Small businesses are the backbone of both Nebraska and the U.S. economy. Nationally, they make up more than 99% of all businesses and create about two-thirds of new jobs. In Nebraska, more than 193,000 small businesses employ about 423,000 people, nearly half of the state’s workforce, fueling growth and innovation across the state.
Securing funding is one of the biggest challenges for entrepreneurs. Options like private investors, loans, or personal savings all come with trade-offs, from losing equity to paying high interest rates or taking on personal financial risk. That’s why small business grants are such an attractive option. Unlike loans, grants don’t require repayment, making them a powerful way to launch, grow, or stabilize a business.
In this guide, you’ll find an overview of the grants available to Nebraska entrepreneurs, whether you’re just starting a business in Nebraska or looking to expand, from federal and statewide programs to private opportunities. We’ll also cover who qualifies, how to apply, and practical tips to improve your chances. With the right grant, you can secure the funding needed to start, build, and scale your small business.
What are small business grants?
A small business is usually described as an independently owned, independently operated business that does not dominate its industry-specific category. It is also typically limited in its number of employees or total revenues.
These limitations are often larger and less restrictive than may be anticipated.
Small business grants are funding sources designed for these businesses. These grants differ from loans in that they do not need to be repaid. Small business grants are usually offered by organizations with an interest in seeing them succeed. These organizations may specify what qualifications may be required by small businesses to successfully apply for the funding.
Many small businesses view these small business grants as a valuable alternative to venture capital, business loans, or utilizing personal funds for a variety of reasons. Small business grants do not have to be repaid, do not require giving up control or sharing in profits, and are provided at no personal risk to the entrepreneur.
Small business grants are frequently offered by government entities, non-profit organizations, and private industries.
Small business grants can be particularly valuable for small business startups who may find other funding challenging to acquire or who don’t want to be saddled with burdensome loan payments.
Small business grants should also be of interest to those looking at how to start a business, or owners who are interested in expanding, adding employees, or improving processes, and technology. Small business grants can make these possible without increasing debt or taking on additional investors. Knowing what it costs to start and run a Nebraska LLC will help you decide how much funding to look for.
Nebraska state-specific grants
Those interested in starting or expanding a small business in the state of Nebraska may qualify for a state-specific small business grant. Here are some potential resources.
Nebraska Enterprise Fund (NEF) loan program
The Nebraska Enterprise Fund (NEF) is a statewide community development financial institution (CDFI) that provides microloans, technical assistance, training, and mentoring to small and micro businesses across Nebraska and Southwest Iowa. NEF offers loans, not grants, but its loans come with favorable terms and are specifically designed for businesses that may not qualify for traditional bank financing. NEF also connects business owners with free coaching, business planning support, and financial education.
Application and eligibility
To be eligible for the services of the Nebraska Enterprise Fund, small businesses or startups must be located in Nebraska or Southwest Iowa.
Process, best practices, and tips
This organization provides a variety of funding resources, training, and mentoring opportunities for your specific small business or startup.
The Backing Small Business Program
The Backing Small Businesses grant program, supported by American Express and administered through Main Street America, provides grants to locally significant small businesses across the country, including Nebraska. The program is designed to help small businesses that make a meaningful impact in their communities fuel sustainable growth and build long-term resilience. The 2025 round offered 400 grants of $10,000, and 25 recipients were later chosen for $30,000 Enhancement Grants. That round closed July 31, 2025.
In 2026, American Express and Main Street America also awarded $20,000 Amex Shop Small Grants to more than 500 businesses. Check Main Street America’s website for the next round.
Process, best practices, and tips
Applications for Backing Small Business Program Grants are dependent on specific requirements for a particular grant. These can vary in complexity, and the services of an experienced or professional grant writer can be beneficial.
Nebraska State Trade Expansion Program (STEP) Grant
Nebraska’s STEP Grant helps Nebraska-based small businesses expand into international markets by reimbursing eligible export-related expenses. The program is funded in part by the U.S. Small Business Administration and administered by the Nebraska Department of Economic Development. It is a reimbursement program, businesses pay eligible expenses upfront and are reimbursed for a portion of approved costs.
Eligible activities include participation in foreign trade missions and trade shows, development of international marketing materials, foreign language translation, website localization for international audiences, compliance testing for foreign markets, and export-related training programs.
Application and eligibility
To be eligible, your business must be headquartered in Nebraska, meet SBA size standards, have been in business for at least a year, and sell a product or service with at least 51% U.S. content. You cover 25% of eligible costs. DED accepts applications on an open cycle. Applications are submitted through the Nebraska Department of Economic Development. Contact DED’s international trade team directly before incurring any expenses, as activities must be pre-approved to be eligible for reimbursement.
Process, best practices, and tips
Read the eligibility requirements carefully and confirm pre-approval before committing to any export activities. The more clearly you can demonstrate the commercial viability of your product or service in your target international market, the stronger your application will be.
Kearney Downtown Rehabilitation Grant
The City of Kearney offers grants for upgrading and restoring buildings in Kearney’s Downtown District. Business owners, property owners, and developers in the Downtown District can apply for help with HVAC, fire sprinklers, electrical upgrades, facade improvements, and energy efficiency work.
Application and eligibility
Applicants must be business owners, property owners, or developers in Kearney’s Downtown District. The 2026 funding cycle is closed, and the next cycle is expected to open in January 2027.
Process, best practices, and tips
Contact the City of Kearney’s planning staff before applying to confirm current funding availability and pre-approval requirements. As with most building improvement grant programs, your project must typically be approved before work begins in order to be eligible for reimbursement.
Industry-specific and niche grants in Nebraska
There are a number of options for grants for small businesses in Nebraska, based upon their business category and niche markets. These are often offered by organizations with a vested interest in promoting and expanding specific industries and business sectors in the state.
Agricultural-based Grants
Due to Nebraska’s reliance on agriculture, small businesses related to the industry in the state have access to a number of grant opportunities through the Nebraska Department of Agriculture.
Application and eligibility
This grant is available to agricultural-based businesses in Nebraska. Current grants frequently focus on sustainability and the use of technology.
Processes, best practices, and tips
The state DOA serves as a clearing house for many agriculture-related federal grants, such as those from the USDA. Review grant parameters to discover grants best suited for your business.
Technology-based grants
Small businesses operating in the tech sector in Nebraska can also look at the Nebraska Seed Investment Program. It is an equity investment program, not a grant: DED invests up to $500,000 in early-stage Nebraska companies that can match it 1:1 (25% for value-added agriculture). Invest Nebraska, a nonprofit venture firm, runs it for DED.
Applications and eligibility
Technology-based startups located in Nebraska can take advantage of this program available through Invest Nebraska, which is a non-profit.
Processes, best practices, and tips
Visit the Invest Nebraska website for funding details, parameters, and how to apply.
Manufacturing-based grants
While Nebraska does not directly offer manufacturing-based grants, there are several programs that can assist small businesses in the sector. These include: the Nebraska Innovation Fund Prototype Grant, the Small Business Innovation Research Program, and the Small Business Technology Transfer Program.
The 2026-27 Prototype Grant application window is open from July 6, 2026 to June 30, 2027, and applications are accepted on a rolling basis until funds run out. Grants go up to $150,000, and you need a cash match of at least 50% of the grant (25% for value-added agriculture). Businesses must have fewer than 500 employees and work in non-retail primary industries.
Application and eligibility
Manufacturing-based small businesses located in Nebraska are generally pursuing bringing innovative products, services, or manufacturing processes to the marketplace.
Processes, best practices, and tips
Follow the online guidelines and parameters for the specific grant related to your needs and offered through one of the above-named organizations.
Federal grants available to Nebraska businesses
Due to their importance to the American economy, small businesses have access to a wide variety of federally funded grants and financial assistance programs. These federal programs often target specific industries, but generally most focus on the creation and expansion of small businesses. Here are some of these popular and valuable federal programs.
Small Business Administration (SBA)
The Small Business Administration serves the needs of small businesses across the country, including those in Nebraska. While the SBA is known mostly for its government-supported loan programs, it does offer a number of federally-sponsored grant programs. While these grants may vary in complexity, they can be generous and, of course, will not need to be repaid.
Application and eligibility
Eligibility depends on the program. Applications for these grants can generally be filed online.
Processes, best practices, and tips
For SBA grants for which you may be eligible, review the currently available SBA grants pertinent to your specific business.
Fill out all the information completely and accurately. If you do not feel qualified to complete an application, you should seek out the help of an experienced grant writer.
- The SBA office for those in Nebraska is in Omaha: 10675 Bedford Avenue, Suite 100, Omaha, NE 68134. You can also visit your Omaha Chamber.
Visit the SBA website for application details.
Small Business Technology Transfer (STTR) Grant
It is a federally sponsored program that provides grants for American companies, including those based in Nebraska, to facilitate cooperation between non-profit research organizations like universities to advance technologies.
The Nebraska Department of Economic Development (DED) also has a matching program to help fund small businesses who may qualify.
STTR grants generally follow a three-phase template.
- The first phase typically examines the merits and feasibility of a concept.
- The second phase involves further examination of the idea, including additional research and potential construction of a prototype.
- Phase three, (though specifically not funded by SBIR/STTR grants), is to focus on moving the idea from concept to the marketplace.
DED’s 2026-27 SBIR/STTR matching window is open from July 7, 2026 to June 30, 2027. DED reimburses up to $5,000 for preparing a Phase I proposal (Phase 0), and it matches federal awards up to $150,000 for Phase I and $300,000 for Phase II (up to 65% of the federal award). At least 51% of the work must take place in Nebraska. SBIR and STTR lapsed on September 30, 2025, and were reauthorized on April 13, 2026, through September 30, 2031.
Application and eligibility
To be eligible for STTR funding, a Nebraska small business must be more than 50% owned and controlled by U.S. citizens or permanent residents. Concepts must be innovative and technology-based. They must also involve collaboration with a non-profit research partner such as a college or university.
To qualify for matching state funding for STTR, businesses must first complete a successful application to the federal program.
Process, best practices, and tips
Applicants must first complete the federal STTR grant application following federal guidelines.
To receive state matching funds in Nebraska, apply to DED during its open application window and follow the guidelines on its SBIR/STTR page.
Corporate and private foundation grants
Tailor Brands Small Business Grant
The Tailor AID Fund helps turn unexpected job loss into an opportunity for entrepreneurship. Valued at $1,000, this program equips aspiring business owners with a complete startup kit that includes business coaching, registered agent services, and other essentials to get a company off the ground.
The fund is open to U.S. citizens laid off due to AI within the past 90 days. The application is quick and straightforward: simply provide proof of the layoff, and you could be on your way to building a business of your own.
Conclusion
Today, small business owners, operators, and entrepreneurs should make use of every advantage available. Products and services should be superior. Marketing efforts should be competitive. And financing should be sufficient and affordable. This includes taking advantage of all the options available to you, including the use of small business grants.
Small business grants do not need to be repaid and, generally, the only costs associated with them are in knowledge, time and effort. Even if you personally may not feel qualified to pursue a small business grant, there can be help available through seminars, online courses, and through the use of experienced grant writers and professionals. Perform your due diligence in researching grants that you may qualify for and take advantage of the financial and other assistance available through small business programs and grants.