Kentucky

Kentucky SBIR/STTR Phase Zero and Phase Double Zero

Dr. Maria Labreveux
(859) 246-3251
mlabreveux@kstc.com

Purpose of Initiative

The Phase Zero and Phase Double Zero programs are for Kentucky-based SBIR and STTR companies, specifically the programs provide funding for the development of federal Phase I and Phase II proposals. The programs are managed by the Kentucky Science and Engineering Foundation at the Kentucky Science and Technology Corporation.

Eligibility

Kentucky-based small businesses, university-affiliated businesses, and college and university faculty are eligible to apply for Phase Zero and Phase Double Zero. The company must be registered with the Kentucky Secretary of State (with active status and in good standing). Applicants must submit the federal proposal as a Kentucky company and must be up-to-date with all reporting requirements and deliverables for all KSTC-managed programs. Companies outside of Kentucky are not eligible to apply.

Award Details

Phase Zero grants assist Kentucky-based small businesses and college/university faculty with the preparation of competitive Phase I SBIR/STTR proposals. This program provides grants up to $4,000 to each successful applicant company. Phase Double Zero grants assist Kentucky applicants with the preparation of competitive Phase II and Fast Track proposals for submission to federal SBIR/STTR programs. This program provides up to $4,000 to each successful applicant company.

Application Process

RFPs for the Phase Zero and Phase Double Zero programs are open year-round, but reviews occur once per month according to an established schedule. Phase Zero and Phase Double Zero applications should be submitted by the application deadline to KSEF—the application deadline is a minimum of two months and no greater than 12 months before the federal due date.

Kentucky SBIR-STTR Matching Funds Program

Kenneth Ronald
Senior Program Manager, Kentucky SBIR/STTR Matching Funds Program
Kentucky Science and Technology Corporation
(859) 246-3252
kronald@kstc.com

Purpose of Initiative

The Kentucky SBIR/STTR Matching Funds Program is funded by the Cabinet for Economic Development (Office of Entrepreneurship) and administered by the Kentucky Science and Technology Corporation (KSTC).

Eligibility

While guidelines for this program have changed, the details were not specified in the link provided. All new applicants must register and take an eligibility test to receive a username and password before submitting an application. In the past, companies from Kentucky and companies willing to move to Kentucky were able to apply and receive funds from this grant program. However, the distribution of funds for out-of-state applicants was contingent upon meeting all of the requirements within the guidelines, including: relocating the business to the state of Kentucky within 90 days of the date on the Kentucky SBIR/STTR Matching Funds Grant Agreement; maintain the Kentucky-based status for a minimum of five years after the receipt of the final disbursement of funds; and spend at least 51% of the grant funding in Kentucky. It is unknown if these requirements have since changed, or if they remain the same.

Award Details

In the past, this program has provided matching funds up to $150,000 for Phase I and up to $500,000 for Phase II (not to exceed two years). These matching funds were to be used for new and additional work tasks that were complementary to the company’s existing federal SBIR/STTR award. Interested companies may want to contact the Senior Program Manager to see if the award details have changed.

Application Information

Future solicitations are planned. The amount of funding available for awards each round will be determined by the Kentucky Cabinet for Economic Development. New applicants must register and take an eligibility test.

Bluegrass Angels

Bluegrass Angels, Inc.
(859) 904-9039

Purpose of Initiative

Bluegrass Angels is an organization of local angel investors interested in fostering the growth of start-up businesses in Kentucky by investing time, knowledge, and money into new start-up companies. This organization provides early stage and venture capital equity to start-up or expanding companies. They aim to help commercialize research being conducted at the University of Kentucky and promote entrepreneurship within the Kentucky business community.

Application Information

Entrepreneurs may request funding through the Bluegrass Angels website.

Kentucky Small Business Tax Credit

Office of Entrepreneurship
(800) 626-2930
cedsbsd@ky.gov

Purpose of Initiative

The Kentucky Small Business Tax Credit (KSBTC) program is designed to encourage small business growth and job creation. The KSBTC program allows eligible small businesses paying taxes imposed by KRS 141.020 (income tax on individuals), 141.040 (corporation income tax), or 141.0401 (limited liability entity tax) to apply for a Kentucky state income tax credit. Subject to a statutory limit of $3,000,000 per state fiscal year, this program provides a non-refundable state income tax credit between $3,500-$25,000 for small businesses that create and fill one or more eligible positions and invest $5,000 or more in qualifying equipment or technology. Qualified applicants are eligible to receive a tax credit in an amount not to exceed the lesser of: 1) $3,500 per eligible position; or 2) the total dollar amount invested in qualifying equipment or technology. Applicants are also subject to a $25,000 maximum tax credit cap per applicant for each calendar year.

Eligibility

Any for-profit small business with 50 or fewer full-time employees at the time of application are eligible to apply. Some exceptions are listed through the website.

Award Details

Tax credits range between $3,500 and $25,000 and require that a company has created and sustained (for 12 months) at least one new full-time job (at least 35 hours per week at $10.88/hr or more) and has purchased at least $5,000 of qualifying equipment or technology.

Application Information

Click here for submission information.

Commonwealth Seed Capital Fund

Julie Dawson
(859) 685-3397
Julie.dawson@commonwealthseed.com

Purpose of Initiative

The Commonwealth Seed Capital Fund is an independent, nonprofit fund that invests in early stage Kentucky businesses to facilitate the commercialization of innovative ideas and technologies. CSC invests in companies that have a significant presence in Kentucky, the prospect for substantial growth, and the potential to generate an appropriate rate of return. Investments are typically made in the following areas: health and human development; information technology and communications; bioscience; environmental and energy technologies; and materials science and advanced manufacturing.

Startups@KSTC

Mr. Kelby Price
Fund Director
(859) 246-3255
kprice@kstc.com

Purpose of Initiative

Startups@KSTC provides funding to companies through two separate funds—the Kentucky Enterprise Fund and the Kentucky New Energy Ventures Fund. The Kentucky Enterprise Fund (KEF) provides pre-seed and seed-stage funding to companies in Kentucky. The Kentucky New Energy Ventures Fund (KNEV) provides seed and early stage funding to companies in Kentucky developing alternative fuel and renewable energy products and services. The companies funded through this program are pre-seed or at the seed-stage—they typically have very few employees, are testing product/market fit, and are in the process of acquiring their initial customers.

Eligibility

Companies funded are at the pre-seed or seed-stage. Funded companies must be based in Kentucky. To meet the Kentucky-based requirement, a company must have 51% of property and payroll in Kentucky or have its principal place of business in Kentucky. Companies must be organized as either an LLC or a C-Corp.

Award Details

On average, Startups@KSTC makes approximately 2-5 new seed-stage and 8-12 new pre-seed-stage investments each year. Most of their investments are for businesses focusing on the life sciences, software, materials, manufacturing, energy, and environmental science. They provide $20,000 pre-seed investments or $50,000-$250,000 seed-stage equity investments. Pre-seed investments do not require matching funds. Seed-stage investments require a match from private investors.

Application Information

Companies may apply at any time. To apply, please visit here.

Access Ventures

Contact Information for Access Ventures

Purpose of Initiative

Access Ventures is a 501(c)(3) operating foundation based in Louisville, Kentucky. They provide investments (in the form of equity, loans, grants) and support networking efforts, connecting investment partners with those who are able to support and enhance their impact. Access Ventures works with both large and small organizations in the public, private, and social sector, providing capital for entrepreneurs.

Eligibility

Access Ventures looks for organizations that align with their mission—which is to build a more inclusive economy. They seek out companies and ideas that address specific areas that will help them to achieve this goal. Access Ventures invests in companies with experienced leaders and management teams, those that have sustainable business models to support job creation and growth, and those that have innovative ideas with the potential for impact on a local or global scale.

Award Details

Investments may be in the form of equity, loans, or grants.

Updated March 2018 by Kristen Johnson