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active State Grant

One North Carolina Small Business Program (SBIR/STTR Incentive & Matching Funds)

North Carolina Department of Commerce — Office of Science, Technology & Innovation

Up to $12K (Incentive) / up to $75K (Matching)

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Researched for this program: 4 rejection traps · 4 required documentsWhat decides this award ↓

The short version

NC backs your SBIR run

North Carolina's two-part state support for SBIR/STTR-focused small businesses, run by the NC Department of Commerce's Office of Science, Technology & Innovation. The Incentive Funds component reimburses qualified NC small businesses up to $12,000 for eligible costs of preparing and submitting a federal Phase I SBIR/STTR proposal. The separate Matching Funds component awards NC businesses that have already won a federal Phase I SBIR/STTR award 50% of that federal award, up to $75,000, to bridge the gap between Phase I and Phase II. For FY2026, roughly $200,000 was available for Incentive grants (~25 awards) and about $1.88 million for Matching grants (~25 awards), with applications open until June 30, 2026 or until funds are exhausted.

Funding type
Grant
Level
State
Amount range
$12,000 – $75,000
Realistic amount
An Incentive applicant recovers up to $12,000 of proposal-prep cost; a Matching applicant typically receives close to the $75,000 cap (50% of a Phase I award, which commonly runs $150,000+). FY2025 Matching awards averaged ~$72,000 across 51 grants.
Deadline
FY2026 applications accepted until June 30, 2026 or until funds are exhausted, whichever comes first. Annual fiscal-year cycles.
Status
active
States
North Carolina
Payment model
reimbursement

Who qualifies

Hard requirements

What it covers

Eligible expenses

  • Incentive: eligible costs of preparing and submitting a federal Phase I SBIR/STTR proposal (e.g., grant-writing, consulting, related prep costs)
  • Matching: SBIR/STTR project costs supported by the federal Phase I award
  • Documented project-related costs per the solicitation

Ineligible expenses

  • Costs unrelated to the SBIR/STTR proposal or project
  • Phase II-only costs under the Phase I Matching component
  • Expenses outside the eligible categories defined in the solicitation

How to apply

  1. 1

    Determine which component fits

    If you are preparing a Phase I proposal, target the Incentive Funds (up to $12,000). If you already hold a federal Phase I award, target the Matching Funds (50% up to $75,000).

    ~2 hrs

  2. 2

    Review the current solicitation

    Read the FY2026 Incentive or Matching solicitation on the NC Commerce site to confirm eligible costs, documentation, and current funding availability.

    ~3 hrs

  3. 3

    Apply via CyberGrants

    Submit the application through the CyberGrants Management System, attaching the federal proposal/award and eligible-cost documentation.

    ~8 hrs

  4. 4

    Receive award / reimbursement

    If selected, execute the award and receive the Incentive reimbursement or the Matching grant up to the applicable cap.

    ~4 hrs

Insider tip

The Incentive component is unusually founder-friendly: it pays you back up to $12,000 just for preparing a Phase I SBIR/STTR proposal — even if you don't win the federal award — so it de-risks the grant-writing cost of your first attempt. Apply early in the fiscal year; the program runs on first-come availability and can exhaust funds before the June 30 close.

Deadline & timing

Applications managed through the CyberGrants Management System. Funding renews each fiscal year; the Matching component requires a received federal Phase I award, the Incentive component is for proposal preparation/submission. Funds can run out before June 30, so apply early in the cycle.

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Last updated September 5, 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.