Summary
There are 1.9 million veteran-owned businesses in the US, employing over 5 million people. The federal government has created a dedicated ecosystem of programs to support veteran entrepreneurs — including contracting set-asides worth billions, free business development resources, and state-level grant programs.
Veteran-Owned Small Business (VOSB) Federal Contracting
The VA's Veterans First Contracting Program sets aside VA contracts exclusively for Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). The VA spent over $30 billion with veteran-owned businesses in FY2025. Government-wide, there is a 3% set-aside goal for SDVOSBs across all federal agencies.
To access these opportunities, verify your business in the VA's Vendor Information Pages (VIP) database at vetbiz.va.gov. SDVOSB certification provides access to the broadest range of set-asides. Eligibility: veteran owns 51%+, manages day-to-day operations, DD-214 required as proof of service.
SBA Programs for Veteran Entrepreneurs
Boots to Business
Free SBA entrepreneurship education program offered on military installations — teaches business fundamentals and how to access capital. Available to transitioning service members, veterans, and military spouses.
Veteran Business Outreach Centers (VBOCs)
SBA funds 22 VBOCs nationwide providing free business training, mentoring, and assistance with federal contracting and grant applications. Find yours at sba.gov/local-assistance.
SBA Express Loans with Veterans Advantage
Reduced fees on SBA loans for veteran-owned businesses. Not a grant, but lower-cost capital with more flexible requirements than conventional loans.
SBIR/STTR for Veteran-Owned Businesses
Veteran-owned businesses are eligible for all SBIR/STTR programs. DOD specifically values veteran-owned businesses in defense-relevant SBIR topics. The National Defense Authorization Act has provisions encouraging DOD to increase SBIR awards to VOSBs and SDVOSBs. Technical assistance for SBIR applications is available free through VBOCs and SBDCs.
State Grants for Veteran Entrepreneurs
Most states have veteran business development programs with grant components. Examples include: Texas Veteran's Commission Business Assistance Program, California's CalVet business resources, New York's Division of Veterans' Services, and the Illinois Department of Veterans' Affairs business development grants. Many states also have property tax exemptions and procurement preferences for veteran-owned businesses.
Private Grants for Veterans
StreetShares Foundation ($4,000 grants), Warrior-Scholar Project, Coalition to Salute America's Heroes, and the Pat Tillman Foundation all offer grants or scholarships to veteran entrepreneurs. The Hivers and Strivers angel fund and V-WISE (Veteran Women Igniting the Spirit of Entrepreneurship) program provide additional resources specifically for veteran business owners.
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◆ Browse Active Federal Grant Opportunities
◆ Grant Intelligence at a Glance
$800B+
Federal grants distributed annually
900+
Active opportunities tracked
26
Federal agencies monitored
Daily
Data refresh from Grants.gov
◆ Average Grant Success Rates by Program (FY2024)
NIH R01 (Research Project) ~21%
SBIR Phase I (All Agencies) ~15%
EPA Competitive Grants ~30%
DOE Office of Science ~20%
Source: NIH RePORTER, NSF Award Database, SBA SBIR.gov — approximate figures vary by cycle and sub-program.
◆ Typical Federal Grant Application Timeline
Wk 1–4
SAM.gov Registration + UEI
Mo 1–2
Find FOA + Eligibility Check
Mo 2–4
Write Proposal + Budget
Mo 4
Submit via Grants.gov
Mo 5–9
Peer Review + Score
Mo 9–12
Award Notice + Funding
Timeline is approximate. NIH averages ~9 months; SBIR Phase I ~5–6 months; some formula grants move faster.
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About the Author
GrantMetric Research Team
Federal Grant Intelligence Specialists · grantmetric.com
Our analysts monitor 900+ federal grant opportunities daily across NIH, NSF, DOD, USDA, EPA and 21 other agencies. All data is sourced directly from Grants.gov, SAM.gov, and official agency solicitation portals. Content is reviewed monthly for accuracy.
📋 900+ grants tracked 🏛 26 federal agencies 🔄 Updated: April 2026
◆ Common Questions About Federal Grants
Who is eligible to apply for federal grants?
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Eligibility depends on the specific grant. Most federal grants are open to nonprofit organizations, universities, state and local governments, and small businesses. Some grants (like SBIR/STTR) are exclusively for small businesses, while others (like fellowships) target individuals. Always check the Funding Opportunity Announcement (FOA) for specific eligibility requirements.
How do I apply for a federal grant?
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To apply: (1) Register in SAM.gov and obtain a UEI number, (2) Register on Grants.gov, (3) Find a relevant Funding Opportunity Announcement (FOA), (4) Prepare your application package including project narrative, budget, and required forms, (5) Submit before the deadline. Allow at least 2–4 weeks for system registrations before your first submission.
Are federal grants free money?
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Federal grants do not need to be repaid, but they are not unconditional. Recipients must use funds only for the approved purpose, submit progress and financial reports, comply with federal regulations, and allow audits. Misuse of grant funds can result in repayment requirements and debarment from future federal funding.
How long does it take to receive a federal grant?
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The timeline varies by agency and program. Typically, from submission to award decision takes 3–12 months. NIH review cycles run about 9 months. SBIR Phase I awards may take 5–6 months. Some emergency or formula grants move faster. Budget for at least 6 months between application and funding receipt.
What is the difference between a grant and a cooperative agreement?
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A grant gives the recipient substantial independence to carry out the project with minimal federal involvement. A cooperative agreement involves substantial federal agency involvement in directing or participating in the project activities. Both provide funding that does not need to be repaid, but cooperative agreements require closer collaboration with the funding agency.