Ben Franklin Technology Partners Challenge Grant

The Ben Franklin Technology Partners (BFTP) Challenge Grant is a Pennsylvania state-funded economic development initiative overseen by the Ben Franklin Technology Development Authority (BFTDA). Originally established by the Pennsylvania General Assembly in 1982 and reauthorized multiple times through 2001, the program is administered by four independent, regionally-based nonprofit organizations known collectively as the Ben Franklin Technology Partners. These organizations serve as the Commonwealth's primary instruments for technology-based economic development, facilitating business growth through innovation, research commercialization, and partnerships with industry, academia, and government. The core mission of the program is to support the creation and expansion of high-growth companies by investing in the development and commercialization of advanced technologies. Funds provided under the BFTP Challenge Grant may be used for company investments, business and technical assistance, technology infrastructure development, and administrative costs. Eligible expenditures include seed investments in startups (particularly those with under 50 employees), support for process or product innovation, assistance with commercialization, and the establishment of business incubators and entrepreneurial infrastructure. All expenditures must demonstrate a clear benefit to the Pennsylvania economy and be aligned with the regional strategy of the participating Partner organization. To be eligible for investment funding, companies must demonstrate a significant presence in Pennsylvania, typically by maintaining facilities and staff in the state for at least five years following the completion of the funded project. If the developed product will be manufactured or produced, a significant portion of such activity must also take place within the state. All funded companies must also comply with the Commonwealth’s Contractor Responsibility Program and not be under suspension or debarment by any governmental entity. Universities may participate in projects but cannot claim indirect overhead costs from the grant. Applicants are selected through a competitive regional process conducted by each Partner’s board and must demonstrate technical merit, market potential, and alignment with regional goals. All proposals are subject to review and approval by the regional Board and must comply with BFTDA guidelines and contractual terms. Partners must provide a 1:1 match in private sector funds for certain categories of funding, though exceptions are permitted with proper justification. Matching funds may be in the form of cash, in-kind services, or equipment usage and can be applied retroactively up to 90 days prior to project start. The grant cycle follows the Pennsylvania fiscal year. Proposals are due by June 30 of each year. Final reports and impact data are due by February 15 of the following year, and an independent audit must be submitted within 30 days of the board’s approval. Partners are required to maintain records of both funded and declined projects, perform at least one site visit per active project annually, and uphold standards of financial and operational accountability as detailed in the program guidelines. For questions and official submissions, communications should be sent to jeleinbach@pa.gov. While the guidelines were issued in July 2023, the Challenge Grant program operates annually and may be updated or modified by the BFTDA Board. Partners and applicants should refer to the most current program guidelines when preparing proposals or managing awards.