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Kentucky SBIR/STTR Matching Funds Program

Kentucky SBIR/STTR Match — Phase II

Funds Kentucky companies with larger state matching support as innovation projects move toward commercialization.

OpenKentucky Cabinet for Economic Development — KY InnovationUnited StatesDeep-tech · adjacent

The Kentucky SBIR/STTR Matching Fund — Phase II is the higher-value companion to Kentucky's Phase I match program, administered by KY Innovation under the Kentucky Cabinet for Economic Development. It provides a non-dilutive, reimbursable state grant of up to $150,000 to Kentucky-based for-profit companies that hold an active federal SBIR or STTR Phase II award. Like the Phase I program, awards are competitive and issued through two eight-week application windows per year — a Spring round typically in March and April, and a Fall round typically in September and October. Applications are submitted by email to sbir@kyinnovation.com with materials defined in the guidelines PDF published when each window opens.

Eligibility mirrors the Phase I track: the applicant must be a for-profit company headquartered in Kentucky (or willing to relocate), must hold an active federal SBIR or STTR Phase II award, and must comply with the guidelines for the applicable cycle. Universities, nonprofits, and individuals are not eligible. The award is reimbursable, meaning the company must incur expenses before seeking state reimbursement. The Phase II cap of $150,000 reflects the larger federal Phase II award size and commercialization scope relative to Phase I. Both programs share the same application process, evaluation criteria, and contact point at KY Innovation.

Since the program's inception, KY Innovation has made 353 match awards to 161 unique companies, and participating companies have leveraged $7.50 in federal or private capital for every $1 in state funds received. The program has contributed to 243 patents and $145 million in sales and licensing revenue statewide. Companies that have already received a Phase II federal award and meet the Kentucky residency requirement should monitor the KY Innovation website for window opening announcements and prepare application materials — including the federal award notice and commercialization evidence — in advance of each window.

Provides up to $150,000 in non-dilutive state matching funds to Kentucky-based for-profit companies that have already received a federal SBIR or STTR Phase II award.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Multiple per year
Next deadlineiThe next date applications are due. Rolling means you can apply any time.
Decision timeiTypical time from the deadline to the funder's decision.
Project durationiHow long the funded work is expected to run.
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Grant
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.

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Last verified: 29 Jun 2026Source: newkentuckyhome.ky.gov