainly in B2B, consumer, healthcare, fintech and social companies.
  • SoGal Ventures. This is a Women-led venture capital firm that invests in “early-stage diverse founding teams” in the U.S., Asia Pacific, Africa and Europe, including many women-owned startups.
  • Fearless Fund: Fearless Fund invests in women of color led businesses seeking pre-seed, seed level or series A financing. The Strivers Grant will award eleven total grants worth $10,000 each.
  • NBMBAA: The National Black MBA Association offers competitions for up to $50,000.
  • Accion Opportunity Fund: Fast Break for Small Business.  Closed in 2024.
  • Live Your Dream Award.  The Live Your Dream Awards provide monetary assistance to women who provide the primary source of financial support for their families. It is the cornerstone program of Soroptimist International of the Americas, LiveYourDream.org’s sponsoring organization. Each year, more than $2.4 million in education grants are awarded to over 1,500 women, many of whom have overcome enormous obstacles including poverty, domestic violence, the death of a spouse and/or substance abuse.  Awards range from $1,000 to $5,000; three will be awarded $10,000.

The vast majority of government grants are given to non-profit organizations for programs and services that benefit the community or the public at large.  There are other types of grants such as those from foundations, corporations, or private organizations.  These non-government organizations have specific requirements as to who is eligible to apply for and receive grant funding.  By and large, foundations do not make grants to for-profit enterprises.

Be aware that Government Grant Scams do exist.
Don’t be a victim.

  • BusinessUSA – Access Financing
    This interactive tool from the Federal Government allows you to describe your business and your needs, and generates a list of government financing programs that may be available to you.
  • SBA Loan Programs
    The SBA offers a variety of loan programs for very specific purposes. See if you qualify to participate in the programs described here.
  • Candid
    (Formerly known as the Foundation Center and Guidestar.) Through research, collaboration, and training, Candid connects people who want to change the world to the resources they need to do it. Candid’s data tools on nonprofits, foundations, and grants are the most comprehensive in the world.
  • Grants.gov
    A central location for thousands of grant programs from the 26 federal grant-making agencies. There are no federal grants to help people start for-profit businesses.

The Alabama SBDC Network has a talented group of business advisors that are interested in helping you start or grow your business. Even if a grant isn’t available, you should take a moment to talk with a business advisor about the options that are available. Business plan competitions are offered statewide, such as Alabama Launchpad, and smaller competitions are offered locally. Talk with your SBDC business advisor for more information.

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Please, don’t send money to this guy

The only person that has ever received any money from this book is the author.  The Federal Trade Commission won a judgment against this company for fraud.

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