Kentucky SBIR/STTR Matching Funds Award Program

About

A competitive state matching grant provides non-dilutive reimbursements of up to $100,000 per year for Phase I and up to $150,000 per year for Phase II to for-profit federal SBIR/STTR awardees that are Kentucky-based or willing to relocate to Kentucky.

Benefits

• 💵Phase I match
  Up to $100,000 per year for a Phase I project, awarded as a non-dilutive, reimbursable grant on a competitive basis.
• 💵Phase II match
  Up to $150,000 per year for a Phase II project, awarded as a non-dilutive, reimbursable grant on a competitive basis.
• 🏆Commercialization support
  Matching funds are intended to bridge the gap between Phase I and Phase II and accelerate commercialization.
• ⚠️ Competitive and conditional
  Awards are subject to KY Innovation discretion and the availability of funding.

Eligibility Criteria

• Must be a for-profit company
• Must be based in Kentucky or willing to relocate to Kentucky and meet Kentucky-based status requirements
• Must be a recipient of a federal SBIR/STTR Phase I, Phase II, or FastTrack award
• For Phase I applicants, the federal Phase I award date must be no more than one year before the matching-funds application date, and the company must not have received notice of a follow-on Phase II award
• For Phase II applicants, the federal Phase II grant must be active at the time of application
• Out-of-state companies must relocate to Kentucky within 90 days of the grant agreement, transfer the federal award to Kentucky, provide documentation of federal funds received/spent and unspent balance, and designate a Kentucky resident as PI or Co-PI
• Project must align with one or more of Kentucky’s five new economy sectors: Bioscience; Environmental and Energy Technology; Health and Human Development; Information Technology and Communications; Materials Science and Advanced Manufacturing
• Applicant may not receive more than one matching award per year per project or more than one per solicitation
• Companies that have already received four Kentucky SBIR/STTR Matching Funds Awards are not eligible for additional awards
• Applicant must be in good standing with any program agreement funded or administered by the Kentucky Cabinet for Economic Development or any Kentucky governmental agency

Participation Commitments

• Submit the full application and supporting documents to sbir@kyinnovation.com during the open application window
• The current application window is 31 August 2026 to 26 October 2026 at 11:59 PM (timezone not specified)
• Only one application is permitted per solicitation
• Phase I applicants must provide evidence that they will pursue a Phase II federal grant
• If awarded, submit quarterly requests for disbursement
• If awarded, submit a detailed final report; the final 5% is reimbursed upon submission and approval of the final report
• If awarded, submit a detailed annual report each year for three years after the final disbursement of matching funds
• If awarded, provide quarterly financial statements and copies of any project audits upon request
• If awarded, maintain Kentucky-based status during the term of the agreement
• Out-of-state awardees must relocate to Kentucky and meet eligibility requirements within 90 days of the grant agreement
• Travel costs are reimbursed only if included in the approved application and are subject to program caps

Target Region

Kentucky, United States; applicants must be Kentucky-based or willing to relocate to Kentucky and meet Kentucky-based status requirements.

Target Sector

Healthcare & Life Sciences, Energy & Utilities, Telecommunications, Manufacturing