In 2025, where your business is located can significantly influence your access to funding, grants, tax incentives, and small business support programs. Some U.S. states are more generous, proactive, and supportive than others. Below is a guide to the best states for small business funding opportunities in 2025, what makes them stand out, and tips for taking advantage.
Here are key factors that set states apart:
Robust state grant, loan, and incentive programs
Strong statewide economic development agencies
Active use of federal programs (SSBCI, state small business credit)
Support for underserved entrepreneurs (minority, rural, women)
Low regulatory burden, favorable tax policies
Accessible technical assistance infrastructure (SBDCs, incubators)
With that in mind, here are some of the states that are earning top marks in 2025.
Maryland
leads the nation in tax incentive and grant programs for small businesses. According to a 2025 study, it ranked highest with over 90 incentive programs including tax credits and grants supporting small business growth.
Georgia ranks high on business incentive charts (Area Development 2025 list), thanks to aggressive economic development programs, effectively structured credit and grant support, and business-friendly environments.
Texas benefits from strong economic momentum, low taxes (no state income tax), and active support for business expansion and innovation. Many businesses migrating to Texas tap into state incentive structures.
North Carolina appears in multiple “best states for business” rankings due to favorable tax codes, growing innovation sectors, and strong state support infrastructure.
These two Western states regularly appear in top lists for startup funding and business friendliness, especially because of their tech ecosystems, state programs, and access to venture and public capital.
These states often rank in the top 10 for business friendliness (Shopify’s “best states to start a business”) because of low regulation, favorable tax environments, and emerging support systems.
Wisconsin recently launched a $100 million Wisconsin Investment Fund, a public-private fund designed to help startups and growth-stage businesses by matching federal and private capital. This is a real example of how states are stepping up funding support in 2025.
Monitor your state’s economic development agency
Agencies often post grant and loan solicitations.
Use the State Business Incentives Database
This resource tracks incentive programs across all 50 states. stateincentives.org
Engage with local SBDC, SCORE, or incubators
They often help identify state and municipal funding opportunities you may not hear about otherwise.
Align your projects with state priorities
States often favor funding in sectors like clean energy, advanced manufacturing, or underserved zones (rural, low income).
Leverage federal-to-state programs
Many states distribute funds from programs like SSBCI (Small Business Credit Initiative).
Be ready for the application window
State grants and matching funds often have fixed deadlines and competitive selections.
In 2025, states like Maryland, Georgia, Texas, North Carolina, Utah, Colorado, Nevada, and South Dakota are among the leaders in providing small business funding opportunities. But the best state for you depends on your industry, location, and whether you can tap into local networks.
To succeed:
Research your state’s incentive programs
Engage with economic agencies
Align your business plans with funded sectors
Stay ready for application windows