Alabama Innovation Grant (SBIR/STTR State Match)
Innovate Alabama
Up to $250,000
Alabama state match for federal SBIR/STTR winners
Alabama's state-funded supplemental grant provides matching funds to Alabama small businesses that win a federal SBIR or STTR Phase I or Phase II award. The state match — up to $100,000 for Phase I and up to $250,000 for Phase II — is designed to bridge commercialization gaps and keep Alabama innovation companies in-state through scale-up. Administered through Innovate Alabama (Alabama's state innovation office), with applications accepted in periodic rounds rather than on a rolling basis.
- Funding type
- Grant
- Level
- State
- Amount range
- $5,000 – $250,000
- Realistic amount
- Phase I recipients who apply in an open window typically receive amounts near the $100,000 cap; Phase II recipients near…
- Deadline
- Periodic rounds — check innovatealabama.org for open application windows. Not rolling.
- Status
- active
- States
- AL
- Payment model
- lump sum
Who qualifies
- Small business meeting SBA SBIR/STTR size standards (fewer than 500 employees)
- Principal place of business in Alabama
- Must hold an active federal SBIR or STTR award (Phase I or Phase II) from any qualifying federal agency
- Majority US-owned (51%+ by US citizens or permanent residents)
- Business must commit to maintaining Alabama headquarters for the duration of the state grant period
- Cannot have received Alabama state SBIR match on the same federal award previously
Hard requirements
- Must be incorporated
- 51%+ US ownership required
- Requires a prior Phase I award
What it covers
Eligible expenses
- Personnel costs for Alabama-based research and development staff
- Equipment and laboratory supplies necessary for the SBIR/STTR project
- Commercialization activities (market research, regulatory preparation, prototype development)
- Subcontractor costs (Alabama-based preferred)
- Indirect costs at applicable institutional rate
Ineligible expenses
- Costs already reimbursed by the federal SBIR/STTR award
- Equipment for facilities outside Alabama
- General administrative or overhead costs unrelated to the research project
- Costs incurred before grant agreement execution
How to apply
-
1
Receive federal SBIR or STTR award notice
Obtain your Phase I or Phase II federal award notice. This document is required to apply for the Alabama state match.
~3 hrs
-
2
Monitor Innovate Alabama for open application window
Check innovatealabama.org/programs/supplemental-grant-program/ for the next open application round. Applications are accepted in periodic rounds, not on a rolling basis. Contact Innovate Alabama directly to confirm current round schedule.
~3 hrs
-
3
Submit Alabama Innovation Grant application
Complete the application with: federal SBIR/STTR award notice copy, Alabama business registration, commercialization plan, Alabama job creation projections, and company financial summary.
~3 hrs
-
4
Review and award decision
Innovate Alabama reviews applications for eligibility and commercialization credibility. Decision typically within 30–45 days of the application window closing.
~3 hrs
-
5
Execute grant agreement and receive funds
Sign grant agreement with Innovate Alabama. Funds disbursed as a single lump sum or in project milestones depending on award size and project structure.
~3 hrs
Innovate Alabama runs the supplemental grant in periodic rounds — watch innovatealabama.org for open windows and apply promptly when a round opens. This program requires a prior federal SBIR/STTR award, so winning the federal competition is the real gating event. Alabama SBDC advisors can help structure the application.
Deadline & timing
Must hold an active, verifiable federal SBIR or STTR award. Apply within the open application window posted on innovatealabama.org. Contact Innovate Alabama directly to confirm current round timelines.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.