Tailor Brands logo
Business name centered

Home » How to Start a Small Business » Start a Business in Delaware » Small Business Grants Delaware

Starting and running a small business demands capital, especially during the initial phases or when planning to expand. While many of Delaware’s 98,000 small businesses cover their expenses through operational incomgive me or savings, there are times when additional funding is needed.

Outside funding can assist new startups in establishing themselves, support expanding businesses in scaling their operations, or help any business acquire property, equipment, or inventory. At times, outside funding might be needed simply to continue operations after an emergency or disaster.

When seeking outside funding, businesses have several options available to them. Loans and investors are possible sources, but small business grants are usually a better option.

There are lots of Delaware business grants available. Delaware offers these to bolster its small businesses, which account for more than 99% of all businesses in the state. In addition to these, you’ll find grants underwritten by the federal government, foundations, nonprofit organizations and companies, too.

Here are the top small business grants in Delaware for 2026. Any of these might give your business a cash infusion to grow.

What are small business grants?

Small business grants are “free money” that eligible businesses receive if they have a winning application. The rewards don’t have to be repaid. Funds just need to be used in line with what the grant application said they would be used for.

The purpose of grants is to support the success and growth of small businesses. Whether it’s starting a new venture, expanding operations, purchasing property or equipment, making environmentally friendly improvements, or serving a particular community segment, grants can be instrumental in achieving these goals.

Compared to other funding options, grants have multiple benefits that generally make them the better option if one is available:

  • Commercial Loans: Loans require repayment of both the principal and interest, but grants don’t need to be repaid. There’s no interest, and the principal is the business’s money.
  • Business Credit Cards: Credit cards often carry high interest rates, potentially hurting cash flow if balances aren’t paid in full each month. Again, grants don’t require repayment.
  • Venture Capital: Securing venture capital usually involves giving up a portion of your business ownership to external investors. Grants allow you to retain full ownership.
  • Personal Capital: Not all entrepreneurs have personal savings to invest, and using personal funds can increase financial risk due to a lack of diversification. Grants offer external funding without tapping into your personal finances.

You’ll find that there are many Delaware business grants, federal business grants, and other grant opportunities that your business might qualify for. Any could be useful.

Delaware-specific grants for 2026

1. EDGE Grant Competition

The EDGE Grant Competition has been significantly reimagined as EDGE 2.0, with more than double the previous funding now available: $1.15 million per round. The old structure of flat awards is gone. The program now features two tracks with a dynamic pitch competition format: the Entrepreneur track, where up to 10 finalists compete for a share of a $400,000 pool, and the STEM track, where up to 8 finalists compete for a share of a $750,000 pool. There are no set award amounts, grants are scaled based on each business’s pitch, stage, and needs.

To be eligible, your business must be majority located (51% or more) in Delaware, have been in operation for less than seven years, have 15 or fewer full-time employees, and have less than $700,000 in assets. The program runs two rounds per year, with application periods opening each February and August. Finalists participate in a live pitch competition, and all finalists, whether or not they win funding, receive post-pitch in-kind services including consulting, bookkeeping support, and business analyst and marketing connections.

Since its launch, the EDGE program has distributed more than $9.1 million to 127 small businesses across Delaware. Applications and more information are available at de.gov/edge.

Application process: best practices and tips

  • Apply early in the application period, as rounds close when all slots are filled rather than on a fixed date.
  • Work with your county’s Regional Business Manager before submitting, they can provide guidance on strengthening your application.
  • Businesses located in state-designated Downtown Development Districts or Opportunity Zones receive a slight advantage.
  • You can apply before your business is officially incorporated, though your application will be treated as a sole proprietor submission until that changes.

2. Delaware Strategic Fund

The Delaware Strategic Fund supports the creation of jobs within the state. Funds might be distributed as a loan or a grant, with the latter option being preferable.

The grant is available for projects fully located within Delaware, which means that the job creation must be within the state but the business doesn’t necessarily have to be primarily located here (it does help to be).

Because the goal of the program is job creation, it’s essential to demonstrate how a project will create sustainable jobs. There’s often a requirement to maintain a minimum number of new jobs for a certain period — and you might need to repay a grant should your business fail in this.

Applications are handled by each county’s Regional Business Manager, who is the best contact for more information. The grant is only available to corporations (not sole proprietors).

Application process: best practices and tips

  • Emphasize how your project will create jobs, and specifically how the grant will allow your business to create more jobs.
  • Be sure to show that your business is highly likely to sustain these jobs and succeed long term.

3. Delaware Workforce Training Grant (PAUSED)

The Delaware Workforce Training Grant is available to businesses that need help training employees. It might be helpful if your business is implementing an innovative program, acquiring new specialized machinery, or making tech upgrades.

Preference is given to training programs that will create jobs, but it’s not absolutely required that your program create jobs. Any training that’ll provide individuals with valuable skills might be eligible.

The application gets submitted to the Delaware Division of Small Business. Applications are accepted on a rolling basis, with decisions issued no later than 45 days after applying. The grant is available to everyone from sole proprietors to Fortune 500 companies.

Applications for the Delaware Workforce Training Grant are currently paused while the Division of Small Business reviews alignment with other state programs. Check the Division of Small Business website at business.delaware.gov for updates on when applications will reopen.

Industry-specific and niche grants

Along with the more general Delaware business grants, there are also various industry-specific and niche grants available to businesses in the state.

1. Graduated Lab Space Incentive Program

The Delaware Graduated Lab Space Incentive Program helps businesses build out laboratories for production (as opposed to research). Businesses within and outside of the state are welcome to apply, if they want to create or expand a lab somewhere in the state.

The grant will pay up to ⅓ of the fit-out costs of constructing a new lab space, up to $70/sq. ft. for 50,000 sq. ft. The maximum award amount is $3.5 million. Auxiliary spaces, such as offices, can’t be included in this space.

The goal is to both ensure Delaware is competitive within advancing industries, and to create jobs. Preference is given to wet-lab oriented industries, such as advanced materials, chemistry and biotechnology. It’s essential that the lab will provide good and sustainable jobs — your business might also apply for a job-related grant.

Applications are submitted to the Delaware Division of Small Business on a rolling basis. It’s best to work with a Regional Business Manager and the local municipality, though. Some municipalities might offer their own incentives for creating a lab within their boundaries.

2. Delaware Technical Innovation Program

The Delaware Technical Innovation Program (DTIP) provides state funds for businesses that are developing new innovations and inventions. Specifically, businesses must be between Phase I and Phase II of the SBIR or STTR federal grant programs (see below).

DTIP is for the transition period between Phase I and Phase II, and can’t be used during either phase when a business has access to SBIR or STTR funds. The grant might help with personnel salaries, research costs, patent costs, or business planning costs during this temporary transition phase.

Applications are submitted to the Delaware Division of Small Business on a rolling basis. It’s best to work with a Regional Business Manager when applying. Businesses can get one grant for every Phase I SBIR/STTR grant they receive (the maximum for each is 5 grants in 10 years).

3. Brownfield Assistance Program

The Brownfield Assistance Program assists with rehabilitating environmentally stressed properties throughout the state. The program is available to businesses developing sites for their own operations, as well as businesses and individuals who flip these properties (and homeowners too).

To qualify, a property must be designated as an environmentally stressed brownfield property. There’s a state-run marketplace of existing brownfields that may be available, or you can apply to have a property designated. The same application is used both for designation and a potential grant. It gets submitted to the Division of Waste and Hazardous Substances.

This program can potentially be combined with the Graduated Lab Space Incentive Program, or you may apply for a job-related grant after rehabbing a property. The construction work itself generally won’t qualify for a job-related grant, as any construction jobs created will be temporary.

Federal grants for Delaware businesses

Businesses that meet specific qualifications can access federal grants available across the United States, including those operating in Delaware. If your business meets the eligibility criteria, these grants can be quite substantial.

1. Small Business Innovation Research Program

The Small Business Innovation Research (SBIR) Program offers large grants for the commercialization of innovations and inventions. There are three phases: Phase I for technical exploration, Phase II for prototyping, and Phase III for bringing to a commercial market. Grant amounts range from the five figures, to well into the seven or eight figures for some innovations.

Application and eligibility requirements

SBIR grants are issued by various government agencies. Check with the agency that oversees your industry, to learn about SBIR grant opportunities and application requirements.

2. Small Business Technology Transfer Program

The Small Business Technology Transfer (STTR) Program is similar to the SBIR Program, and businesses might consider applying for either. The biggest difference between them is collaboration with other institutions. The STTR requires collaboration with a non-profit research institution (e.g. a university), while the SBIR only encourages doing so.

Application and eligibility requirements

The STTR also has Phase I, Phase II and Phase II grants, which are awarded by various government agencies. Check with the agency that oversees your industry, to learn about STTR grant opportunities and application requirements. The research institution you work with will likely be familiar with STTR grants, too.

Note: The SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized in March 2026 and are now active through September 30, 2031.

3. Small Business Administration Grants

The U.S. Small Business Administration (SBA) helps small businesses with multiple types of funding. While SBA loans are perhaps the most common funding that the administration offers, there are several grants available too.

Application and eligibility requirements

Eligibility requirements vary depending on the grant, and each has its own application process too. The Delaware SBA Office is the best point of contact for businesses that have specific questions. The SBA website has general information about grant opportunities and applications.

Corporate and private foundation small business grants for 2026

A good number of foundations and large corporations have their own grants for small businesses. Grant programs vary widely in scope, amount and competitiveness. You’ll find ones focused on diversity, economic development, technological innovation, sustainability, and more. Here are some of the top corporate and private foundation grants for 2026.

1. FedEx Small Business Grant Contest (CLOSED)

FedEx had an annual small business grant contest for businesses with fewer than 100 employees. 2024 awards included one $50,000 grant and nine $20,000 grants, which were given to businesses across a range of industries.

The FedEx Small Business Grant Contest ran from 2012 through 2024 and is no longer accepting applications. We recommend checking the FedEx Small Business resources page for any future programs or new grant opportunities they may announce.

2. Visa Everywhere Initiative (CLOSED)

The Visa Everywhere Initiative was a global competition offering funding and networking opportunities to startups in fintech, specifically those who are addressing commerce and payment challenges.

The US-based Visa Everywhere Initiative competition is no longer running. The only active Visa Everywhere program in 2026 is limited to female entrepreneurs with refugee backgrounds based in Europe and is not open to US applicants.

3. Freed Fellowship Grant

The Freed Fellowship awards a $500 micro-grant to on U.S.-based small or micro business each month. Recipients are eligible for a year-end $2,500 grant.

Application and eligibility requirements

Apply through the Freed Fellowship Grant page. The cutoff for the current month’s application period is the last day of the month. You can always apply next month, too. Applying requires submitting a short online application and paying a $19 application fee.

Conclusion

There are many Delaware business grants available, including the ones listed and many others. See which ones your business qualifies for, and apply. Winning any of these grants could provide a significant cash infusion for your business.

Delawarerelated articles