One North Carolina SBIR/STTR Phase I Incentive Funds Program

The One North Carolina SBIR/STTR Phase I Incentive Funds Program is administered by the North Carolina Board of Science, Technology and Innovation through the North Carolina Department of Commerce’s Office of Science, Technology and Innovation. The program is established under North Carolina General Statute § 143B-437.80 and is designed to support small businesses in the state that are pursuing federal Small Business Innovation Research and Small Business Technology Transfer opportunities. It operates as a reimbursement-based grant initiative that complements federal innovation funding programs by offsetting costs associated with proposal preparation. The primary purpose of the Incentive Funds Program is to stimulate economic development and job creation within North Carolina by increasing participation of in-state small businesses in federal SBIR and STTR Phase I competitions. The program specifically seeks to expand both the quantity and quality of applications submitted by North Carolina firms, while also encouraging participation from businesses in economically distressed regions and underrepresented industries. By strengthening the pipeline of competitive federal proposals, the program aims to enhance the state’s overall success rate in securing federal research and development funding. Funding under this program is structured as a reimbursement for eligible expenses incurred in preparing and submitting a Phase I SBIR or STTR proposal to a participating federal agency. Eligible applicants may receive reimbursement for a percentage of proposal preparation costs, up to a maximum award of 12,000 dollars. The reimbursement rate varies based on the economic tier designation of the applicant’s county, with higher reimbursement percentages available to businesses located in lower-tier counties. In limited circumstances, a resubmission of a previously funded proposal may qualify for an additional reduced award. Allowable costs include consulting fees, salaries directly tied to proposal preparation, technical services, supplies, and certain patent-related expenses, while costs such as travel, large equipment purchases, and indirect expenses are not reimbursable. Eligibility is restricted to for-profit small businesses that have their principal place of business in North Carolina and meet federal SBIR/STTR eligibility requirements. Applicants must demonstrate that they have submitted a qualifying Phase I proposal to a federal agency during the solicitation period and must provide documentation confirming receipt of the proposal. Additional requirements include maintaining significant operations within North Carolina, conducting the majority of project activities in the state if federally funded, and being in good standing with state tax obligations. Applicants must also comply with state requirements related to conflict of interest policies and financial reporting. The application process is conducted electronically through the CyberGrants system and requires submission of a comprehensive application package. This includes a completed grant application and agreement, proof of business registration in North Carolina, a full copy of the federal Phase I proposal, evidence of submission to a federal agency, and detailed documentation of reimbursable expenses. Applicants must also provide supporting financial documentation such as receipts and payroll records. Applications are reviewed for completeness and compliance, and awards are issued on a rolling, first-come, first-served basis until the end of the solicitation period or until available funds are exhausted. The solicitation for this funding cycle was released on December 15, 2025. Applications must be submitted no later than June 30, 2026, or earlier if program funds are fully allocated. The program operates on a rolling basis, meaning that eligible applications may be approved and funded at any time during the solicitation period. Following approval, grant funds are disbursed electronically upon verification of eligibility and submission requirements. Recipients are required to comply with reporting obligations, including submission of a final report detailing outcomes and impacts following notification of federal award decisions. Overall, the One North Carolina SBIR/STTR Phase I Incentive Funds Program serves as a strategic state-level investment to enhance the competitiveness of North Carolina’s small businesses in federal innovation funding programs. By reducing the financial burden associated with proposal preparation and encouraging broader participation, the program contributes to strengthening the state’s innovation ecosystem and advancing technology-based economic growth.

Ensure all required documentation is complete and compliant as incomplete applications are rejected and funding is awarded on a first come first served basis