Hawaii Small Business Grants 2026
Hawaii combines a fully refundable state R&D tax credit — one of the most generous in the country — with an SBIR/STTR matching grant program, making it a surprisingly strong environment for tech, biotech, and ocean-science companies that can anchor federally-funded research in the state.
Hawaii businesses conducting qualifying R&D in the state can claim a fully refundable 20% credit on Hawaii-located expenses — meaning you receive cash back even if your Hawaii income tax liability is zero. Tech and science companies with federal SBIR or STTR awards can stack a state match of up to 50% on top through the Hawaiʻi Technology Development Corporation (HTDC), plus a $3K Phase 0 grant to help first-time federal applicants get their footing.
The funding landscape in Hawaii
Hawaii's economy is dominated by tourism and federal defense spending, but the state has made deliberate investments in a technology and innovation sector, particularly in ocean science, biotech, astronomy, and clean energy — all sectors with strong federal R&D grant pipelines. The Hawaiʻi Technology Development Corporation (HTDC) is the primary state agency supporting tech businesses, running both the HSBIR matching grant program and the Innovate Hawaii commercialization program. The High Technology Development Corporation (now HTDC) also operates business incubators at Manoa Innovation Center and Maui Research and Technology Center, where tenant businesses get access to wet labs, equipment, and entrepreneurship support.
On the tax side, Hawaii's Research Activities Tax Credit is among the most accessible state R&D credits in the US: 20% of Hawaii-qualified research expenses, fully refundable regardless of income tax liability. This is significant for startups and early-stage companies that may not yet have taxable income. The credit covers software development, biotech research, ocean science, clean technology, and any activity meeting the federal §41 qualified research definition. For businesses in agriculture and ocean industries, USDA Rural Development offers loan programs relevant to Hawaii's rural islands, and USDA SBIR is open to agricultural technology research. The federal SBIR ecosystem across DOE, NIH, DARPA, and NSF is well-matched to Hawaii's research strengths, and the University of Hawaii's technology transfer office actively supports company formation from federally-funded research.
Hawaii programs 3
State-administered grants, tax credits, and incentives for businesses based in Hawaii.
Hawaiʻi Small Business Innovation Research (HSBIR) Matching Grant
Hawaii matches your federal SBIR/STTR award by up to 50% — plus a $3K Phase 0 grant for first-time applicants.
Hawaii Manufacturing Assistance Program (MAP)
Reimbursement grants of $1,500–$100,000 for Hawaii manufacturers — covers equipment, training, energy efficiency, and feasibility studies.
Hawaii Research Activities Tax Credit
Fully refundable 20% credit on Hawaii-located R&D expenses. Cash refund even with zero Hawaii income tax liability.
Federal & national programs Hawaii businesses can use
These programs are open to qualifying small businesses in every state, including Hawaii — often the largest non-dilutive dollars available.
SBIR Phase I — U.S. Air Force / AFWERX
Air Force SBIR Phase I — up to $250K via traditional topics or AFWERX Open Topics (continuously open). STRATFI/TACFI bridge Phase I to Phase II.
SBA 7(a) Loan Program
SBA's flagship loan guarantee — up to $5M for almost any business purpose through an SBA-approved bank or lender.
SBA Microloan Program
Loans up to $50K for startups and small businesses through local nonprofit lenders. Average loan ~$13K. Apply to a local intermediary, not SBA directly.
Research & Development Tax Credit (Section 41)
Federal R&D credit offsetting up to $500K/yr in payroll taxes for early-stage companies with qualifying research spend.
SBA 504/CDC Loan Program
Fixed-rate financing up to $5.5M for owner-occupied real estate and heavy equipment — as little as 10% down, 25-year terms.
SBIR Phase I — USDA (NIFA)
Up to $175K USDA feasibility grant for ag-tech, food, forestry, and rural innovation startups — one annual solicitation, submitted via Grants.gov.
How to apply in Hawaii
The Hawaii Research Activities Tax Credit is claimed on Hawaii Form N-346 with your Hawaii income tax return — compute qualified Hawaii research expenses and apply the 20% rate; attach required documentation. For the HSBIR Matching Grant, contact HTDC directly (htdc.org) — the program runs in periodic rounds tied to federal SBIR solicitation cycles, and first-time federal applicants should inquire about the Phase 0 pre-application grant. For federal SBIR programs, sbir.gov lists all open solicitations; the Hawaii SBDC (at University of Hawaii) provides free proposal development support and has a track record with NSF, NIH, and DOE applications.
Hawaii small business funding FAQ
How does Hawaii's refundable R&D tax credit work in practice?
Hawaii's Research Activities Tax Credit equals 20% of qualified research expenses incurred in Hawaii. 'Qualified research' follows the federal §41 definition — systematic experimentation to develop or improve a business component, including software, biotech, clean energy, and ocean technology. The credit is fully refundable: if the credit exceeds your Hawaii income tax liability, the state pays out the difference as a cash refund. Claim it on Form N-346. There is no incremental calculation — the 20% applies to the full current-year Hawaii QRE, not just the increase over a base period.
What is the Hawaiʻi SBIR matching grant and when does it open?
The Hawaiʻi SBIR Matching Grant, administered by HTDC, supplements your federal SBIR or STTR award with additional state funding — up to 50% of the federal award amount. For first-time federal applicants who have not yet won an SBIR award, HTDC offers a Phase 0 grant of $3,000 to help prepare a competitive federal application. The program runs in periodic intake rounds tied to federal solicitation cycles rather than continuously. Check htdc.org for the current status. The program has historically favored technology, biotech, ocean-marine, cleantech, and aerospace companies.
What federal grants are best suited to Hawaii's industries?
NSF SBIR is well-matched to Hawaii's ocean technology, software, and biotech sectors — Phase I awards up to $305K, Phase II up to $1M. NIH SBIR is directly relevant to UH-partnered biotech and healthcare technology startups. DOE SBIR covers ocean energy (OTEC, wave energy) and clean grid technology relevant to Hawaii's island grid challenges. NOAA issues cooperative agreements for ocean research, fisheries science, and marine technology that Hawaii companies regularly compete for. The DOE Office of Science and ARPA-E also fund projects in Hawaii's energy and ocean sectors. USDA SBIR is open to agricultural technology research relevant to Hawaii's diversified agriculture.
Are there Hawaii grants for non-tech businesses — tourism, retail, food?
Broadly available non-repayable state grants for retail, tourism, or food businesses in normal economic conditions are limited in Hawaii. SBA 7(a) and SBA 504 loans are the primary capital access tools for most Main Street businesses. The USDA Value-Added Producer Grant (VAPG) is relevant to Hawaii food producers adding value to agricultural products. Some counties — Maui, Honolulu, Kauai — run periodic small business assistance programs with grant components, especially post-disaster or for specific community development objectives; check county economic development offices. Private grants like the Amber Grant for Women and Eileen Fisher Women-Owned Business Grant are open nationally and have no state residency restrictions beyond US eligibility.