Whether you’re planning on starting a business in Arizona or looking to fund a new venture for your existing business, small business grants are an excellent way to get funding for a business. While there tends to be a lot of competition for these grants and there’s no guarantee of being accepted, the businesses that are awarded a small business grant can look forward to what is essentially free funding.
In Arizona, there is a wide range of grants available to small businesses. Many of these grants are offered by state and federal agencies, while others are offered by private foundations and corporations.
When applying for small business grants, it’s often best to cast a wide net. To help you out, we’ll go over some of the top small business grants worth applying for in Arizona. We’ll also take a closer look at how small business grants work and the benefits that they provide.
What are small business grants?
Small business grants are intended to support the growth and development of small businesses. They provide business owners with funding and, in some cases, additional resources. Best of all, the funding provided by grants doesn’t come with the same strings attached as other forms of funding. Unlike loans, small business grants do not have to be paid back and don’t come with any interest charges either. They also don’t require you to give up any equity in your company like venture capital funding does, which makes grants an especially attractive option for small businesses.
However, because they are so desirable and only awarded to select businesses, competition for these grants can be stiff. To improve your chances of being awarded a grant, it’s important to both apply for as many as you can and make sure that you put your best foot forward with each application.
Arizona state-specific grants for 2026
Many grants are made available specifically to small businesses located in Arizona. Unlike grants that are offered to businesses nationwide, these state-specific grants tend to be a little less competitive and are a great option to focus on. With that said, here are a few of the top state-specific small business grants in Arizona for 2026:
1. Arizona Innovation Challenge
Managed by the Arizona Commerce Authority (ACA), the Arizona Innovation Challenge is designed to reward Arizona startups that are advancing innovation and developing new technologies. Judges select about 25 semifinalists, 15 advance to the finals, and up to 10 finalists are recommended as awardees. Each awardee receives $100,000 in non-dilutive funding, paid as required milestones are met, plus three months of customized support from an ACA-designated partner.
How to apply
Each round can have its own focus and eligibility rules. The Fall 2026 round focused on software-as-a-service (SaaS) startups and was open to companies that:
- Were incorporated less than three years ago
- Had a functional product used by real customers
- Had monthly recurring revenue between $5,000 and $50,000
- Had a clear plan to raise capital and grow
Applications for the Fall 2026 round closed on September 28, 2026. To find out about the next round, visit the Arizona Commerce Authority website.
2. Arizona State Trade Expansion Program (STEP)
The Arizona State Trade Expansion Program (AZSTEP) helps Arizona small businesses that are exporting for the first time or entering new international markets. The program is run by the Arizona Commerce Authority in partnership with the U.S. Small Business Administration, and its goal is to expand the state’s export economy. It supports activities such as international trade shows, trade missions, B2B meetings, ExporTech export planning, U.S. Commercial Service export services, and translating website content for international markets.
How to apply
AZSTEP is open to Arizona small businesses that are entering export markets or expanding into new ones. To learn more about eligibility and how to participate, visit the Arizona Commerce Authority AZSTEP page.
3. Arizona SSBCI Technical Assistance Grant Program
The Arizona SSBCI Technical Assistance Grant Program is a free program managed by the Arizona Commerce Authority (ACA) that provides legal, accounting, and financial advisory services to small businesses in Arizona. Rather than awarding cash, this program gives eligible businesses access to professional services that can be difficult and costly to obtain on their own, making it especially valuable for early-stage businesses that need help getting funding-ready.
The program is specifically designed for socially and economically disadvantaged businesses (SEDI-owned businesses) and very small businesses (VSBs) that are applying for, preparing to apply for, or have previously received capital from an SSBCI-supported program or other eligible federal or state program.
Services available through the program include:
Financial advisory services such as business plan development, pitch deck creation, financial literacy coaching, and funding readiness workshops; accounting services including audits, financial statements, tax services, and accounting practices; and legal assistance covering business formation, licensing, contracts, venture capital agreements, and patent and trademark advisory.
Application process
To apply, visit the Arizona SSBCI Technical Assistance Grant Program page on the Arizona Commerce Authority website and complete the SSBCI TA application form. A member of the ACA team will follow up regarding next steps. There is no application fee, and applications are accepted on a rolling basis.
Federal grants available to Arizona businesses
Various agencies in the federal government offer grants to small businesses all over the country, including those in Arizona. While the fact that these grants are available to businesses nationwide makes them much more competitive than state-specific grants, the awards are often larger as well. If you are interested in applying for a federal grant for your Arizona small business, here are a few great options to pursue:
1. Small Business Innovation Research (SBIR) Program
The SBIR program is a federal program designed to support innovation and technological development. It provides funding to small businesses that are actively engaged in either scientific research or developing new technologies.
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. Only small businesses that demonstrate a strong potential for commercializing the technology they’re working to develop are accepted for this grant. But if your business meets that description, the SBIR program can serve as an excellent way to bring your innovative idea from concept to commercialization.
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 be eligible for an SBIR grant, your small business must be a for-profit business with fewer than 500 employees. 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
This program shares a lot of similarities with the one we just covered, as it is also designed to support small businesses that are engaged in innovation and research. To qualify for an STTR grant, though, your business must be working in partnership with a non-profit research organization.
Like the SBIR program, the STTR program is broken down into 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.
Since the eligibility requirements of this program are a bit more exclusive, it tends to be a little less competitive than the SBIR program. That makes it a great opportunity to pursue if your business is actively working with a non-profit organization to conduct research or develop new technologies.
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 be eligible for an STTR grant, your small business must have fewer than 500 employees, must be partnered with a non-profit research organization, and must be working on developing a technology with a strong potential for commercialization. To learn more about this program and how to apply, visit SBIR.gov.
3. Small Business Administration (SBA) Grants
The U.S. Small Business Administration (SBA) is a federal agency that offers a wide range of resources and support to small businesses. The SBA doesn’t provide grants to start or expand a business: most of its funding comes as loans that have to be repaid, and its main small business grant programs are SBIR and STTR, covered above. It does fund local partners that offer free counseling and training.
In Arizona, the SBA operates through one main district office in addition to partnerships with local organizations:
- SBA Arizona District Office: Located in Phoenix, this office supports small businesses across the state. It offers services like business counseling, training, and funding assistance. Small business owners can also contact this office to access information about local lenders and workshops.
- SBA Partnerships: The Arizona District Office collaborates with local organizations like the Maricopa Small Business Development Center (SBDC) and Chicanos Por La Causa (CPLC) to offer additional resources, funding referrals, and training programs.
How to apply
You can visit the SBA website to learn more about the agency’s funding programs, or you can contact the SBA Arizona District Office to see what loans, counseling and local resources your business might be eligible for.
Corporate and private foundation grants for Arizona businesses
Not all small business grants are offered by government agencies. In addition to those offered by the state and federal government, there are also numerous corporate and private foundation grants made available to small businesses in Arizona. This includes private grants such as:
1. Amber Grant for Women
The Amber Grant, run by WomensNet, supports women-owned small businesses. WomensNet awards $15,000 Amber Grants every month, and three of each year’s monthly winners receive an additional $75,000 year-end grant. This grant is available to women-owned small businesses across all industries, whether you’re starting or growing.
Application process
Applying for an Amber Grant requires you to fill out an online application form and pay a $15 non-refundable application fee, and one application makes you eligible for all the grants related to your business. Visit the Amber Grant website for current details and to submit your application.
2. Freed Fellowship Grant
The Freed Fellowship provides a $500 grant to a new small business each month, and recipients of this grant are also eligible to receive a $2,500 grant at the end of the year. Small businesses that receive a grant from the Freed Fellowship can also look forward to a one-on-one business strategy session and a year-long membership to a virtual entrepreneurial community called Freed Studio.
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 for the Freed Fellowship Grant requires submitting a short online application and paying a $19 application fee. Visit the Freed Fellowship website to learn more and apply.
Conclusion
Being accepted for a small business grant can be a game-changer for small businesses in Arizona. Keep in mind that the list of grants we’ve covered in this article is not exhaustive, and be sure to carefully research which grants your business is the best match for. If you’re still setting up, see our guide to Arizona LLC costs.