Kentucky SBIR/STTR Matching Funds Program

Kentucky SBIR/STTR Matching Funds

Supports Kentucky high-technology companies with existing federal innovation awards to strengthen commercialization momentum.

The Kentucky SBIR/STTR Matching Funds program, administered by KY Innovation under the Cabinet for Economic Development's Office of Entrepreneurship, awards non-dilutive, reimbursable state grants to Kentucky high-technology small businesses that already hold a federal SBIR or STTR award. The program runs two competitive rounds per year. The Spring 2026 round typically opens in March and remains open for approximately eight weeks through April. Award amounts are tiered by federal phase: a Phase I match carries a maximum of $100,000, while a Phase II match reaches up to $150,000. The program is competitive, not formula-based, meaning qualified companies are evaluated and ranked before awards are made.

Eligibility requirements are straightforward but firm. Applicants must be for-profit small businesses — universities and nonprofits are excluded. The company must already hold a federal SBIR or STTR Phase I or Phase II award from a participating federal agency. The business must be based in Kentucky or commit to relocating to Kentucky before funds are disbursed. There is no sector restriction; any technology area eligible under the federal SBIR/STTR programs qualifies. In February 2026, Governor Beshear announced eight Kentucky technology companies receiving a combined $862,479 in state matching grants through this program, demonstrating active recent disbursement activity. Applications are submitted through KY Innovation (kyinnovation.com/sbir); program contact is SBIR@kyinnovation.com.

To win, applicants should submit during the open window — missing the approximately eight-week application period means waiting for the Fall round. Strong applications will clearly document the federal award letter, project scope, and Kentucky nexus. Because the state match is reimbursable, recipients must spend allowable costs first and request reimbursement. Companies that have recently received a federal SBIR Phase I award and are planning Phase II transitions represent the highest-value applicant profile, as the $150,000 Phase II match is the program's top award tier.