Like most states, Alaska relies on small businesses to serve as the backbone of the state’s economy. To support small businesses in Alaska, the state along with federal agencies and private corporations offers a number of grants designed to reward businesses that are creating innovations and driving the state’s economy forward.
Being accepted for one of these grants can be a game-changer for small businesses, as they essentially amount to free funding. However, competition for small business grants is stiff, and most businesses that apply are not accepted.
In this article, we’ll go over everything you need to know about small business grants in Alaska, including how they work, how to apply for them, and the top small business grants for Alaska businesses to pursue in 2026. If you’re still setting up your company, start with our guide to forming an LLC in Alaska.
What are small business grants?
Small business grants are funds that are provided to support the growth and development of small businesses. They may be targeted towards a specific industry or location (such as grants designed to support tourism in Alaska), or they can be intended to support specific types of small businesses (such as those owned by women or minorities). Many grants are offered by government agencies at both the state and federal levels, but there are a lot of private foundations and corporations that offer small business grants as well.
The best part about receiving a small business grant is that they are typically a “no strings attached” form of funding. The funds from most grants do not have to be repaid, which makes them a much more desirable funding option than a loan that will have to be repaid with interest. Unlike venture capital funding, small business grants also don’t require you to give up any equity in your company.
Alaska state-specific grants for 2026
While many grants, especially those offered by the federal government, are made available to small businesses nationwide, there are also grants that are exclusively awarded to businesses in Alaska. If you are seeking a grant for your business, it’s often best to focus on these state-specific (or industry-specific) grants since there is less competition for them.
With that in mind, here are a few of the top Alaska state-specific grants for small businesses in 2026:
1. Alaska SBIR/STTR Grant Program
If your business has already received a federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) grant, you may qualify for additional funding thanks to the Alaska SBIR/STTR grant program. This program is designed to foster research and innovation in the state by rewarding small businesses that demonstrate excellent potential in these fields.
Funding amounts vary depending on the phase of federal funding the business has received. Phase I awardees receive up to $25,000 in state matching funds, and bridge funding of up to $25,000 is available to help businesses between Phase I and Phase II. Phase II awardees receive an initial award of up to $25,000, with the possibility of a supplemental award of up to $75,000, for a maximum total of $100,000.
How to apply
To be eligible for the Alaska SBIR/STTR grant, your business must first have already received a Phase I or Phase II award from either the SBIR or STTR program. We’ll discuss these programs more in our section on federal grants, but they both award grants to small businesses nationwide that are engaged in either scientific research or technological development.
The FY2025 application round closed on May 9, 2025, and no FY2026 round had been announced at the time of writing. If your business is already the recipient of an SBIR/STTR grant, check the Alaska SBIR/STTR Grant Program page for the next application period.
2. Microenterprise Grant (MEGRANT)
The Microenterprise Grant (MEGRANT) is a program managed by the University of Alaska Anchorage that’s designed to help people with disabilities start businesses and pursue opportunities for self-employment. Those who are awarded this grant can use the funds to start a new business, acquire an existing business, or expand their current business.
This grant awards amounts ranging from $500 to $12,000. The $12,000 limit is a lifetime total that includes any prior MEGRANT awards, and funds are paid directly to vendors rather than to the business owner.
How to apply
There are numerous eligibility requirements you have to meet before you can apply for a MEGRANT. To start, you must be an Alaska Mental Health Trust Beneficiary to qualify. Your business must also qualify as a “microenterprise”, having fewer than five employees and capital needs of less than $35,000.
This grant also requires a dollar-for-dollar match from its recipients, and you must provide documents proving this match has been satisfied as part of the application process. In other words, if you are requesting a $5,000 grant, you must be able to prove that you have already invested at least $5,000 yourself in your business.
If you meet these eligibility requirements, you can apply for a MEGRANT.
3. Path to Prosperity Business Development Competition
Spruce Root is a non-profit organization that exists to support the economy of Southeast Alaska, and every year they hold a competition for small businesses in the area called the Path to Prosperity Business Development Competition. This competition is designed to reward small businesses in Southeast Alaska that have a positive impact on their communities. Two winning businesses receive up to $20,000 each, and one of the winners must be a rural entry.
How to apply
The 2026 competition cycle was open to Alaska Native individuals residing in Southeast Alaska, and the business must be at least 51% Alaska Native-owned. Entries can be for a new business startup or an expansion of an existing business, and can be a product, service, or social venture. Note that nonprofit organizations are not eligible.
The contest consists of two rounds. In the first round, applicants are required to submit a business concept proposal. Those that advance to the second round will be required to submit a more detailed business plan.
Applications for the 2026 competition closed on May 31, 2026. To learn about the next cycle, visit the Spruce Root Path to Prosperity page.
Federal grants available to Alaska businesses
In addition to grants offered by the Alaskan government and private organizations in the state, Alaska small businesses can also apply for numerous federal grants. We’ve already mentioned how competition for these federal grants can be much higher since far more businesses are eligible to apply, but the funding that these grants award can be substantial as well.
There is a wide range of grants offered by various federal agencies, and it’s worth taking the time to explore them thoroughly to see which ones are the best fit for your business and its funding needs. However, here are a couple of the more popular federal grant programs that are available to small businesses in Alaska:
1. Small Business Innovation Research (SBIR) Program
We’ve mentioned this program already, but if your business is involved in research and development then it’s certainly a program that’s worth taking a closer look at. The SBIR program is a federal program that awards grants to promising small businesses engaged in scientific research and/or technological innovation.
The SBIR Program operates in three phases:
- Phase I: Grants of roughly $300,000 to test the feasibility of a project.
- Phase II: Grants of roughly $2 million to develop and test prototypes.
- Phase III: Focuses on commercialization but does not provide additional funding.
Award caps are set by the SBA and adjusted periodically, so check SBIR.gov for current amounts. If you decide to apply for this grant, keep in mind that the Alaska SBIR/STTR Grant Program awards additional funding to small businesses in the state that are recipients of an SBIR grant.
Note: Federal authorization for the SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized on April 13, 2026, and are now authorized through September 30, 2031.
How to apply
To qualify for an SBIR grant, your business must be a for-profit entity with fewer than 500 employees. It also needs to be involved in a research or development project that demonstrates significant potential for commercialization. Applications are submitted through federal agencies that participate in the program, such as the Department of Defense or the National Institutes of Health. For details on application deadlines and resources, visit SBIR.gov.
2. Small Business Technology Transfer (STTR) Program
The STTR program is a federal grant program that shares a lot in common with the SBIR program. However, it is specifically intended for small businesses who are partnering with non-profit research organizations.
Like the SBIR program, the STTR program is designed to encourage groundbreaking research and technological innovation by supporting small businesses engaged in these activities. It consists of the same three phases as the SBIR program as well, and small businesses in Alaska that receive an STTR grant are eligible for additional funding via the Alaska SBIR/STTR Grant Program.
Note: Federal authorization for the SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized on April 13, 2026, and are now authorized through September 30, 2031.
How to apply
The STTR program has the same eligibility requirements as the SBIR program (must have fewer than 500 employees and must be engaged in scientific research or technological development) with the additional requirement that you must be actively partnered with a non-profit research organization. To learn more about how to apply, you can visit SBIR.gov.
Corporate and private foundation grants for Alaska businesses
Many grants available to Alaska small businesses are offered by private corporations and foundations rather than government agencies. This includes popular grants such as:
1. Freed Fellowship Grant
Every month, The Freed Fellowship provides $500 in funding to one US small business, and winners of this monthly grant are also eligible to receive a $2,500 grant at the end of each year. In addition to these cash prizes, winners also receive a one-on-one business strategy session and a year-long membership to the Freed Studio, a virtual entrepreneurial community.
Application process
To apply for this grant, you must be a US-based small business or micro-business owner. Applications are accepted on a rolling basis and must be submitted by midnight on the last day of the month to be eligible for that month’s grant. Applying requires submitting a short online application and paying a $19 application fee. Check out the Freed Fellowship website to learn more and apply.
Conclusion
Small business grants can open the door to a lot of opportunities for Alaskan businesses, helping provide the funds they need to grow and pursue new ventures. In 2026, there are numerous grants available to small businesses in Alaska, so be sure to explore your options and apply for as many as possible to increase your odds of being chosen. Since grants rarely cover startup expenses, budget separately for Alaska LLC costs such as state filing and license fees.