(RALEIGH) Today Governor Stein announced that the North Carolina Department of Commerce, on behalf of the North Carolina Board of Science, Technology, & Innovation, has awarded 50 grants to 46 North Carolina-based small businesses to develop and commercialize innovative new technologies. These technologies span a variety of industries including pharmaceuticals, health care, defense, advanced materials, seafood production, and space. In State fiscal year 2026, which ended June 30, the awards totaled over $2.4 million and were spread throughout 13 North Carolina counties.
“North Carolina’s innovators are at the forefront of developing the technologies that will shape our future economy,” said Governor Josh Stein. “These grants help entrepreneurs turn ideas into new products, new companies, and new jobs — and the additional support for businesses in western North Carolina will help strengthen its economy as communities continue to recover from Hurricane Helene.”
This year, small businesses located in counties impacted by Hurricane Helene were eligible for an additional $25,000 through the Matching Funds Program. This additional funding not only helps these small businesses advance their technologies, but it increases cash flow and supports economic growth in the western region of the state after facing economic setbacks from Helene. Six companies located within Hurricane Helene-impacted counties received $313,888.52 from the One North Carolina Small Business Program.
“Recognizing that innovation-based companies help make our economy more resilient, the Board enacted specific Program criteria this year to help companies in Helene-impacted counties have additional resources to develop and commercialize innovative technologies,” said Greg Copenhaver, Acting Chair of the Board of Science, Technology & Innovation. “We hope the additional resources help western North Carolina diversify its economy into sectors such as aerospace, medical devices, and medical therapeutics. Continued and increased funding for the Program will further increase and expand those benefits.”
The One North Carolina Small Business Program awards state-funded grants to small businesses that apply for and win awards from two highly competitive federal initiatives: the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The federal SBIR and STTR programs, collectively referred to as America’s Seed Fund™, award over $4 billion annually through 11 federal agencies to support technology development by small businesses. The ultimate goal of the programs is commercialization and economic sustainability for the selected companies.
Since 2006, the One North Carolina Small Business Program has leveraged federal awards to fill a key gap in North Carolina’s innovation ecosystem and help small businesses navigate early stages of company growth. By providing this additional capital, the One North Carolina Small Business Program improves the trajectory of small businesses and the likelihood of commercializing their innovative solutions.
The One North Carolina Small Business Program awarded two types of grants during the fiscal year 2026 funding round: Incentive grants and Matching grants. Incentive grants support qualified North Carolina businesses as they prepare and submit SBIR or STTR proposals to federal agencies, helping to offset some of the costs of developing these complex proposals. This program aims to incentivize broader technology and geographic diversity among North Carolina’s SBIR and STTR applicants. In North Carolina fiscal year 2026, 18 small businesses were awarded Incentive grants totaling $116,553.37.
If companies are successful in winning a Phase I SBIR or STTR federal award, the Matching Program supplements those federal funds. This supplemental funding helps companies navigate the “Valley of Death,” the time between the launch of a business idea and when that idea generates sustainable revenue. Additionally, the Matching Program helps attract small businesses to North Carolina, create jobs, and draw more investment to the state. This year, 32 North Carolina-based small businesses were awarded $2,368,506.63 in Matching grants after receiving $9.8 million in federal funds.
“North Carolina’s economic success, from having been one of the poorest states in the USA to being the best state for business, is driven by its capacity to innovate, adapt, and lead in emerging industries,” said North Carolina Secretary of Commerce Lee Lilley. “The One North Carolina Small Business Program helps ensure that new ideas, technologies, and businesses can scale within North Carolina, sustaining our state’s momentum as global competition intensifies and technological change accelerates.”
Grant funding from the One North Carolina Small Business program has been used by small businesses to support jobs, purchase specialized equipment, protect intellectual property, and support facility infrastructure. Since 2006, the awards presented by the One North Carolina Small Business program have totaled nearly $45 million to 531 businesses across the state. With the support of this early-stage capital, the small, innovative businesses have gone on to maintain more than 2,000 jobs and receive more than $8.6 billion in follow-on funding from other sources to support the innovative economy within North Carolina. Combined, the businesses employ more than 4,000 people, pay $600 million in total wages, and pay per-employee average wages that are twice the state average.
The FY 2027 solicitations for the Incentive and Matching Programs will be available on the One North Carolina Small Business Program website mid-September.