November 6, 2024
Funding is essential for entrepreneurs, particularly those conducting research and development for innovative deep-tech products. Often, these companies have extended timelines and require significant capital for commercialization. Fortunately for local startups, the Utah Innovation Center provides a funding pathway through ‘America’s Seed Fund.’
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide approximately $4 billion annually through federal agencies to help small businesses get their innovative products to market.
Applying for the two programs is no easy task, which is why the Utah Innovation Center helps small businesses navigate the complex application process. The center is highly acclaimed, having won the prestigious 2016 Tibbetts Award and recently received the SBA FAST grant to help underserved communities.
“About 15 to 17% of applicants get funded,” said Linda Cabrales, director of the Utah Innovation Center, housed under the Governor’s Office of Economic Opportunity. “Sometimes they have to try again, for a second or third time, or even more. It’s not for the faint of heart; they need thick skin and be willing to put in the effort and persevere.”
Once a startup is awarded the grant, it moves through the SBIR/STTR pipeline, a three-phase process that can take up to 36 weeks to complete.
Phase I is proof of concept, awarding $75,000-$275,000 to finalize preliminary work. Once the idea has been proven, the startup can apply for Phase II, where $750,000 to $1.8 million is awarded to continue developing a prototype or conducting additional research.
The final phase refers to funding outside the SBIR/STTR programs. This can include commercializing or selling the product within the multi-billion dollar federal contracting marketplace, including the 11 agencies participating in the SBIR/STTR programs.
“The core of what we do is help these small businesses identify different funding opportunities,” said Cabrales. “Once they have a technology, a team, an idea of the research, and what it would look like once commercialized, we’ll work our way through the funding channels to see where their efforts are best spent.”
Through the Utah Technology Innovation Fund (UTIF), the center also helps first-time SBIR/STTR Phase I applicants receive a $3,000-$5,000 microgrant. Phase I winners can also apply for $50,000-$60,000 nonrecourse loans.
Learn more about the Utah Innovation Center and the SBIR/STTR grant programs by attending a monthly SBIR 101 workshop.
The information in this article is current as of the publishing date and is intended for informational purposes only. This article does not, and is not intended to, constitute legal, tax, or business advice. Any resources and organizations mentioned, unless an entity of or a partner of the state of Utah, are not formally endorsed by the Startup State Initiative or state of Utah.