Kentucky SBIR/STTR Match — Phase I
Funds Kentucky companies with state matching support for early federally aligned innovation projects.
The Kentucky SBIR/STTR Matching Fund — Phase I is administered by KY Innovation, a program of the Kentucky Cabinet for Economic Development. It provides a non-dilutive, reimbursable state grant of up to $100,000 to Kentucky-based for-profit technology companies that have already received a federal SBIR or STTR Phase I award. The grant is awarded on a competitive basis through two application windows per year: a Spring round typically open from March through April, and a Fall round typically open from September through October, each window lasting eight weeks. Companies submit applications by email to sbir@kyinnovation.com during an open window, following the guidelines PDF published when the window opens.
Eligibility has three hard requirements: the applicant must hold an active federal SBIR or STTR Phase I award, must operate as a for-profit company, and must be headquartered in Kentucky or willing to relocate there. Universities, nonprofits, and research organizations are not eligible. The grant is reimbursable — the company incurs expenses first and then seeks state reimbursement — so applicants should plan for bridge financing. In February 2026, Governor Andy Beshear announced eight awardees sharing $862,479 in matching funds, which collectively leveraged $6.6 million in federal SBIR awards. Since program inception, KY Innovation has made 353 match awards to 161 unique companies, leveraging $179.77 million in federal funding and supporting the creation of more than 781 jobs, 91 percent of which carry annual salaries above $50,000.
Applicants with a federal Phase I award in hand should prepare their application materials — including project description, commercialization plan, and supporting federal award documentation — well before a window opens, since the eight-week window is the only opportunity per cycle. KY Innovation also offers free proposal accelerators through partner organizations and micro-awards (Phase 0) through the Kentucky Science and Engineering Foundation to help companies prepare federal SBIR applications before they have a federal award in hand.
Provides up to $100,000 in non-dilutive state matching funds to Kentucky-based for-profit companies that have already received a federal SBIR or STTR Phase I award.
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