While loans are one option, they create debt and add pressure to repay with interest. Grants, on the other hand, are unique because they provide financial support that does not have to be paid back. For new businesses that have not yet started generating revenue, or for companies that want to grow without risking too much leverage, grants can provide the breathing room they need to cover startup costs and succeed.
In Vermont, where small businesses (from sole proprietors to Vermont LLCs) are the backbone of many local communities, finding small business grants can serve as a lifeline. The financial challenges are real, with rising costs, seasonal slowdowns, and limited access to capital often leaving business owners stretched thin. Grants can help ease that burden by offering funding that does not eat into future profits. This makes them a powerful tool for entrepreneurs who want to innovate, expand, or simply keep their doors open. Ultimately, grants can give Vermont businesses the critical boost they need to not only stay afloat today, but to thrive over the long-term.
What are small business grants?
Small business grants are funds provided by government agencies, nonprofit organizations, corporations, or community groups to help businesses pursue their goals. Grants differ from loans in one key way: they generally do not require repayment. This makes them attractive because they do not create debt or demand a trade in equity as venture capital often does. While other types of financing (such as credit lines or crowdfunding campaigns) can also provide capital, they typically involve ongoing costs or obligations that grants avoid.
Grants are offered for many reasons. Federal agencies often use them to encourage innovation or research in areas such as energy, defense, or healthcare. Vermont and other state governments commonly fund grant programs to strengthen local economies and support industries that matter most to their residents. Corporations sometimes sponsor contests or initiatives to support small businesses nationwide, and nonprofit foundations frequently award grants to companies that align with their missions.
The benefit of receiving a grant goes beyond the money itself. Because repayment is not required, a business owner can invest funds directly into training workers, developing new products, or expanding operations without worrying about loan installments. For entrepreneurs still proving their ideas, this can mean the difference between stalling out early and reaching sustainable growth. Grants can also come with extra advantages (such as mentorship, technical assistance, or matching funds), which can stretch their impact even further.
Vermont state-specific grants
Vermont has a range of grant programs tailored to the needs of its local businesses. These programs are often administered by state agencies or through partnerships with nonprofit organizations. They address problems in the areas of workforce development, economic stability, community revitalization, historic preservation, and address other issues that are important to Vermont.
Vermont Economic Development Authority (VEDA) loans (loan program)
VEDA is the state’s economic development lender. It offers loans, not grants, to Vermont businesses and farms, including its Small Business Loan Program and Entrepreneurial Loan Program. Loans must be repaid.
Vermont Training Program (VTP) grants
One of the most practical grants available in the state is the Vermont Training Program. Widely known as VTP, this program helps employers cover the cost of training workers by reimbursing up to half of eligible expenses. The goal is to give Vermont businesses the ability to train new hires or upgrade the skills of current employees, ensuring that the local workforce remains competitive in fast-changing industries.
Application process
Businesses interested in VTP can apply through the ACCD website by submitting a detailed training plan. This plan explains the goals of the training, identifies which employees will participate, and estimates the cost. Applications are accepted on a rolling basis, and the grant agreement must be signed before training begins. Once approved, businesses conduct the training and subsequently request reimbursement. Because the program focuses on aligning workforce skills with Vermont’s economic priorities, successful applicants tend to work closely with program administrators throughout the process.
Working Lands Enterprise Initiative
The Working Lands Enterprise Initiative is administered by the Vermont Working Lands Enterprise Board and supports Vermont’s agricultural and forest product businesses. The Business Enhancement Grant awards $10,000 to $50,000 to Vermont farm, forest and some food businesses with at least one year of operations, with no match required. The FY27 round is open until December 10, 2026, at 2:00pm, with decisions expected in late February or early March 2027.
The program awards grants on a competitive basis, with priority given to projects that demonstrate clear economic benefit to Vermont’s working lands sector. Eligible uses include equipment purchases, market development, business planning, and other investments that help Vermont agricultural and forest product businesses grow sustainably.
Application process
Apply through the Working Lands Enterprise Initiative website.
Industry-specific and niche grants
In addition to broad programs, Vermont offers grants that are tailored to specific industries or sectors. These niche grants are important because they focus resources on areas that have a unique role in Vermont’s identity and economy, such as technology, agriculture and historic preservation.
Elevate Vermont grants
Elevate Vermont provides non-competitive matching grants of up to $50,000 to Vermont-based businesses that have received a federal SBIR or STTR Phase I or Phase II award. Since federal funds are restricted to research and development, Elevate Vermont ensures that small businesses also have support for commercialization activities that federal funds cannot cover, such as marketing, market research, and development of sales materials.
Applications are accepted on a first-come, first-served basis, with no deadlines. A business may receive one grant per federal award and up to five grants over its lifetime. Businesses that have received more than three prior SBIR/STTR Phase II awards are not eligible.
In addition to matching grants, Elevate Vermont also provides free one-on-one technical assistance to help first-time or unsuccessful SBIR/STTR applicants work with a consultant to navigate the application process and improve their chances of success.
Paul Bruhn Historic Revitalization (PBHR) grants
Through the Paul Bruhn Historic Revitalization Grant, the Preservation Trust of Vermont awards $50,000 to $150,000 to restore historic buildings in towns with fewer than 7,500 people. Privately owned commercial or mixed-use buildings in a designated downtown or village center qualify, as do nonprofits and municipalities. The building must be on, or eligible for, the National Register, and owners agree to a preservation easement. The 2026 round closes November 9, 2026, at 11:59 pm.
Federal grants available to Vermont businesses
Beyond state programs, Vermont businesses also have access to federal grant opportunities. These are often larger in scale and highly competitive, but they open the door to research, development, and international growth.
Small Business Innovation Research (SBIR) grants
The Small Business Innovation Research (SBIR) program funds small businesses that are engaged in research and development. Through SBIR, federal agencies such as the Department of Defense or the National Institutes of Health issue solicitations for projects that align with their needs. Grants are awarded in phases, starting with a feasibility study in Phase I and moving to product development in Phase II. Vermont businesses that succeed in this program often gain national visibility as well as critical funding.
Application process
To apply for an SBIR grant, businesses must identify relevant solicitations on the SBIR website. When they find one, they must prepare a detailed proposal that emphasizes technical merit and commercial potential, and then submit it through the funding agency’s submission system (some agencies use Grants.gov). The process is competitive, but it can make a tremendous positive difference for research-focused small businesses.
Small Business Technology Transfer (STTR) grants
The Small Business Technology Transfer (STTR) program is much like SBIR but requires applicants to partner with a nonprofit research institution. Vermont companies can team up with research institutions such as the University of Vermont to combine business innovation with academic expertise. Like SBIR, STTR awards are granted in multiple phases and can provide substantial support for research and commercialization.
Application process
The application process requires early collaboration with the research partner to define roles, budgets, and intellectual property agreements. Proposals are then submitted through federal portals, with requirements varying depending on the agency involved.
Note: 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 active through September 30, 2031.
Small Business Administration (SBA) grants
While the Small Business Administration provides very few direct grants to businesses, it funds organizations that support entrepreneurs through training, technical assistance, and resource development. Vermont businesses benefit indirectly from SBA programs by working with resource partners such as Small Business Development Centers and other organizations supported by the agency.
Application process
To explore available opportunities, business owners can monitor the SBA website and consult the Vermont SBA District Office. The office helps entrepreneurs determine if SBA-backed resources can meet their needs and guide them toward the right programs.
State Trade Expansion Program (STEP) grants
Funded by the SBA and run in Vermont by ACCD, the State Trade Expansion Program, commonly referred to as STEP, helps small businesses expand into international markets. STEP reimburses up to 75% of pre-approved export costs, up to $30,000 a year, with a 25% cash match. In Vermont, STEP funds can reimburse expenses for trade missions, translation services, foreign market research, and compliance with export regulations. Funding depends on availability, so check with the STEP program manager before you plan an activity.
Application process
In Vermont, the STEP application begins with a pre-approval form submitted to the Vermont ACCD STEP program. Once pre-approval is granted, businesses participate in export activities and then submit receipts for reimbursement. Companies that maintain strong records and comply with program guidelines typically experience faster approvals.
Corporate and private foundation grants
Corporate and nonprofit foundation grants are another valuable resource for Vermont businesses. While these programs may not be as consistent as state or federal funding, they often provide unique opportunities and can be highly competitive.
Amber Grant
WomensNet awards $15,000 Amber Grants to women-owned businesses every month, and three of each year’s monthly winners receive an additional $75,000 year-end grant. The application fee is $15 and is non-refundable.
Conclusion
Running a small business in Vermont will always come with challenges, but the right funding can make those challenges easier to overcome. Grants provide a way to invest in your business without taking on additional debt, allowing you to focus on growth, hiring, and innovation rather than repayment schedules.
Whether you are just getting started or looking for ways to expand, taking time to research and apply for grants can have a lasting impact on your success. If you are still in the early stages, learning how to start a business is a great first step that will make your grant applications stronger and your operations more focused from the start.
Ultimately, Vermont’s mix of state programs, federal opportunities, and private grants gives entrepreneurs the chance to grow businesses that strengthen local communities. With preparation, persistence, and a clear vision, you can turn these funding opportunities into a path toward long-term success.