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.
The biggest small business grant in California is not really a grant. The California Competes Tax Credit is the largest program. It puts $819.8 million on the table for fiscal year 2026-27. But it is a tax credit, not cash. The state runs its grants and incentives mainly through two agencies, GO-Biz and CalOSBA. For real cash, the STEP export voucher pays up to $10,000. SEED microgrants of $5,000 to $10,000 for immigrant founders are between rounds. Most programs are competitive. This guide tracks each one, with its amount and its status.
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 a federal fiscal year, reimbursing up to 75 percent of pre-approved costs
Round based, no current round dates publishedSTEP vouchers pay back up to 75 percent of your pre-approved export costs, including spots at overseas trade events. Each voucher is worth up to $10,000 per federal fiscal year. Your business must meet SBA size limits and have real operations in California. Applications are not open year round. Each activity period has its own deadline, and California has not posted the current one.
Regional Investment Initiative (California Jobs First)
GO-Biz / California Labor and Workforce Development Agency
$80M to 11 projects, $15M to 14 tribes (2025)
Round 2 implementation under way, regional pipelines due September 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.
California Competes Tax Credit (CCTC)
Governor's Office of Business and Economic Development (GO-Biz)
$819.8 million in credits for FY 2026-27, a tax credit rather than a grant
Deadline Jan 4, 2027This is a tax credit for businesses that locate, stay, or grow in California. GO-Biz runs three windows a year and scores you on jobs, investment and value to the state. California has $819.8 million of credits to allocate in fiscal year 2026-27. The July window has closed. Next is 4 to 25 January 2027, with $250 million in it, then 1 to 15 March 2027 with $219.8 million plus whatever is left over. It is a credit, not cash.
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.
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, with training, coaching and small cash grants of $5,000 to $10,000. You apply through a partner group, never to the state. Funding is not rolling. It comes in numbered rounds, and SEED 3 closed on 26 February 2026 with no next round announced.
California Competes Grant Program
Governor's Office of Business and Economic Development (GO-Biz)
See the GO-Biz grant awardee list
No round announced for FY 2026-27A grant version of the tax credit, for firms that cannot use a credit against California tax. It has looked for 500 or more new jobs, $10 million or more invested, or a high-poverty location. There is no round for fiscal year 2026-27. GO-Biz publishes no programme page for it either, only a list of past awardees, so treat the tax credit as the live route.
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.
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 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. The California Competes Grant, which wanted 500 new jobs or $10 million invested, has no round announced for this fiscal year. The tax credit is the live route.
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.
Grants in Other States
All state grant guidesFrequently Asked Questions
Not directly from the state right now. SEED microgrants for immigrant founders and CA RISE for employment social enterprises were the two true cash grants here, and both rounds have closed, CA RISE on July 3, 2026. The California Competes Tax Credit is far bigger, over $180 million for 2026-27, but it is a credit against income tax rather than cash. The STEP export voucher is the one live route to reimbursement money. CalOSBA often has no open direct to business grant at a given moment, so sign up for its newsletter to catch the next round.
Most people mean the California Dream Fund. It gave microgrants of up to $10,000 to new business owners, it was a one time $35 million programme, and it closed to new applicants at the end of 2022. The nearest thing open today is the STEP export voucher, which reimburses approved export costs. SEED microgrants of $5,000 to $10,000 for immigrant founders are the other programme people have in mind, and that round is closed too. 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 programme. The California Competes Tax Credit takes about 90 days from application to committee approval, and its next window runs January 4 to 25, 2027, with a third window March 1 to 15, 2027. CalOSBA programmes such as CA RISE and SEED review for 60 to 90 days after a deadline and then pay by reimbursement, when a round is open. For STEP vouchers you are reimbursed after you finish the approved activity. Plan on three to six months from application to funds for most state programmes.
Not from an open state programme today. SEED microgrants for immigrant founders ran from $5,000 to $10,000 through community partners and that round is closed. The STEP export voucher is the live option, and it reimburses pre approved export costs rather than paying a flat sum. If you want a grant of that size, watch the California Grants Portal and apply through the intermediary organisation rather than the state, which is how most of these are run.
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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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