During this fiscal year, more than $2.2 billion will be awarded through Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants by 11 federal agencies to help with the development and commercialization of innovative technologies. Thanks to an innovative matching grant program funded by the Cabinet for Economic Development (CED) through its Department of Commercialization and Innovation (DCI), high-tech companies in Kentucky have the opportunity to double their federal SBIR and STTR awards. Kentucky is the first in the nation to match both Phase I and Phase II funding. The following Q&A answers some basic questions about the program and its eligibility requirements.
Companies interested in learning more about Kentucky's matching funds program can also attend an upcoming SBIR/STTR Phase I Proposal Development Seminar, organized by the Kentucky Science and Engineering Foundation and the Kentucky Science and Technology Corporation. The seminars will be held February 26 at the Hyatt Regency in Lexington and March 3-4 at the Hilton Garden Inn - Louisville Airport in Louisville, Ky. The Lexington seminar will be conducted by Bob Berger of Robert Berger Consulting and will target all federal agencies. The Louisville workshop, conducted by Lisa Kurek of BBC, will focus on the development of proposals for NIH. In addition, an annual SBIR/STTR Conference will be held on April 24-25 in Louisville at the Holiday Inn Hurstbourne at I-64.
Interested participants are encouraged to register immediately online at www.kstc.com or at ksef.kstc.com. Visit ksef.kstc.com for agendas, speaker bios, and online registration.
For more information on the Kentucky Matching Funds Program, contact program manager Ken Ronald at the Kentucky Science and Technology Center(KSTC) at (859)255-3613, ext. 252. For details on the state's Phase Zero and Phase Double Zero programs, call KSTC's Dr. Mahendra Jain†at (859)255-3613, ext. 230.
Q&A on Kentucky's SBIR-STTR Matching Funds Program
How many companies in Kentucky have taken advantage of the SBIR-STTR Matching Funds program to date?
As of February 15, KSTC and CED-DCI have approved 33 Kentucky SBIR-STTR Matching Funds grants for a total of $5,891,689 to 26 companies.†
During Round One (from Oct. 26, 2006 to June 30,2007), a total of $1,875,000 in 20 Phase I matching funds grants was awarded to 20 companies. During Round Two (from July 2007 to today),a total of $4,016,689 in 13 matching funds grants (8 Phase I and 5 Phase II) was awarded to 11 companies.
How long has the program been available?
The program was started in October 2006.
Have any other states added similar programs since Kentucky launched its matching funds initiative?
Illinois launched its matching program after Kentucky, but it matches only up to $50,000 of the federal Phase I award. Michigan also started its Phase II matching grant after Kentucky, but it caps its award at 25 percent (up to $125,000) of a federal Phase II grant. By comparison, Kentucky matches one-for-one federal SBIR-STTR Phase I and Phase II awards (up to $100,000 for Phase I and up to $500,000 per year for a two-year Phase II award).
In addition to earning the federal SBIR-STTR awards, are there any additional eligibility requirements for the matching funds program?†
Yes.† The company must be a Kentucky-based business with 51 percent each of its property and payroll in Kentucky, or willing to relocate to Kentucky within 60 days from the grant award date.†In addition, the company must be in a good standing with the Kentucky Secretary of State.
How much funding can one company be eligible to receive from the matching funds program?
A company can receive no more than five matching fund awards.†Also, a company can only receive one Phase I and one Phase II award per solicitation.
As per the current guidelines and depending upon the number of federal Phase I and Phase II awards, a company is eligible to receive a maximum funding that can vary between $500,000 (five different Phase I awards of $100,000 each) and $5 million (five different Phase II awards of $1 million over two years).
What are the most common challenges experienced by Kentucky companies in obtaining SBIR-STTR funding?
The most common challenge is packaging an innovative idea in a high-quality, competitive proposal to compete at the national level.†Only about 15 percent of Phase I applications are successful in the federal program, although the success rate for Phase II proposal is higher, at 40 percent to 50 percent.†However, a company needs to win a federal Phase I grant to be able to submit a Phase II application.†It is expected that Kentucky companies will submit a large number of Phase I applications because of our aggressive outreach program and the incentives that CED-DCI is providing in the form of matching funds.
What kind of help is available for companies that might be interested in applying for SBIR-STTR awards?
KSTC offers a Phase zero and Phase double zero grant program, which provides funding of up to $4,000 (visit http://ksef.kstc.com.) This funding can be used by a company to get external help to develop high-quality, competitive federal SBIR-STTR Phase I and Phase II applications.†
In addition, KSTC also offers several SBIR-STTR proposal development workshops throughout the year and an annual Kentucky SBIR-STTR Conference given by the federal SBIR-STTR program managers from 11 different federal agencies.†The next SBIR-STTR Phase I proposal development workshops are scheduled for February 26 in Lexington and March 3-4 in Louisville, and the next SBIR/STTR Conference will be held April 24-25 in Louisville.
How is the Kentucky matching funds program funded, and how long will that funding be available?
The Kentucky SBIR-STTR Matching Funds Program was developed and funded by the Department of Commercialization and Innovation in the Kentucky Cabinet for Economic Development.†The current funding is available until May 2008 or until the funds are exhausted.†CED-DCI expects to continue the program.
When is the deadline for applications?
The current solicitation for Round Two was issued in July 2007.†There is no deadline since the applications are accepted and awards made on a first-come, first-serve basis. The applications will be accepted until May 2008 or until the funds are exhausted.††
How can interested companies obtain more information and apply?
The companies can obtain more information about the program and the online application system by visiting the following Web links: www.thinkkentucky.com/DCI/SBIR/SBIRSTTR.aspx and www.kintera.org/site/
c.deIDLKOuGrF/b.2857105/k.BDB5/Home.htm.
Lexington-area companies that have received matching funds grants
(all awards are phase I except where noted)