Starting and running a small business demands capital, especially during the initial phases or when planning to expand. While many of Delaware’s 111,346 small businesses cover their expenses through operational income or savings, there are times when additional funding is needed.
Outside funding can assist new startups, such as a newly formed Delaware LLC, in establishing themselves, support expanding businesses in scaling their operations, or help any business acquire property, equipment, or inventory. At times, outside funding might be needed simply to continue operations after an emergency or disaster.
When seeking outside funding, businesses have several options available to them. Loans and investors are possible sources, but small business grants are usually a better option.
There are lots of Delaware business grants available. Delaware offers these to bolster its small businesses, which account for 98.7% of all businesses in the state. In addition to these, you’ll find grants underwritten by the federal government, foundations, nonprofit organizations and companies, too.
Here are the top small business grants in Delaware for 2026. Any of these might give your business a cash infusion to grow or help cover your Delaware LLC startup costs.
What are small business grants?
Small business grants are “free money” that eligible businesses receive if they have a winning application. The rewards don’t have to be repaid. Funds just need to be used in line with what the grant application said they would be used for.
The purpose of grants is to support the success and growth of small businesses. Whether it’s starting a new venture, expanding operations, purchasing property or equipment, making environmentally friendly improvements, or serving a particular community segment, grants can be instrumental in achieving these goals.
Compared to other funding options, grants have multiple benefits that generally make them the better option if one is available:
- Commercial Loans: Loans require repayment of both the principal and interest, but grants don’t need to be repaid. There’s no interest, and the principal is the business’s money.
- Business Credit Cards: Credit cards often carry high interest rates, potentially hurting cash flow if balances aren’t paid in full each month. Again, grants don’t require repayment.
- Venture Capital: Securing venture capital usually involves giving up a portion of your business ownership to external investors. Grants allow you to retain full ownership.
- Personal Capital: Not all entrepreneurs have personal savings to invest, and using personal funds can increase financial risk due to a lack of diversification. Grants offer external funding without tapping into your personal finances.
You’ll find that there are many Delaware business grants, federal business grants, and other grant opportunities that your business might qualify for. Any could be useful.
Delaware-specific grants for 2026
1. EDGE Grant Competition
The EDGE Grant Competition has been reimagined as EDGE 2.0, which offers $1.15 million per round. The old structure of flat awards is gone. The program now features two tracks with a dynamic pitch competition format: the Entrepreneur track, where up to 10 finalists compete for a share of a $400,000 pool, and the STEM track, where up to 8 finalists compete for a share of a $750,000 pool. There are no set award amounts, grants are scaled based on each business’s pitch, stage, and needs.
To be eligible, your business must be majority located (51% or more) in Delaware, have been in operation for less than seven years, have 15 or fewer full-time employees, and have less than $700,000 in assets. People who haven’t started their business yet can also apply. EDGE grants come with a 3:1 state match: the business contributes $1 for every $3 awarded. The program runs two rounds per year, with application periods opening each February and August. Finalists participate in a live pitch competition, and all finalists, whether or not they win funding, receive post-pitch in-kind services including consulting, bookkeeping support, and business analyst and marketing connections.
Since its launch, the EDGE program has distributed more than $10.3 million to 136 small businesses across Delaware. Applications and more information are available at de.gov/edge. The fall 2026 round closed September 11, and winners will be announced at the November 10, 2026 event. Watch de.gov/edge for the spring 2027 window.
Application process: best practices and tips
- Mark the deadline: each round has a fixed application window of about one month (recently February–March and August–September).
- Work with your county’s Regional Business Manager before submitting, they can provide guidance on strengthening your application.
- You can apply before your business is up and running.
2. Delaware Strategic Fund (grants and loans)
The Delaware Strategic Fund supports the creation of jobs within the state. Funds might be distributed as a loan or a grant, with the latter option being preferable.
The grant is available for projects fully located within Delaware, which means that the job creation must be within the state but the business doesn’t necessarily have to be primarily located here (it does help to be).
Because the goal of the program is job creation, it’s essential to demonstrate how a project will create sustainable jobs. There’s often a requirement to maintain a minimum number of new jobs for a certain period, and you might need to repay a grant should your business fail in this.
Applications are handled by each county’s Regional Business Manager, who is the best contact for more information. Applications are approved by the Council on Development Finance.
Application process: best practices and tips
- Emphasize how your project will create jobs, and specifically how the grant will allow your business to create more jobs.
- Be sure to show that your business is highly likely to sustain these jobs and succeed long term.
3. Delaware Workforce Training Grant (PAUSED)
The Delaware Workforce Training Grant helped businesses train employees, for example when implementing an innovative program, acquiring new specialized machinery, or making tech upgrades. Preference was given to training programs that would create jobs, and applications were submitted to the Delaware Division of Small Business.
Applications for the Delaware Workforce Training Grant are currently paused while the Division of Small Business reviews alignment with other state programs. Check the Division of Small Business website at business.delaware.gov for updates on when applications will reopen.
Industry-specific and niche grants
Along with the more general Delaware business grants, there are also various industry-specific and niche grants available to businesses in the state.
1. Graduated Lab Space Incentive Program
The Delaware Graduated Lab Space Incentive Program helps businesses build out laboratories for production (as opposed to research). Businesses within and outside of the state are welcome to apply, if they want to create or expand a lab somewhere in the state.
The grant will pay up to ⅓ of the fit-out costs of constructing a new lab space, up to $70/sq. ft. for up to 50,000 sq. ft. (a $3.5 million ceiling). Auxiliary spaces, such as offices, can’t be included in this space.
The goal is to both ensure Delaware is competitive within advancing industries, and to create jobs. Preference is given to wet-lab oriented industries, such as advanced materials, chemistry and biotechnology. It’s essential that the lab will provide good and sustainable jobs. Your business might also apply for a job-related grant.
Applications are submitted to the Delaware Division of Small Business on a rolling basis. It’s best to work with a Regional Business Manager and the local municipality, though. Some municipalities might offer their own incentives for creating a lab within their boundaries.
2. Delaware Technical Innovation Program
The Delaware Technical Innovation Program (DTIP) provides state funds for businesses that are developing new innovations and inventions. Specifically, it’s for Delaware-based businesses (with a principal place of business in Delaware) that have received a federal SBIR or STTR Phase I or Phase II award (see below), to help bridge to the next phase.
The grant might help with personnel salaries, research costs, patent costs, or business planning costs during this transition.
Applications are submitted to the Delaware Division of Small Business on a rolling basis. It’s best to work with a Regional Business Manager when applying. Award amounts are set by the Division’s guidelines.
3. Brownfield Assistance Program
The Brownfield Assistance Program offers matching grants to help rehabilitate environmentally stressed properties throughout the state. The program is available to businesses developing sites for their own operations, as well as businesses and individuals who flip these properties.
To qualify, a property must be designated as an environmentally stressed brownfield property. There’s a state-run marketplace of existing brownfields that may be available, or you can apply to have a property designated. The same application is used both for designation and a potential grant. It gets submitted to the Division of Waste and Hazardous Substances.
This program can potentially be combined with the Graduated Lab Space Incentive Program, or you may apply for a job-related grant after rehabbing a property. The construction work itself generally won’t qualify for a job-related grant, as any construction jobs created will be temporary.
Federal grants for Delaware businesses
Businesses that meet specific qualifications can access federal grants available across the United States, including those operating in Delaware. If your business meets the eligibility criteria, these grants can be quite substantial.
1. Small Business Innovation Research Program
The Small Business Innovation Research (SBIR) Program offers large grants for the commercialization of innovations and inventions. There are three phases: Phase I for technical exploration, Phase II for prototyping, and Phase III for bringing to a commercial market. Grant amounts start in the five figures, and Phase II awards can reach seven figures.
Application and eligibility requirements
SBIR grants are issued by various government agencies. Check with the agency that oversees your industry, to learn about SBIR grant opportunities and application requirements.
2. Small Business Technology Transfer Program
The Small Business Technology Transfer (STTR) Program is similar to the SBIR Program, and businesses might consider applying for either. The biggest difference between them is collaboration with other institutions. The STTR requires collaboration with a non-profit research institution (e.g. a university), while the SBIR only encourages doing so.
Application and eligibility requirements
The STTR also has Phase I and Phase II awards (Phase III is commercialization without SBIR/STTR funds), which are awarded by various government agencies. Check with the agency that oversees your industry, to learn about STTR grant opportunities and application requirements. The research institution you work with will likely be familiar with STTR grants, too.
Note: The SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized on April 13, 2026 (P.L. 119-83) and are now authorized through September 30, 2031.
3. Small Business Administration Grants
The U.S. Small Business Administration (SBA) helps small businesses with multiple types of funding. While SBA loans are perhaps the most common funding that the administration offers, there are several grants available too.
Application and eligibility requirements
Eligibility requirements vary depending on the grant, and each has its own application process too. The Delaware SBA Office is the best point of contact for businesses that have specific questions. The SBA website has general information about grant opportunities and applications.
Corporate and private foundation small business grants for 2026
A good number of foundations and large corporations have their own grants for small businesses. Grant programs vary widely in scope, amount and competitiveness. You’ll find ones focused on diversity, economic development, technological innovation, sustainability, and more. Here are some of the top corporate and private foundation grants for 2026.
1. Freed Fellowship Grant
The Freed Fellowship awards a $500 micro-grant to one U.S.-based small or micro business each month. Recipients are eligible for a year-end $2,500 grant.
Application and eligibility requirements
Apply through the Freed Fellowship Grant page. The cutoff for the current month’s application period is the last day of the month. You can always apply next month, too. Applying requires submitting a short online application and paying a $19 application fee.
Conclusion
There are many Delaware business grants available, including the ones listed and many others. See which ones your business qualifies for, and apply. Winning any of these grants could provide a significant cash infusion for your business.