SBIR and STTR matching grants by state in 2026: who tops up your federal award
Short answer: if your company has won a federal SBIR or STTR award, several US states will add their own grant on top, with no equity and no repayment. As of November 2026 the largest open matches are Nebraska (up to $150,000 for Phase I and $300,000 for Phase II, capped at 65% of the federal award), Illinois (up to $75,000 and $250,000) and Wyoming (up to $100,000 and $200,000). Most take applications all year. Hawaii's current window closes on 11 December 2026 and New Mexico's on 17 November 2026. If you have not won an award yet, Phase 0 grants of $3,000 to $5,000 in Louisiana, Kentucky, Mississippi and Wyoming help pay for the proposal.
The Grant Index tracks 15 open state programs that match or prepare federal SBIR/STTR awards, each checked against its official page (the date is in the "Verified" column). A state match is a grant paid to a company that already holds a federal award, usually to bridge the gap between Phase I and Phase II or to pay for commercialization work the federal money can't cover. Every program requires the company to be based in the state, and some also require most of the work to happen there.
1. How state matching works
The federal SBIR and STTR programs fund R&D in stages. Phase I tests feasibility, Phase II builds the product, and some states also fund "Phase 0" work to help you write the first proposal. State programs plug into those stages in three ways:
- Phase I match. A grant sized against your federal Phase I award, often 50% of it with a cap. It is meant to carry you to a Phase II submission, and some states pay part of it only after you submit.
- Phase II match. A larger grant for Phase II awardees. It usually pays for things federal funds don't cover well, such as market research, sales materials or regulatory work.
- Phase 0 or proposal grants. Small amounts, typically $3,000 to $5,000, for proposal writing help, preliminary data or a trip to meet the agency, paid before you have any award.
Most matches are reimbursable. You spend first and claim against receipts or milestones, so plan your cash flow before you count on the money.
2. Open state matching grants
| Program | What you get | Who qualifies | Verified |
|---|---|---|---|
| Nebraska SBIR/STTR Grant ProgramNebraska Department of Economic Development | Phase 0 up to $5,000; Phase I match up to $150,000 (or 65% of the federal award); Phase II match up to $300,000 (or 65%) | Nebraska companies doing at least 51% of the work in the state. Phase I match up to $150,000 or 65% of the federal award, Phase II up to $300,000 or 65%, whichever is less. Window runs to 30 June 2027 or until funds run out. | 2026-10-30 |
| Illinois SBIR/STTR Matching ProgramIllinois Department of Commerce & Economic Opportunity (DCEO) | Up to $75,000 for federal Phase I awardees; up to $250,000 for Phase II awardees | For-profit businesses with their principal place of business in Illinois. Phase I match: federal award made within the last 12 months, still active, and Phase II not yet submitted. Not competitive: checked for eligibility first-come, first-served while funds last. | 2026-10-30 |
| Wyoming SBIR/STTR Matching GrantWyoming Business Council | Match of up to $100,000 for Phase I awards and up to $200,000 for Phase II awards | Wyoming businesses with a federal SBIR/STTR award. Year-round and rolling; qualifying applicants pitch virtually and hear back within about 2 weeks. Up to 4 matches per business lifetime. | 2026-10-30 |
| Arkansas SBIR/STTR Matching GrantArkansas Economic Development Commission (AEDC) | Reimburses up to 50% of federal SBIR/STTR awards: max $50,000 for Phase I, $100,000 for Phase II | Businesses with their principal office in Arkansas, working in a targeted sector such as IT, biotech, advanced materials, agriculture or logistics. Paid on a reimbursement basis. | 2026-10-30 |
| America's Seed Fund: Iowa ProgramIowa Economic Development Authority (IEDA) | Up to $75,000 total: $50,000 Phase I grant on top of a federal award, $25,000 on Phase II submission, plus proposal-assistance costs | Iowa-registered companies with fewer than 500 employees, any industry. $50,000 on top of a Phase I award and $25,000 more on Phase II submission; also covers third-party proposal help. Reviewed on an ongoing basis. | 2026-10-30 |
| Hawaii HSBIR Matching GrantHawaii Technology Development Corporation (HTDC) | Phase I match: up to 50% of your federal SBIR/STTR Phase I award, max $75,000; Phase 0 proposal support also offered | Companies registered to do business in Hawaii and compliant in Hawaii Compliance Express, holding a federal Phase I award. FY27 window 23 October to 11 December 2026; scored by a review committee. | 2026-10-30 |
| Montana SBIR/STTR Matching Funds ProgramMontana Department of Commerce | Up to $30,000 per phase (Phase I and Phase II), available on a yearly basis | Montana businesses holding a federal SBIR or STTR award. Funds must support the product or service tied to that award. Applications any time. | 2026-10-30 |
| Elevate Vermont SBIR/STTR Matching GrantVermont Department of Economic Development (ACCD) | Non-competitive matching grant of up to $50,000 per federal SBIR/STTR award | For-profit businesses based in Vermont with a Phase I or II award already granted. Non-competitive, first-come, first-served; one grant per award, five per lifetime. | 2026-11-03 |
| SCRA Federal Matching GrantSCRA (South Carolina Research Authority) | Matches up to 50% of a federal SBIR/STTR (or similar) award, capped at $50,000 | SCRA member companies: for-profits registered and operating in South Carolina with an official federal award notice. Up to two grants for separate awards; rolling, through your SCRA relationship manager. | 2026-10-30 |
| New Mexico SBIR/STTR Matching GrantNew Mexico Economic Development Department | State matching grant for federal SBIR/STTR awardees (maximum per award not stated on the program page) | Technology companies headquartered in New Mexico in a state target sector such as advanced energy, computing and quantum, biosciences or aerospace and defense. Current round closes 17 November 2026. | 2026-10-30 |
| One North Carolina Small Business ProgramNorth Carolina Department of Commerce (Office of Science, Technology & Innovation) | Reimburses part of SBIR/STTR Phase I proposal costs, plus SBIR and STTR matching funds for awardees (FY2027 round: $2M available) | North Carolina small businesses. Two parts: Phase I Incentive Funds that reimburse proposal costs, and Phase I Matching Funds for awardees. FY2027 round has $2 million available; apply through CyberGrants. | 2026-10-30 |
Which one is biggest for you? The headline cap is rarely what you get. Nebraska and Arkansas tie the match to a share of your federal award, so a $150,000 Phase I award gets about $97,500 in Nebraska (65%) and $50,000 in Arkansas (the cap). Illinois and Wyoming use flat caps. Iowa pays a fixed $50,000 plus $25,000. Illinois and Vermont are not competitive: they check eligibility first-come, first-served, so if you meet the rules and the money lasts, you get it. Hawaii and Kentucky score applications against each other.
3. Phase 0: grants for writing the proposal
| Program | What you get | Who qualifies | Verified |
|---|---|---|---|
| Louisiana Phase Zero SBIR/STTR GrantLouisiana Economic Development (LTTO) | Up to $3,000 for a Phase I proposal or $5,000 for a Phase II proposal | Louisiana innovators and small businesses with under 500 employees preparing a federal application. Up to $3,000 for Phase I and $5,000 for Phase II, for costs like customer discovery, conferences or a grant reviewer. | 2026-11-03 |
| KSEF SBIR/STTR microAwardsKentucky Science & Engineering Foundation (KSTC) | Up to $5,000 to strengthen an SBIR/STTR proposal, awarded through a pitch competition | For-profit companies registered in Kentucky that will submit a proposal within 6 months and hold an award or have had SBIR training. Pitch-based; no microAward in the past 12 months. | 2026-11-03 |
| MS-FAST Phase 0 SBIR/STTR Proposal GrantInnovate Mississippi | Up to $3,000 toward preparing an SBIR/STTR Phase I or Phase II proposal | Mississippi-registered small businesses with 500 or fewer employees. Apply at least 30 days before the federal deadline; half paid at award, half once you show the federal submission receipt. | 2026-11-03 |
| Wyoming Phase 0/00 SBIR/STTR Proposal GrantWyoming SBIR/STTR Initiative (University of Wyoming / Wyoming SBDC Network) | Up to $5,000 to prepare a competitive federal SBIR/STTR Phase I or II proposal, plus free advising | Businesses owned by Wyoming residents and headquartered in Wyoming. Applications any time, reviewed on the 1st and 15th of each month. | 2026-10-30 |
These grants are small, but they cover real costs: lab tests, a prototype part, an expert consultant or a trip to meet the program manager. Kentucky's microAwards can't pay for grant writers or your own staff, so check each program's list of allowed costs before you build a budget. Hawaii, Nebraska and North Carolina fold proposal support into the matching programs above.
4. Paused programs and their next windows
| Program | What you get | Who qualifies | Verified |
|---|---|---|---|
| LaunchTN SBIR/STTR Matching Fund pausedLaunch Tennessee (LaunchTN) | Up to 50% of your federal award: max $100,000 for Phase I, $300,000 for Phase II | Tennessee companies with a federal notice of award between 1 July 2025 and 30 September 2026. The FY27 window ran 5 to 16 October 2026 and has closed. Awardees must stay headquartered in Tennessee for 24 months. | 2026-10-30 |
| Kentucky SBIR/STTR Matching Funds pausedKY Innovation (Kentucky Cabinet for Economic Development) | Matches up to $100,000 for a Phase I project and up to $150,000 for a Phase II project (reimbursable grant) | For-profit SBIR/STTR awardees based in Kentucky or willing to relocate there. Two windows a year, usually March to April and September to October, each open for eight weeks. | 2026-10-30 |
| Innovate Alabama Supplemental Grant Program pausedInnovate Alabama | 50% of your SBIR/STTR award: up to $100,000 (Phase I) or $250,000 (Phase II) | Alabama SBIR/STTR awardees. Runs in periodic rounds; the next round has not been announced. | 2026-10-30 |
| Kansas SBIR/STTR Matching Program (ACCEL-KS) pausedKansas Department of Commerce | Phase 0: up to $3,000 (1:1 match) for proposal development; Phase I: $25,000 for federal Phase I awardees | Kansas companies. Phase 0 proposal support and a Phase I match; 2026 rounds have closed. | 2026-10-30 |
If you are based in one of these states, use the gap to collect what every match asks for: the federal notice of award, the winning proposal, a use-of-funds budget and your incorporation documents. Programs with short windows, like Tennessee's two weeks, reward companies that apply on day one.
5. Win the federal award first
Every match above needs a federal SBIR/STTR award in hand; only the Phase 0 grants in section 3 come before it. Eleven federal agencies run SBIR/STTR programs. For a startup, the most common entry point is the NSF SBIR/STTR Phase I. Its current solicitation (NSF 26-510) offers up to $305,000 for Phase I and up to $1,250,000 for Phase II. NSF takes no equity, and a company can receive up to $2 million in total.
- Pitch before you propose. NSF only accepts Phase I proposals from companies invited after a Project Pitch, and a company can submit at most two pitches a year. Pitches are accepted on a rolling basis.
- Deadlines. Full proposals are due on 4 November 2026, 4 March 2027 and 7 July 2027. If you don't have an invitation yet, aim for March.
- Who qualifies. A US small business with fewer than 500 employees. STTR projects also need a partner research institution. NSF makes about 180 SBIR and 50 STTR Phase I awards a year.
Other agencies fit other products: the Air Force and Space Force (AFWERX) for dual-use technology, the NIH omnibus for health, USDA NIFA for agriculture and ARPA-E for energy. Each listing shows the current dates.
6. Rules that sink applications
- Work done out of state. Nebraska requires at least 51% of the proposed work in the state, and Vermont asks you to certify that at least 51% of the related Phase II research happens there. Illinois, Vermont and Arkansas look at where your principal place of business is.
- Award timing. Illinois only matches a Phase I award made within the last 12 months, before Phase II is submitted. Vermont needs the award granted before you apply, and Tennessee only covers notices of award dated in a fixed window.
- Lifetime caps. Illinois allows one Phase I grant per state fiscal year and five in total. Wyoming allows four, and Vermont five. Vermont also excludes companies with more than three prior Phase II awards.
- Membership or sector gates. South Carolina's match is only for SCRA member companies, and New Mexico and Arkansas fund target technology sectors only.
- Cash flow. Arkansas and Kentucky reimburse after you spend, and Mississippi pays half of its Phase 0 grant only once you show your federal submission.
FAQ
Which states offer SBIR matching grants in 2026?
Open now: Nebraska, Illinois, Wyoming, Arkansas, Iowa, Hawaii (until 11 December 2026), Montana, Vermont, New Mexico (until 17 November 2026), North Carolina and South Carolina (for SCRA members). Tennessee, Kentucky, Alabama and Kansas run periodic rounds that are closed right now.
Which state offers the largest SBIR match?
Among programs open now, Nebraska, with up to $150,000 for Phase I and $300,000 for Phase II, limited to 65% of the federal award. Illinois offers up to $250,000 for Phase II and Wyoming up to $200,000. Tennessee also reaches $300,000 for Phase II, but its window is closed until autumn 2027.
Can I get a state SBIR match before I win a federal award?
No. Matching grants need a federal notice of award or contract. Before an award, look at Phase 0 grants: Louisiana (up to $3,000 or $5,000), Kentucky microAwards (up to $5,000), Mississippi MS-FAST (up to $3,000) and Wyoming (up to $5,000).
Do state SBIR matching grants take equity or need to be repaid?
The programs in this guide are grants, so they take no equity and you do not pay them back. Many are paid as reimbursements, so you spend first and claim afterwards.
Do I have to move my company to get a state match?
Usually you must be based in the state and do most of the work there. Kentucky accepts companies willing to relocate, and Tennessee asks awardees to stay headquartered in the state for 24 months.
Program terms change often. Every program page linked above shows its official source and the date we last verified it; confirm on the provider's page before you apply. Spotted something out of date? Report a correction.
Related guides
Browse the full lists: Startup programs in the United States · Government grants for startups