About this programme
The Innovate Alabama Supplemental Grant Program provides additional, non-dilutive funding for small businesses whose proven business models and technologies are helping accelerate innovation in the state. It is run by Innovate Alabama, the state's economic development and innovation agency.
The program is only open to businesses that have already won a federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) grant. Innovate Alabama's reasoning is that these businesses have already proven, through federal scientific review, that their technologies are viable, valuable, and scalable, so the state grant builds on that validation rather than re-evaluating it from scratch.
Because it is a grant, recipients do not give up equity in exchange for the funding. The program is meant to help move a business's idea from concept to commercialization.
How it works
The grant matches 50% of the recipient's existing federal SBIR/STTR award, up to a cap that depends on the phase of that federal award.
Companies with an active Phase I SBIR or STTR award can apply for up to $100,000 (50% of the federal award amount, capped at $100,000). Companies with an active Phase II SBIR or STTR award can apply for up to $250,000 (50% of the federal award amount, capped at $250,000).
The program has run in rounds rather than continuously; as of this writing, Innovate Alabama's site states applications are currently closed, with details on upcoming rounds to be announced.
Who can apply
You must hold an active Phase I or Phase II federal SBIR or STTR grant to apply. Businesses without a federal SBIR/STTR award are not eligible.
If you have not yet received federal SBIR/STTR funding, Innovate Alabama directs you to apply for the federal SBIR/STTR grant first (via sbir.gov) to become eligible for this state supplemental grant.
How to apply
- Confirm you hold an active Phase I or Phase II federal SBIR/STTR award; this is a prerequisite, not something you can substitute.
- Watch for Innovate Alabama to announce the next application round; applications are currently closed and the program is opened periodically.
- Review the program's informational webinar and presentation slides, available on the program page, to understand the application requirements before a round opens.
- Direct questions to grants@innovatealabama.org.
Frequently asked
Can I apply if I haven't received a federal SBIR or STTR award yet?
No. You are not eligible without an active Phase I or Phase II federal SBIR/STTR grant. Innovate Alabama suggests applying for the federal SBIR/STTR grant through sbir.gov first.
How much of my federal award will this grant match?
50% of your SBIR/STTR award amount, up to $100,000 if you hold a Phase I award or up to $250,000 if you hold a Phase II award.
Do I have to give up equity to get this grant?
No. It is non-dilutive funding, so recipients do not exchange shares of their company for the grant.
Is the program accepting applications right now?
As of the current program page, applications are closed. Innovate Alabama says to stay tuned for details on upcoming rounds.
What can the grant money be used for?
Recipients can use it for highly skilled new hires, business plan development, product testing, market research, intellectual property protection, and technical work.
More funding in Alabama
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Innovate Alabama Capital Access Fund
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A $15 million evergreen fund making $100,000-$250,000 direct investments in pre-seed to Series A Alabama startups with a 1:1 private match.
LendAL
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State-backed credit enhancement that lowers lender risk so more Alabama small businesses qualify for loans, applied for through partner lenders.
Alabama Launchpad
Economic Development Partnership of Alabama (EDPA), in partnership with Innovate Alabama · Alabama
Alabama's longest-running pitch competition, awarding up to $100,000 plus $2,500 to every finalist in three industry tracks.
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.