About this programme
The Small Business Grant Program is run by the City of Worcester's Business and Community Development department. It assists the creation of new small businesses or the physical expansion of existing small businesses in targeted commercial corridors, by providing forgivable loans to qualified applicants.
The program is funded through Community Development Block Grant (CDBG) funds allocated by the U.S. Department of Housing and Urban Development (HUD), which is why applicants must meet a HUD national objective to qualify.
It sits alongside several other Worcester Business and Community Development programs: an MWBE Construction Advancement Grant for certified minority and women-owned construction businesses, a Microloan Program offering short- and long-term, fixed-rate, low-interest loans, a Facade Program for storefront exterior improvements, and the Massachusetts Vacant Storefront Program (MVSP), which encourages businesses to locate in vacant storefronts in designated districts.
How it works
Funding is structured as a forgivable loan rather than a straight grant. The maximum funding amount for any project cannot exceed 25% of the total project cost.
Maximum funding scales with the size of the storefront: up to $25,000 for spaces up to 1,500 square feet, up to $50,000 for 1,500 to 2,500 square feet, and up to $75,000 for spaces of 2,500 square feet or more.
Funds can be used for furniture and fixtures, interior renovations, merchandising equipment, and retail or food service equipment.
Who can apply
Open to new small business owners occupying vacant space, and to expanding small business owners, occupying a first-floor storefront unit, with emphasis given to the Creative Economy.
Applicants must meet at least one HUD national objective: benefiting low- and moderate-income persons, meeting an urgent need, or preventing or eliminating slum or blight.
Frequently asked
How much funding can I get?
Up to $25,000 for spaces up to 1,500 square feet, up to $50,000 for 1,500 to 2,500 square feet, and up to $75,000 for spaces 2,500 square feet or larger, capped at 25% of the total project cost.
What can the money be used for?
Furniture and fixtures, interior renovations, merchandising equipment, and retail or food service equipment.
What makes a business eligible?
It must be a new small business occupying vacant space, or an expanding small business, in a first-floor storefront unit, with a preference for Creative Economy businesses, and it must meet a HUD national objective (benefit to low/moderate-income persons, urgent need, or slum/blight prevention).
How do I get an application form?
The program's own page does not post a downloadable application; contact Worcester's Business and Community Development office at 508-799-1400 or development@worcesterma.gov for application materials.
Is this the only funding Worcester offers small businesses?
No. Business and Community Development also runs a Microloan Program for low-interest loans, an MWBE Construction Advancement Grant, a Facade Program for storefront exteriors, and the Massachusetts Vacant Storefront Program, which encourages businesses to fill vacant storefronts in designated districts.
More funding in Massachusetts
Business Builds: Life Sciences
Massachusetts Life Sciences Center (MLSC) · Massachusetts
Massachusetts Life Sciences Center grants $500,000 to $2 million, 50/50 matched, to life sciences companies expanding manufacturing in the state.
Catalyst Program
MassVentures, jointly administered with Massachusetts Clean Energy Center (MassCEC) · Massachusetts
MassVentures and MassCEC give up to $75,000 to Massachusetts early-stage clean energy companies and researchers building first prototypes.
Elevate Small Business
LEAF (Local Enterprise Assistance Fund) · Massachusetts
LEAF, a Massachusetts nonprofit lender, offers small business loans and advice to underserved entrepreneurs and cooperatives statewide.
Emerging Technology Fund
MassDevelopment · Massachusetts
MassDevelopment lends up to $4 million to Massachusetts technology companies for equipment, real estate, or working capital as they expand.
Growth Capital Microloan Program
MassDevelopment · Massachusetts
MassDevelopment lends $5,000 to $100,000 to Massachusetts small businesses operating at least a year, including childcare businesses.
InnovateMass
Massachusetts Clean Energy Center (MassCEC) · Massachusetts
MassCEC funds up to $350,000 for Massachusetts clean energy companies piloting new technology with a demonstration project partner.
All 14 programmes in Massachusetts →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.