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 income 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 2025. Any of these might give your business a cash infusion to grow.
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:
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.
The Encouraging Development, Growth and Expansion (EDGE) Grant gives micro businesses in Delaware a foot up.
The grant program is available to both STEM and non-STEM businesses with 10 or fewer employees. Businesses also can’t have been in operation for more than 7 years. Most winners are fully located in Delaware, but being majority located in the state also meets qualification criteria.
Grants are awarded semiannually, with application periods opening each February and August. Each time, there are five STEM awards of up to $100,000 and 5 non-STEM awards of up to $50,000 available. Awards are made on a 3:1 match of business funds.
The purpose of the EDGE grant program is to help micro businesses grow, and thereby hopefully boost employment. On the application, it’s most important to show your business’s need, how the grant will provide a competitive advantage, and that your business will have a high likelihood of quick and long-term success.
Applications open each February and August, and information about the next application period is usually available about a month ahead of time. Applications are handled through each county’s Regional Business Manager, who is the best contact for more information. They’re judged by the Delaware Division of Small Business.
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).
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.
Along with the more general Delaware business grants, there are also various industry-specific and niche grants available to businesses in the state.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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 2025.
FedEx has 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.
You must be U.S.-based and use FedEx shipping to qualify. The best way to learn about the 2025 FedEx Small Business Grant Contest is by signing up for proportional emails.
The Visa Everywhere Initiative is a global competition offering funding and networking opportunities to startups in fintech, specifically those who are addressing commerce and payment challenges.
Only technology businesses focused on payment solutions and commerce are eligible. If this describes your business, find the 2025 application (once available) and more details on the Visa Everywhere Initiative website.
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.
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.
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.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
Products
Resources
@2024 Copyright Tailor Brands