Money is the lifeblood of a small business, in Indiana and in every other state. The ability to secure financial support is perhaps the most important factor in whether a small business succeeds. Some of the most common sources of funding are the entrepreneur’s own money, bank loans, and venture capital. However, using your own money can create a perilous personal situation, loans have to be repaid with interest, and venture capital compromises your full ownership of your own business.
That’s why grants are an important funding option for Indiana small business owners. Unlike loans, they don’t have to be repaid. In many cases, you can use the money in whatever way best serves your company’s needs. As you look to your financing requirements in 2025, don’t overlook the advantages that grants afford you. Many entrepreneurs are discovering that an Indiana or federal grant can bridge the gap between their business’s available financing and the money they need to grow at an optimum rate for long-term profitability.
There are literally thousands of grant funding opportunities available. However, no one is likely to knock on your door and present you with one. You have to learn about them, and you have to apply for them. Some are nationwide and offered to a wide variety of businesses, while others are available only for applicants in specific communities or in specific lines of business. Here is a guide to discovering what grant opportunities Indiana might have for you, along with some tips on how to give yourself the best chance of securing them.
A small business grant is a momentary award. It’s essentially a gift. Unlike a loan, it doesn’t need to be paid back. Unlike a venture capital investment, it doesn’t give a third party any ownership in your company. A venture capitalist shares in the profitability of your company, but with a grant, you retain complete ownership, and any profits the grant money leads to are yours to keep.
Many grants are given out by federal, state, and local government. They can also be offered by corporations, nonprofits, and various private programs. They’re often used to support business in certain regions or certain industries. They may be used to encourage underrepresented businesses such as those owned by minorities and/or women.
Sometimes grants are given as an incentive for a company to invest its efforts in a specific activity, such as addressing environmental concerns or promoting social justice. In these cases, there may be requirements regarding how the money is used. Other grants come without strings, and the entrepreneur may use them any way they see fit.
Grants are particularly useful to small businesses in their startup phase, when they may be stretched financially and at risk of incurring so much debt that the business will be hobbled. They’re also a boon when a business is looking to expand, either by growing its current offerings or by branching out into additional fields of endeavor.
Don’t forget this key fact: although a grant does not have to be repaid to the organization that issued it, it is taxable income to the business and must be reported as such.
Of the thousands of small business grants 2025 offers across the U.S., there are some funding opportunities Indiana reserves for state residents. There are far more than can be enumerated in an article like this. To cut through the vast array of these awards, there are consolidating sites such as US Grants. To use one of these facilities, you normally have to create an account. You then can enter parameters to narrow down the sort of grants you are eligible for.
Here is a sampling of what some research might turn up as small business grants in Indiana.
These grants come from a fund created to help struggling small businesses. Businesses can be reimbursed for many of their expenses, including payroll, insurance, rent or mortgage payments, utilities, and safety investments.
Read more about eligibility requirements and apply at the Indiana Department of Workforce Development site.
These are matching grants up to $50,000 intended to help Indiana entrepreneurs with the development of innovative products and services.
There are three 2025 deadlines for submitting online voucher applications.
This is an Indiana grant program awarding up to $20,000 to be used for capital improvements, equipment purchases, and other project expenses.
These are offered through a number of Indiana banks, and applications can be made through those individual banks.
These are available for manufacturers to invest in smart technology such as advanced communication, cobots, and Industrial Internet of Things.
These assist Indiana businesses in developing import and export related capabilities. It provides reimbursement for activities such as trade missions, international trade shows, and educational programs.
Apply at the Indiana Economic Development Corp website.
In addition to general Indiana grants, there are those that are offered to specific types of businesses or in specific parts of the state. Here is a sampling of the awards that are available. Check with your city to see what might be appropriate for your operation.
This program is for businesses outside any cities or towns with a population of 50,000 or more. Acceptable money usage includes long-term planning, local job creation, and technology-based development.
Apply by February 20, 2025, for the 2025 program.
These partially reimburse businesses in South Bend for making capital improvements. Grants are up to $20,000 for visual improvement and $112,000 for sustainability projects.
Get more information and apply at the city website.
Up to $7,500 is available for making improvements to brick and mortar business locations. The business must have operated in the urban core for at least a year.
Information on grant timelines and application is available at the Michigan City Urban Enterprise Association.
The federal government makes grants available throughout the country, and there are several that Indiana business owners should consider applying for. The best place to start is the official U.S. grants website Grants.gov. It contains useful information on what grants are available and the eligibility requirements as well as tips on applying and general educational materials about federal grants. You can search their database to narrow down the choices and find information on specific programs.
Here are a few of the grants available to Indianans.
These are grants that fund R&D projects for businesses of 500 or fewer employees with the goal of promoting technological innovation. There is an emphasis on encouraging participation from traditionally underserved businesses.
The web.gov site provides multiple methods of applying for its grants.
Like SBIR, these grants are in support of R&D. However, the focus is on collaboration between the businesses and non-profit research institutions. They are for businesses with 500 or fewer employees and are often directed toward research with military or commercial implications.
Apply though the processes at web.gov.
These grants are from a non-regulatory agency of the Department of Commerce. They support startups doing R&D in various technology fields, including communications, AI, bioscience, and nanotechnology.
Apply at web.gov.
Not all grants come from government agencies. Major corporations and private foundations also fund grants. These often renew on a year-by-year basis. Here are some awards you can look for in 2025.
Every year, FedEx awards $230,000 to FedEx small business customers. They must have a FedEx account, have fewer than 99 employees, and have been in business for at least six months.
This is a competitive process that requires a detailed business plan and a compelling story about how the money will be used. Watch the FedEx Small Business Grants website for the 2025 application date.
This is a monthly award granted by Women’s Net. In most months, three women each win a $10,000 prize, and these winners can apply for the annual $25,000 award.
Successful applicants submit a story that doesn’t include “business speak” but explains from the heart the business idea and how the grant would be used.
Grants are too good a business opportunity to overlook. Unlike loans, they don’t have to be repaid. Unlike venture capital, they don’t take partial ownership of your company and demand a share of future profits. Grants are out there, but you have to know about them, and you have to apply for them.
If you’re an Indiana small business owner, check out the grants described here, and use the research tools to find similar awards that may be more suited to your endeavors. Take time and care with your application; the small companies that best state their case and detail how the money will be used are the ones that come up winners in the process. There’s plenty of grant money out there, and some bright entrepreneur is going to claim it. Why shouldn’t that person be you?
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.
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