Small Business Grants in California and How to Apply in 2024

Table Of Contents

• 5 California-Specific Small Business Grants
• 5 National Grants For California Small Businesses
• Other Resources to Help Find and Apply for Small Business Grants in California
• 3 Strategies for a Successful Grant Application
• How to Bounce Back From Grant Rejection
• Your California Small Business Dream Awaits

California isn't just the home of Silicon Valley and sun-kissed beaches; it's a thriving ecosystem for small businesses. With over 4 million small enterprises making up a staggering 99.8% of all businesses in the Golden State, it's clear that California is where dreams of entrepreneurship come alive.

But let's face it—turning those dreams into reality often requires more than passion and hard work. It takes funding, and that's where small business grants come in. These financial lifelines can be the difference between a great idea and a great success story.

We’ve put together a guide to help you find a small business grant in California and how to apply for them. So, whether you're a startup in San Francisco or a mom-and-pop shop in San Diego, you’ll have a list of resources to help you apply for a grant in the Golden State.

5 California-Specific Small Business Grants

1. California Dream Fund (CDFG)

If you're a fresh-faced entrepreneur with big dreams but a small wallet, the California Dream Fund might be your ticket to success. The CDFG is a one-time grant of $10,000 for eligible small businesses (start-ups) that helps new businesses, especially those in underserved communities.

Who Can Apply

To be eligible for a Dream Fund grant, small businesses and nonprofits must meet the following requirements:

• Qualify as an eligible small business with five employees or less and $1 million or less in annual receipts.
• Successfully complete a business training program and receive one-on-one consulting from an SB TAEP-funded Center.
• Register the business or obtain a California business license after July 1, 2019.
• Submit all necessary documentation to establish the business in California.
• Provide a self-certification confirming eligibility for the Dream Fund grant.
• Obtain certification from the SB TAEP Center verifying eligibility and completion of required Dream Fund training.
• Ensure all business owner(s) are California residents.

How to Apply: Download the grant application and a list of requirements on the Ledistry website. 

2. Route 66 Extraordinary Women Micro-Grant

This program aims to support the diverse community along the iconic "Mother Road" by offering financial assistance to women entrepreneurs.

The program will run for three rounds: one in 2023 and two in 2024.

• Each grant award can be up to $2,000.
• Up to 10 grants will be awarded in each round.

Who Can Apply

To be eligible for a Route 66 Extraordinary Women Micro-Grant, small businesses must meet the following requirements:

• Be at least 51% women-owned or women-operated
• Have a physical location on Route 66 or operate in a Route 66 community
• Have fewer than 20 full-time employees
• Be a registered business in good standing
• Serve Route 66 businesses or attractions (e.g., tour operators, suppliers)
• Include small, local franchises with five or fewer locations

How to Apply: Visit The Road Ahead Partnership website for more information and to apply.

3. Restaurants Care Resilience Fund

The Restaurants Care Resilience Fund aims to support independent eateries by providing a $5,000 grant for tech upgrades, equipment improvements, employee training, and unforeseen hardships.

Who Can Apply

To be eligible for the Restaurants Care Resilience Fund, restaurant owners must:

• Be an independent restaurant or commercial caterer in CA, owned by a CA resident.
• Independently owned, for-profit businesses, including sole proprietorships, LLCs, or Corporations that are not publicly traded or part of a large chain/franchise. Nonprofits are not eligible.
• Have less than five brick-and-mortar units
• Under $3 million in annual revenue (combined for all units/concepts).
• Open for at least one full year and currently operating.
• Must be a commercial PG&E, SoCalGas, or SDG&E customer, with a utility bill as proof.
• Must serve both food and beverage. (e.g., a coffee shop must also serve food like scones or muffins).
• Must be a brick-and-mortar restaurant, open to the public, with regular operating hours.
• Previous grant recipients can apply again, but priority is given to those who haven't received funding before.

Ineligibility: Members of the state boards of the California Restaurant Association and California Restaurant Foundation cannot apply.

How to Apply: Visit the Restaurants Care website to learn more about the grant application process and to apply.

2023 Grantee

Jaime Mack, owner of the SpiderMonkey Dessert Studio, was among the latest restaurants in Northern California to be awarded $5,000 grants as part of the California Restaurant Foundation’s Restaurants Care Resilience Fund. The grant will help Jaime offset the reduced hours and pay employees through the holiday season.

In an article published by The Observer, Jaime said, “I’m really grateful for the grant because I will be able to give them a little bit of a bonus like I wanted to this year. I try to give them a bonus every year, but it wasn’t looking good,”

4. San Francisco Women's Entrepreneurship Fund

The San Francisco Women’s Entrepreneurship Fund provides mini-grants up to $5,000 dollars for women-owned businesses to use on marketing, accounting, projects, equipment, and more.

Who Can Apply

Women-owned, full-time operational businesses in San Francisco are eligible to apply if:

• Current, active relationship with a San Francisco nonprofit organization (funded by the city of San Francisco) that provides technical assistance to small businesses established and operating in the city of San Francisco
• The required amount of consulting with the provider has been completed
• Committed to working with the technical provider for six more months
• Considered a low/moderate income owner
• The application has been signed by the nominator and owner

How to Apply: To apply, visit the MEDA website.

5. Founders First Job Creators Quest Grant

The Quest grant aims to support underrepresented entrepreneurs in Southern California by providing $5,000 to ten diverse-led businesses. Grant recipients will also be given a scholarship to one of FFCDC's business accelerator programs.

Who Can Apply

To be eligible for the Quest grant, applicants must:

• Be a diverse founder (Latino, Black, Asian, Women, LGBTQ+, Veterans) or in low-income areas
• Be a for-profit Business-to-business or Business-to-government company
• Have $100K-$5M annual revenue
• Employ two or more full-time employees
• Able to add 1-2 premium wage jobs in next year
• Be located in Southern California (LA, OC, Riverside, San Bernardino, Imperial, San Diego)

How to Apply: Visit the Founders First website for more information.

5 National Grants For California Small Businesses

While California-specific grants are great to apply for to grow your small business, don't overlook national programs that welcome Golden State entrepreneurs. Here are a few to keep on your radar:

1. BMO Celebrating Women Grant

The BMO Celebrating Women Grant offers $10,000 to fifteen selected women-owned businesses to support their growth plans.

Who Can Apply

Women-owned businesses located within BMO's twenty-four-state U.S. footprint and meet the following requirements:

Applicant:

• U.S. resident of legal age
• Authorized to represent the business
• Not affiliated with BMO or the program

Business:

• 51%+ women-owned/controlled
• Active and legally operating in the U.S.
• Located in specific states (AZ, CA, CO, FL, IA, ID, IL, IN, KS, MN, MO, ND, NE, NM, NV, OK, OR, SD, UT, WA, WI, WY) or within 100 miles of a BMO branch in MI or TX
• For-profit with annual revenue ≤$5 million USD
• In good standing with registration jurisdiction
• Operating for at least two years as of April 1, 2024

How to Apply: The application window is currently closed, but continue to check the BMO Celebrating Women Grant Program website for updated information on the next application window.

2. Fast Break for Small Business

The NBA, WNBA, and NBA G-League have teamed up with the Accion Opportunity Fund and LegalZoom to support small businesses nationwide. This powerhouse partnership offers $10,000 grants for small business owners and LegalZoom services to give entrepreneurs essential tools and resources for success.

Who Can Apply

To be eligible for the Fast Break for Small Business grant, businesses must:

• Be a U.S.-based business
• Operating for at least three months
• Have an annual revenue under $1 million
• Have an active business bank account
• Provide a recent tax return if the business is over twelve months old
• Provide a business formation document if the business is three to twelve months old

For new entrepreneurs (LegalZoom service only):

1. Must be a U.S.-based business
2. Operating less than three months in business or have a business idea

How to Apply: Visit the Accion Opportunity Fund website for information about required documents and to apply for grant funding.

Deadline: September 13th, 2024

3. Amber Grant

WomensNet's "Amber Grant," established in 1998, honors Amber Wigdahl, who died at 19 before realizing her business dreams. The organization now gives at least $30,000 monthly in grants, including Marketing and Business Category Grants and two $25,000 Year-End Grants.

The application process is simple: briefly describe yourself and your business dream. One application automatically qualifies you for all relevant grants, and the winners are announced by the 23rd of the following month.

Who Can Apply

Any woman who is starting a business or already has a business.

How to Apply: Visit the WomensNet website for a list of other grants you may be eligible for, required documents, and instructions on how to apply.

4. National Association for the Self-Employed Growth Grant

The National Association for the Self-Employed (NASE) offers a valuable opportunity for small business owners to be awarded $4,000 for business growth purposes, such as marketing, advertising, hiring employees, expanding facilities, and other specific needs.

Who Can Apply

To be eligible for the NASE Grant, you must be a NASE member in good standing.

• Eligible to apply immediately:
  • Annual Members
  • Veteran Members
  • Silver Members (annual payment)
  • Gold Members

• Eligible to apply after 90 days of membership:
  • Monthly Members
  • Silver Members (monthly payment)

How to Apply: Visit the National Association for the Self-Employed website to learn more about the requirements for applying for the NASE grant and becoming a member.

5. The Awesome Foundation Grant

If you have a bold, exciting concept, the Awesome Foundation Grant could be your chance to bring it to life with some financial support and community backing. Every month, the Awesome Foundation awards $1000 to projects and their creators.

Who Can Apply

Everyone with a project needing funding is welcome to apply!

How to Apply: Visit the Awesome Foundation website to learn about the required documents and to apply.

Other Resources to Help Find and Apply for Small Business Grants in California

California, true to its innovative spirit, has created a centralized hub for grant seekers—the California Grants Portal. This digital gateway has become a go-to resource, with over 1.3 million users visiting the site between 2021 and 2022!

However, it focuses on competitive, first-come, first-served grants offered by state agencies. So, it should be used as a starting point, not the finish line.

Pro Tip: Sign up for email alerts on the California Grants Portal to stay updated on new grant opportunities.

3 Strategies for a Successful Grant Application

As a small business owner, securing a grant can be a game-changer for your company. But with fierce competition, how do you make your application stand out?

Below are three key strategies to help you craft a winning grant application.

1. Follow Instructions Carefully

Pay attention to deadlines, follow instructions to the letter, and proofread, proofread, proofread!

It's crucial to carefully read and follow all guidelines and requirements for grant applications. Missing details like deadlines, formatting, or required documents can lead to disqualification.

First, pay close attention to the details. It might sound simple, but following instructions precisely is crucial. Each grant has its own set of rules and requirements. Make sure you understand and meet every single one. Double-check deadlines, format your application as requested, and include all required paperwork. It's tedious work, but missing even one requirement could disqualify you before the review process begins.

Commonly required documents include:

• Business plan
• Financial statements (balance sheet, income statement)
• Tax returns
• Detailed project proposal
• Proof of business registration and licenses

2. Share Your Story

Think of your application as more than just a form - it's your chance to shine. What drove you to start your business? What challenges have you overcome? How does your business make a difference in your community?

Share your passion and vision. Use real examples to show why your business deserves this grant. Remember, the people reviewing your application are human, too. A compelling story can make your application memorable and relatable.

3. Take Your Time

Rushing through it at the last minute is tempting, especially when you're juggling the daily demands of running a business. But a well-prepared application shows you're serious and committed. Write clearly, check for errors, and be specific about how you'll use the grant money and what impact it will have.

For example, instead of saying the grant will help your business grow, explain that it will allow you to buy new equipment, expand your product line, and increase your revenue by a certain percentage within a specific timeframe.

How to Bounce Back From Grant Rejection

Facing a grant rejection can be disheartening for any small business owner, but it's a common part of the process. Even successful businesses often face a few "no's" before they hit the jackpot.

So why do rejections happen? Sometimes, it's just tough competition - there's only so much money to go around. Other times, it might be something in your application. Maybe you missed a detail, or your business plan wasn't clear enough. Or perhaps your project just wasn't the perfect fit for what that particular grant was looking for.

Here's the important part: don't let rejection stop you in your tracks. Instead, use it as a stepping stone. Here's how:

Request Feedback

Most grant providers are willing to offer insights on why your application wasn't successful. This feedback is invaluable. It provides a clear picture of where you can improve and what the grantors are looking for. Don't be afraid to ask specific questions about areas of weakness in your application.

Refine Your Proposal

Use the feedback to strengthen your application. This might involve clarifying your business model, providing more detailed financial projections, or better articulating your project's impact. Take time to address each point of feedback thoroughly.

Explore Other Opportunities

While you may be able to reapply for the same grant in the future, don't put all your eggs in one basket. Research other grant opportunities that align with your business goals. Each application you complete will help you refine your pitch and increase your chances of success.

Are There Other Ways to Get Funding?

While grants are fantastic, they're not the only way to get funding for your small business.

Crowdfunding

Crowdfunding is a popular alternative for funding small businesses. It involves raising small amounts of money from many people, usually through the internet.

Four popular crowdfunding platforms include:

1. Kickstarter: Great for creative projects and product-based businesses.

1. Indiegogo: Offers flexible funding options and supports a wide range of projects.

1. GoFundMe: Perfect for personal and community-related fundraising efforts.

1. Patreon: Provides ongoing financial support from patrons for creators and artists.

Small Business Loans

Traditional bank loans or SBA (Small Business Administration) loans can provide substantial funding. They typically offer lower interest rates than credit cards or personal loans. However, they often require good credit scores and may need collateral. Online lenders are another option, sometimes offering quicker approval processes but potentially higher interest rates.

Angel Investors

These are typically wealthy individuals looking to invest in promising startups. They often provide mentorship along with capital. In exchange, they usually expect equity in your company.

Your California Small Business Dream Awaits

California's entrepreneurial spirit is calling. Are you ready to answer?

From the sun-soaked beaches of SoCal to the misty redwoods of the north, California is a land of opportunity for small businesses. With the right grant, your entrepreneurial dream could become the next California success story.

Remember, the journey to securing a grant may be challenging, but it's also an opportunity to refine your business plan and clarify your goals. Take your time to research grants that will help your business grow. Be sure to know the requirements for applying, polish up your application, and go after those grants with the same passion that brought you into business in the first place.