The S.C. Department of Commerce Office of Innovation, in partnership with the South Carolina Jobs-Economic Development Authority (JEDA) and 3Phase, today announced the launch of the state’s first Phase IIB Match Fund for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants.
Created by S.C. Commerce in 2018, 3Phase assists South Carolina small businesses with acquiring SBIR and STTR federal grants – a common first funding source for startups and small businesses to commercialize new, innovative products. The SBIR and STTR grant program consists of two funding phases, Phase I (concept development) and Phase II (prototype development), before Phase III (commercialization). A Phase II project is eligible to receive additional funding to further acceleration.
The creation of the Phase IIB Matching Fund reflects the rising success of South Carolina companies applying for these grants. In 2020, South Carolina achieved a 30% success rate in SBIR Phase I applications – a 13.3-point increase from 2019. 3Phase-supported businesses have received over $11 million in awards, with one application even earning a rare perfect score.
“The South Carolina SBIR/STTR Phase IIB Matching Fund represents the next milestone in S.C. Commerce’s ongoing mission to promote the state’s innovation economy,” said Secretary of Commerce Harry M. Lightsey III. “The creation of this matching fund provides another resource for companies and another opportunity to recruit new business and create high-paying jobs within our borders.”
Several federal agencies administer supplemental funding opportunities for small businesses that have received a Phase II award. These supplemental funds provide additional research and development resources to further accelerate commercialization of the Phase II awarded project. To qualify, small businesses must obtain private investment or capital.
“Federal grant funding, partnered with matching private equity capital provides necessary investment to assist these vetted private, early stage start-up companies in South Carolina,” said Harry Huntley, JEDA’s executive director. “This program will help spur additional private equity and capital funding for South Carolina’s new and innovative companies.”
JEDA will match up to $100,000 in SBIR/STTR Phase II awards received by high-tech small businesses located in South Carolina and/or those willing to relocate to become S.C.-based businesses. The new fund will be managed by 3Phase, which will make recommendations to JEDA for equity investment.
To learn more, contact 3Phase at [email protected] or attend one of the upcoming virtual information sessions on September 16 or 20.
About S.C. Department of Commerce
As South Carolina’s leading economic development agency, the Department of Commerce works to recruit new businesses and help existing business grow. S.C. Commerce has recruited world-class companies to South Carolina such as BMW, Boeing, Continental, Giti Tire, LPL Financial Holdings, Mercedes-Benz Vans, Samsung, Toray and Volvo Cars and also supports startups, small and existing business, innovation and rural development initiatives. S.C. Commerce partners with the S.C. Technical College System via readySC to support workforce training and recruiting, and with the S.C. Department of Employment and Workforce, which provides worker training and employment opportunities within the state. With a strong international footprint, the Palmetto State has consistently been among the top in the nation for attracting jobs through foreign direct investment on a per capita basis – recognized by multiple economic development publications for its pro-business climate. For more information, visit www.SCcommerce.com.