Need Funding for Your Trucking Business? Apply for These Trucking Business Grants

Last Updated December 16, 2024

Every new company needs capital, and starting a trucking company is no different. Whether you need to buy a truck or hire employees, funding is a must-have for starting a new trucking company.

However, few people have thousands of dollars in savings to fund a business. Fortunately, you don’t need to scrimp and save to make your dreams of self-employment a reality. Trucking business grants are essentially “free money” to help you cover the costs of running your business, helping you get profitable fast.

Trucking grants are competitive, but they’re a game changer for owner-operators. Let’s look at how trucking business grants work, where you can find them, the most common trucking grants, and other financing options to consider.

How Trucking Business Grants Work

Starting a trucking company with no money or little money is a tricky spot to be in, but grants give you access to much-needed initial capital. At a high level, trucking grants are free funding you apply for.

The catch is that grants usually have stringent requirements, and finding grants that match your needs can be difficult. However, if you do find a relevant grant, you apply for it and wait to see if you’re accepted. If you are, the organization will cut you a check that you can use to fund your business. Unlike a loan, you never have to repay a grant, although you may be asked to prove that you used the grant money appropriately.

Most grants won’t cover all of your owner-operator expenses, but they can ease the financial burden of going into business for yourself. Trucking business grants support truckers by funding essential expenses, like working capital, trucks, or licenses.

Most grants are available to minorities or low-income entrepreneurs, helping underrepresented groups access resources for launching their businesses. If you’re an independent operator in need of a truck, small business grants for truck drivers are an essential lifeline. Other niche grants are available, like truck grants for LLCs, which give you the necessary startup funds without dipping into your personal savings.

How to Find a Trucking Business Grant

A trucking business grant is a savvy way to fund a business without a loan. However, finding grants for trucking businesses will require some upfront research. There aren’t a lot of trucking grants available, and those that are available are highly competitive.

First, start your search by looking up federal, state, and local programs offering government grants for trucking businesses. Keep in mind that these grants are usually for specific groups, like minority trucking grants or certain industries.

Next, look at business development websites for your local Chamber of Commerce. Local economic development offices are a great resource for information on trucking business startup grants. Small business associations and nonprofits can also give you a list of opportunities you qualify for.

Sometimes word-of-mouth connections will also help you find grant opportunities. Letting other professionals know you’re looking for grant applications could expose you to lesser-known grants only available to insiders. Other experienced owner-operators might hear about startup trucking business grants, or they can offer tips on how to get a grant to start a trucking business. Regardless, expanding your network is a business best practice, so this is a savvy move regardless of whether it immediately leads to a grant or not.

Resources for Trucking Business Grants

An old-fashioned Google search is a good starting point for finding grants to start a trucking company. These tools and programs also provide access to a wide range of trucking business grants:

• Grants.gov: This government website allows you to quickly search for grants in your industry. Check out the Grants.gov database for a comprehensive list of federally funded grants.
• GrantWatch.com: This website isn’t run by the government, but it’s a helpful resource for small businesses. However, GrantWatch costs $199 annually for complete access, so this option is more expensive. Alternatively, you can pay $18 for one week’s access if you just want to see what’s available in the database.
• Department of Transportation Offices: Check the Department of Transportation’s website for a list of popular national grants. Your state’s DOT office also likely has several grants available. For example, the Texas DOT offers grants for reducing diesel emissions.

Grants for Trucking Businesses

Becoming an owner-operator can be really rewarding, but you need funding to get your business off the ground. See if you qualify for these grants for trucking businesses.

1. FMCSA Grants

The Federal Motor Carrier Safety Administration (FMCSA) offers grants primarily for improving trucking safety, but these grants aren’t available to individuals; FMCSA only funds trainers, nonprofits, and other organizations. Most truckers won’t qualify for this, but it could be an option worth exploring if you plan on offering safety products or training.

2. NASE Grants

The National Association for the Self-Employed provides up to $4,000 monthly to qualifying participants. You can use the funding for marketing, buying equipment, or anything else to grow your business. There’s just one caveat: you must be a NASE member for at least three months and be in good standing with the organization before applying.

3. USDA Grants

The U.S. Department of Agriculture (USDA) offers grants for transportation companies operating in rural areas. Programs like the Rural Business Development Grants support small businesses, including trucking businesses looking to grow in underserved communities.

4. U.S. Chamber of Commerce Grants

The U.S. Chamber of Commerce offers resources and grant opportunities for startups and established businesses. While the Chamber doesn’t provide grants directly, it does keep a running list of pre-vetted grants. They aren’t specifically trucking business grants, but plenty of funding opportunities exist for minorities, women, veterans, and people with disabilities.

5. Small Business Grants

The U.S. Small Business Administration (SBA) offers limited small business grants for special situations. Grants are only available for nonprofits, educational institutions, and Resource Partners. However, the SBA does run the State Trade Expansion Program (STEP), which teaches small businesses about international trade, which could be helpful if you plan to run an international trucking company.

6. Woman-Owned Business Grants

Over 90% of truckers are male. However, if you’re a woman interested in becoming an owner-operator, you could qualify for additional grants. One example is the Amber Grant, which offers $10,000 to woman-owned startups, including those in transportation. Other reputable options include:

• IFundWomen
• Galaxy Grant
• HerRise
• EmpowHer
• The National Women’s Business Council
• Hawai’i FoundHer (must be 51% Asian American, Native Hawaiian, or Pacific Islander-owned)
• The High Five Grant for Moms

7. Minority-Owned Business Grants

Minority trucking grants are also available to Native American, African American, Asian American, Latine, and other underrepresented populations. If you’re seeking minority trucking grants, explore the resources provided by the Minority Business Development Agency.

You can also check out minority-focused grants like:

• Wish Local
• Freed Fellowship Grant
• Founders First Creators Quest Grant
• Merchant Maverick Opportunity Grants Program
• Small Business Grant Contest
• First Nations

8. Other State and Local Government Grants

Small Business Development Centers (SBDCs) are a great place to find local business grants. Many of these programs provide funding to individuals, so if you don’t qualify for SBA funding, you might be eligible for SBDC grants. Use the SBA’s SBDC search tool to find your nearest resource center.

Every state has its own grants, too, like the Illinois Capital Grants. A quick Google search will pull up opportunities in your state; just read the fine print so you understand whether the grant applies to trucking businesses. If you live near a large city, search for your city name and grants to see what pops up on the local level.

Other Financing Options to Help Grow Your Trucking Business

Grants are a great way to secure funding, but they’re hard to obtain in the trucking industry. It can also take months or as long as a year to know whether you’ll receive a grant.

Grants are wonderful, but they aren’t the only way to finance a trucking business. Consider these alternatives to get your business on the road with less bureaucratic red tape.

Freight Factoring

Freight factoring is a debt-free way to free up cash flow for your business without taking out a loan. Simply choose which of your trucking client invoices to factor, send it to altLINE, and we’ll forward over funding—sometimes as quickly as the same business day. Average freight factoring rates are much cheaper than loans, allowing you to get on the road faster with less paperwork and stress.

SBA Loans

The Small Business Association has stringent grant requirements, but it operates a solid loan program. SBA loans usually have lower rates with preferred lenders, making it more likely that you’ll score a trucking business loan. Not only does the SBA help you get funding, but some loans also offer continued support and mentorship.

Equipment Financing

Equipment financing allows you to secure loans or leases specifically for purchasing trucks, trailers, or other essential equipment. This financing type helps you invest in high-quality equipment without a large upfront payment, spreading the cost out over time. The downside is that this option charges interest, so the longer it takes you to pay off the equipment, the more expensive the purchase becomes.

Lines of Credit

Loans and grants give you one-time access to funding. On the other hand, lines of credit give you a way to access funds as you need them. This type of financing is particularly useful when cash flow fluctuates due to delayed payments or unexpected repairs.

In-Summary: Trucking Business Grants

Securing grants to start a trucking company reduces your startup costs and sets you up for long-term success. Specialized options like women and minority trucking grants provide targeted funding opportunities for aspiring entrepreneurs.

Grants aren’t easy to find or obtain, but persistently researching and applying for trucking business grants could pay off big time. Don’t put your dreams of entrepreneurship aside: explore alternative options like altLINE freight factoring to get your business on the road. Contact one of our representatives at (205) 607-0811 or fill out our free factoring quote form today. Combining grants with these strategies ensures a well-rounded funding approach, paving the way for a sustainable trucking business.