Delaware Small Business Grants, Loans and Tax Credits: EDGE, SSBCI Loan Programs, Strategic Fund and Free SBDC Advising

Delaware offers a robust ecosystem of grants, loans, and tax credits designed to help small business owners launch, grow, and scale. Whether you're a startup seeking capital, a manufacturer pursuing innovation, or an established business looking to expand, the state provides multiple funding pathways through the Division of Small Business, the Division of Revenue, and federal programs administered by Delaware partners. This guide walks you through the major programs available, eligibility requirements, and where to find application details and free business advising.

Where to Find Delaware's Small Business Incentives

Delaware's small business grants, loans, and tax credits are administered primarily through the Division of Small Business within the Department of State. The official starting point for all state incentive programs is business.delaware.gov/incentives. This page lists current programs, eligibility criteria, application windows, and contact information. Before you dive into specific programs, check that page to confirm which programs are currently accepting applications and to access the latest guidelines and deadlines.

EDGE Grant Competition: The State's Flagship Entrepreneur Grant

The EDGE (Economic Development for Growing Entrepreneurs) Grant Competition is Delaware's signature grant program for early-stage businesses. The Division of Small Business administers a competitive grant that splits funding between two tracks: entrepreneur-focused and STEM-focused.

Program Structure and Award Amounts

EDGE grants are awarded as a competitive pool, not per-business. The total available funding is divided among winners:

• Entrepreneur Track: Up to $400,000 total distributed among up to 10 winners
• STEM Track: Up to $750,000 total distributed among up to 8 winners

The funds are provided as a $3 (state) to $1 (business) match. Award amounts are scaled to the quality of each finalist's pitch presentation, so do not count on a particular amount.

Eligibility Requirements

To qualify for an EDGE grant, your business must meet all of these criteria:

• Delaware-based business entity
• Less than 7 years old at the time of application
• 15 or fewer full-time employees
• Assets under $700,000
• A 3:1 match (state $3 to business $1)

EDGE grant funds must be used to expand a business's viability and sustainability, for example market analysis, advertising, building infrastructure or cosmetic enhancements, essential equipment, web site design, and rent assistance for lab space. Other conditions and qualifications may apply.

Application Status

Applications for EDGE grants were closed at the time this guide was published. The Division of Small Business opens the competition periodically. Check business.delaware.gov/incentives or contact the Division of Small Business directly for the next application window, timeline, and submission instructions.

State Small Business Credit Initiative (SSBCI) Loan Programs

Delaware distributes federal State Small Business Credit Initiative funds through four programs: two support small business loans and two support start-up and early-stage businesses. The Division of Small Business works with financial lending partners to distribute the funds.

Delaware Loan Participation Program

This is one of the two SSBCI programs that support small business loans. Check business.delaware.gov/incentives for how it works and which lenders take part.

Delaware Capital Access Program

The Delaware Capital Access Program (DCAP) is the other SSBCI program that supports small business loans. Check business.delaware.gov/incentives for how it works and what the loans can be used for.

Accelerator and Seed Capital Program

This is one of the two SSBCI programs that support start-up and early-stage businesses. Check business.delaware.gov/incentives for how it works.

Early-Stage Venture Capital Program

This is the other SSBCI program that supports start-up and early-stage businesses. Check business.delaware.gov/incentives for how it works.

How to Access SSBCI Programs

SSBCI funds are distributed by the Division of Small Business with financial lending partners. Contact the Division of Small Business or check business.delaware.gov/incentives for current terms and funding availability. These programs are highly competitive and have processing requirements; work with a lender partner early in your planning.

Delaware Strategic Fund: Grants and Low-Interest Loans for Larger Projects

The Delaware Strategic Fund provides a mix of grants and low-interest loans for businesses pursuing significant expansion, job creation, or capital investment. Applications must go before the Council on Development Finance.

The Strategic Fund is typically used by established businesses planning major facility investments, relocations, or substantial workforce hiring. Funding amounts and terms vary by project. See the Strategic Fund Fact Sheet linked from business.delaware.gov/incentives for program requirements, and contact the Division of Small Business before you apply.

Specialized Grant and Loan Programs

Beyond EDGE and SSBCI, Delaware offers several targeted programs for specific industries, business stages, or investment types:

Technical and Innovation Programs

• Delaware Technical Innovation Program: Offers transition grants to companies that have completed Phase I and applied for Phase II of the federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs as they work to bring new products to market.
• Graduated Lab Space Funding: Designed to support existing companies and attract new companies that require lab space; see the fact sheet on business.delaware.gov/incentives for minimum qualifications.
• Modernization Investment Support Initiative: Provides grant funds to qualified businesses that face regional, national, or global competitive forces that could disrupt local operations unless they invest to modernize their Delaware location.

Site and Infrastructure Programs

• Site Readiness Fund: Invests in developing or improving commercial and industrial sites to attract job-creating businesses, with grants, loans or other assistance to qualified businesses or local governments that build, renovate or improve site infrastructure.
• Transportation Infrastructure Investment Fund: Provides grants to new or expanding job-generating businesses to help offset their transportation improvement costs, paid as reimbursement for completed transportation infrastructure work.

Agriculture Financing

• Delaware Agricultural Financing Program: A Department of Agriculture program that broadens lending opportunities across the agricultural sector, including equipment loans for production, processing, packaging, aggregation and distribution. Contact the Department of Agriculture to confirm your project qualifies.

Workforce Training

The Workforce Training Grant program was paused at the time this guide was published. Check with the Division of Small Business or the Department of Labor for current status and alternative workforce development funding.

Delaware Tax Credits for Small Businesses

Beyond grants and loans, the Division of Revenue administers tax credits that reduce your state tax liability. These are available to businesses meeting specific criteria:

Available Tax Credits

• New Business Facility Credit: Reduces income or gross receipts taxes for new facilities or major expansions that create employment.
• New Economy Jobs Credit: Encourages hiring in targeted high-value industries and occupations.
• Research and Development Credit: Rewards in-state R and D spending on product and process innovation.
• Land and Historic Resource Conservation Credit: Incentivizes preservation and conservation easements.
• Historic Preservation Credit: Supports restoration and adaptive reuse of historic buildings and structures.
• Vocational Rehabilitation Hiring Credit: Encourages hiring of workers with disabilities or barriers to employment.

How Tax Credits Work

The Division of Revenue administers these credits, and the Division of Small Business incentives page links to the Division's contact and application pages for them. Check the credit's own rules for how and when to claim it. Begin by contacting the Division of Revenue at revenue.delaware.gov and asking about the specific credit your business may qualify for. Processing times and claim procedures vary by credit type.

Downtown Development Districts and Opportunity Zones

Delaware also supports businesses in specific geographic areas through targeted incentives:

Downtown Development Districts may offer rebates and other incentives, but the details vary by district and location.

Opportunity Zones are federally designated areas where qualified business investments may defer or eliminate capital gains taxes. Delaware has multiple Opportunity Zones across the state.

For current information on Downtown Development District rebates, Opportunity Zone incentives, or any new corridor programs, contact the Division of Small Business or the Delaware State Housing Authority. These programs change, and eligibility depends on your specific location and investment type.

Free Business Advisory Resources

Some of Delaware's most valuable small business resources are free. Do not overlook them.

Delaware Small Business Development Center (SBDC)

The Delaware SBDC, based at the University of Delaware, offers free one-on-one advising, training workshops, and business plan development assistance. Services include market research, financial projections, loan preparation, and growth strategy. Visit delawaresbdc.org for office locations, hours, and how to schedule a consultation. No fee. SBDC advisors work with both new and established businesses.

U.S. Small Business Administration (SBA) Delaware District Office

The SBA Delaware District Office provides free resources, training, and referrals to small business owners. Visit sba.gov/district/delaware for contact information, upcoming training events, and disaster assistance (if applicable). The SBA also guarantees loans made by participating lenders.

Other Resources

• Delaware Department of Natural Resources and Environmental Control: dnrec.delaware.gov (for businesses involving natural resources and environmental compliance)
• Delaware Division of Revenue (taxes, licensing, gross receipts): revenue.delaware.gov
• Delaware One Stop (unified portal for business licensing and registration): onestop.delaware.gov

How to Prepare and Apply for Delaware Grants and Loans

Each program has different application requirements, deadlines, and evaluation criteria. However, most require the following basic materials:

• A business plan or executive summary describing your business, market, competitive advantage, and growth strategy
• Financial statements or projections, if the program asks for them
• Proof of Delaware business registration (Certificate of Formation for an LLC or Certificate of Incorporation for a corporation)
• Personal financial statements and tax returns from owners
• Detailed project or use-of-funds description for the specific program
• Evidence of owner investment or commitment (matching funds or equity stake)
• Job creation plan (if required by the program)

Start with a free consultation at the Delaware SBDC or SBA to discuss your business and which programs match your needs. They can help you prepare materials, understand eligibility, and navigate the application process. Many programs require a narrative demonstrating alignment with Delaware's economic development priorities, so professional, thorough applications significantly improve your chances of funding.

Key Takeaways

• Check business.delaware.gov/incentives for current programs, open application windows, and state contact information.
• EDGE grants are the state's flagship offering for early-stage businesses under 7 years old with assets under $700,000.
• SSBCI loan programs are delivered through partner lenders and offer favorable terms for working capital, equipment, or growth funding.
• Tax credits are available for facilities, job creation, research and development, conservation, and hiring targeted populations.
• Use free SBDC and SBA advising to prepare strong applications and understand which programs fit your business.
• Specialized programs exist for agriculture, advanced manufacturing, innovation, and site infrastructure.

Disclaimer

This guide is informational only and does not constitute legal, tax, or financial advice. Grant and loan programs, eligibility requirements, application windows, and funding amounts are subject to change. Consult a qualified accountant, attorney, or financial advisor before committing to any business funding strategy. Contact the Division of Small Business, the Division of Revenue, the Delaware SBDC, and the SBA directly for current program terms, deadlines, and detailed eligibility criteria. The state does not guarantee funding or favorable review for any applicant.