Small Business Grants in Kentucky
Most small business funding in Kentucky is administered by the Kentucky Cabinet for Economic Development and its KY Innovation office. Read each card first.
Which Kentucky grants fit your business?
Answer 7 quick questions and we sort the 11 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.
Kentucky Small Business Grant Programs
State-administered funding programs available to Kentucky small businesses. Verify deadlines directly with the granting agency before applying.
Kentucky SBIR/STTR Matching Funds
KY Innovation, Cabinet for Economic Development
Up to $150,000 (Phase I) or $500,000 (Phase II)
RollingNon-dilutive, reimbursable grants that match federal SBIR or STTR awards for Kentucky-based high-tech small businesses. Phase I matches up to $150,000, and Phase II matches up to $500,000 to support full-scale research and development.
Status check, The 2026 solicitation window closed April 27, 2026 at 11:59 PM ET. The program itself remains active and is not discontinued, but the current cycle deadline has passed and no new open window has been announced.
Last verified, Jul 29, 2026
Kentucky Small Business Tax Credit (KSBTC)
KY Innovation, Cabinet for Economic Development
$3,500-$25,000 per year
RollingProvides a state income tax credit to for-profit businesses with 50 or fewer full-time employees that have hired at least one new employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months. Since inception, the program has created over 4,843 jobs and generated more than $50 million in small business investments.
Status check, Program is active with rolling applications. Offers $3,500 to $25,000 per year for small businesses that hired at least one new employee and invested at least $5,000 in equipment or technology.
Apply / Learn MoreLast verified, Jul 29, 2026
Kentucky Enterprise Fund (KEF)
Kentucky Science and Technology Corporation (KSTC) / Keyhorse Capital
Equity investment, amount set per deal
RollingThis is venture capital, not a grant. The Kentucky Enterprise Fund is managed by Keyhorse Capital, the venture arm of the Kentucky Science and Technology Corporation, and makes pre seed and seed stage equity investments in scalable Kentucky startups commercializing research or new technology. Taking this money means giving up equity, and an investment committee decides.
Status check, Kentucky Enterprise Fund provides pre-seed and seed stage investments of $50K-$500K to Kentucky-based scalable startups. Page says to click to learn more about eligibility and to apply, indicating active rolling applications.
Last verified, Jul 27, 2026
State Trade Expansion Program (STEP) Grant
Kentucky Cabinet for Economic Development / SBA
Up to $15,000
RollingReimburses eligible small businesses for international export development activities including trade show participation, training workshops, compliance testing, and website translations. Products must be at least 51% U.S. content to qualify.
Status check, Kentucky STEP Year 12 is active, running September 30, 2024 through September 29, 2026, with rolling first-come first-served applications up to $15,000 reimbursement. The program is not paused or closed.
Apply / Learn MoreLast verified, Jul 28, 2026
Bluegrass State Skills Corporation Grant-in-Aid (GIA)
Bluegrass State Skills Corporation, Cabinet for Economic Development
Up to $75,000
RollingProvides cash reimbursements for up to 50% of eligible occupational and skills upgrade training costs at Kentucky businesses. Eligible operations include manufacturing, agribusiness, non-retail service or technology, and headquarters operations.
Status check, Applications accepted and considered for approval by the Board of Directors at scheduled meetings throughout the year. Board books show recent meetings in 2026 (May 6, Feb 4), indicating active program.
Apply / Learn MoreLast verified, Jul 29, 2026
KSEF microAwards
Kentucky Science and Engineering Foundation (KSEF)
Up to $5,000
RollingSmall grants to help companies preparing to apply for federal SBIR/STTR funding access commercialization, customer, and market experts. Designed to increase the odds of submitting successful federal research proposals.
Status check, The KSEF microAwards program is currently open with an active application flow on the official page. No deadline is listed. Awards are up to $5,000 for Kentucky for-profit small companies committed to submitting an SBIR/STTR proposal within 6 months.
Last verified, Jul 27, 2026
Kentucky Small Business Credit Initiative (KSBCI) 2.0
KY Innovation, Cabinet for Economic Development
Varies (loan support and equity investment)
RollingNot a grant programme. KSBCI 2.0 puts $117 million over 10 years into loan support through participating lenders and seed stage equity through Keyhorse Capital. You either repay it or you give up a share of the business. It is listed here because founders searching for Kentucky grants find it and assume otherwise.
Status check, Program provides loan support and equity investment through SSBCI 2.0 funding over 10 years. Rolling basis through participating lenders and Keyhorse Capital. Note states closing fees waived through 2025.
Apply / Learn MoreLast verified, Jul 28, 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 Kentucky grant programs expect these basics to be in place.
Form your business entity
Most Kentucky 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 Kentucky.
Technology/Innovation Business Grants
Kentucky has a strong focus on technology startups through KY Innovation. Programs include the Kentucky Enterprise Fund for seed-stage tech companies, SBIR/STTR matching grants, and KSEF microAwards for R&D preparation.
- ›Kentucky Enterprise Fund
- ›KY SBIR/STTR Matching Funds
- ›KSEF microAwards
Women-owned Business Grants
The Kentucky SBDC hosts events like the Big Sandy Women's Business Symposium and connects women entrepreneurs to coaching and capital resources. The Kentucky APEX Accelerator's Construction Diversity Accelerator program supports minority and women-owned businesses.
- ›Kentucky SBDC
- ›Kentucky APEX Accelerator
Minority-owned Business Grants
A portion of Kentucky's SSBCI 2.0 funding is specifically targeted toward businesses owned by Socially and Economically Disadvantaged Individuals (SEDI). The Kentucky APEX Accelerator helps minority-owned businesses win government contracts.
- ›Kentucky Small Business Credit Initiative (KSBCI) 2.0
- ›Kentucky APEX Accelerator
Veteran-owned Business Grants
The DAV Patriot Boot Camp offers free entrepreneurship training, mentorship, and support to veterans and their families in Kentucky. KY VALOR through KSTC also provides veteran-specific resources.
- ›DAV Patriot Boot Camp
- ›KY VALOR
Rural Business Grants
The Kentucky Center for Agriculture and Rural Development (KCARD) offers no-cost business support to farmers, cooperatives, and rural entrepreneurs. USDA Rural Business Development Grants fund projects in Kentucky's rural counties, but the applicant has to be a town, tribe or non profit, not a business.
- ›KCARD
Tips for Applying in Kentucky
Increase your chances of approval with these state-specific tips.
- 1Register your business on the Kentucky Business One Stop portal (onestop.ky.gov) before applying for state incentive programs.
- 2Contact your nearest Kentucky SBDC office for free, confidential coaching on business planning and loan packaging. There are 17 service centers statewide.
- 3For the KSBTC tax credit, submit your application before November 1 to ensure eligibility for the current tax year. Applications received after that date may not qualify until the following year.
- 4If you are a tech company seeking SBIR/STTR matching funds, connect with the Kentucky Science and Engineering Foundation (KSEF) first for proposal writing coaching and microAwards to prepare your federal application.
- 5For export grants through STEP, visit kyexports.com to start your application. Your products must contain at least 51% U.S. content to be eligible.
State Economic Development Agency
Kentucky Cabinet for Economic Development
The Cabinet is Kentucky's primary agency for encouraging job creation, business investment, and entrepreneurial support through its KY Innovation office and statewide network of programs.
Funding While You Wait
Grant applications in Kentucky can take weeks or months to process. These options can bridge the gap.
Frequently Asked Questions
Yes. Kentucky offers several programs that do not require repayment. The Kentucky SBIR/STTR Matching Funds program provides non-dilutive, reimbursable grants of up to $150,000 for Phase I and $500,000 for Phase II to tech companies that win federal awards. The STEP export grant reimburses up to $15,000 for international trade activities. The Bluegrass State Skills Corporation's Grant-in-Aid reimburses businesses for workforce training costs. The Kentucky Small Business Tax Credit (KSBTC) provides $3,500 to $25,000 in state income tax credits for businesses creating jobs and investing in equipment.
The Kentucky Small Business Tax Credit (KSBTC) is the most widely used incentive program for small businesses in the state. It is open to most for-profit businesses with 50 or fewer full-time employees across nearly all industry segments, including retail and service. Since its inception, the KSBTC has helped create over 4,843 jobs and generated more than $50 million in business investments statewide.
Most Kentucky programs, including the KSBTC and the STEP export grant, do not require minority or women-owned certification. However, a portion of Kentucky's SSBCI 2.0 funding is targeted toward businesses owned by Socially and Economically Disadvantaged Individuals (SEDI). The Kentucky APEX Accelerator offers a Construction Diversity Accelerator program designed for minority, women, and veteran-owned construction businesses. Contact KY Innovation at 800-626-2930 for guidance on which certifications may benefit your specific situation.
Processing times vary by program. The KSBTC tax credit applications are reviewed on a rolling basis, and complete applications submitted by November 1 are typically reviewed for the current tax year. SBIR/STTR matching funds are processed after you receive your federal award. The Bluegrass State Skills Corporation reviews Grant-in-Aid applications at scheduled board meetings throughout the year. For most programs, plan for 30 to 90 days from submission to approval, and contact the Kentucky Cabinet for Economic Development at 800-626-2930 for current timelines.
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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