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.
Most small business funding in Kentucky is administered by the Kentucky Cabinet for Economic Development and its KY Innovation office. Read each card first. The cards say which is which, and what is open. Programs range from technology commercialization funds to workforce training grants and export assistance.
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)
Deadline Oct 26, 2026If you have won a federal SBIR or STTR award, Kentucky will match part of it with non dilutive money, up to $150,000 on Phase I and up to $500,000 on Phase II. The fall window is open now and shuts at 11:59 p.m. on October 26, 2026. Kentucky runs two windows a year, each about eight weeks, the spring round usually March into April and the fall round usually September into October, so missing this one costs you roughly six months.
State Trade Expansion Program (STEP) Grant
Kentucky Cabinet for Economic Development / SBA
Reimbursement of approved export costs, the current cap is not published
No application window is published, contact the Kentucky Export InitiativeThe Kentucky Export Initiative pays back approved international expansion costs for small Kentucky exporters, and it has funded more than 242 companies since 2011 using over $4.8 million from the Small Business Administration. Reimbursable work includes trade show exhibitions, foreign market sales visits, United States Commercial Service assistance, export training, international patent and trademark filings, compliance testing, website build and translation for e-commerce, marketing media design, and attorney fees for reviewing international distributor agreements. The Initiative does not publish an application window or a current award cap, so contact its team directly to find out whether money is available before you commit to an expense.
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.
Apply / Learn MoreKSEF 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.
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.
Apply / Learn MoreKentucky 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.
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.
Apply / Learn MoreFederal 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.
Learn moreSBA 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.
Learn moreSBIR/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.
Learn moreMinority 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.
Learn moreGet 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.
Grants in Other States
All state grant guidesFrequently 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 approved international trade costs, though the Kentucky Export Initiative does not currently publish a cap. 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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