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6 Best Grants to Start a Tow Truck Business [Steps to Apply]

A grant is free money given by organizations, like governments or nonprofits, to individuals or businesses for specific purposes, such as starting a business, conducting research, or supporting community projects.

Unlike loans, grants typically don’t need to be repaid but often require meeting certain criteria or completing specified activities.

In case you are planning to start a tow truck business and you are not certain of where you can generate the start-up capital required to start the business, you may want to consider the option of grants.

Best Grants to Start a Tow Truck Business

  1. FedEx Small Business Grant Contest

The FedEx Small Business Grants Program started in 2012 (formerly, the FedEx Small Business Grant Contest) to award U.S.-based small businesses with grants and prizes to enhance their businesses. Interestingly, tow truck businesses are eligible to apply for this grant.

The 2024 program will begin accepting applications on March 1, 2024, at 12 pm ET (Noon).  The application deadline is 12 pm ET (Noon) on April 1, 2024. Grant recipients will be announced on May 16, 2024.

Eligibility requirements (Who may apply for the U.S. FedEx Small Business Grants Program?)

Existing FedEx customers with a valid shipping account that has been open for at least 6 months, have fewer than 99 employees, and who, as of the start of the application period, have been actively shipping with FedEx may apply.

Owners and part-time employees are considered employees. All additional eligibility requirements are available in the Official Rules.

How to Apply

You can apply by visiting the published portal for the specific grant application. Prepare your answers. They will ask you about:

  • Your business and the products or services you offer.
  • How you’d use your grant to grow your business.
  • What it’s like working with FedEx and how they’ve supported your business.
  • Find high-quality images, including your logo, that show your business’s personality.
  • Create a short video. Share your story as a small business owner and how your experience with FedEx helped shape your success.
  • Make some notes on what you’re going to talk about.
  • Find a fitting place to shoot your video.
  • Do a test recording to ensure the lighting is good and the audio is clear.
  • Don’t overthink the tech. A selfie video is perfectly suitable.
  • Watch the video to get tips from a previous recipient on creating an impressive application.

Note that you will need a valid U.S.-based FedEx business account to apply. The account must be opened for at least 6 months at the time the application period opens to be considered eligible.

Don’t have one? You may open an account at, start saving on your shipping today, and get ready to apply to the next grant program.

  1. SBA 8(a) Business Development Program

The SBA 8(a) Business Development Program helps small businesses owned by socially and economically disadvantaged individuals gain access to government contracts and resources.

To qualify, businesses must be at least 51% owned and controlled by individuals who are socially or economically disadvantaged.

Once accepted, participants receive training, counseling, and competitive advantages in federal contracting opportunities, helping them grow and succeed in the marketplace.

The program aims to level the playing field for minority-owned businesses, providing opportunities for growth and economic empowerment.

Eligibility Requirements

The federal government defines who qualifies for the 8(a) BD Program in Title 13 Part 124 of the CFR.

An applicant must:

  • Be a small business;
  • Not have previously participated in the 8(a) BD Program;
  • Be at least 51 percent owned and controlled by U.S. citizens who are socially and economically disadvantaged;
  • Have a personal net worth of $850K or less, adjusted gross income of $400K or less, and assets totaling $6.5 million or less; and
  • Demonstrate good character and potential to perform on contracts.
Steps on How to Apply
  • Identify your primary NAICS code(s).
  • Register your business in the System for Award Management
  • (SAM) and the Dynamic Small Business Search (DSBS).
  • Make sure to apply for 8(a) certification at Before you start, make sure you
  • visit the Knowledge Center on the Certify website.
  • Get local assistance and find out if you are ready to apply by meeting with an SBA Business Opportunity Specialist or APEX Accelerator (formerly Procurement Technical Assistance Center) counselor.
  1. USDA Rural Business Enterprise Grants

The USDA Rural Business Enterprise Grants aim to support rural economic development by providing funds to small businesses and organizations.

These grants help finance projects that create jobs, improve infrastructure, and stimulate economic growth in rural areas. Eligible recipients include rural cooperatives, nonprofits, and local governments.

Funds can be used for various purposes such as purchasing equipment, expanding facilities, or conducting feasibility studies.

The USDA Rural Business Enterprise Grants prioritize projects that benefit low-income communities and address local needs.

By investing in rural businesses, these grants contribute to building stronger and more vibrant rural economies, fostering sustainable development and prosperity.

Applications will compete in two separate categories, business opportunity grants, and business enterprise grants, for use in funding various business and community projects that serve rural areas.

How to Apply

To complete an application for this program, you must be pre-registered with the System for Award Management (SAM).

Neither of these applications cost money, but they can take time so be sure to get this taken care of right away. If you are already registered with these systems, you do not need to do it again. Note that all applications are evaluated based on:

  • Evidence showing job creation at local businesses.
  • Percent of non-federal funding committed to the project.
  • Economic need in the area to be served.
  • Consistency with local economic development priorities.
  • Experience of the grantee with similar efforts.
  1. U.S. Department of Commerce Minority Business Development Agency (MBDA)

This is another valid option to consider if you are looking to start a tow truck business in the United States. The MBDA is a Washington, DC-based organization established in 1969 by President Richard Nixon. The sole intention of this grant is to boost more minority-owned businesses in the United States.

This organization over the years has offered numerous programs either to boost your existing business or to help you in starting and managing one.


To be eligible, you will need to be “at least 51 percent owned and operated by an individual that is at least 25 percent African American, Asian, Hispanic, or Native American” per Fundbox. To obtain funding, your daycare center will also have to be certified by the Small Business Association.

How to Apply
  • Register your business to apply for an MBDA grant
  • Understand the Grant Announcement
  • Attend a pre-application teleconference to learn more about the grant and requirements
  • Understand the evaluation process
  • Prepare and Submit the Application.
  1. is a U.S. government organization that provides access to the most extensive collection of federal funding. A variety of grant possibilities are available on for different kinds of businesses, including tow truck businesses.

On the website, small business owners can look up grants and submit applications. Before applying, it is important to be aware of your eligibility status because different organizations have different requirements.

However, as most government policy initiatives favor enterprises in the science and technology industries, they have a better chance of discovering grant opportunities on

Eligibility Requirements

Make sure you or your business is qualified to apply for the award before starting the application procedure. Two factors determine eligibility:

  • Creating an account on to apply
  • Knowing the legal requirements for the funding opportunity
How to Apply
  • To get a general overview of grants, visit the Grants Learning Center.
  • Before applying, be certain that you are qualified.
  • Look for federal funds that are relevant to your work.
  • Become a member of to apply through Workspace.
  • Utilizing Workspace, complete and submit your application.
  • For submission status, enter your tracking number(s).
  1. National Association for the Self-Employed (NASE)

Small business owners including tow truck business owners can receive small business grants through the National Association for the Self-Employed (NASE).

This trade association supports small businesses and entrepreneurs. NASE does not specifically target Hispanic business owners but all self-employed businesses that need funds to grow.

You need to be a registered member of the NASE for at least three months and have a strong business plan to be eligible to get a monthly grant of up to $4,000.

Members enjoy discounts on business expenses in addition to loans and other resources that facilitate business growth. You can apply on the NASE website if eligible.

Eligibility Requirement
  • Have fewer than 20 full-time staff.
  • You must have an EIN or ITIN number.
  • Must have been operational for at least nine months.
How to Apply

You are required to visit their website to fill out the applications when it is made open. You must make sure you have all the required documents handy when filling out the form.