Small Businesses in Alabama

The Innovate Alabama Supplemental Grant Program is designed to award funds to for-profit, Alabama-based companies that have received Federal Small Business Innovation Research Program (SBIR) or Federal Small Business Technology Transfer Program (STTR) Phase I or Phase II awards. The program's mission aligns with fostering technological innovation, commercialization, and overall economic development within Alabama by supporting small businesses engaged in research and technology development. This initiative aims to bridge critical funding gaps, encourage the growth of high-quality companies, and create high-wage jobs across the state. The target beneficiaries are Alabama-based for-profit companies that have secured federal SBIR/STTR Phase I or Phase II awards. The primary impact goals include increasing the number and types of federal SBIR/STTR applications from Alabama, helping companies bridge the funding gap between Phase I and Phase II payments, and promoting the establishment and growth of businesses committed to Alabama's economic development, entrepreneurship, and innovation. The program prioritizes several key areas. It focuses on increasing commercial success for Alabama SBIR/STTR projects and establishing high-wage jobs in both moderately and highly skilled occupations. Funding is structured with caps: for Phase I awards, Innovate Alabama may grant up to 50% of the federal award or $100,000, whichever is less. For Phase II awards, the supplemental grant can be up to 50% of the federal award or $250,000, whichever is less. Expected outcomes and measurable results include a higher volume of SBIR/STTR applications from Alabama, a stronger pipeline of innovative companies transitioning from Phase I to Phase II, and a measurable increase in commercialized technologies and job creation within the state. The grant funds can be used for highly skilled new hires, business plan development, product testing, market research, intellectual property protection, and technical work, all contributing to the growth and sustainability of these businesses. Eligibility requirements dictate that applicants must meet all federal SBIR/STTR program requirements at the time of application. Additionally, within 12 months of receiving the grant, the applicant must have its primary place of business in Alabama, the majority of its top executives must reside in Alabama, and at least a majority of its employees must live in Alabama. Participation in the E-Verify program is also mandatory. The program is open to applicants whose federal Phase I or Phase II funding was active on or after July 1, 2023. This framework reflects Innovate Alabama's strategic priority of nurturing a robust innovation ecosystem and supporting a theory of change where targeted supplemental funding accelerates the growth and commercialization potential of promising Alabama-based businesses, leading to broader economic benefits.