Mapping America's Grant Divide: A State-by-State and Industry Breakdown

Where Do Small Business Grants Flow?

Where your business is located can make a big difference in securing a small business grant. Some states offer much more support per business than others, and the divide is bigger than most people expect.

States With the Most Grant Support

These 10 states offer the highest number of grants per 1,000 small businesses. That means business owners here may have better odds of securing funding.

• West Virginia — 8.72. Small businesses here receive the most grant support per capita.

• Hawaii — 7.65. Entrepreneurs benefit from a relatively high number of available grants.

• Iowa — 7.60. Grant funding is widely distributed, even in rural areas.

• New Hampshire — 7.37. Business owners see more opportunities for local and federal grants.

• Idaho — 7.18. A strong showing for small business grant access.

• North Dakota — 7.17. Grant programs appear more accessible to small businesses.

• Rhode Island — 7.08. One of the most grant-rich states on a per-business basis.

• Minnesota — 6.98. Small business owners benefit from consistent support.

• Kansas — 6.95. Strong community development backing helps secure funding.

• Wyoming — 6.62. Even with fewer businesses overall, grant access is solid.

States With the Least Grant Support

In these states, fewer grants are awarded per 1,000 businesses. That doesn't mean there aren't opportunities. It just means competition may be higher and options fewer.

• Tennessee — 2.64. The lowest grant-per-business rate in the country.

• Georgia — 2.95. Many businesses are competing for limited funding programs.

• Virginia — 3.06. Grant recipients are fewer despite a strong business presence.

• Florida — 3.08. High business volume makes grants harder to come by.

• Texas — 3.18. Big economy, but less grant availability per business.

• New York — 3.30. More businesses means more competition for grant funding.

• North Carolina — 3.56. A tough environment for winning small business grants.

• Alabama — 3.62. Lower per-business award rates despite federal grant programs.

• Illinois — 3.70. Limited access to funding opportunities per capita.

• South Carolina — 3.71. Small businesses may face added pressure when applying.

Based on grants awarded per 1,000 small businesses, entrepreneurs in West Virginia are 3.3 times more likely to receive a small business grant than those in Tennessee.

Why Location Matters

A 2024 study in ScienceDirect found that SBIR and STTR awards (both federal programs) tend to be clustered in just a few states. That trend shows up in small business grant data, too. Overall, 34% of all small business grants are awarded in just five states (California, Texas, Florida, New York, and Ohio), which also have some of the highest numbers of small businesses. The remaining 45 states receive only 66% of small business grants.

Research from the National Institutes of Health and Frontiers in Public Health confirms that federal grant programs display clear regional bias, often leaving rural or underserved states behind. The geographic imbalances found in these studies echo what we're seeing in our small business grant research. This situation can be frustrating for business owners who meet all the eligibility requirements but are still less likely to be selected due to the state in which they operate.

What Business Owners Can Do

If your state has fewer grants available, your best bet is to stay informed. Grants.gov and other federal agency sites list programs year-round, but that's just one piece. You can also work with local governments, economic development teams, or small business development centers for updates and support. These groups often help with the application process, connect entrepreneurs to funding opportunities, and explain what a grant program is looking for.

If you don't qualify or need funding faster than a grant allows, Clarify Capital can help with flexible financing solutions designed for real-world business needs.

High-Dollar vs. High-Volume

Grant funding doesn't flow evenly across industries. Some sectors receive fewer grants overall, but the checks are much larger. Others get tons of grants, but in much smaller amounts. Knowing where your business falls on that spectrum can help you decide whether grants are worth pursuing or if other funding options make more sense.

Industries With the Highest Average Grant Amounts

These industries don't receive the most grants, but when they do, the dollar amounts are significantly higher:

• Utilities — $3.53 million average grant. Projects in this space often involve infrastructure upgrades and long-term public benefits, which require large-scale investments.

• Health Care and Social Assistance — $2.48 million. Providers may qualify for high-value grants to cover compliance, staffing, and technology costs.

• Transportation and Warehousing — $1.50 million. These businesses typically manage large assets and complex logistics, both of which need serious capital.

For example, the EPA's WIFIA program funds water and infrastructure projects with a minimum size of $20 million, or $5 million for smaller communities. These are long-term utility efforts that require a detailed business plan and access to technical assistance.

Industries That Receive More Grants but Less Money

Some sectors land thousands of grants, but in smaller amounts, often due to microgrant structures or nonprofit-based assistance:

• Finance and Insurance — $914.90 average grant. Despite over 101,000 awards, these grants tend to be short-term or supplemental.

• Information (tech, media, and data) — $311,990. Many of these businesses qualify for innovation grants but may not receive large-scale backing.

• Educational Services — $638,800. These businesses often rely on community and nonprofit organizations for support.

Grants for small businesses in these sectors can come from private foundations or companies offering limited financial assistance. FedEx's grant program, NASE grants, and the Amber Grant are examples, with micro-grant awards typically ranging from $4,000 to $50,000.

Targeted Innovation Funding for Tech Businesses

Federal innovation grants offer solid support, but they're not quick or simple:

• SBIR Phase I grants average around $281,000.

• SBIR Phase II grants can reach $1 million to $1.25 million.

• STTR programs support collaboration between for-profit businesses and research institutions.

These grants are overseen by the U.S. Small Business Administration and require a clear technical proposal, a long timeline, and plenty of documentation. Business owners pursuing them often rely on support from small business development centers (SBDCs) or their local chamber of commerce for mentoring and guidance.

Where To Go When Grants Fall Short

If your business doesn't fall into a high-dollar category or if you need funding faster than a grant can deliver, you're not alone. Many business owners turn to alternative lenders for support, such as:

• Chamber and community programs. These often offer local grant initiatives tied to rural business development or economic recovery.

• SBA and nonprofit partnerships. Groups like NASE and SBDCs help with training, application reviews, and eligibility questions.

• USDA and federal initiatives. These target small and rural businesses that contribute to community growth or natural resource development.

Clarify Capital works with business owners across industries to provide quick, flexible financing when other options fall through. Whether you're dealing with an immediate expense or planning your next phase of business growth, we're here to help you move forward without the long wait tied to government grants.

The Unequal Landscape of U.S. Small Business Funding

Access to grants isn't the same across the board, putting extra pressure on small business owners trying to grow without outside investment.

For underrepresented groups like women-owned businesses, minority-owned businesses, and Native American entrepreneurs, support is improving, but barriers remain. Grant programs tied to women's business centers, government agencies, and local partners can help, but demand often exceeds supply.

If you're applying for a small business grant program, it helps to use every available business resource:

• Women's business centers help women-owned businesses access funding, build business plans, and prepare strong applications.

• SBDCs and chambers of commerce offer mentorship, one-on-one guidance, and support with the grant application process.

• Government agencies share grant listings, explain eligibility requirements, and provide answers to common questions.

Still waiting on funding, or need it faster? Clarify Capital offers quick, flexible business financing to help with cash flow, expansion, and everything in between. Whether you're past the startup stage or just getting established, we're here to support your entrepreneurship journey.

Methodology

To analyze how small business grant funding is distributed across states and industries, we compiled a comprehensive dataset of publicly available grant records. All data was manually sourced from Grants.gov, the official U.S. government database for federal grants, with a focus on assistance programs explicitly targeting small businesses.

We categorized each grant by recipient state, industry classification (using NAICS and CFDA codes), and funding details, including the total obligated amount and number of grants awarded. This allowed us to calculate key metrics such as:

• Total grant funding by state and industry.

• Grants per 1,000 small businesses, using the latest SBA state-level small business counts.

• Average grant amount per industry, offering insight into sectors receiving high-dollar awards versus widespread microgrants.

All data was collected and finalized in June 2025, ensuring the analysis reflects the most recent funding patterns available at the time of publication. Our study does not include private or non-governmental grant programs unless they were listed in the federal grant database. Grant amounts reflect averages based on available data and may include a mix of large and small programs that vary by industry scope.

About Clarify Capital

Clarify Capital gives financial backing to small businesses, offering up to $5 million in no-doc business loans and fast business loans with competitive rates and quick processing times. We personalize the lending experience and help entrepreneurs advance their business goals.

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