Empire State Development’s Division of Science, Technology, and Innovation (“NYSTAR”), Innovation Matching Grants (IMG) Program aims to grow small businesses and support the development of new technologies in New York State by providing matching funds for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants.

The New York State Innovation Matching Grants Program will match:

• The award for Phase I applicants, not to exceed $100,000
• The award for Phase II applicants, not to exceed $200,000
• and provide technical assistance resources for Phase II and Phase III awards.

In no event, shall the funding provided from the IMG Program exceed 50% of the federal award. 

Eligible applicants must:

1. Be a small business as defined by New York State Economic Development Law Section 131. This includes businesses that are:
   • resident in New York State;
   • independently owned and operated, not dominant in their field; and
   • employing 100 or less persons.
      
2. Actively in the process of applying for a Phase I or Phase II SBIR or STTR award from a participating federal agency or have received an SBIR/STTR award within 12 months of the announcement of the specified round.
    
3. Currently operate their business in New York.
   • Note: IMG Program grant recipients must remain headquartered and operate or manufacture in New York State for at least two years following the successful commercialization of the IMG Program grant recipient’s product or products. Any IMG Program grant recipient that does not do so shall return all IMG Program grant funds to NYSTAR. If the IMG Program grant recipient ceases operations before five years, such IMG Program grant recipient shall be eligible for a waiver of this claw back provision, as determined by NYSTAR, in consultation with Empire State Development’s division for small business.

IMG Program grant funds shall be used to expedite commercialization and generally used to cover expenses not allowed under SBIR or STTR, including but not limited to business planning, commercialization, patents, and marketing studies in sales efforts.

Thank you for your interest in the Innovation Matching Grants Program!

Due to an extremely high volume of applications, we have met our allocation limit for this round. We will process all applications that have been submitted and will be opening our second round soon.

Please check back for more information. If you would like to be notified when the next round opens, please email [email protected] and in the subject line put NOTIFY.