Running a small business requires capital, and growing businesses often require sizeable capital investments. While many of Hawaii’s 133,000 small businesses operate using cash reserves, many also need outside funding to get started or grow.
Sourcing outside capital can help businesses get started, invest in buildings, equipment and inventory, and expand operations — 10,300 of Hawaii’s small businesses grew from March 2021 – March 2022. Sometimes, businesses might alternatively need outside funding to weather rough times or unexpected emergencies.
A large number of businesses in Hawaii are expected to source capital outside of their sales revenues and cash reserves. While outside investment and loans are options, both come with downsides.
Grants have multiple advantages over these. Business grants don’t have to be repaid (unlike loans), and they don’t require personal investment or diluting your equity (unlike investment). These features make grants a highly attractive funding option.
If you have a small business that’s starting or growing, you’ll find there are many grants for businesses in Hawaii. The state funds its own grant programs to support small businesses, which account for 99.2% of all businesses in the state.
The Hawaiian government recognizes that the state’s economy would struggle without small businesses, and that many small businesses would struggle to survive or grow without grant funding. In addition to state business grants, Hawaii businesses might also qualify for federal grants or private ones.
Qualifications vary from one grant program to the next. What your business is able to apply for will depend on its location, operations, industry, size and other factors. You’ll likely find there are at least a few grant opportunities worth considering, though.
Here are some of the top 2025 small business grants in Hawaii that you might want to apply for.
Small business grants are funds that your business doesn’t need to repay. These are essentially free funds awarded to businesses according to a grant’s criteria. Grants might help businesses get started, expand operations, make capital investments, make environmental improvements, or simply continue running (in the case of nonprofits).
Compared with other funding sources that businesses might use, grants have significant advantages. Here’s how they stack up with:
Grant funds don’t need to be repaid. Some have stipulations that are tied to a certain period of time. You won’t have to repay the funds so long as you meet the stipulations, however. There’s no interest charged since they don’t get repaid.
Grants don’t result in interest charges if something goes wrong, and they let you make investments without worrying about how you’ll repay the associated costs.
Grants don’t require relinquishing any of your business’s equity, and there are no royalties nor other compensation required. Receiving a grant doesn’t impact your or anyone else’s ownership.
Grants are available regardless of your personal financial situation, and they let you keep any personal savings diversified in other investments. Any business can potentially benefit from grant funding, but their advantages make grants particularly attractive to startups, early-stage businesses, and those looking to grow.
There are many potential grants that small businesses in Hawaii may qualify for. The state offers several Hawaii small business grants, and there are other grants offered by the federal government, large corporations, private programs, and nonprofit entities.
Hawaii offers several state-specific grant programs aimed at supporting small businesses and stimulating economic development within the state. These grants focus on various industries and community needs, providing opportunities for startups, established businesses, and organizations working on projects that benefit Hawaii’s economy and residents.
The application process is different for Phase 0 applications, and for Phase 1 – 3 applications. A committee scores applications based on a fixed rubric. There’s usually an info session held ~1 month before the application deadline.
Tips for applying to the Hawaii SBIR program:
The Hawaii State Trade Expansion Program (HiSTEP) helps Hawaii businesses sell their products outside of Hawaii. The program assists with exporting to other states and to other countries.
HiSTEP is composed of three different grant opportunities:
HiSTEP is funded in part by the U.S. Small Business Administration, and run with the assistance of multiple state and federal agencies.
The first step in applying for a HiSTEP grant is registering. New information and a new registration page come out each fall for the following year’s awards.
Hawaii offers several industry-specific grants targeting key sectors. If your business operates in an eligible sector, these can be less competitive to apply for.
Unlike general small business grants, the funds awarded by industry-specific grants can be more targeted in their use. This can be an advantage if you need financial assistance with a sector-specific challenge.
Hawaii’s Micro-Grants for Food Security Program (MGFSP) provides funds for local individuals, businesses and nonprofits that provide food locally. Individual homesteaders, small farms, food pantries, and almost any other entity that’s bringing food to the local market or poor population might be eligible.
Grants are worth $5,000 for individuals, and $10,000 for businesses and nonprofits. Applications are due during the summer, and awarded the following spring.
The Office of Hawaiian Affairs has grants for businesses and nonprofits that serve Native Hawaiians and their communities. There are grants available for efforts focused on education, physical and mental health, repatriation, cultural preservation, land and water usage, housing, homesteading, serving the vulnerable, and general financial hardship.
Businesses that meet specific qualifications can access federal grants throughout the United States, whether located in Hawaii or another state. If your business is eligible, these grants can be quite substantial.
The Small Business Innovation Research (SBIR) program supports businesses that seek to bring innovations or inventions to the commercial market. The program offers three different grants: Phase I for technical development, Phase II for prototyping, and Phase III for commercialization. Grant amounts can be extremely large, possibly even 8 figures for Phase 3 grants.
SBIR grants are provided by various federal agencies. To find out more about grants your business might qualify for, check with the federal agency that oversees your industry. The SBIR website has general information on the general application process.
Much like the SBIR, the Small Business Technology Transfer (STTR) program also supports businesses aiming to commercialize significant innovations and includes Phase I, Phase II, and Phase III grants.
Businesses that apply for the STTR program must partner with a nonprofit research institution, whereas the SBIR only encourages (doesn’t require) such partnership.
Much like the SBIR, the Small Business Technology Transfer (STTR) program also supports businesses aiming to commercialize significant innovations and includes Phase I, Phase II, and Phase III grants.
Businesses that apply for the STTR program must partner with a nonprofit research institution, whereas the SBIR only encourages (doesn’t require) such partnership.
STTR grants are provided by various federal agencies. To find out more about grants your business might qualify for, check with the federal agency that oversees your industry. The SBIR website has general information on the general application process.
The U.S. Small Business Administration (SBA) offers support to small businesses through various funding options, including several grant programs. Each grant program has its own requirements, application process, and award amount.
General information about SBA grants is available on the SBA website. For more detailed information and assistance, contact the SBA’s Hawaii District Office.
Many companies and private foundations offer their own small business grant programs. These can be for small or large amounts, and focus on almost anything (e.g. tech innovation, environment, economic development, etc.).
FedEx conducts an annual grant contest open to U.S.-based small businesses with fewer than 100 employees. 2024 grants included one of $50,000 and nine of $20,000.
The Visa Everywhere Initiative is a global competition for fintech startups focusing on commerce or payment processing.
The Freed Fellowship offers a $500 micro grant each month to a U.S.-based small or micro business. Monthly winners are also eligible for a year-end grant of $2,500.
There are lots of small business grants for Hawaii businesses. See which ones your business might qualify for, and submit a strong application. You might just win.
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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