Top Small Business Grants for 2025 in Mississippi

As any entrepreneur knows, one of the most significant challenges when running a small business is securing enough funding to keep the organization running smoothly. Although funding options are relatively abundant in the United States, many of them come with hurdles and downsides that can make them less than attractive, especially for new startups. For example, getting funds from investors can help increase capital and cash on hand, but then you owe a part of your business to each investor. For many entrepreneurs, a suitable and more desirable alternative is getting a grant.

Small business grants can come from many sources, including the federal government, state governments, and private enterprises. Unlike traditional loans that must be repaid with interest, grants don’t require repayment. However, because it’s essentially “free money,” these grants often come with strict qualification requirements. If you’re starting a small business, a grant can help inject capital into your company to cover shortfalls, invest in new equipment or infrastructure, or build a stronger marketing presence.

To ensure you can secure the funding you need, this article will break down some of the primary small business grant opportunities available in Mississippi. Here’s everything you need to know about these programs and how to qualify.

What are small business grants?

Small business grants are funds delivered to small companies, typically to cover specific expenses or investments. For example, a grant might be offered to cover new equipment or research. However, some grants are designed for “general use,” meaning recipients can use the money however they see fit. Overall, grants are perfect for startups and small enterprises because they offer financial flexibility without the burden of added debt or liabilities.

As we mentioned, one of the main reasons to apply for a grant is that the money doesn’t need to be repaid. While loans, credit cards, and investment capital must be repaid with interest, grants are designed as a cash infusion for economic development. Essentially, governments and private enterprises view the grant money as an investment in the overall economy, benefiting everyone, not just the lender or creditor.

That said, small business grants come with strict requirements, and the application process can be long and tedious. Additionally, grant funds are typically limited, ranging in amounts from $1,000 to $50,000, depending on the organization providing the grant.

Mississippi state-specific grants

As of 2025, the state of Mississippi doesn’t offer any specific grants for small businesses. Instead, entrepreneurs can apply for a variety of business loans that come with favorable repayment terms and interest rates. Most of these loans are designed to offer financial assistance to underserved and economically disadvantaged companies so they can compete in the marketplace. Here’s a rundown of the loans offered in Mississippi.

Capital Access Contract Loan Program

The Capital Access Contract Loan Program is designed to help disadvantaged small and minority-owned businesses secure loan funding when conventional loans are not readily available. This program provides funding for small business owners to use for public construction projects. The total loan amount provided by the Capital Access Contract Loan Program cannot exceed $75,000, and the public project must be used as collateral against the loan.

Fortunately, the interest rate is zero percent, and small businesses can have up to three loans in use simultaneously.

Application process

Since the goal of this program is to help small businesses that can’t get traditional or conventional funding, it’s imperative to show that you’ve struggled with securing other types of loans. You must also prove that you qualify as a woman or minority-owned business, as that will help secure approval. Technically, this program doesn’t require a business to fall into the woman or minority-owned category, but it focuses mainly on these groups.

Small Business Loan Guaranty Program

The Small Business Loan Guaranty Program works by backing small business owners so they can get approved for funding. This program works similarly to Small Business Administration (SBA) loans, as it doesn’t provide the funds directly, but rather acts as a co-signer on the loan by guaranteeing payment up to a specific amount.

The minimum loan amount is $50,000 and can go up to $500,000, depending on the size of the project. However, an SBLGP loan only guarantees 50 percent of a working capital loan or line of credit, and 80 percent of loans used to secure fixed assets, such as machinery or real estate.

Application process

To qualify for this loan, you must be a small business operating in Mississippi with 250 or fewer employees. Total revenues cannot exceed $7M, and profits cannot exceed $1M. Nonprofit organizations can also take advantage of this program.

Typically, the best way to qualify for this loan is to have a clear understanding of how you will use the funding, along with documented proof that you have a solid business model. If you’re a startup, it can be harder to prove operational efficiency, but a solid business plan and an experienced management team can help seal the deal.

Minority Business Micro Loan Program

The Minority Business Micro Loan Program is designed specifically for women and minority-owned businesses in Mississippi. This program can provide up to $35,000 to be used as working capital or to pay for machinery and equipment. The maximum term for this loan is seven years, and the interest rate is four percent above the federal rate.

Application process

Before applying, make sure you qualify as a woman or minority-owned business. Having documentation proving this fact can help you secure various types of loans and grants, particularly if you have clear goals and strategies regarding how you plan to use the funding.

Minority Business Enterprise (MBE) Loan Program

The Minority Business Enterprise Loan Program works almost identically to the Micro Loan Program, but it offers loans of up to $250,000. However, this amount can only reflect up to 50 percent of the total project cost, meaning you have to supply the other half of the funding. The maximum term for working capital loans is seven years, or 10 years for machinery and equipment loans, and 15 years for real estate and land purchases. The interest rate on these loans can be between two percent less or two percent more than the federal rate.

Application process

Since this loan only covers half of the funding for a particular need, you must prove that you have the other half before applying for the loan. As with all other loans and grants, the more documentation you can provide showing the financial viability of your business and the specific project you need funding for, the more likely you are to get approved.

Industry-specific and niche grants

Mississippi offers small business loans for specific industries, and there are various federal grants available for environmental and ecological research projects. Here’s a quick overview of the opportunities available.

Small Business and Existing Forestry Industry Loan Program

The Small Business and Existing Forestry Industry (SBEFI) Loan Program is designed to stimulate development within the state’s forestry industry. As with the Small Business Loan Guaranty Program, SBEFI acts as a guarantor of a loan originated by a conventional lender, such as a bank or credit union.

Both new and existing forestry startups can apply for this loan, which must be between $50,000 and $500,000. However, the funds must only account for 50 percent of the project funding, so you have to provide the remaining balance. Loan funds can be used to secure new buildings, land, and equipment, or act as working capital. Funds cannot be used to pay off existing debt or to develop property for resale.

Application process

The SBEFI Loan is available to new forestry businesses with total revenue of $7M or less or profit margins of $750,000 or less. You must also employ 100 or fewer employees to qualify as a small business. Alternatively, existing forestry companies can apply if they have operated in Mississippi for the last two years, have employed at least 15 people within the last 36 months, and perform the initial processing of pine logs and hardwood logs for lumber purposes.

Minority Surety Bond Guaranty Program

The Minority Surety Bond Guaranty Program is designed to help women and minority-owned contracting businesses secure surety bonds. All contractors and construction companies must have a surety bond before they can do any work, but some businesses may not get approved by bond providers.

This particular program is designed to help minority-owned businesses participate in construction projects for state, federal, and local governments. Rather than pay for the bond directly, this program simply backs the business owner so they can get approved for a surety bond.

Application process

To qualify for this program, you must be in the construction business, be certified as a woman or minority-owned business, and have been in business for at least one year. Applicants must also be based in Mississippi, meet all experience and financial qualifications to secure the bond, and agree not to subcontract more than 75 percent of the project. Finally, you must also show proof that you have been unable to secure bonds through traditional means.

Federal grants available to Mississippi businesses

While Mississippi itself only offers small business loan programs, companies based in the state can access grant funding from federal agencies. The best way to find specific grants is by searching available opportunities on Grants.gov. Agencies like the Department of Agriculture, Department of Defense, and Department of the Interior offer grant money to achieve specific objectives.

However, if you’re unsure whether you qualify for niche federal grants, there are two options that are much broader in scope and can be suitable for many types of small businesses in Mississippi. Here’s a quick breakdown of each opportunity.

Small Business Innovation Research (SBIR) Fund

The Small Business Innovation Research Fund and the Small Business Technology Transfer Programs are designed to help American companies develop groundbreaking technology. The goal of these programs is to provide non-dilutive funding to for-profit companies to research and develop technology so it will be ready to bring to the marketplace.

The SBIR Fund works in three phases: Proof of Concept, Technological Development, and Commercialization.

Application process

Rather than providing funds directly, the SBIR and STTR are funded by various federal agencies. So, when applying, you must determine which agency (e.g., the Department of the Interior) will be most interested in your technology. Additionally, you must work with a nonprofit lab to develop your tech, so it’s best to build a relationship with a lab before applying.

State Trade Expansion Program (STEP)

The State Trade Expansion Program is designed to help American companies expand their trade overseas. STEP provides funding to bring American products to international marketplaces by investing in import and export infrastructure.

Application process

To help you qualify for this program, it’s best to do as much research about your target market as possible. By providing proof that your products will appeal to international markets, it’s much easier for the government to recognize the value of investing in your exports.

Corporate and private foundation grants

While government grants can be a primary source of funding, many large corporations and private organizations also provide grant money for small businesses. Typically, these grants are much smaller, and they may be limited to specific funding activities, such as expanding your marketing presence or online infrastructure. Here are three examples of private grant opportunities.

• Comcast Innovation Fund – This program is designed to help small businesses develop technology to make it easier to bring the internet to the masses.
• Freed Fellowship Grant – Joining the Freed Fellowship allows you to apply for a $500 grant. The Fellowship looks at five aspects of your business (the five Cs) to determine how the grant money can help you succeed.

Tailor Brands Grant

Tailor Brands’ Tailor AID Fund is designed to help those affected by AI-driven layoffs turn a career change into an opportunity. The program offers a business kit valued at $1,000, including the tools, resources, and a custom business plan to guide you through launching a new business.

Applicants must be U.S. citizens and have been laid off within the last 90 days due to AI adoption in their previous role. Proof of layoff is required, such as a termination notice, confirmation from a manager, or a public layoff announcement.

Successful applicants receive a comprehensive business plan and startup resources, allowing them to focus on building their new business and moving forward with confidence.

Conclusion

Overall, grant funding can provide excellent financial stability and flexibility for your small business. However, before you can apply for a grant, it’s imperative to prove how the funds will not only help your business thrive but also generate economic benefits to your community and the state as a whole. The more work you put into documenting your company’s economic potential, the more likely you are to receive funds.