The North Carolina Board of Science, Technology & Innovation has awarded 80 North Carolina innovation-based small businesses a total of $2.339 million in funding to develop groundbreaking new technologies with the potential for commercialization. During North Carolina fiscal year 2024, which ended June 30, the Board awarded One North Carolina Small Business Program funding to businesses in 23 counties across the state.
The One North Carolina Small Business Program awards state-funded grants to small businesses that apply for and win awards from two highly competitive federal initiatives: the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These federal programs, collectively referred to as America’s Seed Fund™, support technology development by small businesses with the eventual goal of commercialization and economic sustainability for the selected companies. The SBIR and STTR programs are the single largest source of early-stage technology development funding for small businesses, with nearly $4.4 billion awarded annually nationwide.
"Small businesses are the backbone of both local and state economies here in North Carolina, and their employees make up a critical part of our world-class workforce," said Governor Roy Cooper. "These grants will help innovative small businesses grow and develop new technologies.”
The SBIR and STTR programs are administered through 11 federal agencies, including the Department of Defense, Department of Health and Human Services, National Science Foundation, Department of Energy, and Department of Agriculture, among others. By leveraging federal awards, the One North Carolina Small Business Program grants fill a key gap in North Carolina’s innovation ecosystem, helping to ensure that small businesses navigate the early stages of company growth. Many recipient companies commend the One North Carolina Small Business Program as the vital injection of capital they needed to put their companies on a successful trajectory.
The One North Carolina Small Business Program is administered by the North Carolina Department of Commerce on behalf of the North Carolina Board of Science, Technology & Innovation. The Program provides two types of grants for companies pursuing SBIR and STTR awards: Incentive grants and Matching grants.
Incentive grants reimburse North Carolina small businesses for costs they incur in preparing their SBIR or STTR applications, as applying for the federal awards requires a significant investment of their time and funds. This program also incentivizes broader technology and geographic diversity among North Carolina’s SBIR and STTR applicants, helping more companies prepare first-time applications and improving the quality of submitted applications.
If a company is successful in winning a Phase I SBIR or STTR award, the Matching grant then supplements those funds to further help companies navigate the financial “Valley of Death,” attract follow-on investment, and ultimately grow their presence in North Carolina and ensure long-term success. The 35 companies receiving $2.011mllion in Matching grants this past cycle were awarded nearly $8.6 million in federal funds. An additional $317,323 was provided to 55 companies as Incentive grants to provide financial assistance for their SBIR or STTR application.
“The One North Carolina Small Business Program is the only State-funded grant program providing direct support to small businesses engaged in research & development leading to commercial products,” said Commerce Secretary Machelle Baker Sanders. “Direct State support of small business research & development speeds of the creation and adoption of new products that improve the economic well-being and quality of life of all North Carolinians.”
Grant funding from the program has been used by small businesses to support jobs, purchase specialized equipment, protect intellectual property, and support facility infrastructure to enable the companies’ growth and opportunity for follow-on funding. Since 2006, One North Carolina Small Business Program, has provided 816 grants, totaling nearly $37 million, to small businesses across 39 counties and 68 cities. Those businesses have created and maintained more than 1,200 jobs and leveraged more than $8 billion in follow-on funding from other sources. This is a 250x return on state investment
“Innovative new products and services fuel economic prosperity and come from all parts of our state,” said N.C. Senator Paul Newton, co-chair of the Legislative Life Sciences Caucus. “Through this grant program, we continue to support more technological innovation by small businesses statewide, and that focus is paying off in a wider geographic distribution of awards.”
“Continued and increased funding for the One North Carolina Small Business Program will further grow and expand its reach and impact,” said N.C. Senator Mike Woodard, co-chair of the Legislative Life Sciences Caucus. “These innovative companies, which represent a wide cross section of industries - from life sciences, to defense, to information technology, to energy - are addressing some of society’s biggest challenges, while at the same time creating jobs and growing our economy.”
Review the complete list of One North Carolina Small Business program awards for fiscal year 2024.
The Office of Science, Technology, & Innovation, a division of the North Carolina Department of Commerce, administers the program on behalf of the Board. For additional information, see https://www.nccommerce.com/grants-incentives/technology-funds/one-north-carolina-small-business-program.