Businesses across various industries rely on grants to fund programs and initiatives without taking on new debt. In the world of staffing, it’s no different. Government grants and foundation grants can help fund your agency’s growth while allowing you to maintain eligibility for other types of funding.
But understanding the differences between these two types of grants for staffing agencies and where to find them is the key to your success. Grant amounts, eligibility requirements, application complexity, and awarding timelines vary, so it’s essential to review the fine print carefully before starting the application process.
The guide below highlights several grant opportunities you can explore to help fund your staffing agency. And while you wait for responses on the staffing grants you’ve applied to, consider leveraging payroll funding to ensure a steady cash flow.
Types of Grants for Staffing Agencies
Grants from government entities and individual foundations represent one of the many staffing agency financing options you can use to fill cash flow gaps. Let’s consider the differences between these two types of staffing grants.
Government Grants
Awarded at the federal, state, and local level, grants administered by several government agencies represent some of the largest—and most stringent—grants available to staffing agencies.
The most competitive government staffing agency grants exist on the federal level and award significant amounts, while state- and local-level grants tend to be less competitive and offer smaller amounts. Funding for these grants comes from taxpayers.
Government grants best suit staffing agencies involved in public service or workforce development. Several of these grants recur annually or span multiple years. In some cases, being awarded a government grant can also increase your staffing agency’s visibility and credibility.
Foundation Grants
Staffing grants available from corporate, family, and private foundations outnumber government grants, but the average award amounts are often lower. More well-known grants for staffing agencies—especially grants for staffing nonprofits—remain highly competitive. Otherwise, competition stems primarily from merit and alignment with the foundation’s mission statement or purpose behind offering the grant.
While government grants favor staffing agencies with a demonstrable track record of success, foundation grants tend to favor small businesses with only a few years of history. Because grant funds come from private wealth and support local communities, staffing agencies that give back or pay it forward often have a higher chance of success. Application requirements and communication also reflect a less-stringent approach, making it easier for those who’ve never pursued a grant to become familiar with the process.
Grants for Staffing Agencies
As you explore the grants available to staffing agencies listed below, remember to carefully research not only the government entity or foundation offering the grant but also its eligibility requirements and application specifics. Prepare for your application by reviewing your business plan and compiling your staffing agency’s financial documents. Creating a grant-only calendar marked with important dates can also help you stay on track for applying to staffing grants available throughout the year.
Local/Regional Business Grants
Most local and regional business grants correspond to highly location-specific opportunities and favor collaborative approaches that benefit the community over general business funding. Offered through city, county, state, and community-based organizations, these grants offer a strong fit for staffing agencies that contribute to local hiring, support underserved communities, or partner with nonprofits, colleges, or workforce boards. Grant funds typically support small businesses in creating jobs and offering workforce access.
DOL Employment and Training Administration (ETA)
The U.S. Department of Labor (DOL) Employment and Training Administration (ETA) offers government-funded workforce development grants with oversight and award decisions handled through its Office of Grants Management (OGM).
Grants awarded by this federal agency best suit staffing agencies that offer training, partner with workforce organizations, or play a role in broader employment programs. Competitive applications for DOL ETA grants focus on program-based proposals with clear, measurable outcomes—such as job placement rates and skills attainment.
H-1B Skills Training Grants
A separate type of federal workforce grant that’s also administered by the DOL’s ETA, H-1B Skills Training Grants receive funding from employer fees tied to H-1B visa applications. These grants support training programs that prepare workers for high-demand industries such as healthcare, IT, and advanced manufacturing.
Staffing agencies that help build talent pipelines by serving as training and employer connectors should pursue these types of government grants.
Workforce Opportunities for Rural Communities (WORC)
Workforce Opportunities for Rural Communities (WORC) refers to a federal grant initiative led by the DOL ETA in partnership with regional commissions. Focused on improving employment outcomes in rural areas like the Appalachian, Delta, and Northern Border regions, this initiative supports projects that connect workers to jobs, provide training, and address regional labor shortages.
Those agencies serving rural markets can benefit most as partners in larger workforce initiatives, especially when collaborating with local employers and community organizations.
Minority Business Development Agency (MBDA)
The Minority Business Development Agency (MBDA) is a U.S. Department of Commerce (DOC) agency that offers government grants and resources to support minority-owned businesses and broader economic development efforts.
Funding typically centers on technical assistance, entrepreneurial support, and ecosystem building. Minority-owned staffing agencies and those that are part of a larger initiative supporting diverse businesses and communities will likely find these grants most relevant.
JPMorganChase Foundation
Corporate foundation funding from the JPMorganChase Foundation supports skills training, workforce development, and economic mobility initiatives. These grants typically prioritize large-scale, partnership-driven programs over standalone applications, so staffing agencies that work alongside educators, nonprofits, and workforce organizations stand a better chance.
The Boston Foundation
The Boston Foundation funds workforce development and economic opportunity initiatives in the Greater Boston area, with a strong focus on underserved populations. Since 1915, this foundation has prioritized programs that expand access to job training and quality employment, often through collaborative partnerships.
Available to businesses within the region, these foundation grants favor a clear community impact angle, so staffing agencies can improve their odds by participating in broader workforce solutions rather than seeking funding alone.
Baird Foundation
Philanthropic funding through the Baird Foundation supports nonprofits focused on diversity, education, and human services. While not a direct fit for most for-profit staffing agencies, these grants cater to those with a nonprofit arm or involved in community-based education or workforce initiatives. Obtaining these grants for staffing nonprofits often requires alignment with specific community or education-focused programs.
An Alternative to Staffing Grants: Payroll Funding
Many staffing agency owners who pursue grants also explore other funding sources, including payroll funding. A type of invoice factoring for staffing companies, payroll funding unlocks capital tied up in outstanding invoices.
The process is simple: a payroll funding company agrees to purchase your outstanding receivables. Moving forward, any time you invoice your customer, the payroll funding company provides an immediate cash advance (within 24 hours) to your business and assumes collection responsibilities upon the invoice. The cash advance is typically 80-90% of the value of each invoice.
Once your customer submits payment, any remaining funds are released.
Like staffing grants, payroll funding incurs no additional debt, making it a useful alternative.
Payroll funding can be a good fit for your business if you’re consistently waiting on client payments due to extended net terms. The cash advance you obtain through payroll funding can also help you cover not only basic operational expenses but also future growth opportunities when they arise.
Our team of representatives would be happy to help you find the right payroll funding provider to partner with. Request a quote today if you think your business might be a fit