Small Business Grants in California
The biggest small business grant in California is not really a grant. The California Competes Tax Credit is the largest program.
Which California grants fit your business?
Answer 7 quick questions and we sort the 10 programs on this page into likely fits and long shots. Nothing personal is asked or stored, and final eligibility is always decided by the granting agency.
California Small Business Grant Programs
State-administered funding programs available to California small businesses. Verify deadlines directly with the granting agency before applying.
California State Trade Expansion Program (STEP)
GO-Biz International Affairs and Trade
Up to $10,000 per fiscal year (Export Voucher)
RollingSTEP vouchers pay back up to 75% of your pre-approved export costs. They also cover spots at overseas trade events. Each voucher is worth up to $10,000 a year. Your business must meet SBA size limits. It must also have real operations in California. Applications are open year round.
Status check, Page shows active STEP program with events scheduled through 2026. Export vouchers and training opportunities are available. No specific deadline stated, consistent with rolling basis.
Last verified, Jul 29, 2026
California Competes Tax Credit (CCTC)
Governor's Office of Business and Economic Development (GO-Biz)
Over $180M in credits for FY 2026-27 (tax credit, not grant)
Deadline Aug 10, 2026This is a tax credit for businesses that locate, stay, or grow in California. GO-Biz runs three application windows each year. It scores you on jobs, investment, and value to the state. For fiscal year 2026-27, over $180 million in credits is on offer. The next window runs July 20 to August 10, 2026. It is a credit, not cash.
Status check, Over $180M is available across three FY2026-27 windows, with the next application window running July 20 to August 10, 2026.
Last verified, Aug 4, 2026
California Competes Grant Program
Governor's Office of Business and Economic Development (GO-Biz)
See the GO-Biz grant awardee list
Deadline Aug 10, 2026This is a grant version of the California Competes Tax Credit. It is for firms that cannot use a credit against California tax. It targets firms creating 500 or more jobs. It also fits firms investing $10 million or more, or in a high-poverty area. GO-Biz runs it in rounds. See its grant awardee list at business.ca.gov for past winners.
Status check, Award amounts vary by round and GO-Biz has not published a fixed figure for the current cycle. Check the GO-Biz grant awardee list for the scale of past awards.
Last verified, Aug 4, 2026
CA RISE (California Regional Initiative for Social Enterprises)
CalOSBA / REDF
$100,000 - $500,000
Deadline Jul 3, 2026CA RISE was the first statewide fund for employment social enterprises. These are firms that hire and train people facing barriers to work. Grants run from $100,000 to $500,000. The 2026 cohort took applications from June 3 to July 3, 2026. Redefine Alliance runs it with CalOSBA. Watch the CalOSBA page for the next round.
Status check, Verified via CalOSBA and Redefine Alliance 2026-07-03. 2026 cohort window Jun 3 to Jul 3 2026.
Last verified, Jul 29, 2026
SEED Program (Social Entrepreneurs for Economic Development)
Employment Training Panel (ETP)
$5,000 - $10,000 microgrants (to individuals via CBOs)
Deadline Feb 26, 2026SEED helps immigrants and people with limited English start businesses. It offers training, coaching, and small cash grants. The fiscal year 2025-26 budget put $7.5 million into the program. Microgrants run from $5,000 to $10,000. You apply through a partner group, not the state. Funding is rolling.
Status check, Verified via ETP, CA Immigrant Policy Center, grants.ca.gov 2026-07-03. FY2025-26 budget approved $7.5M for SEED.
Last verified, Jul 29, 2026
Regional Investment Initiative (California Jobs First)
GO-Biz / California Labor and Workforce Development Agency
$80M to 11 projects, $15M to 14 tribes (2025)
Deadline May 22, 2026This program is part of California Jobs First. In 2025 it gave $80 million to 11 projects across 7 regions. It also gave $15 million to 14 Native American tribes. Projects must fit their region's Jobs First plan. They must create good-paying jobs. Awards come in rounds.
Status check, This initiative awarded $80M to 11 projects in August 2025 and $15M to 14 tribes in June 2025.
Last verified, Jul 29, 2026
Federal Grant Programs
These federal programs are available to small businesses in every state.
SBA 7(a) Loan Program
The SBA's primary lending program guarantees loans through participating lenders. This is a loan, not a grant. But the terms favor small businesses that may not qualify for conventional financing.
Status check, This is a loan program, not a grant. The 7(a) Loan Program provides loan guarantees to lenders for small business loans up to $5 million. Applications are accepted on an ongoing basis through participating SBA lenders.
Learn moreLast verified, Aug 3, 2026
SBA Microloan Program
Loans up to $50,000, not grants. You borrow from a nonprofit lender near you, not from the SBA itself. The money can cover working capital, inventory, supplies or equipment. Most people get far less than the cap. The average microloan is about $13,000.
Status check, Verified July 30, 2026 at sba.gov. Rates run 8 to 13 percent. The longest term allowed is seven years. Your lender sets both, not the SBA, so two owners can be quoted very different deals. There is no deadline. You apply through an SBA approved lender in your area.
Learn moreLast verified, Jul 30, 2026
SBIR/STTR Grants
Competitive federal grants for small businesses doing research and development with commercial potential. Eleven federal agencies take part. Phase I funds proof of concept. Phase II funds full development.
Status check, Verified July 30, 2026 at sbir.gov. Two different figures get quoted for this program and both are real. As of April 2026 an agency may award up to $323,090 at Phase I and up to $2,153,927 at Phase II without SBA approval, and anything above that needs a waiver. Those are ceilings, not typical awards. Each agency sets its own amounts in its own solicitation, and the sbir.gov agency table currently runs from $50,000 to $300,000 at Phase I and $400,000 to $1.83 million at Phase II. There is no single deadline. You apply through a participating agency.
Learn moreLast verified, Jul 30, 2026
Minority Business Development Agency (MBDA) Programs
Help for minority owned businesses that need capital, contracts or new markets. MBDA runs business centers around the country. They give advice, help with bids, and point you toward lenders.
Status check, The business centers still run. The grants are a different story. Those windows are short, and they fund groups rather than single businesses. The last one we could find closed in February 2025. We found no open MBDA grant that a small business can apply for today.
View program pageLast verified, Jul 29, 2026
Get Grant-Ready
Before you apply, most California grant programs expect these basics to be in place.
Form your business entity
Most California grant programs require applicants to be a registered LLC, corporation, or nonprofit. If you haven't formed yet, that's the first step.
$39 + state fee. Includes registered agent, business address, and more.
Get your EIN
An Employer Identification Number is free from the IRS and required on nearly every grant application. You can apply online and receive it immediately.
Open a business bank account
Grant funds need to go into a dedicated business account, not your personal checking. Most agencies will ask for your banking details on the application.
Mercury is a fintech company, not an FDIC-insured bank. Banking services provided through Choice Financial Group and Column N.A., Members FDIC.
Grants by Business Type
Targeted programs for specific business owners in California.
Minority-owned Business Grants
California's State Small Business Credit Initiative allocates dedicated funding for businesses owned by socially and economically disadvantaged individuals. The Initiative for Inclusive Entrepreneurship, supported by IBank, also focuses on expanding capital access for businesses owned by people of color.
- ›State Small Business Credit Initiative (SSBCI)
- ›IBank Small Business Loan Guarantee Program
- ›MBDA Business Centers
Women-owned Business Grants
California's network of Women's Business Centers, coordinated through CalOSBA, provides free consulting and training for women entrepreneurs. The Technical Assistance Program (TAP) funds centers serving underserved business groups, including women-owned enterprises.
- ›CalOSBA Technical Assistance Program
- ›Women's Business Centers
- ›SBA Women-Owned Small Business Federal Contracting Program
Rural Business Grants
California's Regional Investment Initiative targets disadvantaged and rural communities through the Jobs First framework, with dedicated funding for regions including the Central Valley, Inland Empire, and Northern California. USDA Rural Business Development Grants reach communities under 50,000 people, but for profit businesses cannot apply. Your city or a local non profit has to be the applicant.
- ›Regional Investment Initiative
- ›California SBDC Network
Technology/Innovation Business Grants
CalOSBA's Accelerate California Inclusive Innovation Hubs program catalyzes innovation ecosystems across the state, and the FAST Partnership Program helps California-based organizations support SBIR/STTR applicants. California businesses are top recipients of federal SBIR/STTR awards nationally.
- ›Accelerate CA Inclusive Innovation Hubs
- ›CalOSBA FAST Partnership Program
- ›SBIR/STTR Grants
Tips for Applying in California
Increase your chances of approval with these state-specific tips.
- 1Register your business on the California Grants Portal (grants.ca.gov) to browse all active state grant opportunities and receive notifications for new programs matching your profile.
- 2For the California Competes Tax Credit, prepare detailed projections for job creation, employee compensation, and capital investment before the application window opens. The process takes approximately 90 days from application to committee approval.
- 3Contact your nearest California Small Business Development Center (SBDC) for free, confidential consulting. California has five SBDC networks covering Northern CA, Central CA, Los Angeles, Orange County/Inland Empire, and San Diego/Imperial regions.
- 4Many California programs, including CA RISE and SEED, are administered through intermediary organizations (CBOs, REDF, Lendistry). Reach out to these partners directly for application guidance and eligibility verification.
- 5Gather key documents early: prior-year tax returns, payroll records, a current business plan, and financial projections. Programs like the California Competes Grant require applicants to create 500+ jobs, invest $10 million or more, or operate in a high-poverty area.
State Economic Development Agency
Governor's Office of Business and Economic Development (GO-Biz)
GO-Biz serves as California's leader for job growth, economic development, and business assistance, offering no-cost consultation to business owners for attraction, retention, expansion services, site selection, permit streamlining, and small business support.
Funding While You Wait
Grant applications in California can take weeks or months to process. These options can bridge the gap.
Frequently Asked Questions
Yes. SEED gives microgrants of $5,000 to $10,000 to immigrant founders through community organizations, and CA RISE awards $100,000 to $500,000 to employment social enterprises. Both are true grants, not loans. The California Competes Tax Credit is bigger, but it is a credit, not cash. CalOSBA often has no open direct-to-business grant at a given moment. Programs cycle, so sign up for the CalOSBA newsletter to catch the next round.
Most people mean the California Dream Fund. It gave microgrants up to $10,000 to new business owners. It was a one-time $35 million program, and it closed to new applicants at the end of 2022, so it is not open now. Two active programs come close, the STEP export voucher (up to $10,000) and SEED microgrants ($5,000 to $10,000) for immigrant founders. Check the California Grants Portal for what is live.
The California Competes Tax Credit is the biggest and best known. It offers over $180 million for fiscal year 2026-27. It is a credit, not a grant. It is open to any industry, size, or location. For real cash, the STEP export voucher (up to $10,000) is among the most accessible options. Your local SBDC or CalOSBA can help you find the best fit.
Most California programs do not require minority or women-owned certification. The California Competes Tax Credit and the STEP voucher are open to all qualifying businesses. Some funding pools do target socially and economically disadvantaged owners through California's State Small Business Credit Initiative. A certification from the state's Supplier Diversity program can strengthen your eligibility for those pools. Check each program's rules before you apply.
Timelines vary by program. The California Competes Tax Credit takes about 90 days from application to committee approval. CalOSBA programs like CA RISE and SEED often review for 60 to 90 days after the deadline, then pay by reimbursement. For STEP vouchers, you are reimbursed after you finish the approved activity. Plan for 3 to 6 months from application to funds for most state programs.
Yes, a few programs fit. SEED microgrants for immigrant founders run from $5,000 to $10,000, paid through community partners. The STEP export voucher can cover up to $10,000 of pre-approved export costs. For a true cash grant near that size, SEED is the closest fit. Most run through intermediary organizations, so apply through the partner, not the state. Check the California Grants Portal for open rounds.
About the Author
Senior Finance & Banking Editor
Richard is the veteran anchor of the site's financial content. Raised in the Midwest and starting his career in Chicago's commercial banking sector, he spent over a decade underwriting small business loans before moving into financial journalism. He doesn't get swept up in startup hype; he cares about unit economics, APYs, and fee structures.
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Grant programs change frequently. Deadlines, eligibility requirements, and funding amounts listed here may be outdated. Always verify information directly with the granting agency before applying. This page is for informational purposes only and does not constitute financial or legal advice.
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