US startup and small business funding expands via federal grants and private sector entry

The landscape for US startup and small business funding features both expanded federal support and new private sector options. On April 13, 2026, the Small Business Innovation and Economic Security Act was signed, reauthorizing the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through September 30, 2031. These federal programs distribute over $4 billion annually across eleven agencies, including the Department of Defense and the National Science Foundation.

New to the federal programs are Strategic Breakthrough Awards, which offer up to $30 million for technologies aligned with national priorities such as semiconductors and advanced manufacturing. Phase I awards fund feasibility research, while Phase II awards support full development with caps around $2.15 million.

In the private sector, global non-bank funder Bizcap has launched in the US. The company offers fast-access capital for small to medium businesses, with eligibility starting at $20,000 in monthly revenue. Their offerings include a Line of Capital (LOC) revolving facility of up to $2 million, designed to provide working capital with approvals potentially occurring within three hours.