Introduction 

The Small Business Innovation Research (SBIR) program is one of the federal government's most substantial investments in translating technology from the lab to the market, providing billions of dollars in contracts and grants to companies each year and ensuring small business involvement in federal research and development. https://www.sbir.gov/ 

State initiatives supporting SBIR companies are created to help strengthen the innovation ecosystem. By providing additional resources, targeted assistance, and a supportive environment, these programs act as a catalyst for innovation, accelerating the commercialization of new technologies, and ultimately fueling economic growth. 

There are several reasons why states choose to support SBIR companies through these programs:

• Boost the Impact of Federal Funding: State matching funds can significantly increase the resources available to a company. This extra capital may accelerate innovation and commercialization efforts.
• Address Needs: States can tailor their programs to address the specific needs and priorities within their regions. They might focus on industries with high growth potential or encourage SBIR participation in under-represented demographics.
• Reduce Barriers to Entry: The SBIR application process can be resource-intensive. State programs can offer support in the form of proposal development assistance or funding to cover related costs, making it easier for small businesses to compete for federal grants.
• Retaining and Attracting Talent: A strong SBIR support system may foster an environment that attracts and retains innovative companies and talent within the state, contributing to a more vibrant and competitive local economy.
• Economic Growth: By nurturing innovation and fostering successful small businesses, states expect to see long-term economic benefits through job creation and increased tax revenue.

Editor’s note: The data in this report is based on publicly-available information as of the 1st quarter of 2024. If you have an update or correction, please contact us at tbedcop@ssti.org

State-level initiatives

The SBIR/STTR programs offer opportunities for small businesses to innovate and secure federal funding for their ideas. States commonly have outreach programs aimed at increasing awareness of the opportunities available to firms through SBIR/STTR. But because navigating the intricacies of these programs can be daunting, many states offer support programs specifically designed to empower SBIR/STTR companies and increase their chances of success. Here's a breakdown of some representative state-level initiatives:

1. Financial Assistance:

• Matching Grants: Many states offer matching grants that amplify the impact of federal SBIR awards. For instance, New Jersey's SBIR/STTR Direct Financial Assistance Program provides up to $50,000 to Phase I and $100,000 to Phase II winners, doubling their federal funding.

• Bridge Funding: Programs such as MassDevelopment’s Emerging Technology Fund offer bridge loans to help fill the gap between Phase I and Phase II funding, allowing companies to refine their technology and strengthen their proposals for the next stage.

• Pre-Award Funding: Programs like the Iowa America's Seed Fund offer financial assistance before applying for an SBIR/STTR award, helping with early-stage activities to validate ideas.

2. Proposal Development and Mentorship:

• Expert Guidance: The Pathways program through the UTSA Texas SBDC Technology Commercialization Center, providing expert advisors and mentors to help companies craft proposals. Similarly, South Carolina's SCRA offers comprehensive assistance with proposal writing, budget development, and technical narratives. The Maryland Technology Development Corporation’s SBIR/STTR Proposal Lab supports small businesses in crafting and submitting proposals to the NSF for Phase I awards. Programs such as these help to ensure proposals align with agency requirements.

• Workshops and Training: Several state programs connect SBIR/STTR companies with experienced professionals familiar with the nuances of different agency’s SBIR/STTR programs. A number of states host workshops and training sessions on topics such as proposal writing, commercialization strategies, and navigating the SBIR/STTR process.

3. Commercialization Support:

• Technology Development Resources: Many state universities provide access to state-of-the-art facilities, equipment, and technical expertise. The goal of these programs is to accelerate technology development and enhance market readiness.

• Commercialization Planning and Assistance: Numerous organizations offer expert guidance on market research, go-to-market strategies, and navigating government procurement processes, with an aim toward developing a clear path to commercialization.

• Dedicated Programs: Many universities have dedicated programs and support services for their affiliated startups and researchers seeking SBIR/STTR funding.

4. Technical Assistance and Networking:

• Technology Validation: Proof-of-Concept Grants Programs such as offered by Kentucky's KSTC and South Carolina's Department of Commerce help companies validate the technical feasibility of their ideas before investing time and money in full-fledged SBIR proposals.

• Networking Opportunities: Several states have programs to connect SBIR companies with potential investors, partners, and collaborators.

Federal and State Technology (FAST) Partnership Program

The Federal and State Technology (FAST) Partnership program is a collaborative effort between the federal government and state agencies to enhance the innovation ecosystem for small businesses, including those participating in the SBIR program. Administered by the Small Business Administration (SBA), the FAST program aims to strengthen the technological competitiveness of small businesses by increasing their participation in the SBIR and STTR programs.

The FAST program operates through cooperative agreements with state and regional entities, commonly known as FAST awardees or partners, recognizing the expertise of these organizations in supporting small businesses in their regions. As of January 2024, there are 44 FAST awardees, representing 43 states and Puerto Rico.

Key components of the FAST program include:

• Technical Assistance: FAST awardees provide technical assistance to small businesses seeking to participate in the SBIR and STTR programs. This assistance may include proposal development, understanding program requirements, and navigating the application process.

• Training and Outreach: Some FAST awardees use federal funds to provide program training sessions and outreach activities to educate small businesses about the opportunities available through the SBIR and STTR programs. This includes workshops, webinars, and informational sessions to disseminate knowledge and enhance awareness.

• Proposal Support: FAST awardees may cover an eligible small businesses' costs to prepare and submit SBIR and STTR proposals, including accessing consultant assistance with the proposal.

• Networking and Collaboration: FAST awardees typically offer programs that encourage networking and collaboration among small businesses, research institutions, and other stakeholders. 

• Regional Focus: FAST awardees tailor their support to the specific needs and strengths of their regions. This regional focus allows for targeted assistance that aligns with the unique characteristics of local innovation ecosystems.

State Profiles

This section provides a more in depth description of some of the state initiatives discussed as examples in prior sections. In many states, multiple organizations provide different aspects of SBIR/STTR support, including state agencies, university-affiliated SBDCs, and state-supported nonprofits which may have greater flexibility than a typical state agency. These are offered to demonstrate a variety of  strategies and structures, and not intended as endorsements of any programs.

The information below can also be accessed in the form of a map, developed by SSTI, showing the SBIR/STTR support organizations for each applicable state and territory. Clicking on any state will display a popup window with information on the organization(s)’ services offered, available funding opportunities, classifications, and integration with other TBED programming.

SSTI has prepared a downloadable excel file of all programs and their offerings, available here.

Iowa 

Iowa Economic Development Authority:

• Proposal review and feedback: Experts help refine your proposal idea and ensure it aligns with federal agency needs

• Professional proposal assistance: Pays for 100% of technical assistance from a third-party vendor

• Matching funds: Phase I awardees receive $50,000, Phase I to Phase II management and those advancing to Phase II get an additional $25,000 for a total of $75K in addition to any federal grant or contract

• Technical assistance: Help with specific aspects of proposal, such as market research or technical writing

Iowa SBDC: FAST Awardee

• Offers workshops and counseling on SBIR/STTR applications

• Mentorship: Connect with professionals familiar with the SBIR/STTR process

• Training and workshops: On proposal writing, commercialization, etc

Program Highlights

• Zymosense: A biotechnology company working on a platform of rapid assessment of hydrolytic enzyme activity to optimize their design using nanoparticles coated with target enzyme substrate to see the reaction as it occurs. Received SBIR Phase 1 and 2 from NSF; SBIR Phase 1 from NIST (awaiting Phase 2 award): Awaiting USDA SBIR Phase 1 award. 3 employees

• Parametric Studio: An education technology company making STEM learning fun. Nine SBIR awards as of March 2024 (including Department of Education, USDA, NIH, and NSF) totaling $4.5M in non-dilutive federal funding. Their projects specialize in engineering-centric, project-based STEM software for K-12. 7 employees

Kentucky

KY Innovation (Kentucky Cabinet for Economic Development)

• KY SBIR/STTR Matching Funds Program:

  • Competitive Process

  • Up to $100,000 for Phase I

  • Up to $150,000/year for two years for Phase II projects

    • Bridge funding gaps

    • Accelerate commercialization

• Client Consultation

  • Proposal review

  • Commercialization planning

• SBIR 101 Webinars

• Angel Investment Tax Credit program

• State funded equity investment program

  • Commonwealth Seed Capital

  • Kentucky Enterprise fund (Keyhorse Capital)

Kentucky Science and Technology Corporation (KSTC)

• Kentucky Science & Engineering Foundation - FAST Program:

  • SBIR Readiness Tool

  • Proposal Labs with experienced professionals familiar with the SBIR/STTR process

    • Mentorship, training, technical assistance

  • Micro-Award program

    • $5,000 to offset proposal preparation costs

  • Networking

    • Universities

    • Investors 

Program Highlights

• PowerTechWater (ElectraMet)- Has leveraged pitch competitions to start their business, state programs, SBIR/STTR match, raised capital, facility and employee expansion

• Pyrochem Catalyst Company- Located in KY to access SBIR/STTR matching funds program and has expanded their facility and number of employees. Spun out PCC Hydrogen

• ParaTechs Corp.- Received SBIR/STTR matching funds and expanded employment. Spun out Lepidext

Maryland 

TEDCO (Maryland Technology Development Corporation)

SBIR/STTR Proposal Lab (FAST program): 

• An expert team supports small businesses in crafting and submitting proposals to the NSF for Phase I awards

  • OST Global Solutions 

  • Maryland Small Business Development Center

  • TEDCO’s Network Advisors (subject matter experts)

Maryland Innovation Initiative (MII): 

• Provides funding for research, development, and commercialization for university start-ups

  • Technology Validation and Market Assessment, 9 months, up to $115,000 

  • Company Formation - Commercial Launch, 9 months, up to $300,000

Maryland Defense Technology Commercialization Center (DefTech)

• Connects companies to Department of Defense labs

• Supports proposals, commercialization, CRADAs, License Agreements

Maryland Seed Funds:

• Investing in early-stage technology companies with high growth potential through convertible debt and equity instruments 

  • Cybersecurity Investment Fund 

  • Life Sciences Investment Fund 

  • Technology Commercialization Fund

  • Gap Investment Fund 

Program Highlights

• RedShred LLC: Competitively selected to participate in TEDCO’s first SBIR/STTR Program. Awarded more than $5.6M in SBIR/STTR funding: Air Force Phase I SBIR, NIST Phase I SBIR, Air Force Phase II SBIR, Air Force Phase II SBIR, NIST Phase II SBIR, Air Force Phase I STTR, DARPA Phase II SBIR. Received TEDCO investment and participated in TEDCO programs. 14 employees

• TaoTreasures LLC (DBA NanoBioFAB): Competitively selected to participate in TEDCO’s SBIR/STTR Program. Awarded more than $1.5M in SBIR funding: Defense Health Agency (DHA) Phase I SBIR, DHA Phase II SBIR, DHA Phase I SBIR. Received multiple TEDCO investments and is supported by multiple TEDCO programs. 6 employees

Massachusetts 

MassVentures

The SBIR Targeted Technologies (START) Grants

• SBIR Phase II companies grants and business guidance:

  • 10 “Stage I” grants of $100,000 each;

  • 5 “Stage II” grants of $200,000 each to the most promising “Stage I” winners from the previous year and;

  • 2 “Stage III” opportunities: up to $500,000 each of seed capital in a commercial spinout from the most successful "Stage II" companies

• No-Cost Coaching for Ventures Building their Proof-of-Concept

  • Best practices of proposal writing and execution

  • Strategy and alignment sessions

  • Work plan and commercialization plan feedback/analysis 

  • Budget compliance analysis

  • Final review through one-on-one meetings

MassDevelopment 

• SBIR Bridge Loans through the Emerging Technology Fund bridge the time between the SBIR award and the time the grant is funded, increasing the value of the SBIR grants by putting the money to work faster

New Jersey 

New Jersey Economic Development Authority

SBIR/STTR Direct Financial Assistance Program (NJEDA SBIR/STTR): 

• Direct Funding - $25,00 for up to 20 SBIR/STTR Phase I, Fast Track or Direct to Phase II award/contract winners

• Bridge Funding - $50,000 for up to 10 SBIR/STTR Phase II applicants

South Carolina 

South Carolina Research Authority (SCRA)

Targeted Sectors: Advanced manufacturing, Information Technology, Life Sciences, and Clean Tech, Sustainability, Resiliency

Programs:

• EPSCoR Program

  • Phase 0: Business development support to prepare applicants for Phase 1 applications

• SCRA Matching Funds Program

  • Academic Matching Grant up to $15,000 for universities to evaluate promising technology demonstrating commercial potential. Milestones include: technical feasibility, market validation, and initial commercialization plans

  • Federal Matching Grant, is a 50% match on federal awards up to $50,000 for both Phase I and Phase II awards.

    • This program seeks to bridge gaps or complete milestones recommended by agency program officers that will position the company for a compelling application towards follow-on-funding

3Phase, a program funded by the SC Department of Commerce, that helps research-based companies in South Carolina successfully acquire Small Business Innovation Research and Small Business Technology Transfer awards. A resource provided free to founders 

Programs:

• Commercialization Assistance - market research, financial planning, business model development

• Training, workshops, networking

Program Highlights

• Integrated Micro-Chromatography Systems, Inc. has been awarded several STTRs and SBIRs, while successfully utilizing bridge programming and support. The company demonstrates multi-institutional collaboration and ecosystem engagement through university partnerships, and now in the commercial marketplace

Texas 

UT San Antonio - Texas SBDC Technology Commercialization Center (TCC)

Texas SBIR/STTR Assistance Program (Pathways)

• No-cost or discounted proposal development assistance

• Proposal writing, budget development, and technical narrative.

• Mentorship

Texas FAST Partnership Program

• Proposal workshops

• Training & entrepreneurial education

• Proposal review & preparation resources

• One-on-one consulting & business advising

• Networking

• Market research assistance

This webpage and data tool was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.