California is home to more than 4 million small businesses, which make up over 99% of all businesses in the state and employ millions of Californians.
The state invests in supporting small business growth, which helps make it one of the best states to start a business in. If you’re thinking about launching your own company, make sure you understand the steps to starting a business in California so you can lay out a strong foundation before seeking funding.
But with those impressive numbers comes stiff competition, high costs, and strict regulations, and many new businesses close every year.
One main reason for small business closure in the U.S. is a lack of cash flow, often because of high start-up investment and running costs that break the business before it profits.
That’s where small business grants can help you by providing non-repayable funds you can use to start or run your business.
What are small business grants?
Small business grants are financial awards that provide funding for your business.
Unlike loans, which you pay back with interest, or venture capital (V.C.), where investors exchange funding for equity (a percentage of your business), grants offer non-repayable support, which is especially helpful for startups or those seeking expansion, allowing you to focus on growth and innovation.
Grants come from various sources, including federal and state governments, private corporations, and nonprofit organizations.
- Government grants focus on innovation, job creation, or community development.
- Corporate and private grants target specific industries or social causes.
- Nonprofits offer grants to support underrepresented businesses or those in underserved areas.
California state-specific small business grants for 2026
California state-specific grants in 2026 offer funding and support to help your business grow, innovate, and succeed in the Golden State’s competitive market.
These programs are available to various small businesses, including startups and established companies looking to expand.
Below are some California small business grants, eligibility requirements, and the application process.
1. California Dream Fund
The California Dream Fund, run by the California Office of the Small Business Advocate (CalOSBA), offers microgrants of up to $10,000 to help new entrepreneurs launch their businesses, with a focus on underserved communities.
Eligibility requirements:
- You must complete a startup training program and advising through a designated technical assistance partner.
- Your business must be registered and have the permits and licenses it needs.
- You need to show that your business has launched, for example by making a first sale or opening a business bank account.
Application process:
Start by enrolling with a participating training partner, such as a local Small Business Development Center. After you finish the training, you can apply for the grant. Funding is limited and offered in rounds, so check CalOSBA for current availability.
2. Employment Training Panel (ETP) Grants
ETP grants fund workforce training to improve the competitiveness of California businesses.
Eligibility requirements:
- You must be a California-based employer.
- Demonstrate the need for employee training.
- Your business must be within industries that contribute to California’s economy.
- Your employees must work in stable, long-term jobs post-training.
Application process:
To apply for ETP grants:
- Submit a training proposal through the ETP’s online application portal.
- Your proposal should outline the training plan, costs, and expected benefits.
The ETP reviews applications on a rolling basis; visit the ETP website for further information.
3. California Small Business Technical Assistance Program (TAP)
This CalOSBA program funds free or low-cost help for small businesses, including technical training and consulting, through partner centers across the state. It provides services rather than cash grants.
It benefits startups and small businesses seeking expert marketing, finance, and operational improvement guidance.
Eligibility requirements:
The business has to be based in California, with a need for technical assistance services.
Application process:
You contact your local Small Business Development Center (SBDC) or another CalOSBA partner center, outline your assistance needs, and provide relevant business information.
California industry-specific and niche small business grants 2026
California offers a variety of industry-specific and niche grants to businesses that address unique market needs or operate within specialized sectors.
These grants often focus on technology, renewable energy, and businesses serving underrepresented communities.
1. California Arts Council Grants
The CAC grants support nonprofit arts organizations and projects to enhance California’s cultural landscape. They are for artists, cultural institutions, and community-based organizations dedicated to improving access to the arts across diverse communities.
Eligibility requirements:
- You must be a nonprofit arts organization.
- Based in California.
- Focusing on community engagement or access to the arts.
Application process:
Submit your online application detailing your project goals, budget, and the positive impact it will have, along with documentation about your organization and its mission.
For more information, visit the California Arts Council website.
2. California Energy Commission Grants
The California Energy Commission grants support innovative projects that promote renewable energy and energy efficiency solutions.
Grants are available for existing businesses, startups, and research institutions working on innovative technologies to advance California’s clean energy goals.
Eligibility requirements:
- A California-based business.
- Your projects must focus on energy efficiency or renewable energy technologies.
Application process:
To apply, submit a project proposal through the California Energy Commission’s online portal, including project details, expected outcomes, and budget estimates.
3. California Small Agricultural Business Drought and Flood Relief Grants (CLOSED)
The California Small Agricultural Business Drought and Flood Relief program offered grants to small agricultural businesses affected by severe drought or flooding.
Eligible businesses received grants of up to $100,000 to help mitigate financial losses.
The California Small Agricultural Business Drought and Flood Relief Grant Program has closed all funding groups and is no longer accepting new applications. Check the California Office of the Small Business Advocate (CalOSBA) website for any future relief programs that may be announced.
4. California Department of Food and Agriculture (CDFA) Grants
The California Department of Food and Agriculture (CDFA) provides several small business grant programs through its Office of Farm to Fork.
These grants support small businesses focusing on improving food access and sustainability.
Eligibility requirements:
- Your small business must be California-based.
- Be in an urban or a low-food access area.
Application process:
Grants vary throughout the year, and the application requirements depend on the grant.
For more information, visit the California Department of Food and Agriculture’s Farm to Fork web page.
5. Restaurants Care Resilience Fund
The Restaurants Care Resilience Fund awards $5,000 grants to independent restaurants and caterers in California, funded by the PG&E Corporation Foundation and SoCalGas. The funds can be used for a wide range of business needs, including equipment, technology upgrades, employee retention, training, and bonuses, as well as to cover hardship situations such as theft or fire damage.
Eligibility requirements:
- Your restaurant must be independently owned, with one to five locations; chain and franchise restaurants are not eligible.
- Your restaurant must be located in California and be a PG&E or SoCalGas customer.
- The restaurant must have been open and operating for at least one year.
- Annual revenue at the location must be $3 million or less.
Application process:
Applications typically open once a year in June (the 2026 round closed June 30). Visit the Restaurants Care website to monitor for application announcements and to learn more about the program.
Federal grants available to California businesses
Federal grants offer crucial funding for California businesses, enabling them to develop innovative solutions, expand operations, and contribute to local economies.
Most federal grants for businesses go to companies doing research and development, especially in technology.
Getting a federal grant is a lengthy process, but the rewards can be high, as awards are often larger than local government or private grants.
1. Small Business Innovation Research (SBIR)
The SBIR program aims to stimulate technological innovation by funding small businesses that engage in research and development projects.
The program encourages small businesses to explore their technological potential and provides a pathway to commercialization. It’s available to various industries, including healthcare, defense, and energy. Awards come in phases: Phase I awards are typically up to roughly $300,000 and Phase II awards up to roughly $2 million, with the exact caps set by each agency.
Eligibility requirements:
- Your business must be U.S.-based.
- Have 500 or fewer employees.
Application process:
You submit your proposal to the relevant federal agency, each with unique application procedures.
For more information on grants, eligibility requirements, and applications, visit the SBIR website.
2. Small Business Technology Transfer (STTR)
The STTR program focuses on promoting cooperation between small businesses and research institutions.
This initiative awards small businesses that collaborate with universities and nonprofit research institutions to advance technology transfer and innovation.
The STTR grant is ideal for small businesses seeking to leverage academic research and development capabilities while conducting their projects.
Eligibility requirements:
- You must collaborate with a nonprofit research institution.
- Have 500 or fewer employees.
Application process:
Federal agencies publish funding announcements and application processes on a rolling basis; for more information, visit the STTR website.
Note: The SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized in April 2026 and are now active through September 30, 2031.
3. Small Business Administration (SBA) resources
The SBA generally doesn’t give grants to start or run a business; it offers SBA-backed loans through partner lenders, along with free counseling and other resources for small businesses.
Every US state has SBA district offices that can help you start and grow your business.
Eligibility requirements:
- Varies based on the specific program.
- For loans, you’ll typically need to show you can repay and have a viable business plan.
Application process:
You apply through an SBA partner lender, or contact your local SBA district office for guidance.
California’s SBA district offices are:
- Fresno District
- Los Angeles District
- Orange County / Inland Empire District
- Sacramento District
- San Diego District
- San Francisco District
4. State Trade Expansion Program (STEP)
The STEP program aims to increase the number of U.S. small businesses exporting goods and services to international markets by helping them export or expand their current export activities to new markets abroad.
The grants fund export training, trade show participation, and marketing strategies tailored to foreign markets.
Eligibility requirements:
- Your small business must be in California.
- Show a commitment to exporting and developing international markets.
The STEP Export Voucher program helps eligible California small businesses expand internationally by reimbursing up to 75% of pre-approved export promotion expenses, up to $10,000 per business. To be eligible, your business must be a for-profit California company that meets the SBA’s definition of a small business and has been in operation for at least one year. Applications are round-based, and you must apply before your planned activity for it to be eligible.
Application process:
STEP is an SBA-backed program. To confirm your eligibility, locate your state’s representative using the SBA’s Directory of State Awardees. Visit the California STEP Export Voucher page for current round deadlines.
Corporate and private foundation small business grants for 2026
Corporate and private foundation grants play a vital role in supporting small businesses in California by providing funding for innovation, expansion, and community impact.
These grants come from various corporations and philanthropic organizations that aim to enhance economic growth and support underserved communities.
Applicants usually need to show how they contribute to their local economies, for example by creating jobs, fostering local innovation, or expanding opportunity.
1. FedEx small business grants contest (CLOSED)
The FedEx Small Business Grant Contest provided funding and FedEx services to support small businesses looking to grow.
In its final year, it awarded multiple grants, including a $50,000 grand prize.
The FedEx Small Business Grant Contest ran from 2012 through 2024 and is no longer accepting applications. We recommend checking the FedEx Small Business resources page for any future programs or new grant opportunities they may announce.
2. Visa Everywhere Initiative (CLOSED)
The Visa Everywhere Initiative is a global innovation program that awarded startups and small businesses that solve payment-related challenges by providing funding and resources to help grow their businesses.
The US-based Visa Everywhere Initiative competition is no longer running. The only active Visa Everywhere program in 2026 is limited to female entrepreneurs with refugee backgrounds based in Europe and is not open to US applicants.
3. Walmart Spark Good Local Grants (nonprofits only)
Walmart supports organizations working to improve their communities through its Spark Good Local Grants, which range from $250 to $5,000.
The grants fund programs that address local needs, from education to health initiatives. If you run a for-profit small business, you aren’t eligible, but these grants may help a nonprofit you partner with.
Application and eligibility process:
For a Spark Good Local Grant, you must:
- Be a 501(c)(3) public charity, school, government entity, or a faith-based organization with a community project.
- Serve the same community as the Walmart or Sam’s Club facility you request funds from.
You apply online during one of the yearly application cycles through the Walmart Local Community Grants page.
California small business grant application process: best practices and tips
Every grant has a unique application process you must follow. However, best practices exist that apply to all of them.
Tips to guide you through the grant application process:
- Do your research: Familiarize yourself with the grant programs and their eligibility requirements.
- Confirm your goals: Ensure your project goals align with the priorities set by the grant provider.
- Apply early: Begin your application process well before the deadline, allowing time for research, preparation, and revisions.
- Follow the grant guidelines: Read and follow all application instructions, including formatting requirements.
- Create a winning proposal: Outline your project’s objectives, timeline, and budget, emphasizing measurable outcomes and your project’s potential impact.
- Get your paperwork in order: Gather essential documentation, including business plans, financial statements, and letters of support.
Conclusion
Grants take time and effort to get; there are many hoops you’ll have to jump through and documents you’ll need to create, like a business plan.
But if you do your due diligence, ensure you’re eligible for a grant, and follow the application procedures, the funding you receive and the work you put into getting it could be time well spent when starting a business in California.