Last verified: October 14, 2026.
Is there free government money to start a business? USA.gov says no: "There are no federal grants for starting a business." The SBA says the same. Real startup money comes from research grants, pitch contests, local programs and a few private microgrants. Here are three open now that accept new or idea-stage founders.
Grants are only one option. See every way to fund your business.
For the full picture, see the small business grants hub and how to apply for a small business grant.
Why federal startup money is narrow
The SBA says it does not provide grants for starting and expanding a business. The big exception is research:
- SBIR and STTR fund small businesses doing scientific research and development with commercial potential. Start at SBIR.gov.
- Open federal notices are listed on Grants.gov.
If you sell a normal product or service, a federal grant will rarely fit. That is not a failure. It is how the programs are written.
If a stranger offers federal startup cash, it is a sales pitch.
Programs open now, verified today
Duquesne New Venture Challenge
- Amount: a share of more than $125,000 in cash and prizes. Finalist prizes are $30,000, $15,000, $10,000 and $5,000 each for fourth and fifth.
- Who qualifies: individuals or teams of up to five anywhere in the continental U.S. Any registered entity tied to the entry must be four years old or less by the Stage I deadline.
- Deadline: Stage I materials are due Sunday, November 15, 2026.
- Official page: https://www.duq.edu/academics/colleges-and-schools/business/events-and-competitions/new-venture-challenge.php
Business Freedom Grant
- Amount: $1,000. Free to apply, per the page.
- Who qualifies: anyone with a clear business idea and an actionable plan, or an existing small business, in any industry.
- Deadline: second deadline Sunday, November 15, 2026; final deadline Thursday, December 31, 2026.
- Official page: https://microbizinsocal.org/grants/business-freedom-grant/
Skip $10,000 Growth Grant
- Amount: one $10,000 grant.
- Who qualifies: U.S.-based entrepreneurs and small business owners age 18 or older.
- Deadline: apply by Thursday, December 17, 2026 at 11:59 p.m. Eastern.
- Official page: https://helloskip.com/funding-details/10k-grants-fall-2026
Tips: free help for new founders
The SBA local assistance locator finds SBDCs and SCORE mentors who help with plans and pitches. If you need a small loan instead, read about SBA microloans and our guide on how to get an SBA microloan.
How to enter a startup contest
- Read the rules for entity age, location and team size.
- Write a one-page summary: problem, customer, price, first sales.
- Send it early. Late entries are not considered.
- Track each stage date. Contests often have more than one.
Here's a hypothetical.
Here's a hypothetical. Theo is building Fieldnote Labs (a made-up business), a soil sensor for home gardeners, with one co-founder. No company is registered yet. He sends a Stage I entry to the Duquesne challenge and applies for the Business Freedom Grant. He also asks an SBDC advisor whether his sensor work could fit SBIR.
Scam red flags
- Grants.gov says applying for a federal grant is completely free.
- Nobody legitimate asks for a fee to release a grant you won.
- The SBA only emails from addresses ending in @SBA.gov.
- Report it at reportfraud.FTC.gov. See Grants.gov on grant fraud and our grant fee scams guide.
Next steps if no grant fits
See small business grants open now, then compare every way to fund your business.
Sources
- USA.gov, Start a business: https://www.usa.gov/start-business
- SBA, Grants: https://www.sba.gov/loans/additional-funding-opportunities/grants/
- SBIR.gov: https://www.sbir.gov/
- SBA, Microloans: https://www.sba.gov/loans/microloans/
- SBA, Local assistance: https://www.sba.gov/counseling/local-assistance/
- Grants.gov, Grant fraud: https://www.grants.gov/learn-grants/grant-fraud
- FTC: https://reportfraud.ftc.gov/
- Program pages listed above, each checked October 14, 2026.