Business Oregon, the economic development arm of the state, opened applications this week for a matching grant program for small businesses that have received funds through a certain federal research and development program.
The matching grants are open to small businesses participating in the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) grant programs. These programs are run by the federal government and are part of the annual budget for agencies that have extramural R&D budgets.
The state has about $2.5 million available in this biennium for matching grants. Between $1 million and $1.25 million will be used in this go-around, said Business Oregon spokesman Nathan Buehler. The group hopes to open a similar application period next year and the use the remaining funds.
Companies that have Phase I SBIR/STTRs can apply for up to $50,000 from the state and companies with Phase II or Fast-Track awards can apply for up to $100,000. Application period for these matching funds closes at 11:59 p.m. Pacific on Oct. 14, 2021.
This program is funded through Business Oregon’s budget, which comes from state lottery funds.
Each year, certain federal agencies are required to allocate a portion of R&D money to go to small businesses. This translates to about $2 billion annually that is available in nondilutive funds for these small businesses.
Agencies that participate include those in the departments of defense, energy and agriculture.
These federal funds must be used for research and product development. Last year, $45 million in SBIR/STTR funds were awarded to Oregon small businesses, according to the state.
However, many companies still need help with funding operations, business development, marketing, intellectual property protection and testing and purchasing equipment. The state of Oregon, through Business Oregon and the Oregon Innovation Council, has matching funds that can be used by small businesses in these areas.
Tapping into the SBIR/STTR program is one way to help bootstrap a company or get to a point for other types of investment. For instance, data privacy control startup Concord recently partnered with the U.S. Air Force on a project that has helped move the company forward. Another, was the founders of energy storage company ESS Inc., which is in the process of going public via a special purpose acquisition company. ESS used SBIR/STTR grants from the Department of Energy for early research.
Securing SBIR/STTR grants can be a cumbersome process. There are resources to help founders through this. Business Oregon offers up to $5,000 to help companies navigate the SBIR/STTR process. The nonprofit VertueLab also offers support through the SBIR application process.
