Ben Franklin Technology Partners Challenge Grant

The Ben Franklin Technology Partners Challenge Grant is a strategic funding initiative administered by the Commonwealth of Pennsylvania through the Department of Community & Economic Development. This grant program is implemented by the Ben Franklin Technology Development Authority (BFTDA) and executed regionally by the Ben Franklin Technology Partners (BFTP), a network of four independent nonprofit organizations. The program was originally established in 1982 and reauthorized by state law in 2001 via Act 38, underscoring its role as a cornerstone of Pennsylvania’s technology-based economic development framework. Its purpose is to drive innovation and growth among early-stage and established companies by funding efforts that bring advanced technologies to market, strengthen entrepreneurial ecosystems, and boost regional economies. The grant program focuses on high-growth, technology-driven enterprises across Pennsylvania and promotes regional partnerships, technology commercialization, and job creation. Eligible activities include seed and later-stage capital investments in companies, support for business incubation facilities, development of entrepreneurial and technology infrastructure, and regional strategy initiatives aligned with economic development goals. Companies seeking funding must demonstrate a significant presence in Pennsylvania, including maintaining facilities and workforce in the state for at least five years after project completion. Funded companies are also encouraged to manufacture or assemble products in Pennsylvania to the extent possible, with contractual enforcement for compliance. Funds may not be used for basic research, broad equipment purchases, or university indirect overhead. Each proposed project must show commercial potential and be evaluated competitively at the regional level. Partner organizations must conduct site visits for active projects annually, maintain thorough documentation, and achieve a 1:1 match with private-sector resources. Match contributions can include cash, in-kind services, or equipment, and some expenses made up to 90 days before the project’s start date can be counted. While the BFTDA encourages match on a per-project basis, it permits aggregated matching across projects if properly justified and documented in final reports. Grant recipients are subject to strict operational accountability. Each Partner must submit an independent audit annually, which must include a detailed breakdown of BFTDA funds and demonstrate compliance with match requirements. Final reports are due by February 15 following the close of each fiscal year and include financial, impact, and project summaries. The BFTDA may also conduct operational audits or reviews. Intellectual property, royalty, and equity agreements must be established by each Partner's board and are reviewed by the BFTDA. Any real estate purchases or large project commitments exceeding 20% of a Partner’s allocation must receive prior approval from the Executive Director. Applications for the Challenge Grant are submitted annually by June 30 to the Executive Director of the BFTDA and must follow a specific structure. This includes a proposal with a regional strategy summary, operating budget, program summaries, and documentation on assets, returns, and organizational governance. Partners must also submit an annual impact report by February 15, measuring economic outputs such as jobs created, new companies formed, research expenditures, and licensing revenues. While the grant does not include a centralized application portal for outside applicants, it is structured as a funding mechanism for BFTP to operate its programs and fund selected companies and initiatives. Although external applicants (such as companies and organizations) do not apply directly to the BFTDA for funding through this grant, they engage with the regional Ben Franklin Technology Partners organizations, which in turn allocate grant funding to projects based on strategic fit and impact potential. The program is renewed annually in alignment with the state budget process, with grant cycles typically initiated after budget approval. The grant is recurring, and Partner organizations are expected to plan their activities and submit applications each fiscal year. The deadline for the next cycle is anticipated in June 2026.