Imagine trying to grow a business with big dreams but limited resources. That’s what many small business owners across California are experiencing. In a state known for its vibrant economy and entrepreneurial spirit, small businesses account for nearly all business establishments and employ millions.

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However, turning ideas into sustainable enterprises requires funding. That’s where grants come in. Unlike loans, grants provide financial support without the burden of repayment. This offers an important lifeline to help small businesses launch, grow, or weather economic uncertainty.

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This guide walks you through the top grant opportunities available to California small businesses in 2025, how to apply, and how to improve your chances of getting funded.

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Top California Grant Programs for 2025

Here are some of the leading California small business grants for 2025:

• California Competes Tax Credit
• Green energy grants
• Venmo Small Business Grant

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#1 California Competes Tax Credit (CCTC) 

The California Competes Tax Credit is a state-level income tax credit designed to attract and retain businesses in California.

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It incentivizes companies to create high-quality, full-time jobs and make significant capital investments within the state. For the 2025–2026 fiscal year, the program has been renewed with a total allocation of $215 million available across multiple application periods.

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Eligibility

Businesses of any size, industry, or location are eligible to apply, provided they plan to:

• Establish or expand operations in California.
• Create new, full-time jobs that meet or exceed specified wage thresholds.
• Make substantial capital investments in the state.

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Applicants must commit to a five-year agreement that outlines annual milestones for job creation, salary levels, and investment targets. Failure to meet these commitments may result in the recapture of the credit.

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Application Process

The CCTC application process is competitive and involves the following steps:

• Apply during designated periods (the final window for FY 2025 was February 24–March 10).
• Evaluation considers job creation, wages, investment amounts, strategic importance, and influence of the tax credit.
• Negotiation of terms follows if selected, including performance milestones.
• Approval by the CCTC committee.
• Claim the non-refundable credit (carry forward up to six years if unused).

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In May 2025, Governor Gavin Newsom announced that $30.5 million in CCTC awards were granted to seven companies, supporting the creation of new jobs and spurring over $2.1 billion in private investment across California.

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#2 Green Energy Grants

California offers several green energy grants to support small businesses committed to environmental sustainability and the adoption of clean technologies. These grants aim to reduce carbon emissions, enhance energy efficiency, and promote the use of renewable energy sources across the state.

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They include:

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California Green Business Network

The California Green Business Network (CAGBN), in partnership with Intuit, offers $1,000 Electrification Mini-Grants to support small businesses in transitioning to cleaner, electric-powered operations.

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These grants aim to facilitate the replacement of gas-powered equipment with electric alternatives, promoting sustainability and reducing greenhouse gas emissions.

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Eligibility

To qualify for the Electrification Mini-Grants, businesses must meet the following criteria:

• Be a Certified-Level Green Business or in the process of achieving certification by January 31, 2025.
• Operate as a small business with 100 or fewer employees.
• Have annual revenues of $2.5 million or less.
• Agree to allow CAGBN and Intuit to use their business story in promotional materials and participate in future promotion opportunities if requested.

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The grants can be used to cover or offset costs associated with various electrification upgrades, including but not limited to:

• LED lighting upgrades and lighting controls.
• Installation of electric vehicle (EV) chargers.
• Smart thermostats.
• Replacement of gas-powered water heaters with heat pump water heaters.
• Acquisition of electric bikes or EV cars.
• Solar-powered batteries.
• Energy-efficient appliances.

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Projects capable of reducing greenhouse gas and saving cost will receive priority consideration.

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CAGBN provides assistance through dedicated Green Business Program Coordinators who guide applicants from the application phase through project implementation.

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They also collaborate with local partners to support underserved businesses, thus promoting a more inclusive and sustainable future.

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Community Energy Reliability and Resilience Investment (CERRI) Program

The CERRI Program, administered by the California Energy Commission (CEC), is aimed at enhancing the state's energy infrastructure, especially in underserved and disadvantaged communities.

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Funded through the federal Infrastructure Investment and Jobs Act (IIJA) Section 40101(d), the program focuses on projects that:

• Reduce the frequency and duration of power outages.
• Enhance the ability of communities to maintain essential services during outages.
• Advance California's clean energy and climate objectives.
• Promote energy justice by prioritizing investments in tribal, disadvantaged, and low-income communities.
• Create high-quality jobs with strong labor standards in the clean energy sector. 

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Eligibility

Eligible applicants include:

• Electric grid operators.
• Electricity storage operators.
• Electricity generators.
• Transmission owners or operators.
• Distribution providers.
• Fuel suppliers.
• Other relevant entities as determined by the CEC.

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Applicants can partner with community-based organizations (CBOs) or tribes, especially when proposing projects in priority communities. 

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Application Process

The current solicitation, GFO-23-312r2, was released on May 8, 2025, with a submission deadline of August 29, 2025, at 11:59 PM. Here are the steps to apply:

• Review the solicitation manual and application forms via the CEC's official website.
• Create an account on the Energy Commission Agreement Management System (ECAMS) portal to submit your application.
• Complete all required documents, including project descriptions, budgets, and partnership agreements.
• Upload all materials to the ECAMS portal before the deadline.
• Participate in pre-application workshops for guidance and clarification on the application process.

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Rural Energy for America Program (REAP)

REAP provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or energy efficiency improvements.

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Eligibility

Eligible applicants include:

• Agricultural Producers: Individuals or entities directly engaged in agricultural production, deriving at least 50% of their gross income from agricultural operations.
• Rural Small Businesses: Businesses located in eligible rural areas, as defined by the USDA, that meet the Small Business Administration size standards.

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Applicants must not have any outstanding delinquent federal taxes, debt, judgment, or debarment.

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Application Process

The application process for REAP depends on the type of funding:

• Grants and Combined Grant and Guaranteed Loan Applications: The USDA does not accept these applications between April 1 and June 30 each year. Applications submitted during this period will not be reviewed or processed and will be returned.
• Guaranteed Loan Applications: These are accepted and compete on an ongoing basis by 7 CFR 5001.315.

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All projects require an environmental review prior to award or construction.

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Applicants may qualify for a grant of up to 25% of eligible project costs, a guaranteed loan of up to 75% of eligible project costs, or a combination of both, not exceeding 75% of eligible project costs.

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In 2025, the USDA announced $145 million in funding for 700 loans and grant awards through REAP to assist agricultural producers and rural small business owners in making energy efficiency improvements and renewable energy investments.

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#3 Venmo Small Business Grant

The Venmo Small Business Grant is an annual initiative by PayPal's Venmo platform, designed to support small businesses in the United States. In 2025, the program has expanded its impact, offering $20,000 grants to 10 selected small businesses.

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These grants help with various business expenses, including rent, marketing, and digital tools, to foster growth and sustainability.

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Eligibility

To qualify for the 2025 Venmo Small Business Grant, applicants must meet the following requirements:

• Have an active U.S.-based Venmo Business Profile in good standing, complete with a profile photo, background image, and business description.
• Generate less than $50,000 in annual sales.
• Employ 10 or fewer individuals.
• Be operational and have conducted at least $500 in sales within the three months preceding the application period.
• Be a legally registered business entity in the United States or the District of Columbia.

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Businesses owned or operated by employees or immediate family members of PayPal, Inc., Merkle Inc., Taproot Foundation, Start Small Think Big, Inc., and Hello Alice, Inc., are ineligible.

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Application Process

The application process for the 2025 Venmo Small Business Grant involves the following steps:

• Ensure your Venmo Business Profile is active and complete.
• Visit the official Venmo Small Business Grant application page.
• Fill out the application form.
• Review your responses and apply before the deadline.

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Judging Criteria

Applications are evaluated based on the following criteria:

• The inspiration, innovation, and originality of your business narrative.
• Clarity and feasibility of your business goals and plans.
• Demonstrated active and engaged use of your Venmo Business Profile.
• How being part of a historically underrepresented community has influenced your entrepreneurial journey.

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Benefits for Recipients

Selected businesses will receive:

• A $20,000 grant to support business expenses.
• Access to professional coaching and resources, including legal services, financial analysis, and digital marketing.
• Public promotion on Venmo’s and PayPal’s social media platforms and websites.

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The application deadline for the 2025 Venmo Small Business Grant is August 7, 2025, at 11:59 p.m. EST. Winners will be announced in September 2025.

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How to Apply for California Small Business Grants

Here’s how to maximize your chances of securing funding:

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Identify Suitable Grants

Research the California Grants Portal. This platform lists all state-administered grants and loans. It allows you to filter opportunities by category, applicant type, and funding amount, ensuring you find grants that align with your business objectives.

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In addition, consider federal resources like Grants.gov, which provides access to several federal grant opportunities that may apply to California-based businesses.

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Check Eligibility Criteria

Each grant program has its eligibility requirements, which may include:

• Business Size: Many grants are targeted at small businesses, often defined as having fewer than 500 employees.
• Industry Focus: Some grants are industry-specific, supporting sectors like technology, agriculture, or clean energy.
• Location: Certain grants are available only to businesses operating in specific regions or counties within California.
• Ownership Demographics: Programs like the California Dream Fund prioritize businesses owned by individuals from underserved communities.

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Review the eligibility criteria for each grant to ensure your business qualifies before proceeding with the application.

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Prepare Necessary Documentation

A well-prepared application includes all required documentation, which may comprise:

• Business License and Registration: Proof that your business is legally registered in California.
• Tax Identification Number (TIN): Essential for tax reporting and identification purposes.
• Financial Statements: Recent balance sheets, income statements, and tax returns to demonstrate financial health.
• Business Plan: A comprehensive plan outlining your business model, market analysis, and growth strategy.
• Use of Funds Statement: A detailed description of how the grant funds will be used to support your business objectives.

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Organize these documents in advance to streamline the application process and increase your chances of success.

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Submit the Application

Adhere to the application instructions to ensure compliance with all requirements. Most applications are submitted online through the respective grant portal. Important steps include:

• Upload all required documents and complete any necessary forms through the designated online platform.
• Submit your application before the specified deadline; late submissions are usually not considered.
• After submission, you should receive a confirmation email acknowledging receipt of your application.

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Follow Up and Track Application Status

After submission, monitor the status of your application through the grant portal or by contacting the administering agency.

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Be prepared to provide additional information or clarification if requested. Some programs may require interviews or presentations as part of the evaluation process.

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Tips for a Successful California Grant Application

You need more than meeting eligibility criteria to secure the competitive California grants discussed in this guide. The strategies below can increase your chances:

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Tailor Each Application to Align with the Specific Grant’s Purpose

Each grant has unique objectives and priorities. Demonstrate how your project aligns with these to strengthen your application.

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Research the funder's mission and guidelines thoroughly, and customize your proposal to reflect how your business addresses its specific goals.

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This approach shows that you've invested time in understanding the funder's priorities and have crafted a proposal that resonates with their interests.

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Highlight How the Grant Will Impact Your Business and Community

Funders are keen on projects that offer measurable and meaningful outcomes. Clearly articulate the anticipated effects of your project on both your business and the broader community. Use data and real-life examples to illustrate the potential benefits.

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For instance, instead of vague statements, specify goals like "Our program aims to increase high school graduation rates by 25% among first-generation students within 12 months."

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Such specific, measurable, achievable, relevant, and time-bound (SMART) goals can make your application more compelling.

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Seek Assistance from Small Business Development Centers (SBDCs) for Guidance

The grant application process can be complex. SBDCs offer valuable resources, including workshops, one-on-one counseling, and assistance in identifying suitable grant opportunities.

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Their expertise can help you refine your application, ensuring it meets all requirements and stands out to funders.

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Be Aware of Application Deadlines and Submit Early

Missing a deadline can disqualify your application, regardless of its quality. Create a timeline that includes all important dates and milestones leading up to the submission deadline.

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Allow ample time for gathering required documents, reviewing your application, and making necessary revisions. Submit your application well before the deadline to demonstrate professionalism and to provide a buffer in case of unforeseen issues.

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Improve Your Grant Success: Streamline Operations and Strengthen Financials with Hirechore

When applying for small business grants in California, it’s important to demonstrate robust operational efficiency and detailed financial management. Grant providers want to be sure that their funds will be used effectively and responsibly.

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Hirechore can help you streamline these aspects, thereby strengthening your grant applications.

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Streamlining Operations for Grant Readiness

Grant reviewers consider operational efficiency. Efficient businesses are more likely to execute projects successfully and achieve desired outcomes.

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Hirechore facilitates this by automating routine tasks, integrating various business processes, and providing real-time insights into operational metrics. This showcases your business's capability to effectively manage and implement grant-funded projects.

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Maintaining Accurate Financial Records

Accurate and up-to-date financial records are required for grant compliance and reporting.

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Hirechore assists in tracking expenses, managing budgets, and generating financial statements. This helps you build trust with grant providers and demonstrate your business's readiness to handle funding responsibly.

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Ensuring Compliance and Reporting

Compliance with grant terms and timely reporting are important aspects of grant management.

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Hirechore helps with this by offering features that monitor compliance requirements, schedule reporting deadlines, and maintain necessary documentation. This minimizes the risk of non-compliance and positions your business as a reliable grant recipient.

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Apart from enhancing efficiency and financial management, Hirechore also improves your credibility in the eyes of grant providers. Your grant applications are more likely to stand out and succeed when Hirechore helps you present a well-organized, compliant, and efficient operational framework. Learn more.

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FAQs

What is the California Grant Program?

The California Grant Program is a collection of state-run funding initiatives aimed at supporting small businesses, nonprofits, and other eligible entities across California. It provides financial assistance to promote economic development, innovation, and recovery efforts. The main components include:

• The California Grants Portal
• CalOSBA (offers resources and guidance for small businesses)
• Specific programs like the California Dream Fund and COVID-19 Relief Grants
• Industry-specific grants for sectors like agriculture and tech
• Additional local and private grants from organizations like CalChamber

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Who is eligible to apply for small business grants in California?

Eligibility depends on the grant program, but common criteria include:

• Being a for-profit business operating in California
• Meeting the U.S. Small Business Administration's definition of a small business
• Having a valid business license or registration
• Operating in specific industries or regions targeted by the grant
• Being owned by individuals from underrepresented groups, such as women, minorities, or veterans

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What types of grants are available for small businesses in California in 2025?

California offers several grants, including:

• Microgrants: Small funding amounts to assist with startup costs or specific projects.
• Industry-Specific Grants: Targeted at sectors like clean energy, agriculture, or technology.
• Demographic-Focused Grants: Designed for minority-owned, women-owned, or veteran-owned businesses.
• Disaster Relief Grants: For businesses affected by events like wildfires or economic downturns.

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