Who this helps: Established NYC small business owners — retailers, restaurants, manufacturers, professional offices, IT firms, insurance brokers, anyone with at least five employees and more than a year in operation — who want to upgrade their team’s skills without paying the full bill. This is one of the most generous and least-known programs the city runs, and it reimburses a majority of your training costs.
Most small business owners know NYC offers grants. Far fewer know the city will reimburse up to 60 percent of the cost of training your existing employees — with awards ranging from $10,000 all the way to $400,000. The program is the NYC Department of Small Business Services (SBS) Customized Training Grant, it’s federally funded, and it is built specifically to help you keep and develop the staff you already have. Here is exactly how it works and how to apply, verified against the SBS program page.
What the Customized Training Grant actually covers
According to the SBS Customized Training Grant Program page, the program reimburses up to 60 percent of total training costs in one or more of four areas:
1. Learning to use newly purchased equipment or software. If you’ve invested in a new point-of-sale system, design software, or specialized machinery, the city will help pay to train your staff on it.
2. Offering new services or products to reach new markets. If you’re expanding into a new sector or line of business, training to support that pivot can qualify.
3. Giving current staff new skills to advance into hard-to-fill positions. Promoting from within instead of hiring externally — the grant supports the training that makes that possible.
4. Updating outdated skills so the business stays competitive.
The program guidelines — read these before you apply
SBS lays out clear eligibility rules. To qualify, your business must meet all of the following:
Grants range from $10,000 to $400,000. Your business must be based in NYC, for-profit, and operating for more than one year. You must train at least five employees. (Businesses with fewer than five employees can apply jointly as a consortium to meet the trainee requirement — contact SBS for details.) Businesses pay for training costs up front and are reimbursed on a quarterly basis. Employees may take different trainings, and they have one year to complete them. And critically: upon completion of training, businesses must provide wage increases to the trained employees.
That last requirement is the heart of the program — it’s designed to raise wages and reduce turnover, not just subsidize a class.
Real businesses, real awards
The SBS page documents actual awards, which give a realistic sense of scale:
An insurance brokerage was awarded $38,787 to train staff on two new client-management software systems. An IT managed-service provider expanding from healthcare into insurance and real estate received $83,162 for technology certifications. A Bronx wholesale food distributor got $23,521 to train 19 employees in leadership, supervisory skills, project management, and sales — and reported a 100 percent retention rate among participants. An industrial and welding equipment supplier was awarded $76,753.60 to train 46 employees in lean manufacturing and customer service.
These aren’t hypotheticals — they’re drawn directly from the SBS program’s published case studies, and they show the program funding everything from a handful of software seats to company-wide upskilling.
How to Take Action
1. Submit a pre-application (eligibility checklist). Start with the SBS Connect pre-application, also called the eligibility checklist. SBS says it takes roughly three to five minutes. This confirms whether your business qualifies before you invest time in a full application.
2. Take the screening call. Someone from the Customized Training team will schedule a call to review your pre-application, confirm eligibility, and learn about your business challenge and training needs.
3. Submit the final application before a deadline. SBS runs the program in application cycles with set pre-application submission dates and corresponding grant-notification dates. The cycle published on the SBS page included a May 1, 2026 pre-application date with grant notification by June 19, 2026. Because these dates rotate, check the SBS program page for the current cycle before you plan around a specific date.
4. Get your questions answered. SBS publishes program guidelines and a FAQ document, and runs informational webinars. To speak with someone directly, call SBS at 888-SBS-4NYC (888-727-4692), Monday through Friday, 9 a.m. to 5 p.m.
Where this fits with the rest of SBS
The Customized Training Grant is one piece of a broader free SBS toolkit for NYC business owners. If you’re earlier in the journey, see our coverage of NYC BEST, the free service that gives you one point of contact across every city agency, and the free CUNY SBDC advisor network. For most owners, the smartest move is to call the SBS line above and ask which incentives and grants your business currently qualifies for — that consultation is free.
Frequently Asked Questions
Does the grant pay my training costs upfront? No. The business pays training costs up front and SBS reimburses up to 60 percent on a quarterly basis. Budget for the cash-flow gap between paying and being reimbursed.
Can a business with fewer than five employees apply? Yes, but not alone — businesses with fewer than five employees can apply jointly as a consortium to meet the five-trainee minimum. Contact SBS for details on how a consortium application works.
Do I really have to give raises? Yes. SBS requires businesses to provide wage increases to employees upon completion of their training. The program is structured to raise wages and improve retention, not just fund courses.
How long do employees have to finish training? Employees have one year to complete their training, and different employees can take different courses.
This article is general information about a NYC Department of Small Business Services program and is not legal or financial advice. Confirm current eligibility rules, award ranges, and application deadlines directly with SBS before applying.
