Top Small Business Grants in California 2025

California has about 4.2 million small businesses that can apply for small business grants. Submitting an application and competing for small business grants in California can help you grow your small or medium-sized enterprise in the Golden State.

California’s economy has a gross domestic product of $4.2 trillion as of the first quarter of 2025. That’s the largest GDP in the United States out of the 50 states and the District of Columbia. In every state, small businesses contribute to the nation’s economy.

Small firms generated about $69.1 billion worth of exports from California per year, second in the nation to Texas ($147.8 billion), according to the most recent U.S. Census Bureau export data.

Below we highlight some of the top small business grants in California that you can explore.

California Small Business Grants

If you’re looking for small business grants in California, here are some potential options to consider.

Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) Grants

•   Program description: California RUST grants provide eligible small business underground storage tank owners and operators with financing to upgrade, remove, or replace project tanks to comply with the Golden State’s health and safety regulations.

•   Incentive: Receive between $3,000 and $70,000 to replace, remove, or upgrade your small business’s underground storage tank infrastructure. These grants can cover up to 100% of the costs necessary to undertake a RUST project.

•   General requirements: Here are some of the general requirements for this grant.

◦   Be the owner or operator of an underground storage tank

◦   Employ fewer than 20 full-time and part-time employees as an independent small business owner

◦   Have principal offices and company officers domiciled in California

◦   Sell less than 1.5 million gallons of gasoline annually for each of the two years preceding the submission of your grant application

◦   Be in compliance with state health and safety codes

•   How to apply: You can submit an application through the California State Water Resources Control Board’s Financial Assistance Application Submittal Tool (FAAST) system.

California Civil Money Penalty (CMP) Reinvestment Grants

•   Program description: California’s skilled nursing facilities (SNFs) can apply for these project grants to cover expenses related to improving the quality of care or quality of life for facility residents.

•   Incentive: For quality of care and quality of life improvements, nursing homes can be reimbursed for up to $5,000 per year, with a maximum of $15,000 for a three-year project.

•   General requirements: You may qualify for these grants if you operate a certified SNF in California.

•   How to apply: Access the application forms online and submit a completed application to the California Department of Public Health.

California Department of Food and Agriculture (CDFA) Grants

•   Program description: The California Department of Food and Agriculture offers a variety of small business grants through such divisions as the Office of Farm to Fork and the California Underserved and Small Producer Program (CUSP).

•   Incentive: Eligible small businesses and small- to medium-scale growers and ranchers can request funding for key initiatives and weather relief measures. For example, recipients of the 2024 Healthy Soils Program Incentive grants were awarded funds ranging from $2,900 to $100,000.

•   General requirements: Requirements typically vary by grant. Often, operating a qualified small business in California in an urban area or within a farming community may make you best suited for one of these grants.

•   How to apply: Apply online for any open CDFA grant opportunities.

California State Expansion Program (STEP) Grants

•   Program description: Run by ​​the Governor’s Office of Business and Economic Development, this program assists eligible California small businesses seeking to expand into foreign markets.

•   Incentive: STEP will reimburse up to 75% of a company’s pre-approved export promotion expenses through a system of vouchers worth $500 to $10,000.

•   General requirements: Here are some of the general requirements for this grant:

◦   Be a for-profit entity that meets SBA small business size standards

◦   Be registered in California and have significant operations in the state

◦   At least one year of operation

◦   Goods/services being exported must have at least 51% U.S. content

•   How to apply: Visit STEP’s details page for guidelines and a link to the application portal.

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National Grant Options for California Businesses

In addition to California business grants, small enterprises in the Golden State have access to a wide array of national grants that can provide essential funding to support growth, innovation, and sustainability. These grants, offered by federal agencies, non-profit organizations, and private entities, cater to diverse business needs and sectors.

1. National Association for the Self-Employed (NASE) Growth Grant

•   Description: The National Association for the Self-Employed awards grants to small business owners to help take their companies to the next level. Grants can be used for marketing, advertising, hiring employees, expanding facilities, and other business needs.

•   Benefits: $4,000 grant

•   Eligibility: Qualifying NASE members may apply.

2. Comcast RISE Program Grants

•   Description: Comcast RISE offers grants, marketing consultations, media placements, and creative production services to small businesses in selected cities. Past winners have been based in the San Francisco, Los Angeles, and Sacramento areas.

•   Benefits: $5,000, along with marketing and technology resources

•   Eligibility: Open to independent small businesses that have been in operation for at least two years and have generated revenue for the most recent 12 months

3. American Express Backing Small Business Grants

•   Description: American Express funds these grants to locally significant small businesses to help them grow and thrive. The grants target established, independent companies with 20 or fewer full-time employees.

•   Benefits: Hundreds of $10,000 grants plus three $30,000 Enhancement Grants

•   Eligibility: Open to U.S. small businesses that have occupied a ​“bricks-and-mortar” location in an older or historic main street, downtown, or commercial district since at least January 1, 2025

How the Grants Application Process Works

Applying for a grant can be a valuable way for businesses to secure funding without the need for repayment. While the process may vary depending on the grant provider, there are general steps and required documents that most applications will follow.

1. Researching grants: The first step is identifying suitable grant opportunities. This involves researching various grants available from government agencies, non-profit organizations, and private entities. Pay attention to eligibility criteria, application deadlines, and the specific goals of each grant to ensure they align with your business needs and objectives.

2. Preparing documentation: Gathering necessary documents is crucial. Commonly required documents include:

•   Business plan: A comprehensive plan outlining your business goals, strategies, market analysis, and financial projections.

•   Financial statements: Recent balance sheets, income statements, and cash flow statements to demonstrate the financial health of your business.

•   Tax returns: Personal and business tax returns from the past few years.

•   Proof of ownership: Documentation proving ownership of the business.

•   Letters of recommendation: Endorsements from business partners, clients, or community leaders.

•   Project proposal: A detailed description of the project or purpose for which the grant is being sought, including timelines and expected outcomes.

3. Writing the grant proposal: A well-written grant proposal is key to a successful application. It should clearly articulate the need for funding, how the funds will be used, and the anticipated impact on the business. Tailor each proposal to address the specific requirements and objectives of the grant program.

4. Submitting the application: Follow the grant provider’s submission guidelines meticulously. This may involve filling out online forms, mailing physical documents, or submitting via email. Ensure all required fields are completed and documents are included.

5. Follow-up: After submission, follow up with the grant provider to confirm receipt of your application. Be prepared to provide additional information or clarification if requested.

By understanding and carefully navigating the grant application process, businesses can increase their chances of securing valuable funding to support their growth and innovation.

Do You Have to Pay Back a Small Business Grant?

A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. Absent any violations, though, small and midsized business owners are generally not required to pay back a small business grant.

You typically have to sign a funding agreement to accept a small business grant. As mentioned above, the grant may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.

Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.

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Who Is Eligible for Small Business Grants in California?

Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in California.

The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. Any small business, including individuals with freelancing business ideas, may be eligible for California grants for small business.

Tips for a Successful Grant Application

Competition for California business grants can be intense, so you’ll want to do everything you can to stand out. Here are some ways to increase the odds of getting your grant approved

•   Research the grant. It can be worthwhile to research the funding agency or organization, the grant’s history, and past awardees. Using this information in your proposal as it applies will show you did your homework.

•   Read samples. You can ask if the grant you’re applying for can provide samples of past winners’ proposals. These can give you a general idea of how yours might stand out

•   Follow instructions to the letter. Allow plenty of time to complete your proposal so you don’t miss key requirements. Make sure you include in your proposal everything that’s specified and present this information exactly as requested.

•   Be specific. Include plenty of detail about your business plan and financials, statistics to back up your problem statement, and research on the audience you want to serve.

Who Provides Small Business Grants in California?

State government agencies, including the California Department of Rehabilitation, offer a variety of small business grants in California. The state’s Office of the Small Business Advocate (CalOSBA) also administers funding opportunities, including grants for innovation and technical assistance.

You can compare small business grants in California with similar programs in other states, such as:

•   Florida small business grants

•   Indiana small business grants

•   New York small business grants

California Resources for Small Business Owners Looking for Funding

Here are some resources for small and medium-sized businesses looking for funding in the Golden State.

California Small Business Development Center (SBDC)

The California SBDC is a statewide program that can provide small business owners with the following services:

•   Confidential advising

•   Connecting tech entrepreneurs with venture capital

•   Interactive training sessions

SBA District Offices in California

The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. This may include startup business loans available through its 7(a) loan program. The SBA has six district offices in California:

•   SBA Fresno District Office. This SBA district represents California’s San Joaquin Valley and Central Coast. The office is centrally located in Fresno.

•   SBA Los Angeles District Office. This SBA district serves three counties in southeastern California (Los Angeles, Santa Barbara, and Ventura). It’s located in Los Angeles.

•   SBA Orange County / Inland Empire District Office. This SBA district covers three southern California counties (Orange, San Bernardino, and Riverside). Depending on where you’re based, you may be served by the main office in Santa Ana or the branch office in Palm Desert.

•   SBA Sacramento District Office. This SBA district serves 21 counties in northeastern California. It’s located in Citrus Heights.

•   SBA San Diego District Office. This SBA district serves the southernmost counties in California (San Diego and Imperial). It’s based in San Diego.

•   SBA San Francisco District Office. This SBA district serves 14 counties in northern California, including south of the Bay Area in Santa Cruz and along the Oregon border in Del Norte. It’s based in San Francisco.

SCORE Mentorship Programs

The Service Corps of Retired Executives, known as SCORE, provides free mentoring for small business owners as well as would-be entrepreneurs. Volunteer mentors meet with clients to discuss business goals; they also offer consulting services and tips on best practices. All business information is kept confidential per the agency’s agreement with mentors.

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Alternative Funding Sources for Small Businesses in California

Here are some alternative funding sources for small businesses in California.

California State Small Business Credit Initiative (SSBCI)

California’s State Small Business Credit Initiative is a federally funded program for small business owners in the Golden State. Federal law — the American Rescue Plan Act of 2021 — allocates nearly $1.2 billion to California’s SSBCI program. Note that SSBCI 2.0 programs are not direct loans or grants. Instead, when small businesses apply for ordinary loans, financial institutions can enroll the loan in one of the programs listed below.

Here’s how California plans to use the SSBCI funding:

•   California Collateral Support Program — $472.8 million. This program provides cash collateral to help companies qualify for small business loans.

•   California Small Business Loan Guarantee Program — $391 million. This program operates under the California Infrastructure and Economic Development Bank. It works with lenders to help California small business owners access funding, including financing for startup costs, construction, inventory, working capital, and business expansion.

•   California Capital Access Program (CalCAP) — $118.2 million. This program, also known as CalCAP for Small Business, uses SSBCI matching funds to support portfolio insurance on small business loans.

•   Inclusive California Initiative — $100 million. This program helps provide funds to venture capitalists who have a track record of investing in California small businesses owned by socially and economically disadvantaged individuals.

•   Emerging California Initiative — $50 million. This program provides venture capital funding to underrepresented managers and fund managers who intend to invest in small businesses owned by socially and economically disadvantaged individuals.

•   California Co-investment Initiative — $50 million. This program will help provide venture capital funding to eligible businesses, including those owned by underrepresented individuals or based in underserved regions of California.

California Microloan Lenders

Community-based nonprofits may offer microloans of up to $50,000 to small business owners in California, including microloans for women-owned small businesses. In general, microloans can range from $500 to $50,000 and may be available to startups.

California Small Business Loans from Private Lenders

Banks, credit unions, and private lenders may offer different types of small business loans to California business owners.

Here are some of the funding products you may consider depending on your needs:

•   Commercial real estate loans

•   Equipment financing

•   Small business loans for startups

•   Working capital lines of credit

The Takeaway

Small businesses are eligible for a number of grants in California, with grantors ranging from state or local governments to private sources. It may take some research to find grants that match the description of your small business, but those are the ones you’ll have the best chance of winning.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

With one simple search, see if you qualify and explore quotes for your business.

FAQ

How do you get a small business grant in California?

You can apply for California small business grants, but there’s no guarantee you’ll get approved for one. You may have to submit a grant application as a qualified small business owner to be considered for a small business grant in California.

How hard is it to get a business loan in California?

You may have difficulty getting a small business loan in California if you have bad credit or insufficient business experience. You generally have to pay back business loans with interest.

What is the easiest SBA loan to get approved for?

There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier types to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50K. If you’re looking for a streamlined application process, SBA Express working capital loans are an option you may consider.

What grants are available for minority business owners in California?

In addition to the many national programs that may award grants to Californians, there are state-specific small business grants as well. Agriculture and tech businesses are often specified.

Here are a couple of examples:

•   Fueling Emerging Entrepreneurs (FEE): This grant initiative and virtual pitch competition provides $5,000 microgrants to small businesses across Los Angeles County. The FEE program specifically targets entrepreneurs in low-to-moderate income communities and those who have historically faced barriers to accessing capital.

•   Specialty Crop Block Grants: Funded by the U.S. Department of Agriculture (USDA) and the California Department of Food and Agriculture, Specialty Crop Block Grants are available to small growers from historically underrepresented groups. The USDA provides a list of eligible crops on its website.

Can I apply for multiple grants at the same time in California?

Yes, you can apply for more than one small business grant within the same period of time. Diversifying your possible funding sources reduces the reliance on a single grant program and can improve your chance of success. However, you’ll want to manage your time and resources carefully when putting together applications, being mindful of specific documentation requests, requirements, restrictions, and deadlines.

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