Business Microgrants 101

by | Apr 5, 2025 | Education

Business Microgrants 101: Funding for Emerging Entrepreneurs

Starting a business can be exciting—but it’s also expensive. That’s where microgrants come in.
If you’re launching a venture or side hustle and need a financial boost to get off the ground, this guide from our Scholarships & Economic Empowerment Series will show you what microgrants are, where to find them, and how to apply.

What Is a Microgrant?

A microgrant is a small sum of money—typically between $500 and $5,000—awarded to individuals or small businesses to support specific projects, equipment needs, or startup costs.
Unlike loans, microgrants do not have to be repaid.

Microgrants are ideal for:

  • First-time entrepreneurs

  • Women- and minority-owned startups

  • Nonprofits and social impact initiatives

  • Side hustle projects ready to scale

What Microgrants Can Be Used For

  • Purchasing supplies, software, or basic equipment

  • Launching a marketing campaign or website

  • Covering registration fees, permits, or certifications

  • Paying for shipping, packaging, or production costs

  • Testing a new product or business model

Where to Find Microgrants

  • Galaxy Grants – Microgrants for women and minority-owned businesses. Apply Here

  • Wish Local Empowerment Program – Supporting Black-owned businesses. Learn More

  • IFundWomen – Crowdfunding combined with grant programs for women entrepreneurs. Explore Programs

  • Amber Grant for Women – Monthly $10,000 grants for women-owned businesses. Apply Here

  • Local Chambers of Commerce and Foundations – Many offer small business development grants and resources.

DMV-Based Programs:

  • DC Small Business Recovery Microgrant Program

  • Baltimore Development Corporation (BDC) Grant Opportunities

  • Virginia Community Business Partnership (CBP) Programs

Tips to Strengthen Your Microgrant Application

  • Be specific: Clearly explain how you will use the funds. Use real numbers and a defined purpose.

  • Highlight impact: Show how the grant will help grow your business or benefit your community.

  • Include a budget: Break down your funding needs simply and clearly.

  • Tell your story: Explain what problem you’re solving and why you are the one to solve it.

  • Personalize each application: Avoid copying and pasting the same answers across multiple applications.

Microgrant Application Red Flags to Avoid

  • Vague statements like “I just want to grow my business” without specifics.

  • Overlooking eligibility criteria or leaving application questions unanswered.

  • Submitting an outdated or poorly formatted business plan.

  • Using the same essay or personal statement for different grant programs without tailoring it.

Prepare to Apply: Microgrant Checklist

Before applying, gather:

  • Business registration documents (LLC, sole proprietorship, etc.)

  • EIN (Employer Identification Number)

  • A short business summary or plan

  • A detailed budget for how the funds will be used

  • A professional email and online presence (website or active social media profiles)

  • Photos or samples of your work (optional but helpful)

Sample Microgrant Question & Winning Answer

Q: How will you use this grant to grow your business?

“This grant will allow me to purchase food-grade packaging and labeling for my handmade spice blends. With proper branding and compliance, I can begin wholesaling to local grocery stores—doubling my income in the next six months.”

Why this works:
It’s specific, actionable, growth-focused, and shows a clear plan for results.

Final Thought

You don’t need $100,000 to make an impact—you just need the right support at the right time.
Microgrants can be the fuel that turns your idea into income and your hustle into a thriving business.

Stay tuned for more in our Scholarships & Economic Empowerment Series, including:

  • Navigating FAFSA and Pell Grants

  • College Budgeting for First-Time Students

Dr. Bertrand Fote, MD, MBA, FACEP, CF2
President, The Gatsby Showcase Foundation

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