What it is
Grants are money you don't pay back. The SBA itself doesn't give grants to start or expand a business; federal grants to businesses are mostly research funding (SBIR and STTR) for companies doing R&D. Most grants owners can win come from states, cities, foundations, companies and pitch competitions, often for a particular place, industry or kind of owner.
What it really costs per year
No interest and no repayment. The costs are the hours spent applying, any matching money or spending you have to show first, and reporting. Grants to a business are generally taxable income; check with a tax professional.
How fast the money comes
Usually months from application to money, on the funder's calendar, not yours.
Who qualifies
- It depends entirely on the program: its location, industry, stage, the owner's background and, for research grants, a real R&D project.
Where it breaks
- The odds are low: only 5% of employer firms received a grant in the past year (Federal Reserve, 2026), and popular programs get far more applicants than awards.
- Few grants cover general operating or expansion costs.
- Scams: a real government grant program never charges a fee to apply or contacts you out of the blue. Grants.gov lists every federal grant.
Compare with
- Your own cash: yearly cost 0%, money in today.
- Presales, gift cards and store credit: yearly cost 0% at full price, money in weeks.
- 0% crowdfunded microloans (Kiva): yearly cost 0%, money in 2–3 months.