The initiative, run by American Express, will award 120 small businesses across the country grants worth $5000 and has received the backing of Minster for Small Business Bruce Billson. 

"Small businesses are the backbone of communities like Bendigo and any support to encourage success, reward passion and entrepreneurial spirit is welcomed," he said. 

"The American Express Small Business Grants are recognition of the hard work , sleepless nights and enduring commitment of small business owners." 

Small businesses that accept American Express are eligible to win a business grant.

Entry is automatic once an American Express transaction is processed. 

American Express managing director Rachel Stocks said two thirds of small business owners reported the campaign had a positive impact on their businesses.

"American Express is dedicated to rewarding passionate small business owners for following their dreams – even when times get tough, and for day in, day out, being committed to their communities," she said.