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 since the closing date of previous announced round or 12 months, whichever is less.
    
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.

Please review before applying:

Program Guidelines - updated 9/11/25

FAQ 

Eligibility Template

Application Template

*A single business may only submit one application per round. A business may not apply for a Phase I or Phase II award for which they have already received any IMG Program matching grant. *

Rounds for the Innovation Matching Grants Program will open at 9:00am on the 2nd Wednesday in October & April. Rounds will remain open for 1 week, closing the following Tuesday at 5:00pm. Applications are digital, and a link will be provided to the application when the round opens.

Round 4 is now closed. 

The Innovation Matching Grants Program portfolio includes all who received an award or commitment letter and were listed in our press release at the time of the round. Awards are conditioned on the successful SBIR/STTR federal award and negotiation and execution of a Grant Disbursement Agreement. 

Press Releases

9/17/25 - Empire State Development Announces More Than $3 Million Awarded to Support Small Businesses Through NYSTAR’s Innovation Matching Grants Program

11/15/24 - Empire State Development Announces More Than $4M Awarded To Small Businesses Through NYSTAR’s Innovation Matching Grants Program 

Reports

NYSTAR 2024 Annual Report

For more information, contact: [email protected]