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 succeed.
In Vermont, where small businesses 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 Agency of Commerce and Community Development (ACCD) grants
The Agency of Commerce and Community Development, often called ACCD, manages a wide variety of economic and community development programs in Vermont. The agency is known for supporting initiatives that breathe new life into communities, strengthen businesses, and encourage tourism. One of its best-known programs was the Better Places Grant, which helped towns and cities create vibrant public spaces like markets, plazas, and cultural hubs. Unfortunately the Better Places program is currently out of program funds and not offering grants at this time.
Application process
Applying for an ACCD grant usually involves submitting a project proposal through the agency’s online portal. Applicants are asked to describe their project, outline a budget, and provide information on any matching funds.
Vermont Economic Development Authority (VEDA) grants
The Vermont Economic Development Authority, better known as VEDA, is primarily known for offering financing to businesses, but it sometimes oversees grant-like programs in partnership with other state or federal initiatives. These programs are designed to help businesses that cannot secure enough traditional financing to move forward. Although loans remain at the heart of what VEDA does, the organization occasionally provides grants or hybrid programs that reduce costs for businesses in priority sectors.
Application process
The VEDA grant application process usually begins with business owners exploring opportunities on the VEDA website. To discuss these opportunities, applicants schedule a consultation with VEDA staff member. Businesses are typically asked to provide a project proposal, financial records, and details about how the project will create or retain jobs in Vermont. Applications must also explain why conventional financing is not sufficient. Once an application is submitted, the VEDA board reviews it and makes the final decision.
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. 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. Grants are available to businesses that have three or more wholesale accounts and are working to grow their operations, develop new markets, or strengthen Vermont’s food and forest economy.
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
Applications are submitted through the Vermont Agency of Agriculture, Food and Markets. The program runs annual application cycles.
Vermont Community Foundation Grants
The Vermont Community Foundation offers a range of grant programs supporting local businesses and organizations across Vermont, particularly in areas of community development, historic preservation, arts and culture, and economic vitality. Grant programs vary throughout the year and are open to both nonprofit and for-profit entities depending on the specific program.
Application process
Visit their website to explore currently available grant opportunities, eligibility requirements, and application deadlines. The foundation’s grants portal lists all open programs and allows applicants to apply online.
Preservation Trust of Vermont Grants
The Preservation Trust of Vermont supports the preservation and revitalization of historic buildings and places across the state. Through programs like the Paul Bruhn Historic Revitalization Grant, already listed under industry-specific grants, and other preservation initiatives, the Trust provides funding to businesses and communities working to restore and repurpose Vermont’s architectural heritage.
Application process
Visit their website for current grant programs, eligibility requirements, and application details. The Trust also provides technical assistance and guidance to applicants navigating the preservation process.
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, outdoor recreation, 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 rolling, first-come, first-served basis, there are no competitive rounds or 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.
Vermont Outdoor Recreation Economic Collaborative (VOREC) grants
Outdoor recreation is a cornerstone of Vermont’s culture and economy, and the Vermont Outdoor Recreation Economic Collaborative, known as VOREC, supports projects that strengthen this sector. VOREC has awarded grants for trail improvements, recreation facilities, tourism programs, or events that bring visitors and locals together. By funding outdoor projects, VOREC not only enhances the quality of life for residents but promotes sustainable economic development in towns that rely on recreation and tourism.
Paul Bruhn Historic Revitalization (PBHR) grants
The Paul Bruhn Historic Revitalization grant program, named after a longtime preservation leader, helps communities restore rural historic buildings. Administered by the Preservation Trust of Vermont with support from the National Park Service, this program allows towns to preserve their architectural heritage while putting old buildings to new use. Whether turned into a business, community center, or housing, these revitalized spaces contribute to local vitality and keep Vermont’s rural character alive.
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 this proposal electronically through 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 often team up with 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 in March 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
Sponsored and operated by the SBA, the State Trade Expansion Program, commonly referred to as STEP, helps small businesses expand into international markets. In Vermont, STEP funds can reimburse expenses for trade missions, translation services, foreign market research, and compliance with export regulations. This program is designed to make global expansion more affordable and achievable for local businesses.
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.
The FedEx Small Business Grant Contest (CLOSED)
The FedEx Small Business Grant Contest was one of the best-known corporate programs, offering both funding and national exposure. The contest was discontinued in 2024.
FedEx E-Commerce Learning Lab
FedEx now runs the FedEx E-Commerce Learning Lab in partnership with Accion Opportunity Fund, a four-month e-commerce accelerator where graduates receive a $5,000 grant. The Fall 2026 cohort application period has closed.
Visa Foundation (CLOSED)
Visa previously provided grants focused on women entrepreneurs and minority-owned businesses, but the US-facing Visa grant program is no longer running. Check visafoundation.org for any new programs they may announce.
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.