Delaware small business grants, loans and startup capital (2026)

Sorting Delaware’s programs by who pays and how

• Credit support (you repay the loan): the Delaware Loan Participation Program (DELPP) and the Delaware Capital Access Program (DCAP), both SSBCI-funded and both run through participating lenders ⁠¹⁠².
• Equity (you give up ownership): the Delaware Accelerator and Seed Capital Program (DASCP) and the Delaware Early Stage Venture Capital Program (DESVC) ⁠¹⁠³.
• Competitive and targeted grants: EDGE, the Delaware Technical Innovation Program (DTIP) for SBIR/STTR firms, and Export Delaware’s Compass Grant ⁠⁴⁠⁸⁠¹⁰.
• Reimbursements tied to hiring or construction: the Department of Labor’s On-the-Job Training program and the Downtown Development District rebate ⁠¹³⁠¹⁴.
• Large-project incentives: the Delaware Strategic Fund offers grants and low-interest loans for expansions, retentions and relocations that create a significant number of full-time jobs. Applicants start with the Delaware Prosperity Partnership. Money is usually paid as reimbursement and depends on keeping agreed job levels. Restaurants, retail, professional office buildings and debt refinancing do not qualify ⁠⁷.

How DELPP and DCAP spread lender risk

The U.S. Treasury awarded DSB $60.9 million in 2023, released in three allocations of about $20 million. DSB has three years to spend each one ⁠². DSB reported in February 2026 that the first allocation was fully spent. Loan applications were on hold while the second allocation came in, and DSB said it would announce when the second round began ⁠². Treasury’s program summary splits the full award four ways: $26.5 million for loan participation, $2.0 million for DCAP, $24.5 million for the accelerator and seed program and $8.0 million for the VC fund program ⁠³.

Sources: DSB loan program overview ⁠²; DCAP loss-reserve design per Treasury ⁠³.

Treasury’s summary says the lender and the borrower each pay up to 4% of the loan into the DCAP reserve and the state matches it. Underserved owners can get an extra match of up to $30,000. The expected average DCAP loan is $130,000 ⁠³. Treasury’s summary also lists DELPP loans up to $5 million with a 0% to 8.5% rate on the state’s share. DSB’s 2026 overview gives the narrower 3% to 5% fixed rate, so ask the lender which terms apply ⁠²⁠³. DSB’s example is a $350,000 fitness franchise start-up loan: the lender would not fund it alone, and DSB took 50% of a 10-year loan ⁠².

DSB lists four participating lenders: Del-One Federal Credit Union, True Access Capital, Community Bank and Pursuit ⁠². You apply to the lender. DSB then reviews the lender’s credit analysis and decides whether to take part ⁠².

DASCP and DESVC trade capital for ownership

DASCP makes direct investments of up to $1 million in companies with 100 or fewer employees that are past the seed stage and have a lead investor. Applicants who show a 1:1 match get priority ⁠¹. Treasury describes the program as investing alongside up to three accelerator programs ⁠³. DESVC puts money into new venture funds with Delaware-based managers, including funds aimed at underserved founders. A business deals with those fund managers, not with DSB ⁠³. Both are equity, so the state or its partner takes a stake in your company.

EDGE: a 3:1 match and a live pitch

The Encouraging Development, Growth and Expansion (EDGE) Grant Competition is DSB’s cash grant for small, young companies. To enter, a business must be majority located in Delaware, under seven years old (not-yet-open businesses count), have 15 or fewer full-time employees and hold less than $700,000 in assets ⁠⁴⁠⁵. Awards are paid as a $3 state to $1 business match ⁠⁴. For example, a $60,000 award means you put in $20,000 of your own money.

Source: State of Delaware News ⁠⁵.

There is no fixed award size. DSB splits each pool among the winners based on the quality of each pitch ⁠⁴. Eligible uses include equipment that raises production, building improvements, rent (not buying property) and website or marketing work ⁠⁵. Judges score the business need, its competitive advantage, its viability, job and revenue growth, and the pitch itself ⁠⁴. As of October 20, 2026, the EDGE page says applications are closed and does not give a date for the next round ⁠⁴.

SBIR and STTR bridge money through DTIP

DSB’s incentives page lists the Delaware Technical Innovation Program as open. It gives transition grants to companies that have finished a federal SBIR or STTR Phase I and applied for Phase II ⁠⁶. Under the current regulation, the grant is up to $50,000 per application, with no more than five grants to one company in 10 years. The company must have 100 or fewer employees, have its principal place of business in Delaware and show that the research benefits the state economy ⁠⁸. The money can cover salaries between Phase I and Phase II, research, patent work, business planning, market research and product development. It cannot pay for capital equipment or construction. Recipients report finances and progress for five years ⁠⁸.

Senate Bill 315, signed August 17, 2026, lets DSB match or supplement SBIR or STTR Phase I or Phase II awards and set new award amounts and guidelines ⁠⁹. Ask DSB whether the $50,000 cap still applies before you budget around it.

Training and export money: OJT, a paused DSB grant and Compass

DSB’s own Workforce Training Grant is paused while DSB works with other state partners to keep programs from overlapping ⁠⁶. The Department of Labor’s On-the-Job Training program is open now. It reimburses up to 50% of a new employee’s wages for 4 to 26 weeks of training. The starting wage must be at least $16.00 an hour, and each trainee can receive up to $1,000 in pre-approved supportive services ⁠¹³. Employers must be located in Delaware and offer full-time W-2 jobs of at least 37.5 hours a week. They must keep the hire after training and can place no more than one trainee for every five full-time employees ⁠¹³. Department of Labor staff pre-screen candidates ⁠¹³.

For exporters, Delaware does not appear on SBA’s directory of STEP awardees ⁠¹². Instead, Export Delaware runs the state-funded Compass Grant. It reimburses 50% of pre-approved international marketing costs, up to $10,000 per company per fiscal year ⁠¹⁰. Eligible costs include trade show booths and travel, overseas client visits, market research, CE Mark certification, website localization and export credit insurance premiums ⁠¹⁰. Applicants need physical operations and employees in Delaware, at least one year in business, products with at least 51% U.S. content and an export plan. A company that is only incorporated in Delaware does not qualify ⁠¹⁰. The FY2027 round opened July 1, 2026, and in its first weeks applicants requested nearly half of what the program awarded in all of the previous year ⁠¹¹.

Downtown Development District rebates for building work

If you are fitting out or renovating a commercial building, the Delaware State Housing Authority’s DDD Small Project Rebate returns 20% of qualified real property investment between $35,000 and $350,000, up to $70,000 per building ⁠¹⁴. Tenants making capitalized leasehold improvements can apply with the owner’s notarized consent ⁠¹⁴. Work must be done by Delaware-licensed contractors, finished within 16 months and fully paid. You apply within 60 days of the certificate of occupancy, and DSHA pays within about 60 days of a complete application ⁠¹⁴. The FY2027 round opened July 15, 2026 with a $3 million set-aside. It accepts applications first-come, first-served until May 30, 2027 or until the money runs out ⁠¹⁴. The guidelines list 12 districts: Clayton, Delaware City, Dover, Georgetown, Harrington, Laurel, Middletown, Milford, New Castle, Seaford, Smyrna and Wilmington ⁠¹⁴. Soft costs, furniture, point-of-sale systems and repairs are not eligible ⁠¹⁴.

Working with the Delaware SBDC and DSB, step by step

The Delaware SBDC is part of the University of Delaware’s Office of Economic Innovation and Partnerships. It is based at 591 Collaboration Way in Newark and holds office hours at the CURE center in Dover. It provides one-on-one consulting and training at no cost, plus SBIR guidance and government contracting help through APEX Accelerators ⁠¹⁵. DSB also works with the SBDC to help borrowers meet lender requirements for SSBCI loans ⁠¹.

1. Book a free SBDC session

   Request advising online or call 302-831-1555 ⁠¹⁵. Bring a business plan or pitch, 12 months of financials or projections, and the amount and use of the money you need.

2. Ask DSB for a business manager

   Email [email protected] and ask which program fits. A DSB business manager checks SSBCI eligibility and gives you the participating-lender list ⁠¹.

3. Apply to a participating lender for DELPP or DCAP

   Choose Del-One, True Access Capital, Community Bank or Pursuit and ask the lender to request DSB participation or enroll your loan in DCAP. The lender sends the paperwork to DSB, and DSB confirms before closing ⁠².

4. Prepare for the next EDGE round now

   Write a short budget showing how you will cover your one-quarter share, confirm you meet the 7-year, 15-employee and $700,000-asset limits, and watch the EDGE page for the next window ⁠⁴⁠⁵.

5. Phase I SBIR/STTR winners: contact DSB before Phase II funding arrives

   Have your Phase I award notice and Phase II proposal ready for DTIP ⁠⁸.

6. Hiring? Submit the OJT interest form before the new employee starts

   so the Department of Labor can screen the candidate ⁠¹³.

7. Exporters: get Compass pre-approval first

   Expenses incurred before Export Delaware approves them are not reimbursed. Keep every receipt for the reimbursement request ⁠¹⁰.

8. If you are turned down, ask why and change course

   A lender’s DELPP decision is a credit decision, so another participating lender may decide differently. EDGE is scored, so ask DSB for feedback and reapply in a later round ⁠²⁠⁴.

For other Delaware help, see the Delaware overview or compare states on the small business grants hub.