One NC SBIR/STTR Phase I Incentive Funds

One NC SBIR/STTR Phase I Matching Funds

Funds North Carolina small businesses that have received a federal SBIR or STTR Phase I award with matching grants to bridge the gap to Phase II.

Eligibility · North Carolina, United States

The One NC SBIR/STTR Phase I Matching Funds program is administered by the North Carolina Office of Science, Technology & Innovation (OSTI) on behalf of the NC Board of Science, Technology & Innovation, under NC General Statute § 143B-437.81. It awards state matching grants to North Carolina small businesses that have already received a federal SBIR or STTR Phase I award, covering up to 50% of the federal award amount, capped at $75,000 per recipient. The program's goal is to help NC companies bridge the funding gap between the final Phase I federal payment and the first Phase II payment, and to increase the intensity of Phase I research so applicants become more competitive for Phase II.

To qualify, the business must be a North Carolina small business that has been awarded a federal Phase I SBIR or STTR grant. The program is for-profit only; no employee count or revenue cap is stated beyond the federal SBA definition that SBIR/STTR agencies apply. No co-investment from the applicant is required — the state matches a portion of the federal award. Funding in FY 2026 is available until June 30, 2026, or until the annual appropriation is exhausted.

Applications are submitted through one of two CyberGrants portals depending on whether the federal award was an SBIR or STTR grant. Applicants should first read the current year's Matching Program Solicitation (released each December) for exact documentation requirements. Payment is made in stages; Stage 2 disbursement requires contacting OSTI staff after a qualifying milestone.

In FY 2025, the program made 51 awards totaling $3,686,533 (average ~$72,300). Since FY 2006, more than 630 awards totaling nearly $39.8 million have been made to North Carolina small businesses.