What Grant Money Can Actually Buy

Name: Eligible and ineligible costs across 711 US funding programmes
Creator: Khalid Hamadeh
License: Free to cite with attribution to GrantCompass.

By Khalid Hamadeh, founder of GrantCompass · Updated September 4, 2026

59.1%allow equipment and machinery

35.0%allow general working capital

23.9%allow marketing and advertising

208explicitly ban personal expenses

117explicitly ban paying off debt

Quick Answer

Grant money is usually for a specified thing, not for the business. Across the 711 US funding programmes publishing an eligible-cost list, the most widely allowed categories are equipment and machinery (420 programmes, 59.1%), inventory and supplies (332, 46.7%), research and development (305, 42.9%) and salaries and benefits (282, 39.7%). General working capital — the thing most small businesses actually want — is allowed by only 249 (35.0%), and is concentrated in the private lane at 58.9%. On the exclusion side, 208 programmes refuse personal or non-business expenses, 117 refuse paying off existing debt, 109 refuse political activity and 109 refuse buying real estate.

Updated September 4, 2026 — every figure on this page is recomputed from the GrantCompass verified US catalog by backend/scripts/build-application-reality-pack.py. Free to cite with attribution.

What programmes allow you to spend on

Each bar counts programmes whose published eligible-cost list includes that category. Most programmes allow several, so the bars overlap.

Equipment and machinery

420 programmes · 59.1%

Inventory and supplies

332 programmes · 46.7%

Research and development

305 programmes · 42.9%

Salaries, payroll and benefits

282 programmes · 39.7%

Working capital and operating costs

249 programmes · 35.0%

Construction and leasehold improvements

229 programmes · 32.2%

Technology and software

196 programmes · 27.6%

Marketing and advertising

170 programmes · 23.9%

Training and professional development

154 programmes · 21.7%

Consultants and professional services

113 programmes · 15.9%

Travel

110 programmes · 15.5%

n = 711 of 736 catalogued programmes publish an eligible-expense list. A share here describes the market, never your award — spending outside your own terms is the commonest route into a clawback.

Equipment is the near-universal yes at 59.1%, followed by inventory and supplies (46.7%) and research and development (42.9%). The category founders most want — general working capital — is allowed by only 35.0%, and that is the single biggest mismatch between what businesses need and what grant money is for.

What programmes explicitly refuse to fund

The exclusion lists are shorter and much more consistent than the eligible lists, which makes them the more useful document: a handful of categories are refused almost everywhere.

Personal or non-business expenses

208 programmes · 30.1%

Paying off existing debt

117 programmes · 16.9%

Political contributions or lobbying

109 programmes · 15.8%

Real estate purchase

109 programmes · 15.8%

Owner salaries or distributions

50 programmes · 7.2%

Entertainment, alcohol or gifts

48 programmes · 6.9%

Costs already incurred before the award

30 programmes · 4.3%

Anything unlawful

25 programmes · 3.6%

Vehicles

18 programmes · 2.6%

Fines, penalties or taxes

18 programmes · 2.6%

Charitable donations

3 programmes · 0.4%

Federal (n=190)

Personal or non-business expenses19.5%

Paying off existing debt14.7%

Political contributions or lobbying38.9%

Real estate purchase22.6%

Owner salaries or distributions8.4%

State (n=297)

Personal or non-business expenses13.8%

Paying off existing debt12.8%

Political contributions or lobbying4.7%

Real estate purchase13.8%

Owner salaries or distributions6.4%

Private and foundation (n=160)

Personal or non-business expenses69.4%

Paying off existing debt23.1%

Political contributions or lobbying9.4%

Real estate purchase7.5%

Owner salaries or distributions3.8%

n = 691 of 736 catalogued programmes publish an ineligible-expense list. Many publish no detailed list at all, which is not the same as permitting everything.

The four that recur everywhere. Personal or non-business expenses (208 programmes), paying off existing debt (117), political contributions or lobbying (109) and buying real estate (109). If your plan for the money is one of those four, the grant route is closed before you start — and 30 programmes also refuse costs you incurred before the award was made.

The same dollar, three different rulebooks

Eligible-cost lists diverge more sharply by funder than almost anything else we measure, and the divergence is the whole reason a rejected budget is so common.

Theme	All programmes	Federal	State	Private and foundation
Equipment and machinery	59.1%	58.4%	54.5%	67.8%
Inventory and supplies	46.7%	53.2%	40.4%	53.3%
Research and development	42.9%	53.7%	47.8%	31.7%
Salaries, payroll and benefits	39.7%	46.3%	39.7%	39.4%
Working capital and operating costs	35.0%	31.6%	23.9%	58.9%
Construction and leasehold improvements	32.2%	35.8%	27.6%	26.7%
Technology and software	27.6%	33.7%	21.5%	31.7%
Marketing and advertising	23.9%	14.2%	11.4%	52.8%
Training and professional development	21.7%	26.8%	24.9%	14.4%

Share of programmes at each funder level allowing the category. Programmes per group: Federal n=190 · State n=297 · Private and foundation n=180. Click any column heading to sort.

Federal (n=190)

Equipment and machinery58.4%

Inventory and supplies53.2%

Research and development53.7%

Salaries, payroll and benefits46.3%

Working capital and operating costs31.6%

Construction and leasehold improvements35.8%

State (n=297)

Equipment and machinery54.5%

Inventory and supplies40.4%

Research and development47.8%

Salaries, payroll and benefits39.7%

Working capital and operating costs23.9%

Construction and leasehold improvements27.6%

Private and foundation (n=180)

Equipment and machinery67.8%

Inventory and supplies53.3%

Research and development31.7%

Salaries, payroll and benefits39.4%

Working capital and operating costs58.9%

Construction and leasehold improvements26.7%

Private pays for the business

52.8%

52.8% of private programmes allow marketing and advertising against 14.2% federally, and 58.9% allow general working capital against 23.9% at state level.

Private money is the closest thing to unrestricted cash in this market, which is a large part of its real value.

Federal pays for the project

53.7%

53.7% of federal programmes fund research and development and 36.8% fund travel — against 3.9% privately.

Federal money also carries the strictest exclusions: 38.9% ban political activity and 12.1% refuse pre-award costs.

State pays for the asset

27.6%

State programmes concentrate on physical and human capital: 27.6% fund construction or leasehold improvements and 24.9% fund training.

That is consistent with what state reviewers score, which is jobs and local economic outcomes.

Where the cost rules bite hardest: 95 open awards of $25,000 or less

On a $500,000 federal award an ineligible line item is an administrative problem. On a $5,000 microgrant it can be most of the money. These are the open catalogued programmes with a ceiling of $25,000 or less, where reading the eligible-cost list before you spend is not optional.

60 programmes

Programme	Level	Type	Ceiling	Effort	Status
Colorado Rural Jump-Start Grant and Tax Credit Program	State	Grant	$25K	20 h	Active
IFundWomen Universal Grant Application	Private	Grant	$25K	4 h	Active
Kansas City Neighborhood Tourism Development Fund (NTDF) / PIAC Small Business Grant	Municipal	Grant	$25K	10 h	Active
Kentucky Bluegrass State Skills Corporation (BSSC) — Skills Training Investment Credit & Grant	State	Grant	$25K	12 h	Active
Michigan Industry 4.0 Technology Implementation Grant	State	Grant	$25K	6 h	Active
NYC Small Business Services — Small Business Opportunity Fund	Municipal	Grant	$25K	8 h	Active
Phoenix Business Grant Program — Office of Economic Development	Municipal	Grant	$25K	8 h	Active
San Antonio Economic Development Foundation — Small Business Grant	Municipal	Grant	$25K	7 h	Active
SBA State Trade Expansion Program (STEP)	Federal	Program	$25K	8 h	Active
South Carolina Jobs Tax Credit	State	Tax-Credit	$25K	10 h	Active
Stacy's Rise Project	Private	Grant	$25K	4 h	Active
Maryland TEDCO Rural Business Innovation Initiative (RBII)	State	Grant	$25K	30 h	Active
South Dakota Proof of Concept Program	State	Grant	$25K	18 h	Active
Global NY Fund Grant Program	State	Grant	$25K	21 h	Active
Barberton Façade Improvement Grant Program	Municipal	Grant	$25K	8.5 h	Active
Enthuse Foundation Pitch Competition	Foundation	Award	$25K	10 h	Active
Oklahoma STEP Fund — State Trade Expansion Program	State	Grant	$24K	6 h	Active
Nebraska Advantage Microenterprise Tax Credit	State	Tax-Credit	$20K	4 h	Active
San Diego Regional Economic Development Corporation — Small Business Grant	Municipal	Grant	$20K	8 h	Active
Antares REACH Grant Program & Boost Camp	Private	Grant	$20K	4 h	Active
Connecticut Manufacturing Innovation Fund — Additive Manufacturing Voucher Program	State	Grant	$20K	8 h	Active
Mountain View Façade Improvement Grant Program	Municipal	Grant	$18K	8.5 h	Active
Downtown Austin Alliance Façade Improvement Grant	Municipal	Grant	$17K	9.5 h	Active
Alaska STEP — State Trade Expansion Program	State	Grant	$15K	6 h	Active
Colorado Advanced Industries Export Grant	State	Grant	$15K	6 h	Active
Denver Business Impact Opportunity (BIO) Fund	Municipal	Grant	$15K	4 h	Active
Grameen America — Microloans for Women Entrepreneurs	Private	Loan	$15K	29 h	Active
Kansas City Outdoor Dining Enhancement Grant Program	Municipal	Grant	$15K	3 h	Active
Kiva U.S. — 0% Interest Microloans for Small Business	Private	Loan	$15K	7 h	Active
Refugee Microenterprise Development (MED) Program	Federal	Loan	$15K	10 h	Active
Florida STEP — State Trade Expansion Program	State	Grant	$15K	12 h	Active
Connecticut Manufacturing Innovation Fund — Apprenticeship Program	State	Grant	$15K	6 h	Active
DoorDash Restaurant Disaster Relief Fund	Private	Grant	$15K	2.5 h	Active
West Virginia State Trade Expansion Program (STEP) Export Grant	State	Grant	$15K	3 h	Active
UpStart Cocoa Small Business Development Grant	Municipal	Grant	$15K	8 h	Active
Iowa Tourism Marketing Grant	State	Grant	$10K	4 h	Active
Los Angeles BusinessSource Small Business Grant	Municipal	Grant	$10K	7 h	Active
Global NY STEP — New York State Trade Expansion Program	State	Grant	$10K	3 h	Active
Samuel Adams Brewing the American Dream — Pitch Room Competition	Private	Grant	$10K	4 h	Active
Washington STEP Export Voucher Program	State	Grant	$10K	4 h	Active
Halcyon Incubator Fellowship	Foundation	Award	$10K	12 h	Active
SF Shines Storefront Improvement Grant	Municipal	Grant	$10K	8 h	Active
Portland Small Business Repair / Restore Grant	Municipal	Grant	$10K	4 h	Active
DAV Patriot Boot Camp	Private	Program	$10K	2 h	Active
DivInc Startup Accelerator	Private	Grant	$10K	6 h	Active
California STEP — State Trade Expansion Program	State	Grant	$10K	9 h	Active
Texas STEP — State Trade Expansion Program	State	Grant	$10K	8 h	Active
First Peoples Fund — Artist in Business Leadership (ABL) Fellowship	Foundation	Grant	$10K	10 h	Active
Delaware Compass Grant	State	Grant	$10K	3.5 h	Active
Maine Micro-Enterprise Assistance Grant (MEA)	State	Grant	$10K	6.5 h	Active
LISC Verizon Small Business Digital Ready Grant	Private	Grant	$10K	3 h	Active
Outta Excuses Small Business Empowerment Grant	Private	Grant	$10K	2 h	Active
Colorado State Trade Expansion Program (STEP) Grant	State	Grant	$10K	5 h	Active
Botetourt County Small Business Grant Program	Municipal	Grant	$10K	4.5 h	Active
Laurel Thrive Small Business Grant Program	Municipal	Grant	$10K	8 h	Active
Hey Helen Grant	Private	Grant	$10K	2.5 h	Active
MassCEC Clean Energy Internship Program for Employers	State	Grant	$9K	5 h	Active
South Carolina Apprenticeship Tax Credit	State	Tax-Credit	$8K	10 h	Active
Halstead Grant	Private	Award	$8K	20 h	Active
Oregon Export Promotion Program (OTPP)	State	Grant	$8K	5 h	Active

Showing 60 of 95 open programmes at $25K or less, largest first. Public catalog fields only — no eligible-cost list is shown per programme. Open the database.

Will this programme pay for what you actually need?

Start from the spend, not the grant. It eliminates most of the market in about a minute.

Match your spend to the lane

What do you actually need the money for?
IF EQUIPMENT OR MACHINERY → The easiest ask in the market: 59.1% of programmes allow it, at every funder level.
IF GENERAL WORKING CAPITAL → The hardest: only 35.0% allow it overall, but 58.9% of private programmes do. Start there.
IF MARKETING OR ADVERTISING → Go private: 52.8% allow it against 14.2% federally.
IF RESEARCH OR PRODUCT DEVELOPMENT → Go federal: 53.7% fund R&D.

Have you already spent the money?
IF YES → That rules out a large slice immediately — 30 programmes explicitly refuse pre-award costs, rising to 12.1% federally.
IF NO → Good. Approval before spend is the ordering every funder assumes.

Is any part of it personal, debt repayment, real estate or political?
IF YES → Remove it from the budget. Those four are the most consistently excluded categories in the market (208, 117, 109 and 109 programmes respectively).
IF NO → Your budget is in the shape funders expect.

Are you paying yourself out of it?
IF YES → Check carefully: 50 programmes exclude owner salaries or distributions specifically, even where they fund staff payroll.
IF NO → Then payroll is broadly fundable — 39.7% of programmes allow salaries and benefits.

Five budget mistakes

Budgeting for working capital. Only 35.0% of programmes allow it. Most grant money is for a thing, not for the business.

Spending before the award. 30 programmes refuse pre-award costs, 12.1% of federal ones.

Paying yourself. 50 programmes exclude owner salaries or distributions even while funding staff payroll.

Assuming no published exclusion list means no exclusions. Many programmes publish none; your award agreement still governs.

Reading a market share as permission. That 59.1% of programmes fund equipment tells you nothing about the one you won.

Questions founders actually ask

What can grant money be used for?

Most often equipment and machinery, allowed by 420 of 711 programmes (59.1%), then inventory and supplies (46.7%), research and development (42.9%) and salaries (39.7%). General working capital is the outlier at 35.0% — grant money is usually for a specified thing.

Can I use a grant for anything I want?

No. Even where no detailed exclusion list is published, the award agreement specifies purposes, and spending outside them is the commonest route into a clawback. 208 programmes explicitly exclude personal or non-business expenses.

Can grant money pay off debt?

Rarely. 117 of 691 programmes (16.9%) explicitly exclude paying off existing debt, and it is uncommon for a programme to name it as eligible.

Can I pay myself with grant money?

Sometimes, but check: 39.7% of programmes fund salaries and benefits while 50 specifically exclude owner salaries or distributions. The two are not the same line.

What happens if I spend it on the wrong thing?

That is the classic clawback trigger. Of the programmes with a researched assessment, 57.6% carry some clawback exposure — see do you have to pay it back.

Methodology, scope and what this data cannot tell you

Computed from the GrantCompass verified US catalog of 736 funding programmes, of which 711 publish an eligible-cost list and 691 an ineligible-cost list, taken from each programme's own materials.

Themes are not mutually exclusive. A programme's own text routinely raises several concerns at once, so a programme can count toward more than one theme and the shares deliberately sum above 100%. They are not a partition and must not be read as slices of a pie.

This records what programmes say, not what happened to applicants. GrantCompass holds no applicant-level outcome data: nothing here is a rate over real applications, and no figure on this page describes how likely you are to win. It describes what 711 funders tell applicants, read consistently and counted.

Absence is not permission. Where a programme's record does not mention a requirement, that is a fact about the record, not evidence the requirement does not exist. Counts are always of programmes that state a thing, never of programmes that fail to.

Thin cells are suppressed. A share is only published for a funder level with at least 25 programmes behind it, which is enforced in the generator rather than in review. Local and municipal programmes are therefore absent from several breakdowns.

Per-programme detail — what one specific programme requires, scores and rejects on — is the paid Win Brief and is never published here. Everything on this page is an aggregate across programmes, or a public field (award ceiling, level, type, status, application effort) shown per programme.

The eligible-cost list for one programme

A market share is not permission. What you need before you commit a budget is the one programme's own eligible and ineligible cost list, which is what the Win Brief carries alongside its conditions and its clawback exposure.

Open the programme database →