Grants, Loans, and SBA Programs for Students and Small Business Owners
Federal investment in education and small business runs through dozens of programs — from Pell Grants that don't need to be repaid to SBA loans with below-market rates to R&D grants for innovative small companies. Most people are only aware of a fraction of what's available.
Key Programs
Federal Pell GrantU.S. Department of Education
What It Is
Need-based grant for undergraduate students that does not need to be repaid. The foundation of federal student financial aid.
Who Qualifies
Undergraduate students with exceptional financial need who have not yet earned a bachelor's degree. Award amount is based on your Student Aid Index (SAI), the cost of attendance and your enrollment status. If you see a page or a form referring to an Expected Family Contribution, it predates the FAFSA Simplification Act — the SAI replaced it.
What You Get
Up to $7,395/year. Actual amount depends on financial need, cost of attendance, and enrollment status.
How to Apply
File the FAFSA at studentaid.gov. Pell Grant eligibility is automatically determined as part of the FAFSA process.
Federal Direct Student LoansU.S. Department of Education
What It Is
Low-interest loans for students enrolled at least half-time at accredited institutions. Includes Subsidized (need-based) and Unsubsidized (not need-based) loans.
Who Qualifies
U.S. citizens and eligible non-citizens enrolled at least half-time. Subsidized loans require demonstrated financial need.
What You Get
Subsidized: interest does not accrue while enrolled. Rates ~6.5% for undergrad. Annual limits: $5,500–$12,500 depending on year and dependency status.
How to Apply
File the FAFSA at studentaid.gov. Accept loan offers through your school's financial aid portal.
AmeriCorps Education AwardAmeriCorps
What It Is
Education award for completing a term of national service. Can be used for qualified student loans or future education expenses.
Who Qualifies
Citizens, U.S. nationals and lawful permanent residents aged 17 or older who complete a full-time or part-time AmeriCorps service term. Eligibility is set by statute and is broader than citizenship: U.S. nationals and lawful permanent residents may serve on the same terms.
What You Get
Full-time award: $7,395 (same as maximum Pell Grant). Can be used to repay student loans or pay future tuition.
How to Apply
Apply for AmeriCorps positions at americorps.gov/serve. Education award is granted upon successful term completion.
SBA 7(a) Loan ProgramU.S. Small Business Administration
What It Is
The most common SBA loan — provides guaranteed financing for a wide range of business purposes including working capital, equipment, and real estate.
Who Qualifies
For-profit small businesses that meet SBA size standards and operate in the U.S. SBA lends where the credit you want is not available on reasonable terms from non-federal, non-state and non-local government sources. That is a test the lender applies to the terms on offer — it does not require you to have been turned down everywhere first. Good personal credit generally required.
What You Get
Loans up to $5 million. Interest rates below conventional commercial loans. Longer repayment terms (up to 25 years for real estate).
How to Apply
Apply through an SBA-approved lender (bank, credit union, or online lender). Use the SBA Lender Match tool at sba.gov/funding-programs/loans/lender-match-connects-you-lenders.
SBA MicroloanU.S. Small Business Administration
What It Is
Small loans up to $50,000 for small businesses and nonprofits that need smaller amounts of capital or who may not qualify for traditional bank loans.
Who Qualifies
Small businesses and nonprofit childcare centers. Especially useful for startups, businesses owned by women, veterans, or minorities.
What You Get
Average loan: about $13,000. Interest rates vary by intermediary (typically 8%–13%). Terms up to 7 years.
How to Apply
Apply through SBA-approved microlending intermediaries. Find one at sba.gov/loans/microloans.
SBIR / STTR GrantsMultiple federal agencies (NSF, NIH, DoD, and others)
What It Is
Research and development grants for small businesses engaged in innovation with potential for commercialization. Non-dilutive funding (no equity given up).
Who Qualifies
For-profit small businesses engaged in R&D. An SBIR or STTR awardee, together with its affiliates, must not have more than 500 employees — 500 exactly is still eligible. STTR requires partnership with a research institution.
What You Get
Phase I: up to $275,000. Phase II: up to $1.83 million. Specific amounts vary by agency.
How to Apply
Apply through the relevant federal agency's SBIR/STTR portal. See sbir.gov for consolidated opportunities.
HUBZone ProgramU.S. Small Business Administration
What It Is
Federal contracting preferences for small businesses in Historically Underutilized Business Zones. Provides competitive and sole-source contracting opportunities.
Who Qualifies
Small businesses in HUBZone-designated areas where at least 35% of employees live in a HUBZone. Check eligibility at maps.certify.sba.gov.
What You Get
10% price preference in full and open competition. Access to set-aside contracts. Federal agencies have a 3% HUBZone contracting goal.
How to Apply
Apply for HUBZone certification at certify.sba.gov.
Trusted Resources
Trusted tools to help you claim what you've earned
QuickBooks — Small Business Accounting
Industry-standard accounting software for small businesses. Tracks income, expenses, and prepares you for tax season and loan applications.
Start with QuickBooks →*Gusto — Payroll for Small Business
Simple, compliant payroll for small businesses with SBA loans or federal contracts where payroll records are critical.
Try Gusto free for 30 days →*Lendio — SBA Loan Marketplace
Compare SBA loan options from multiple lenders. Simplifies the lender matching process for 7(a) and other SBA-backed financing.
Find SBA loan options →*
* Affiliate disclosure: GovSifter may earn a commission from links above. This does not affect program listings or editorial content.