Kentucky SBIR-STTR Matching Funds Program
Kentucky Cabinet for Economic Development — KY Innovation
Up to $100K (Phase I) / $150K (Phase II)
Kentucky doubles your SBIR
Kentucky's state match for federal SBIR/STTR awards, administered by KY Innovation within the Cabinet for Economic Development. The program provides non-dilutive, reimbursable matching grants — up to $100,000 for a Phase I project and up to $150,000 for a Phase II project — to for-profit technology companies that have received a federal SBIR or STTR award and are based in (or willing to relocate to) Kentucky. Awards are competitive and reimburse eligible project costs. In the FY2026 cycle (announced February 2026), eight Kentucky companies received a combined $862,479 in state matching grants against $6.6 million in federal awards.
- Funding type
- Grant
- Level
- State
- Amount range
- Up to $100K (Phase I) / $150K (Phase II)
- Realistic amount
- FY2026 awards averaged about $108,000 per company across Phase I and Phase II matches. Phase…
- Deadline
- Competitive, award-cycle based; companies apply after receiving a federal SBIR/STTR award. Recent awards announced in 2024, 2025, and February 2026 indicate an annual cadence.
- Status
- active
- States
- Kentucky
- Payment model
- reimbursement
Who qualifies
- Must be a recipient of a federal SBIR or STTR award
- Must be a for-profit company
- Must be based in Kentucky, or willing to relocate to Kentucky
- Award is a competitive, non-dilutive, reimbursable matching grant
Hard requirements
- Must be an incorporated business
What it covers
Eligible expenses
- Eligible SBIR/STTR project costs (personnel, R&D, materials) incurred on the Kentucky project
- Project-related supplies and equipment per program rules
- Other documented costs eligible for reimbursement under the match
Ineligible expenses
- Costs not associated with the federally funded SBIR/STTR project
- Costs incurred outside Kentucky operations (per program intent)
- Expenses already fully covered by the federal award where double-counting would occur
How to apply
-
1
Secure a federal SBIR/STTR award
Obtain a federal Phase I or Phase II SBIR/STTR award — this is the prerequisite for the Kentucky match.
~2 hrs
-
2
Confirm Kentucky eligibility
Confirm your company is for-profit and based in Kentucky (or commit to relocating). Contact KY Innovation for the current application and cycle dates.
~3 hrs
-
3
Prepare and submit the match application
Complete the KY Innovation SBIR/STTR Matching Funds application, documenting the federal award, the Kentucky project, and eligible reimbursable costs.
~12 hrs
-
4
Execute agreement and submit for reimbursement
If selected, execute the grant agreement and submit eligible project costs for reimbursement up to the applicable cap ($100K Phase I / $150K Phase II).
~6 hrs
The match is non-dilutive and reimbursable, so it effectively extends your federal runway in-state — but you must already hold (or be relocating to capture) Kentucky operations. If you're an out-of-state SBIR winner weighing where to base R&D, the up-to-$150,000 Phase II match is a concrete reason to put the project in Kentucky. Apply promptly after your federal award, since funds are competitive and finite each cycle.
Deadline & timing
Administered by KY Innovation; contact SBIR@kyinnovation.com or 502-564-7670 for current cycle dates and the application. The program reimburses eligible project costs after award.
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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.