The Alabama SBDC does not provide grants.
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.

Can I get a grant to start a for-profit business in Alabama?
Possibly, but grants are uncommon for most startup businesses. Entrepreneurs should not assume grant funding will be available when developing their business plans.
A successful business starts with a realistic funding plan. Most small businesses are launched using a combination of owner savings, income from another job, business revenue, loans, or investment from partners. If your business can only launch if a grant is awarded, you may need to:
- Reduce startup costs
- Start on a smaller scale
- Save additional capital
- Generate revenue before expanding
- Explore traditional financing options
Successful businesses are often built by testing the market and growing gradually rather than waiting for grant funding. While there is some grant money available from private foundations and government entities, it is generally not available to individuals to start for-profit businesses. The Alabama SBDC does not provide grants or loans. A limited number of private sector competitions are listed below.
Grant Reality Check
Most successful small businesses never receive a grant.
Most startups are funded through:
- Personal savings
- Owner investment
- Revenue from customers
- Bank financing
- SBA-backed loans
Entrepreneurs should assume that grant funding will not be available and build their business plan accordingly. Businesses that require grant funding before they can begin operations are often undercapitalized. Before launching, entrepreneurs should ensure they have sufficient resources to start and sustain operations while the business builds revenue.
Instead of asking, “Where can I find a grant?”, a better question is, “What is the best funding strategy for my business?”. An SBDC advisor can help you evaluate startup costs, cash flow needs, and financing options to build a realistic funding plan. Please realize that if you can’t start your business without a grant, now may not be the right time to start your business.
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. The Alabama SBDC is not a source of grant funding.
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.

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.
Does the Alabama SBDC provide grant funding?
NO. The Alabama SBDC does not provide grants or loans.
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.
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.
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 may want 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.

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.
