Like most states, Alaska relies on small businesses to serve as the backbone of the state’s economy. To support small businesses in Alaska, the state along with federal agencies and private corporations offers a number of grants designed to reward businesses that are creating innovations and driving the state’s economy forward.
Being accepted for one of these grants can be a game-changer for small businesses, as they essentially amount to free funding. However, competition for small business grants is stiff, and most businesses that apply are not accepted.
In this article, we’ll go over everything you need to know about small business grants in Alaska, including how they work, how to apply for them, and the top small business grants for Alaska businesses to pursue in 2025.
Small business grants are funds that are provided to support the growth and development of small businesses. They may be targeted towards a specific industry or location (such as grants designed to support tourism in Alaska), or they can be intended to support specific types of small businesses (such as those owned by women or minorities). Many grants are offered by government agencies at both the state and federal levels, but there are a lot of private foundations and corporations that offer small business grants as well.
The best part about receiving a small business grant is that they are typically a “no strings attached” form of funding. The funds from most grants do not have to be repaid, which makes them a much more desirable funding option than a loan that will have to be repaid with interest. Unlike venture capital funding, small business grants also don’t require you to give up any equity in your company.
While many grants—especially those offered by the federal government—are made available to small businesses nationwide, there are also grants that are exclusively awarded to businesses in Alaska. If you are seeking a grant for your business, it’s often best to focus on these state-specific (or industry-specific) grants since there is less competition for them.
With that in mind, here are a few of the top Alaska state-specific grants for small businesses in 2025:
If your business has already received a federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) grant, you may qualify for additional funding thanks to the Alaska SBIR/STTR grant program. This program is designed to foster research and innovation in the state by rewarding small businesses that demonstrate excellent potential in these fields.
Funding amounts for the Alaska SBIR/STTR grant will vary depending on how much federal funding the small business is receiving but can provide up to $125,000 in additional funds. These funds can be used to cover a wide range of research and development expenses, including market testing, patent filing, and more.
To be eligible for the Alaska SBIR/STTR grant, your business must first have already received a Phase I or Phase II award from either the SBIR or STTR program. We’ll discuss these programs more in our section on federal grants, but they both award grants to small businesses nationwide that are engaged in either scientific research or technological development.
If your business is already the recipient of an SBIR/STTR grant, you can apply for additional funding from the state of Alaska by filling out this form.
The Microenterprise Grant (MEGRANT) is a program managed by the University of Alaska Anchorage that’s designed to help people with disabilities start businesses and pursue opportunities for self-employment. Those who are awarded this grant can use the funds to start a new business, acquire an existing business, or expand their current business.
This grant awards amounts ranging from $500-$10,000.
There are numerous eligibility requirements you have to meet before you can apply for a MEGRANT. To start, you must be an Alaska Mental Health Trust Beneficiary to qualify. Your business must also qualify as a “microenterprise”, having fewer than five employees and capital needs of less than $35,000.
This grant also requires a dollar-for-dollar match from its recipients, and you must provide documents proving this match has been satisfied as part of the application process. In other words, if you are requesting a $5,000 grant, you must be able to prove that you have already invested at least $5,000 yourself in your business.
If you meet these eligibility requirements, you can apply for a MEGRANT at this link.
Spruce Root is a non-profit organization that exists to support the economy of Southeast Alaska, and every year they hold a competition for small businesses in the area called the Path to Prosperity Business Development Competition. This competition is designed to reward small businesses in Southeast Alaska that have a positive impact on their communities, and winners receive up to $20,000 in funds that can be used to grow their businesses.
To be eligible to enter the Path to Prosperity Business Development Competition, you must be a resident of Southeast Alaska. The competition is open to individuals, for-profit businesses, and tribal entities. Entries can be a new business startup, or they can be an expansion of an existing business.
The contest consists of two rounds. In the first round, applicants are required to submit a business concept proposal. Those that advance to the second round will be required to submit a more detailed business plan.
At the time of this writing, applications for the Path to Prosperity Business Development Competition are not yet open, but you can learn more about the competition by visiting the Spruce Root website.
In addition to grants offered by the Alaskan government and private organizations in the state, Alaska small businesses can also apply for numerous federal grants. We’ve already mentioned how competition for these federal grants can be much higher since far more businesses are eligible to apply, but the funding that these grants award can be substantial as well.
There is a wide range of grants offered by various federal agencies, and it’s worth taking the time to explore them thoroughly to see which ones are the best fit for your business and its funding needs. However, here are a couple of the more popular federal grant programs that are available to small businesses in Alaska:
We’ve mentioned this program already, but if your business is involved in research and development then it’s certainly a program that’s worth taking a closer look at. The SBIR program is a federal program that awards grants to promising small businesses engaged in scientific research and/or technological innovation.
The SBIR Program operates in three phases:
If you decide to apply for this grant, keep in mind that the Alaska SBIR/STTR Grant Program awards additional funding to small businesses in the state that are recipients of an SBIR grant.
To qualify for an SBIR grant, your business must be a for-profit entity with fewer than 500 employees. It also needs to be involved in a research or development project that demonstrates significant potential for commercialization. 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.
The STTR program is a federal grant program that shares a lot in common with the SBIR program. However, it is specifically intended for small businesses who are partnering with non-profit research organizations.
Like the SBIR program, the STTR program is designed to encourage groundbreaking research and technological innovation by supporting small businesses engaged in these activities. It consists of the same three phases as the SBIR program as well, and small businesses in Alaska that receive an STTR grant are eligible for additional funding via the Alaska SBIR/STTR Grant Program.
The STTR program has the same eligibility requirements as the SBIR program (must have fewer than 500 employees and must be engaged in scientific research or technological development) with the additional requirement that you must be actively partnered with a non-profit research organization. To learn more about how to apply, you can visit SBIR.gov.
Many grants available to Alaska small businesses are offered by private corporations and foundations rather than government agencies. This induces popular grants such as:
Each year, FedEx holds a contest to award grants to small businesses that show great growth potential and a positive impact on their communities. The FedEx Small Business Grant Contest is open to small businesses across all locations and industries, and 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 open annually, typically in January. Check out the FedEx Small Business Grant Contest webpage to learn more.
Every month, The Freed Fellowship provides $500 in funding to one US small business, and winners of this monthly grant are also eligible to receive a $2,500 grant at the end of each year. In addition to these cash prizes, winners also receive a one-on-one business strategy session and a year-long membership to the Freed Studio—a virtual entrepreneurial community.
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. Check out the Freed Fellowship website to learn more and apply.
Small business grants can open the door to a lot of opportunities for Alaskan businesses, helping provide the funds they need to grow and pursue new ventures. In 2025, there are numerous grants available to small businesses in Alaska, so be sure to explore your options and apply for as many as possible to increase your odds of being chosen.
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