Top Small Business Grants for 2025 in Virginia

Virginia boasts a thriving small business community. In fact, small businesses account for over 99.5 percent of all businesses in the state, and there are currently over 818,000 small businesses in Virginia.

Consistently named a top state for business, Virginia has much to offer aspiring entrepreneurs: investments in education, solid infrastructure, and an impressive talent base.

Despite these advantages, some significant challenges can hold aspiring Virginia business owners back. One of the biggest concerns? Access to capital. If this is lacking, entrepreneurs may find themselves stalling before they have the chance to build much-needed momentum.

Thankfully, small business grants provide the financial boost that local entrepreneurs need. This can be an amazing source of support, and, with many state-based and federal programs available, there is plenty of funding within reach.

What are small business grants?

Small business grants are sums of money awarded by donors in hopes of spurring business growth, crucial to both established owners and those looking to start a small business. These awards are appealing because, unlike loans, they do not involve interest and do not need to be paid back. These also differ from venture capital (VC) because they do not require business owners to sacrifice equity.

Essentially, small business grants function as “free money,” offering a no-strings-attached means of getting critical support. These grants help entrepreneurs focus on building or scaling their businesses without worrying about the caveats associated with loans or VC.

Virginia state-specific grants

The state of Virginia actively supports small businesses through generous grant programs that help aspiring entrepreneurs get a strong start. These diverse programs help entrepreneurs make good on their commitment to growing the state’s economy.

Some options (like the Virginia Business Ready Sites Program) provide more indirect forms of support, creating, for example, operations-ready spaces in which Virginia businesses can thrive. Other small business grants in Virginia are designed to scale existing businesses or to help support underserved communities by facilitating economic activity.

Virginia Enterprise Zone (VEZ) Real Property Investment Grant (RPIG)

Offering generous incentives for businesses that create jobs in underserved areas known as enterprise zones, VEZ grants involve two main benefits: the Real Property Investment Grant (RPIG) and the Jobs Creation Grant (JCG).

RPIG emphasizes the construction or expansion of industrial, commercial, or mixed-use spaces within enterprise zones. These grants provide up to 20 percent of the qualified real property investment above and beyond the eligibility threshold.

Application process: best practices and tips

VEZ grants are only available to businesses located within established enterprise zone boundaries. Beyond this, eligibility requirements depend on which grant qualifying businesses seek: the aforementioned RPIG or the JCG.

With the RPIG, strict requirements are imposed regarding the amount invested in improvements ($100,000 or more to rehabilitate existing buildings or $500,000 for new constructions). The application process can be completed fully online via the state’s Department of Housing and Community Development (DHCD) portal system.

Virginia Enterprise Zone (VEZ) Jobs Creation Grant (JCG)

Another core element of the VEZ Virginia grant program, the Jobs Creation Grant (JCG) encourages local businesses to create full-time jobs for enterprise zone residents. These generous grants may total up to $500 (or in some cases, $800) annually for every eligible position created by the applying business owner. These grants are available for up to 350 jobs per year.

Application process: best practices and tips

As with RPIG grants, JCG support is only available to business owners who operate within strict boundaries designating enterprise zones. Businesses seeking JCG support must also commit to providing a net increase of four permanent full-time positions, meeting strict wage ($19.25 per hour) and health benefit requirements. Like RPIG applications, JCG proposals are submitted online via the DHCD portal.

Small Business Investment Grant (SBIG)

Although primarily targeting investors that cater to small businesses, the SBIG program is deeply meaningful to Virginia entrepreneurs. After all, this provides a significant incentive for local investors.

Specifically, the SBIG encourages private investments in the local small business community, although, as the Virginia Department of Small Business and Supplier Diversity (SBSD) clarifies, these are “not grants awarded to the small business that received the investment.” Still, by encouraging small business investments, this program ultimately helps local entrepreneurs thrive.

Application process: best practices and tips

The Virginia Small Business Financing Authority (VSBFA) confirms the eligibility of both the investors and the small businesses involved in the SBIG program. Eligible small businesses cannot have reached an annual revenue of over $5 million in the past year of operation. These businesses must be based in Virginia but should have no more than 50 employees within the state.

Industry-specific and niche Grants: overview

Many funding opportunities in Virginia are intentionally designed to promote business activities in specific industries or sectors. These programs can be mutually beneficial, they support growth and job creation in underserved areas while rewarding the entrepreneurs who work so hard to get established.

In Virginia, multiple grants target entrepreneurs within specific sectors or niches. Eligibility standards can be uniquely strict for these programs, so it is important to examine requirements closely before applying.

Microbusiness Marketing Leverage Program

Encouraging Virginia businesses to support and actively promote the state’s tourism industry, the Microbusiness Marketing Leverage Program offers a pathway to attracting tourists during the shoulder season. Eligibility is limited to businesses with 20 or fewer employees. Examples of qualifying microbusinesses could include local breweries, wineries, food trucks, or boutiques.

Virginia Coalfield Economic Development Authority (VCEDA) Seed Capital Matching Fund

Designed to boost business activity in Southwest Virginia’s e-Region (which includes Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise Counties), the VCEDA Seed Capital Matching Fund helps small businesses overcome common barriers to entry.

This is a dollar-for–dollar matching program, so applicants must also seek funds from additional sources. The grant is limited to new businesses (no older than one year) with fewer than ten full-time employees — but also, the intention to create or retain jobs in the e-Region.

Federal grants available to Virginia businesses

While Virginia-specific grants can be wonderfully helpful to local businesses, not all entrepreneurs will qualify. Even if they do manage to secure state-specific funding, some business owners may need additional support. These concerns can be alleviated through federal grants, which are widely available and always worth exploring.

Small Business Innovation Research (SBIR)

The Small Business Innovation Research (SBIR) promotes research & development (R&D), making it a wonderful option for innovative entrepreneurs. Funding from this grant allows eligible businesses to develop cutting-edge technologies.

This program involves a phase-based approach, beginning with feasibility and proof of concept but eventually encompassing additional R&D as well as prototype development. Virginia businesses in sectors such as energy and biotech could be strong candidates for this program.

Application process: best practices and tips

Small businesses with 500 or fewer employees may qualify for SBIR grants upon obtaining Unique Entity IDs (UEIs) and fulfilling other strict application requirements. Required IDs are available through SAM.gov.

This program is highly competitive, but a successful proposal is possible if applicants demonstrate strong commercialization potential while also purposefully designing proposals to reflect agency-specific values or priorities. The Small Business Administration (SBA) provides robust support, working with local partners to offer proposal assistance and other services.

Small Business Technology Transfer (STTR)

Similar to SBIR, the STTR encourages innovation through small business funding. The key difference, however, lies in the involvement of academic institutions; these are not necessary for success with the SBIR program.

With STTR, one of the primary goals is to successfully transfer research-focused innovations into the marketplace. Through strong partnerships between academic organizations and small businesses, the STTR program ensures that exciting scientific discoveries become commercially viable.

Application process: best practices and tips

As with SBIR, a core STTR eligibility requirement surrounds the number of employees: 500 or fewer. Nonprofit partnerships are also a central component of STTR eligibility. Typically, eligible small businesses partner with research colleges or universities. UEIs remain essential, although the SBA and related local programs can help with obtaining these.

Because partnership requirements can complicate the application process, it is important to thoroughly examine the guides and checklists provided by the SBA. These resources detail eligibility standards along with processes for registering companies and certifying that they meet all established requirements.

Made in America Manufacturing Initiative

Focused on improving domestic supply chains while boosting innovation, this federal grant supports small manufacturers via awards of up to $1.1 million. Recipients can then use these funds to provide training and assistance via the Empower to Grow (E2G) program. E2G participants receive free business courses and consulting services.

Application process: best practices and tips

Available to applicants with a strong record of helping small manufacturing businesses, the Made in America Manufacturing Initiative can be utilized by both for-profit and not-for-profit entities, with the SBA specifically mentioning that small businesses may be eligible.

Furthermore, applicants must prove they have “been in existence continually” for three years and that they have experience providing manufacturing-related tools or training. The SBA offers many resources to help with the application process, including recordings of previous webinars about the grants.

Corporate and private foundation grants

Corporate grants provide alternative pathways to small business funding. In Virginia, these are offered by established businesses or nonprofits, typically with the goal of bringing powerful funding opportunities to aspiring entrepreneurs.

Awards and eligibility standards can vary dramatically from one program to the next, so it is important to research these options thoroughly, focusing on programs that best reflect business goals or values. Examples of grants worth exploring include:

Wish Local Empowerment Grant

Highlighted by the Virginia Black Chamber of Commerce as one of the top grant opportunities available to local small business owners, the Wish Local Empowerment Grant recognized the hardships black-owned small businesses have faced along with the profound difference they make in their communities.

To promote further success in minority entrepreneurship, Wish Local offers generous financial support for up to 4,000 eligible small business owners: grants of between $500 and $2,000.

Creative Business Boost Initiative

Ideal for creative entrepreneurs, the Creative Business Boost Initiative is made possible by Hello Alice and the Global Entrepreneurship Network (GEN). This powerful initiative provides up to $5,000 grants for up to 100 eligible entrepreneurs, with the hope of boosting the creative economy.

Examples of eligible entrepreneurs could include fashion designers, salon owners, media producers, or even chefs. Eligibility requirements also include participation in a virtual Boost Camp, designed to help creative entrepreneurs develop valuable business skills.

Tailor AID Grants

For those who have faced layoffs but still dream of running their own business, Tailor Brands’ AID Grant offers a chance to turn setbacks into new beginnings. The program provides a business kit valued at $1,000, which includes essentials like business coaching and registered agent services to help entrepreneurs get started with confidence.

The application process is simple and designed to be accessible. Applicants only need to provide a few basic details along with proof of recent job displacement. From there, Tailor Brands helps recipients take their first steps toward building a stronger, more independent future.

Conclusion

Whether you’re an established business or looking at how to start a business in Virginia, owners can benefit from state, federal, and private grant programs that provide excellent access to funding. While eligibility standards vary greatly among both federal programs and grant opportunities in Virginia, these grants can provide a competitive edge for qualifying businesses, empowering entrepreneurs and ultimately, inspiring long-term business success.

To increase the likelihood of approval, make the most of available resources from the SBA and from state-specific authorities. Professional grant writers provide further assistance, strengthening proposals while inspiring confidence. Make the most of grant opportunities to secure powerful sources of small business funding.