Whether you’re planning on starting a new business in Arizona or looking to fund a new venture for your existing business, small business grants are an excellent way to get funding for a business. While there tends to be a lot of competition for these grants and there’s no guarantee of being accepted, the businesses that are awarded a small business grant can look forward to what is essentially free funding.
In Arizona, there is a wide range of grants available to small businesses. Many of these grants are offered by state and federal agencies, while others are offered by private foundations and corporations.
When applying for small business grants, it’s often best to cast a wide net. To help you out, we’ll go over some of the top small business grants worth applying for in Arizona. We’ll also take a closer look at how small business grants work and the benefits that they provide.
Small business grants are intended to support the growth and development of small businesses. They provide business owners with funding and, in some cases, additional resources. Best of all, the funding provided by grants doesn’t come with the same strings attached as other forms of funding. Unlike loans, small business grants do not have to be paid back and don’t come with any interest charges either. They also don’t require you to give up any equity in your company like venture capital funding does, which makes grants an especially attractive option for small businesses.
However, because they are so desirable and only awarded to select businesses, competition for these grants can be stiff. To improve your chances of being awarded a grant, it’s important to both apply for as many as you can and make sure that you put your best foot forward with each application.
Many grants are made available specifically to small businesses located in Arizona. Unlike grants that are offered to businesses nationwide, these state-specific grants tend to be a little less competitive and are a great option to focus on. With that said, here are a few of the top state-specific small business grants in Arizona for 2025:
Managed by the Arizona Commerce Authority, the Arizona Innovation Challenge is one of the largest business competitions in the country, and it’s designed to reward businesses in the state that are advancing innovation and developing new technologies. Businesses that advance to the semifinalist stage of the competition are invited to attend a twelve-week hybrid accelerator program. After this, ten finalists are chosen to receive a $100,000 grant in addition to other rewards such as an invitation to a six-month accelerator program and one-on-one matching with ACA Entrepreneurs-in-Residence.
To enter the Arizona Innovation Challenge, you must be a startup company in one of the following industries:
Applicants are required to submit a business plan for judges to review and determine who should advance to the semifinalist round. As of right now, applications for the 2025 Arizona Innovation Challenge are not yet open, but you can learn more on the Arizona Commerce Authority website.
The Arizona State Trade Expansion Program (STEP) provides funding to Arizona small businesses that are exploring export opportunities or entering new international markets. The program is managed by the Arizona Commerce Authority, and its goal is to expand the state’s export economy. In addition to funding, STEP also provides small businesses with access to export training, workshops, and market entry support.
To be eligible for a STEP grant, you must be a small business that meets the SBA’s size standards, and you must be engaged in international exports. To apply, you can visit the Arizona Commerce Authority STEP program page.
Various agencies in the federal government offer grants to small businesses all over the country, including those in Arizona. While the fact that these grants are available to businesses nationwide makes them much more competitive than state-specific grants, the awards are often larger as well. If you are interested in applying for a federal grant for your Arizona small business, here are a few great options to pursue:
The SBIR program is a federal program designed to support innovation and technological development. It provides funding to small businesses that are actively engaged in either scientific research or developing new technologies.
The SBIR Program operates in three phases:
Only small businesses that demonstrate a strong potential for commercializing the technology they’re working to develop are accepted for this grant. But if your business meets that description, the SBIR program can serve as an excellent way to bring your innovative idea from concept to commercialization.
To be eligible for an SBIR grant, your small business must be a for-profit business with fewer than 500 employees. Applications are submitted through federal agencies that participate in the program, such as the Department of Defense or the National Institutes of Health. For details on application deadlines and resources, visit SBIR.gov.
This program shares a lot of similarities with the one we just covered, as it is also designed to support small businesses that are engaged in innovation and research. To qualify for an STTR grant, though, your business must be working in partnership with a non-profit research organization.
Like the SBIR program, the STTR program is broken down into three phases:
Since the eligibility requirements of this program are a bit more exclusive, it tends to be a little less competitive than the SBIR program. That makes it a great opportunity to pursue if your business is actively working with a non-profit organization to conduct research or develop new technologies.
To be eligible for an STTR grant, your small business must have fewer than 500 employees, must be partnered with a non-profit research organization, and must be working on developing a technology with a strong potential for commercialization. To learn more about this program and how to apply, visit SBIR.gov.
The U.S. Small Business Administration (SBA) is a federal agency that offers a wide range of resources and support to small businesses. While most funding offered by the SBA comes in the form of loans that have to be repaid, the agency does offer a few grants as well that are designed to support specific initiatives.
In Arizona, the SBA operates through one main district office in addition to partnerships with local organizations:
You can visit the SBA website to learn more about grant opportunities offered by the agency, or you can contact the SBA Arizona District Office to see what grants your business might be eligible for, including grants offered through local partnerships.
Not all small business grants are offered by government agencies. In addition to those offered by the state and federal government, there are also numerous corporate and private foundation grants made available to small businesses in Arizona. This includes private grants such as:
Every year, FedEx holds a contest that is designed to reward small businesses that demonstrate a lot of potential and have a positive impact on their communities. The FedEx Small Business Grant Contest is open to small businesses across all locations and industries. Contest winners receive $50,000 in cash along with $7,500 in FedEx services.
To enter the FedEx Small Business Grant Contest, you’ll be required to submit an overview of your business and a video pitch. Applications typically open in January each year. You can learn more about how to enter at the FedEx Small Business Grant Contest webpage.
The Amber Grant supports women-owned small businesses by awarding monthly grants of $10,000 and an annual grant of $25,000. This grant is available to women-owned small businesses across all industries.
Applying for an Amber Grant simply requires you to fill out an application form and pay the $15 application fee. Check out the Amber Grant website to learn more and submit your application.
The Freed Fellowship provides a $500 grant to a new small business each month, and recipients of this grant are also eligible to receive a $2,500 grant at the end of the year. Small businesses that receive a grant from the Freed Fellowship can also look forward to a one-on-one business strategy session and a year-long membership to a virtual entrepreneurial community called Freed Studio.
To apply for this grant, you must be a US-based small business or micro-business owner. Applications are accepted on a rolling basis and must be submitted by midnight on the last day of the month to be eligible for that month’s grant. Visit the Freed Fellowship website to learn more and apply.
Being accepted for a small business grant can be a game-changer for small businesses in Arizona. Keep in mind that the list of grants we’ve covered in this article is not exhaustive, and be sure to carefully research which grants your business is the best match for.
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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