States give away billions of dollars each year in business grants, and some states are especially generous with their programs. The following are the six best states for business grants, including a particularly popular grant program in each of the six states.
6 Best US States for Small Business Grants
California has a wide range of grant opportunities available to businesses. These include grants for businesses in disadvantaged communities and businesses that invest in economic development or housing projects. Industry-based grants for businesses in education, science, technology, research and development, energy, health and other spaces are also available.
Example Grant: Sales Tax Exclusion Program
The Sales Tax Exclusion Program is a mainstay in California, continuing since its inception in 1971. The grant is available to manufacturers that purchase alternative energy, advanced transportation, advanced recycling or advanced manufacturing equipment, and the program gives these manufacturers a sales and use tax exclusion. Considering California’s state sales tax rate is 7.25 percent, that exclusion can lead to a substantial savings.
2. New York
New York maintains grant programs for women-owned businesses, businesses that bring significant economic development, and businesses in certain industries. The state is particularly interested in technology, clean energy, life sciences and advanced manufacturing businesses. A business doesn’t necessarily have to fall within one of these categories to get a grant, however, as there are other programs available.
Example Grant: Flexible Technical Assistance (FlexTech) Program
The Flexible Technical Assistance Program is available to commercial, industrial and multifamily residential facilities that contribute to the state’s electric Systems Benefits Charge. The program shares the cost of conducting an energy efficiency study on a facility.
Pennsylvania likewise has business grant programs available for everything from disaster recovery to economic development. These include grants that don’t have to be paid back along with loans that come with favorable terms.
Example Grant: Ben Franklin Program
One of Pennsylvania’s largest business grant programs is the Ben Franklin Program. Comprising three separate business grant initiatives, these are available to businesses in emerging and established technology spaces.
Texas is known for its business-friendly environment, and the state’s favorable tax and labor laws attract many businesses. These incentives are complemented by a strong selection of business grants too. The various grant programs are available on a geographic and an industry basis.
Example Grant: Texas Enterprise Fund
The Texas Enterprise Fund is a “deal-closing” grant that’s offered to businesses which are considering Texas and another state as potential locations for a new project. The award amount is based on the average employee wage, number of employees, hiring timeline and capital investment.
Arizona’s business grant programs are structured so that businesses can easily find opportunities according to their situation. There are business grants available for international trade, rural economic development, manufacturing, small businesses, innovation, training, tax relief and more.
Example Grant: Arizona innovation Grant
The Arizona Innovation Grant is one of the country’s largest business plan competitions. Designed to promote technology commercialization and innovation, the grant has helped 100 companies thus far scale.
Nevada too has business grant programs based on industry and region, with Henderson, Las Vegas and rural Nevada the main targeted regions. Many of these business grants target small businesses. The maximum dollar award for these business grants are lower than Nevada’s funding opportunities offered to larger corporations.
Example Grant: City of Henderson Small Business Recovery Grant
The City of Henderson offers a Small Business Recovery Grant that’s for businesses with 20 or fewer employees. Specifically for businesses located within the city, this program offers up to $10,000 for working capital. The exact amount is based on the number of full-time employees.
Find State Grants for Your Business
While in my opinion, these are the six best states for business grants, nearly all 50 states offer various types of business grants to support job creation, job retention, technology commercialization, and much more. There are numerous different grants for business ventures, and which one is right for your business depends on the specifics of your situation.
For help finding business grant opportunities that your business might qualify for, contact me and let’s talk. I have secured well over $400 million in funding for my clients and I am familiar with the available business grant programs offered by the federal government, state governments and local governments. More importantly, I know how to best position your business to secure the business grant funding you need to achieve your business’ goals.