Top Small Business Grants for 2025 in California

In 2024, California boasted 4.25 million small businesses, representing 99.8% of all companies and providing employment for 7.4 million individuals.

Those numbers are so high because California invests in supporting small business growth, what makes it one of the best states to start a business in. If you’re thinking about launching your own company, make sure you understand the steps to starting a business in California so you can lay out a strong foundation before seeking funding.

But with those impressive rankings comes stiff competition, high costs, and strict regulations.

That’s why in 2023, while 130,888 new businesses began, 91,314 closed.

One main reason for small business closure in the U.S. is a lack of cash flow, often because of high start-up investment and running costs that break the business before it profits.

That’s where small business grants can help you by providing non-repayable funds you can use to start or run your business.

What are small business grants?

Small business grants are financial awards that provide funding for your business. 

Unlike loans, which you pay back with interest, or venture capital (V.C.), where investors exchange funding for equity (a percentage of your business), grants offer non-repayable support, which is especially helpful for startups or those seeking expansion, allowing you to focus on growth and innovation.

Grants come from various sources, including federal and state governments, private corporations, and nonprofit organizations.

• Government grants focus on innovation, job creation, or community development.
• Corporate and private grants target specific industries or social causes.
• Nonprofits offer grants to support underrepresented businesses or those in underserved areas.

California state-specific small business grants for 2025

California state-specific grants in 2025 offer vital funding opportunities to help your business grow, innovate, and succeed in the Golden State’s competitive market. 

These grants are available to various small businesses, including minority and women-owned enterprises (MWBEs), startups, and established companies looking to expand.

Below are some California small business grants, eligibility requirements, and the application process.

1. Minority and Women-Owned Business Enterprise (MWBE) Grants

California’s MWBE program supports minority and women-owned businesses to promote economic growth and job creation throughout the state by providing grants, technical assistance, free educational programs, and networking opportunities.

Eligibility requirements:

• You must be a California-based minority or woman-owned business.
• Show plans for business growth and job creation.
• You need an up-to-date MWBE certification with a minimum of 6 months remaining.
• Have a business Federal Tax ID.

Application process:

To apply for a MWBE grant:

• Complete the application form available on the California Department of General Services website.
• Provide documentation that proves your business’s minority or woman-owned status and your growth plans.

The application opens for specific periods, so check the MWBE website for the latest updates.

2. Employment Training Panel (ETP) Grants

ETP grants fund workforce training to improve the competitiveness of small businesses in California.

Eligibility requirements:

• You must be a California-based employer.
• Demonstrate the need for employee training.
• Your business must be within industries that contribute to California’s economy.
• Your employees must work in stable, long-term jobs post-training.

Application process:

To apply for ETP grants:

• Submit a training proposal through the ETP’s online application portal.
• Your proposal should outline the training plan, costs, and expected benefits.

The ETP reviews applications on a rolling basis; visit the ETP Grant Info page for further information.

3. San Francisco Women’s entrepreneurship fund

The San Francisco Women’s Entrepreneurship Fund offers mini-grants of up to $5,000 for women-owned small businesses in San Francisco.

These grants aim to finance projects and improvements that enhance a business’s potential for growth and help in the following areas:

• Business operations improvements: Funding for marketing efforts, financial and accounting enhancements, acquiring new equipment or technology, training programs, and networking opportunities.
• Visual merchandising and marketing: Costs for improving visual presentation, such as window displays, lighting, signage, layout enhancements, design modifications, online marketing initiatives, trade shows, and other customer acquisition strategies.

Eligibility requirements:

• Your business must be a full-time San Francisco woman-owned small business.
• Have an active relationship with a San Francisco-based nonprofit organization.
• Complete a 3-month or 8-hour consultation with your technical assistance provider.
• Have a current San Francisco business lease with a minimum of 18 months remaining.
• Earn a low-to-moderate income.
• Have a maximum net business income of $27,755 or a gross business income of $500,000.

Application process:

The application process is by invitation, and you must work with a San Francisco business technical assistance provider funded by the state.

4. California Small Business Technical Assistance Program

This program assists small businesses in accessing vital services, including technical training and consulting. 

It benefits startups and small businesses seeking expert marketing, finance, and operational improvement guidance.

Eligibility requirements:

The business has to be based in California, with a proven need for technical assistance services.

Application process:

You apply through your local Small Business Development Centers (SBDCs), outline your assistance needs, and provide relevant business information.

California industry-specific and niche small business grants 2025

California will offer a variety of industry-specific and niche grants in 2025 to businesses that address unique market needs or operate within specialized sectors. 

These grants often focus on technology, renewable energy, and businesses serving underrepresented communities.

1. California Arts Council Grants

The CAC grants support nonprofit arts organizations and projects to enhance California’s cultural landscape. They are for artists, cultural institutions, and community-based organizations dedicated to improving access to the arts across diverse communities.

Eligibility requirements:

• You must be a nonprofit arts organization.
• Based in California.
• Focusing on community engagement or access to the arts.

Application process:

Submit your online application detailing your project goals, budget, and the positive impact it will have, along with documentation about your organization and its mission.

For more information, visit the California Arts Council website. 

2. California Energy Commission Grants

The California Energy Commission grants support innovative projects that promote renewable energy and energy efficiency solutions.

Grants are available for existing businesses, startups, and research institutions working on innovative technologies to advance California’s clean energy goals.

Eligibility requirements:

• A California-based business.
• Your projects must focus on energy efficiency or renewable energy technologies.

Application process:

To apply, submit a project proposal through the California Energy Commission’s online portal, including project details, expected outcomes, and budget estimates.

3. California Small Agricultural Business Drought and Flood Relief Grants

The California Small Agricultural Business Drought and Flood Relief program offers grants to small agricultural businesses affected by severe drought or flooding. 

Eligible businesses can receive grants of up to $100,000 to help mitigate financial losses.

Eligibility requirements:

• You need to be operating a small agricultural business based in California.
• Employ 100 or fewer full-time employees.
• Have been conducting business in California before January 2020.
• Your business must be active and operational.

Application process:

Application deadlines are at the beginning of the year, and you can submit your application using California’s drought and flood relief grant portal.

4. California Department of Food and Agriculture (CDFA) Grants

The California Department of Food and Agriculture (CDFA) provides several small business grant programs through its Office of Farm to Fork.
These grants support small businesses focusing on improving food access and sustainability.

Eligibility requirements:

• Your small business must be California-based.
• Be in an urban or a low-food access area.

Application process:

Grants vary throughout the year, and the application requirements depend on the grant. 

For more information, visit the California Department of Food and Agriculture’s Farm to Fork web page.

Federal grants available to California businesses

Federal grants offer crucial funding for California businesses, enabling them to develop innovative solutions, expand operations, and contribute to local economies.

Most federal grants are only available to established businesses in the technology research sectors. 

Getting a federal grant is a lengthy process, but the rewards are high, as they offer far more financial support than local government or private grants. 

1. Small Business Innovation Research (SBIR)

The SBIR program aims to stimulate technological innovation by funding small businesses that engage in research and development & projects. 

The program encourages small businesses to explore their technological potential and provides a pathway to commercialization. It’s available to various industries, including healthcare, defense, and energy.

Eligibility requirements:

• Your business must be U.S.-based.
• Have fewer than 500 employees.

Application process:

You submit your proposal to the relevant federal agency, each with unique application procedures. 

For more information on grants, eligibility requirements, and applications, visit the SBIR website.

2. Small Business Technology Transfer (STTR)

The STTR program focuses on promoting cooperation between small businesses and research institutions.

This initiative awards small businesses that collaborate with universities and nonprofit research institutions to advance technology transfer and innovation.

The STTR grant is ideal for small businesses seeking to leverage academic research and development capabilities while conducting their projects.

Eligibility requirements:

• You must collaborate with a nonprofit research institution.
• Have less than 500 employees.

Application process:

Federal agencies publish funding announcements and application processes on a rolling basis; for more information, visit the STTR website.

3. Small business administration (SBA) grants

The SBA doesn’t give grants; it provides funding programs and access to SBA-backed loan providers to small U.S. businesses that can’t get traditional loans.

Every US state has an SBA office that can help you start and grow your business. 

Eligibility requirements:

• Varies based on the specific program.
• You must show a financial need and have a viable business plan.

Application process:

You submit your application through your local SBA office or partner organization (such as a loan provider).

California State SBA local offices are:

1. Fresno District
2. Los Angeles District
3. Orange County / Inland Empire District
4. Sacramento District
5. San Diego District
6. San Francisco District

4. State Trade Expansion Program (STEP)

The STEP program aims to increase the number of U.S. small businesses exporting goods and services to international markets by helping them export or expand their current export activities to new markets abroad.

The grants fund export training, trade show participation, and marketing strategies tailored to foreign markets.

Eligibility requirements:

• Your small business must be in California.
• Show a commitment to exporting and developing international markets.

Application process:

STEP is an SBA-backed program. To confirm your eligibility, locate your state’s representative using the SBA’s Directory of State Awardees. 

Corporate and private foundation small business grants for 2025

Corporate and private foundation grants play a vital role in supporting small businesses in California by providing funding for innovation, expansion, and community impact. 

These grants come from various corporations and philanthropic organizations that aim to enhance economic growth and support underserved communities.

Small businesses that win these grants must prove they do or will contribute to their local economies by creating employment and fostering local innovation and equal opportunities. 

1. FedEx small business grants contest

The FedEx Small Business Grant Contest provides funding and FedEx services to support small businesses looking to grow.

In 2024, it awarded multiple grants, including nine $20,000 second-prize winners and one $50,000 first-prize.

Application and eligibility process:

• You must be a for-profit U.S. business with fewer than 99 employees.
• You need an active FedEx business shipping account.

To apply, sign up on the FedEx website and provide information about your business and your vision for growth. 

2. Visa Everywhere Initiative

The Visa Everywhere Initiative is a renowned global innovation program that awards startups and small businesses that solve payment-related challenges by providing funding and resources to help grow their businesses.

The winner receives $25,000, second place wins $15,000, and third $10,000.

Application and eligibility process:

• Your business must be a startup or small business focused on innovative solutions.
• Be in the payments and technology sectors.
• Applicants from any country must provide solutions applicable to the regions where Visa operates.You can apply from any country where Visa operates.
• Your solutions should address digital payments, cross-border payments, B2B payments, and FinTech innovations.

You apply through the Visa Everywhere Initiative website, where you’ll find specific competition details and deadlines.

3. Walmart Local Community Grants

Walmart supports nonprofit organizations and small businesses working to improve their communities by awarding its Spark Good Local Grant prize, which ranges from $250 to $5000. 

The grant funds programs that address local needs, from education to health initiatives.

Application and eligibility process:

Walmart has several small business funding programs, each with specific eligibility requirements. 

For the Spark Good Local Grant prize, you must:

• Own a small business or nonprofit organization.
• Your proposed project should benefit your local community by creating opportunities, advancing sustainability, or strengthening community relations.

You submit your application online through the Walmart Community Grant application portal.

California small business grant application process: best practices and tips

Every grant has a unique application process you must follow. However, best practices exist that apply to all of them. 

Tips to guide you through the grant application process:

1. Do your research: Familiarize yourself with the grant programs and their eligibility requirements.
2. Confirm your goals: Ensure your project goals align with the priorities set by the grant provider. 
3. Apply early: Begin your application process well before the deadline, allowing time for research, preparation, and revisions.
4. Follow the grant guidelines: Read and follow all application instructions, including formatting requirements.
5. Create a winning proposal: Outline your project’s objectives, timeline, and budget, emphasizing measurable outcomes and your project’s potential impact.
6. Get your paperwork in order: Gather essential documentation, including business plans, financial statements, and letters of support. 

Conclusion

Grants take time and effort to get; there are many hoops you’ll have to jump through and documents you’ll need to create, like a business plan.

But if you do your due diligence, ensure you’re eligible for a grant, and follow the application procedures, the funding you receive and the work you put into getting it could be time well spent when starting a business in California.