Starting a business is hard enough; bootstrapping budgets, building your team, and trying to get traction. But here’s something many Arizona founders overlook: grant funding that doesn’t require repayment or giving up equity.

‍

According to the 2024 Small Business Credit Survey conducted by the Federal Reserve, approximately 43% of small businesses applied for external financing in the previous year. However, only a small fraction ever consider grants.

‍

If you're building something innovative, sustainable, or community-focused in Arizona, there’s real money out there waiting for you. You just need to know where to look.

‍

With state-backed programs, support from local organizations like the Arizona Commerce Authority, and a thriving entrepreneurial scene, Arizona is quickly becoming a hotspot for startup success. It’s even ranked among the top 10 states for startup activity nationwide.

‍

In this guide, we’ll break down the best startup grants available in Arizona and how to win them.

‍

What are Startup Grants?

Startup grants are non-repayable funds provided by government agencies, nonprofit organizations, or private entities to support the development and growth of new businesses.

‍

Unlike loans, which require repayment with interest, or equity financing, which involves giving up a portion of ownership in exchange for capital, grants offer financial support without these obligations.

‍

Here are some benefits of startup grants:

• Non-Repayable Funding: Grants do not need to be repaid, thus allowing startups to allocate resources toward growth and development without the burden of debt.
• Equity Preservation: Since grants don't require giving up ownership stakes, founders can maintain full control over their business decisions and future profits.
• Financial Stability: Access to grant funding can improve a startup's financial stability, making it more attractive to future investors and partners.
• Credibility and Validation: Receiving a grant can serve as a form of validation, signaling to stakeholders that the business has merit and potential.

‍

Top Startup Grants in Arizona for 2025

Here’s a list of top startup grants available in Arizona in 2025, including the detailed descriptions to guide you through eligibility requirements, funding amounts, and application processes.

‍

Arizona Innovation Challenge (AIC)

The Arizona Innovation Challenge (AIC) is one of the largest business plan competitions in the U.S., offering up to $250,000 in funding to early-stage startups in high-growth sectors.

‍

The program, run by the Arizona Commerce Authority, aims to advance innovation and technology commercialization in Arizona.

‍

Eligibility

• For-profit, early-stage companies with at least 2 but fewer than 30 employees.
• Net assets not exceeding $10 million, excluding outside capital.
• Focus on scalable industries such as software, biosciences, clean tech, and advanced manufacturing.

‍

Application Process

• Applicants submit a detailed business plan.
• All applicants receive feedback from experienced entrepreneurial judges.
• Semifinalists gain access to Venture Ready, a structured program designed to refine business plans and investor pitches.
• Finalists may receive funding and additional support to scale their ventures.

‍

Arizona FAST Grant Program

The Federal and State Technology (FAST) Partnership Program supports Arizona-based startups in preparing competitive proposals for federal SBIR/STTR programs.

‍

Each round awards six applicants up to $3,000 to enhance their proposal development and increase their chances of securing federal funding.

‍

Eligibility

• Arizona-based small businesses eligible for SBIR/STTR programs.
• Focus on technology-driven innovation.

‍

Application Process

• Submit an application detailing your business and proposed project.
• Selected applicants receive funding to assist with proposal preparation, including market research, technical assistance, and consulting services.

‍

Amber Grants for Women Entrepreneurs

The Amber Grant, administered by WomensNet, awards three $10,000 grants each month to women-owned businesses.

‍

In addition, at the end of each year, three annual grants of $25,000 are awarded to outstanding recipients. This grant is designed to support female entrepreneurs in various industries.

‍

Eligibility

• Women entrepreneurs aged 18 or older.
• Businesses must be at least 50% women-owned and based in the U.S. or Canada.

‍

Application Process

• Complete a simple online application detailing your business vision and how you plan to use the grant funds.
• All applicants are automatically considered for the monthly and annual grants.

‍

Business Builder Award Program

The Business Builder Award Program is an initiative by the USDA’s Southwest Regional Food Business Center (SWRFBC) aimed at strengthening Arizona's local food systems.

‍

Offering grants up to $100,000, the program supports small and mid-sized farms and food-related businesses in enhancing their post-harvest operations, such as processing, distribution, marketing, and infrastructure improvements.

‍

Eligibility

To qualify for the Business Builder Award, applicants must:

• Be based in Arizona.
• Operate as small or mid-sized entities, with annual gross sales less than $350,000 for small-sized businesses, and between $350,000 and $1 million for mid-sized businesses.
• Engage in post-harvest activities such as processing, aggregation, distribution, or marketing.
• Demonstrate how the proposed project will enhance local food systems and contribute to economic development.

‍

Priority is given to businesses located in distressed or socially vulnerable communities, as defined by the EIG Distressed Communities Index and the USDA Social Vulnerability Index.

‍

Application Process

• The program conducts multiple funding cycles. For example, the first round of applications opened on January 6, 2025, and closed on February 15, 2025. Subsequent cycles are scheduled, such as one opening on June 1, 2025, and closing on July 15, 2025.
• Review the Request for Applications (RFA), checklist, and application instructions available on the SWRFBC website. Ensure your project aligns with the program's goals and can be completed within the funding limits and project period.
• Obtain a UEI number through the federal SAM.gov system. This identifier is required to receive federal funds.
• Complete and submit your application through the designated portal before the specified deadline.

‍

Arizona State Trade Expansion Program (STEP)

The Arizona State Trade Expansion Program assists small businesses in entering or expanding into international markets.

‍

It provides funding to cover costs associated with exporting, such as participating in trade shows, developing international marketing materials, and enhancing e-commerce capabilities.

‍

Eligibility

• Arizona-based small businesses looking to start or expand exporting activities.
• Must meet the U.S. Small Business Administration's (SBA) size standards.

‍

Application Process

• Apply through the Arizona Commerce Authority, detailing your export plan and how the funds will be utilized.
• Funding decisions are based on the potential impact on the business's export growth and overall economic benefit to Arizona.

‍

Rural Business Development Grants (RBDG)

The Rural Business Development Grant program, administered by the USDA, is a competitive grant initiative aimed at supporting the growth and development of small and emerging businesses in rural areas.

‍

In Arizona, the RBDG program provides funding for technical assistance, training, and other activities that foster economic development and job creation in rural communities.

‍

Eligibility

To qualify for the RBDG program in Arizona, applicants must meet the following criteria:

• The business must operate in a rural area, defined as a community with a population of 50,000 or fewer.
• Eligible businesses are those with fewer than 50 employees and less than $1 million in gross revenues.
• Applicants can include public bodies, nonprofit corporations, and federally recognized tribes.

‍

Application Procedure

The application process is usually as follows:

• Complete applications must be received by the USDA Arizona State Office no later than February 28, 2025, at 4:30 p.m. MST. Late submissions will not be considered. 
• Submission Methods:

• Email: Applicants are encouraged to submit their applications via email to: SM.RD.AZ.RBSStateOffice@usda.gov
• Mail or Courier: Alternatively, applications can be mailed or sent via courier to:

‍

USDA Rural Development

Attn: Business & Cooperative Programs

230 N 1st Ave, Suite 206

Phoenix, AZ 85003-1706

‍

Application Tips

Securing a startup grant in Arizona requires a strategic approach to the application process. You can increase your chances of securing a grant by following these best practices:

• Grant applications can be time-consuming. Begin the process well before the deadline to ensure all materials are prepared and reviewed.
• Customize your application to align with the specific goals and criteria of each grant program. Highlight how your business meets these objectives.
• Arizona's Small Business Development Centers (SBDCs) offer free resources, including business counseling, application assistance, and workshops to guide you through the grant process.
• Ensure all information is accurate and free of errors. Consider having a mentor or advisor review your application before submission.
• After submission, monitor the status of your application and be prepared to provide additional information if requested.

‍

Resources and Support Organizations for Arizona Startups

Entrepreneurs in Arizona are fortunate to have access to a robust network of organizations that support small business growth. Whether you're looking for funding, mentorship, or strategic guidance, these resources will help you turn your vision into reality.

‍

Some of these support systems include:

‍

Arizona Commerce Authority (ACA)

The Arizona Commerce Authority is the state's leading economic development agency, offering programs designed to support startups at every stage. These programs include:

• Arizona Innovation Challenge: An annual competition that awards up to $250,000 to early-stage companies in high-growth industries.
• Venture Programs: Including Venture Ready, Venture Start, Venture Raise, and Venture Scale, these initiatives provide mentorship, training, and access to capital for startups.
• Plug and Play accelerateAZ: A collaboration connecting startups with corporations to develop pilot programs, particularly in manufacturing and sustainability sectors.
• SBIR/STTR Resource Center: Offers training and mentorship to help startups secure federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants.
• FAST Grant Program: Provides up to $3,000 to assist startups in preparing competitive SBIR/STTR proposals.

‍

Visit the ACA's Startup Resource Directory for a comprehensive list of resources.

‍

Arizona Small Business Development Centers (SBDCs)

The Arizona SBDC Network offers no-cost consulting and training to entrepreneurs and small business owners. These trainings focus on:

• Business Planning: Assistance with developing business plans, financial projections, and market research.
• Access to Capital: Guidance on securing funding through loans, grants, and investor connections.
• Export Assistance: Support for businesses looking to enter international markets.
• Technology Commercialization: Help with bringing innovative products and services to market.

‍

With centers located throughout the state, including the Maricopa SBDC, entrepreneurs can find local support that meets their needs.

‍

Local Economic Development Organizations

Local entities promote entrepreneurship and economic growth within Arizona communities. Some local economic development organizations in Arizona include:

• Local First Arizona's AZNavigator: A coalition of 10 organizations providing free, statewide support services, including business networking, strategic planning, and government contracting preparation.
• Arizona Economic Recovery Center (AZERC): Assists municipalities, tribal communities, and nonprofits in securing and implementing competitive grants to stimulate local economies.
• Greater Phoenix Economic Council (GPEC): Offers resources and data to help startups and investors understand the region's economic landscape, promoting Greater Phoenix as a hub for innovation.

‍

These organizations provide valuable support through networking opportunities, mentorship programs, and access to funding resources, thereby contributing to a robust entrepreneurial ecosystem across Arizona.

‍

Who Is Eligible to Apply for Startup Grants in Arizona?

Eligibility for startup grants in Arizona varies by program but generally includes the following factors:

‍

Business Type

Most grants are available to for-profit businesses, including sole proprietorships, partnerships, and corporations. Some programs, like those from the Arizona Community Foundation, may also support nonprofit organizations. 

‍

Location

Applicants must operate a business located within Arizona. Certain grants, such as the Arizona Innovation Challenge, allow out-of-state companies to apply if they plan to relocate or establish a significant portion of their operations in Arizona within the award period.

‍

Industry Focus

Many grants focus on specific industries, including:

• Advanced manufacturing
• Aerospace/defense
• Bio/life Sciences
• Clean-tech/renewable Energy
• Information technology (hardware or software)
• Advanced materials
• Emerging industries like artificial intelligence, agriculture technology, and clean energy

‍

Business Stage

Grants like the Arizona Innovation Challenge are designed for early-stage companies moving toward the commercialization of innovative technologies.  Other programs may support established businesses looking to expand or diversify.

‍

Size and Structure

Some grants have specific requirements regarding the number of employees. For instance, the Arizona Innovation Challenge is open to companies with at least 2 but fewer than 30 employees.

‍

Certain programs may have limitations on the company's net assets, excluding capital from investors.

‍

Use of Funds

Grant funds are usually intended for specific purposes, such as:

• Research and Development (R&D)
• Commercialization of innovative products or services
• Expansion and scaling efforts
• Technology development

‍

Funds may not be used for general operating expenses or unrelated activities.

‍

Compliance and Documentation

Businesses must be in good standing with the Arizona Corporation Commission and other regulatory bodies. Applicants are also usually required to submit:

• A detailed business plan
• Financial statements
• Tax returns
• Proof of eligibility

‍

Wrapping Up

Arizona's 2025 startup grants offer several opportunities for entrepreneurs who want to fulfill their business vision.

‍

From the substantial backing of the Arizona Innovation Challenge to the targeted support of programs like the FAST Grant and Amber Grants, there's a clear message: Arizona is committed to promoting innovation and empowering founders.

‍

However, securing a grant is just the beginning. The real challenge lies in efficiently managing the subsequent growth; handling HR tasks, ensuring compliance, overseeing finances, and managing equity.

‍

Hirechore helps you tackle these challenges by streamlining back-office operations, thereby allowing you to focus on scaling your startup. Learn more.

‍

FAQs

What are startup grants, and how do they differ from loans or equity financing?

Startup grants are non-repayable funds provided by government agencies, foundations, or corporations to support the development and growth of new businesses. Unlike loans, grants do not require repayment, and unlike equity financing, they do not involve giving up ownership in your company.

‍

How can I increase my chances of securing a startup grant in Arizona?

To increase your chances of securing a startup grant in Arizona:

• Align your mission with the grantor’s objectives
• Present a clear and detailed plan
• Demonstrate proven success or potential
• Craft a compelling narrative
• Tailor each application to the specific grant
• Build relationships with funders
• Be persistent and open to feedback

‍

Are there grants specifically for women and minority entrepreneurs in Arizona?

Yes, Arizona offers several grants targeting women and minority entrepreneurs, such as the Amber Grant for Women Entrepreneurs and the Arizona Community Foundation's grants for women and children. These programs promote diversity and inclusion in the state's entrepreneurial industry.

‍

Can I apply for multiple grants simultaneously?

Yes, you can apply for multiple startup grants simultaneously in Arizona, provided you meet the eligibility criteria for each program. However, be aware of the specific restrictions and guidelines each grant has.

‍

Follow these tips to manage multiple applications:

• Keep track of application deadlines and requirements for each grant to avoid missing opportunities.
• Customize each application to align with the specific goals and criteria of the grant.
• Reach out to organizations like the Arizona Small Business Development Center for guidance and support.

‍

How often are grant opportunities available, and when should I apply?

Grant opportunities for startups in Arizona are available at various times throughout the year, depending on the specific program. For instance, the Arizona Innovation Challenge and FAST Grant Program are available from August 1 to August 30 and May 1 to May 19, respectively.

‍