Veterans who have served the United States have access to a range of small business grants in 2026 that can provide funding without the obligation to repay. Unlike loans, grants are awarded to qualifying businesses based on eligibility criteria tied to military service, business stage, industry, and geographic location. Understanding which programs exist, how they work, and how to apply can give veteran entrepreneurs a significant advantage when launching or growing a business.
This guide covers the top federal and state small business grants available to veterans in 2026, including program requirements, award amounts, and application tips to help you secure the funding you deserve.
In This Article
Small business grants for veterans are monetary awards provided by federal agencies, state governments, nonprofit organizations, and private companies to support veteran-owned businesses. These funds do not need to be repaid, making them one of the most attractive forms of business financing available to those who have served.
Grants serve a variety of purposes including business startup costs, equipment purchases, hiring and training, research and development, and market expansion. Some programs are designed exclusively for veteran-owned businesses, while others prioritize veterans as part of a broader eligibility pool for underserved entrepreneurs.
In 2026, the availability of veteran business grants has expanded at both the federal and state levels, with programs administered through the Small Business Administration (SBA), Department of Veterans Affairs (VA), Department of Defense (DoD), and numerous state economic development agencies. Veterans who take the time to research and apply for these programs can access meaningful capital without taking on debt.
Key Fact: According to the U.S. Small Business Administration, veteran-owned businesses employ approximately 5.5 million people and generate over $1.1 trillion in annual revenue. Grant programs exist specifically to support this vital economic segment.
The federal government offers several programs that provide grants and funding specifically to veteran-owned businesses. Here are the most significant programs to know in 2026.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are among the largest sources of federal small business grants in the country. While not exclusive to veterans, the SBA gives preference to veteran-owned businesses in its outreach and some participating agencies have dedicated veteran pools. Eligible businesses receive Phase I awards up to $275,000 and Phase II awards up to $1,850,000 to fund technology research and development. Businesses must be majority-owned by U.S. citizens and must perform the funded research within the United States.
Boots to Business is a free entrepreneurship education program offered through the SBA's Veterans Business Outreach Centers (VBOCs). While the program itself is education-focused rather than a direct grant, graduates gain access to additional funding resources, mentorship, and connections to federal grant opportunities. It is available on military installations worldwide and serves transitioning service members and their spouses.
Federal contract set-aside programs administered by the VA and other agencies reserve a percentage of federal contracting opportunities for Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). While technically contracting rather than grants, these programs provide direct revenue to qualifying veteran businesses. Registration through the Veteran Small Business Certification (VetCert) program administered by the SBA is required.
The DoD SBIR program provides research grants across all branches of the military and is one of the most accessible federal grant opportunities for veteran-owned technology and defense-adjacent businesses. Awards range from $100,000 to $1.85 million depending on phase. Veteran-owned small businesses receive priority in evaluation for certain agency calls.
Administered by the USDA, the Rural Energy for America Program (REAP) provides grants to rural small businesses for renewable energy systems and energy efficiency improvements. Veteran-owned businesses in rural areas are eligible applicants. Grants cover up to 50 percent of total project costs, with awards ranging from $2,500 to $1 million for energy efficiency and up to $1 million for renewable energy systems.
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Apply Now ->Beyond federal programs, nearly every state in the United States offers at least one grant or funding incentive specifically for veteran-owned businesses. The availability and award amounts vary significantly by state, but veterans willing to research their home state's economic development programs can often find meaningful funding opportunities.
The SBA funds Veterans Business Outreach Centers (VBOCs) in all 50 states. These centers provide business plan development assistance, financial counseling, and direct connections to state-level funding sources. Many VBOCs administer micro-grant programs or facilitate access to state revolving loan funds that include veteran-specific set-asides. Finding and connecting with your state's VBOC is one of the first steps any veteran entrepreneur should take.
Many state economic development agencies have created dedicated veteran entrepreneur programs. Examples include:
Community Development Block Grant (CDBG) funds flow from the U.S. Department of Housing and Urban Development (HUD) to states and localities, which can direct portions of those funds to small business development including veteran-owned businesses. Contact your city or county economic development office to determine whether CDBG funds are available in your area for veteran entrepreneurs.
Some of the most accessible and fastest-moving grant opportunities for veteran entrepreneurs come from private companies and nonprofit organizations rather than government agencies. These programs often have less bureaucratic overhead and faster award timelines.
The StreetShares Foundation runs the Veteran Small Business Award competition, which provides grants of up to $15,000 to veteran entrepreneurs. The competition is open to veterans, active-duty military, National Guard, Reservists, and military spouses. Applications are accepted online and winners are selected based on business concept, impact, and need.
Warrior Rising is a nonprofit that provides veteran entrepreneurs with business training, mentorship, and grant funding. The organization has distributed hundreds of thousands of dollars in grants and business support to veteran-owned businesses across the country.
Bunker Labs is a nonprofit organization dedicated to helping veteran entrepreneurs launch and grow businesses. Through its programs including the Veterans in Residence accelerator and the UNTIL platform, Bunker Labs connects veterans to investors, grant opportunities, and business resources. The organization has supported thousands of veteran entrepreneurs and has a national network of chapters.
V-WISE is an SBA-sponsored program delivered through Syracuse University's Institute for Veterans and Military Families (IVMF). The program provides women veterans with training, mentorship, and access to a national network of investors and grant sources. Completion of the V-WISE program connects participants to funding opportunities not available through general application channels.
Several major U.S. corporations run grant programs specifically targeting veteran entrepreneurs:
Understanding the grant process helps veterans avoid common mistakes and submit stronger applications. Most grant programs share a common structure, though the specifics vary by program.
Most grants require a formal application that includes a business plan or summary, financial statements, proof of military service (DD-214 or equivalent), and a description of how funds will be used. Competitive grants involve a review process where panelists evaluate applications against a rubric. Less competitive programs may operate on a first-come, first-served basis for eligible applicants.
Once selected, grant recipients typically sign an award agreement specifying how funds must be used and what reporting is required. Grants are usually disbursed as a lump sum, though some programs provide milestone-based disbursements tied to business progress or expense receipts. Funds disbursed as grants are generally considered income for purposes of financial reporting - consult a qualified accountant for guidance specific to your situation.
Federal and state grants almost always require periodic reporting on how funds are being used. Recipients must maintain documentation of all grant-funded expenses and may be subject to audits. Private grants typically have lighter reporting requirements. Failure to comply with grant terms can result in clawback of awarded funds.
Eligibility requirements vary by program, but several criteria appear consistently across veteran business grant programs.
Most programs require proof of honorable discharge or current active duty status. The DD-214 (Certificate of Release or Discharge from Active Duty) is the primary document used to verify veteran status. Some programs also accept National Guard or Reserve service with a minimum time-in-service requirement.
Federal programs typically require that veterans own at least 51 percent of the business and control day-to-day operations. The SBA VetCert program has specific definitions for Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) that must be met for federal program participation.
Most veteran grant programs target small businesses as defined by SBA size standards. These standards vary by industry and are based on either annual revenue or number of employees. Businesses that have grown beyond small business size thresholds may be ineligible for some programs but may qualify for others that serve mid-size veteran businesses.
Some grants target startups (businesses less than two years old), while others require established businesses with existing revenue. Reading program eligibility carefully before investing time in an application will help veterans focus on the most relevant opportunities.
Pro Tip: Register your business with the SBA's VetCert program and the System for Award Management (SAM.gov) early. Both registrations open doors to federal grant and contracting opportunities and can take several weeks to process.
By the Numbers
Veteran Entrepreneurs and Grant Funding - 2026
2.4M
Veteran-owned businesses in the U.S.
$1.85M
Maximum SBIR Phase II award amount
50%
USDA REAP grant coverage for eligible rural energy projects
5.5M
Americans employed by veteran-owned small businesses
Grants and loans serve different purposes, and many veteran entrepreneurs benefit from pursuing both simultaneously. Understanding the tradeoffs helps you allocate your time and effort most efficiently.
| Feature | Business Grants | Business Loans |
|---|---|---|
| Repayment Required | No | Yes |
| Speed of Funding | Weeks to months | Days to weeks |
| Competition | High - limited awards | Qualification-based |
| Amount Available | $5,000 - $1.85M | $5,000 - $5M+ |
| Use Restrictions | Often restricted | Usually flexible |
| Reporting Requirements | Required for most | Minimal |
| Best For | Specific projects, R&D, startup costs | Working capital, growth, equipment |
Most successful veteran entrepreneurs use grants to fund specific projects or startup milestones while using business loans for working capital, equipment, and ongoing operational needs. For veterans who need immediate capital while awaiting grant decisions, unsecured working capital loans and business lines of credit from Crestmont Capital can bridge the gap without waiting months for a grant decision.
While grants are an excellent form of funding, they are competitive and slow. Most veteran-owned businesses also need access to traditional financing to fund growth, purchase equipment, manage cash flow, and seize time-sensitive opportunities. Crestmont Capital specializes in small business financing and understands the unique needs of veteran entrepreneurs.
Crestmont Capital offers veteran-owned businesses access to a comprehensive suite of financing options. Our small business financing programs include working capital loans, lines of credit, equipment financing, and SBA loan programs. We work with businesses across a wide range of credit profiles and industries, with a focus on fast approvals and flexible terms that align with the operational realities of small businesses.
Veterans who have gone through the transition from military to civilian business ownership bring discipline, leadership, and problem-solving skills that make them exceptional entrepreneurs. Our team understands this and provides personalized support throughout the financing process. Whether you need a SBA loan for a major expansion, equipment financing for your operations, or a working capital line to manage seasonal fluctuations, Crestmont Capital has the right solution for your stage of business.
You can also explore our extensive network of published resources, including guidance on how to qualify for different loan types through our business financing blog.
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Get Funded ->James, a 12-year Army logistics veteran, launched a last-mile delivery company in Texas after leaving service. He applied for the StreetShares Foundation grant and received $7,500 to cover initial licensing and insurance costs. While awaiting the grant decision, he secured a $50,000 working capital loan from Crestmont Capital to cover vehicle deposits and fuel costs for his first client contract. The combination of grant funding and loan capital allowed him to launch without depleting his personal savings.
Maria, a Navy cybersecurity specialist, launched a defense technology startup after six years of service. She qualified for the SBA SBIR Phase I program and received a $275,000 research grant to develop a proprietary threat detection solution. Simultaneously, she used a business line of credit from Crestmont Capital to cover operating expenses between SBIR payment milestones, ensuring she could pay her team without cash flow interruptions.
David, a Marine Corps veteran, operated a food truck in California before transitioning to a brick-and-mortar restaurant. He applied for California's veteran small business support program and received micro-grant assistance for his buildout. He also secured equipment financing from Crestmont Capital for his commercial kitchen equipment, which allowed him to maintain the grant funds for working capital during his soft launch period.
Sandra, an Air Force intelligence officer, launched a consulting firm serving government contractors after 15 years of service. She registered with the SBA VetCert program and qualified for federal SDVOSB set-aside contracts. Crestmont Capital helped her establish a business line of credit to bridge the 60-90 day gap between contract award and first payment from federal clients.
Kevin, a Coast Guard veteran, founded a commercial construction company in Florida focused on federal government facility maintenance contracts. He applied for CDBG funds through his county economic development office and received a matching grant for employee training. He used Crestmont Capital's construction business loans to fund equipment purchases needed to bid on larger contracts, successfully scaling from $200,000 to over $1.5 million in annual revenue within three years.
Rachel, an Army Reserve physical trainer, launched a boutique fitness studio in Ohio. She applied for the Bunker Labs program and received mentorship and a $5,000 startup grant. She supplemented this with equipment financing from Crestmont Capital for commercial-grade fitness equipment. Her military background and discipline helped her build a loyal client base and achieve profitability in her first year of operation.
Yes. Multiple federal programs including SBA SBIR/STTR, USDA REAP, and state economic development agencies offer grants specifically to veteran-owned small businesses. Private programs such as the StreetShares Foundation Award and Warrior Rising also provide dedicated grants for veteran entrepreneurs.
Most programs require your DD-214 or equivalent proof of honorable military service, business plan or concept summary, proof of business ownership (articles of incorporation, business license), financial statements if applicable, and a description of how grant funds will be used. Federal programs often also require SAM.gov registration and may require SBA VetCert certification.
Yes, and this is actually a smart strategy. Grants and loans serve different purposes. While you may wait weeks or months for a grant decision, a business loan can provide immediate capital for working capital, equipment, or growth. Many veteran entrepreneurs maintain both simultaneously, using grants for specific project funding and loans for operational needs.
The SBA Veteran Small Business Certification (VetCert) program certifies veteran-owned and service-disabled veteran-owned small businesses for federal contracting preferences. Certification enables access to set-aside contracts reserved for VOSBs and SDVOSBs. The application is free and is submitted through the SBA's certification portal. Processing typically takes 30-90 days.
No - grants do not require repayment as long as you comply with the terms of the award agreement. This is what distinguishes grants from loans. However, misuse of grant funds or failure to meet program requirements can result in clawbacks, where the awarding agency requires repayment of some or all funds.
Requirements vary by program. Some grants require the veteran to be actively involved in day-to-day operations, while others only require ownership of at least 51 percent of the business. Federal programs under VetCert and SDVOSB certification do require the veteran owner to control management and daily operations. Read each program's specific eligibility criteria before applying.
The Small Business Innovation Research (SBIR) program provides federal grants to small businesses for technology research and development. Phase I awards go up to $275,000 and Phase II awards go up to $1,850,000. While not exclusive to veterans, the SBA actively recruits veteran-owned businesses to participate and some agencies give priority consideration to veteran applicants. The program is administered through 11 federal agencies including the DoD, NIH, NASA, and NSF.
Yes. All 50 states have at least some form of veteran business support program, though the depth and funding available varies significantly. Federal programs are available nationwide. Every state also has a Veterans Business Outreach Center (VBOC) funded by the SBA that can help veterans navigate both state and federal grant programs.
Competition varies widely. The SBA SBIR program is highly competitive with acceptance rates that can be as low as 10-15 percent in some agency calls. The StreetShares Foundation Award receives thousands of applications for a small number of awards. However, state-level programs and CDBG-funded local programs can be less competitive, particularly in areas with lower veteran business density. Applying to multiple programs simultaneously maximizes your chances of success.
Yes. Many veteran grant programs specifically target startups. The StreetShares Foundation award, Bunker Labs, Warrior Rising, and the SBA Boots to Business ecosystem are all oriented toward early-stage veteran businesses. The SBIR Phase I is also designed for early-stage research rather than established companies. Startups should focus on these programs rather than those requiring established revenue history.
The best starting points are Grants.gov (federal grants), your state's economic development agency website, your local VBOC, and the SBA's website (sba.gov). For private grants, the Bunker Labs and Warrior Rising websites are good starting points.
The USDA Rural Energy for America Program (REAP) provides grants and loan guarantees to agricultural producers and rural small businesses including veteran-owned businesses in eligible rural areas. Grants cover up to 50 percent of project costs for renewable energy systems and energy efficiency upgrades, with awards ranging from $2,500 to $1 million depending on project type. Applications are submitted through USDA Rural Development state offices.
Yes, many programs extend eligibility to military spouses. The SBA Boots to Business program, V-WISE, and several private grant competitions explicitly include military spouses as eligible applicants. The StreetShares Foundation Award also includes military spouses. However, federal contracting programs under VetCert are limited to veterans themselves rather than spouses.
Timelines vary significantly. Private grants from organizations like StreetShares or Warrior Rising can disburse within 30-60 days of award. Federal grants like SBIR can take 6-12 months from application through award and disbursement. State programs vary from a few weeks to several months. Because of these long timelines, veteran entrepreneurs should maintain access to traditional business financing to avoid operational gaps while awaiting grant decisions.
Grant agreements specify how funds must be used. If grant funds are spent on unapproved expenses or the business fails to meet program requirements, the awarding agency may require repayment of some or all of the grant. Federal grants in particular are subject to strict audit requirements. Always maintain detailed records of grant expenditures and contact the program administrator if circumstances change that might affect your ability to comply with grant terms.
Small business grants for veterans represent a meaningful funding opportunity that goes far beyond what most veteran entrepreneurs realize is available. From major federal programs like SBA SBIR awards worth up to $1.85 million, to state and local programs, to private grants from organizations dedicated to supporting those who served, the 2026 landscape for small business grants veterans can access is broader than ever.
The key to success is combining a strategic grant application approach with access to traditional business financing that can support your business right now, without waiting for lengthy grant processes. Crestmont Capital is here to help veteran-owned businesses access the small business financing they need to grow, alongside any grant funding you may pursue.
Veterans deserve every advantage available as they transition their skills and discipline into entrepreneurship. Explore every grant program available to you, apply strategically, and reach out to Crestmont Capital when you need capital fast.
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Apply Now ->Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.