One North Carolina Small Business Program

About this programme

The One North Carolina Small Business Program is a state grant program that helps North Carolina small businesses compete for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards. It is authorized under N.C. Gen. Stat. §§ 143B-437.80–82 and administered by the North Carolina Board of Science, Technology & Innovation (the Board), through the Office of Science, Technology & Innovation (OSTI) at the N.C. Department of Commerce.

It is really two linked programs. The SBIR/STTR Phase I Incentive Funds Program reimburses a portion of the cost a company incurs preparing and submitting a Phase I proposal to a federal SBIR/STTR agency — before any federal money has been won. The SBIR/STTR Phase I Matching Funds Program pays matching funds to a company only after it has actually won a federal Phase I award, to help bridge the gap between the Phase I payment and a possible Phase II award.

The program has run since 2006. Per OSTI's own program fact sheet (May 2026), it has funded more than 500 small businesses in 39 North Carolina counties, helped create and maintain over 1,500 jobs, and the state's approximately $36.1 million in Small Business Fund grants has been associated with more than $8 billion in follow-on funding (venture capital, private equity, federal grants and other sources) — the fact sheet frames this as a 250x return on the state's investment.

Both programs exist because federal SBIR/STTR competitions are rigorous and merit-based, and Phase I federal awards ($50,000–$250,000 typically) often aren't large enough on their own to get a small business through to a competitive Phase II proposal ($500,000–$1.5M+ typically). The state funding is designed to close that specific gap, not to replace the federal award.

How it works

Incentive Program: reimburses a percentage of eligible Phase I proposal-preparation costs (consulting fees, salaries of staff who worked on the proposal, supplies, database search fees, dedicated lab/equipment rental directly tied to the proposal, certain patent-related USPTO fees, etc.). The reimbursement rate is 75% of eligible costs for businesses in a Development Tier 1 or 2 county, or 50% for a Tier 3 county, up to a $12,000 maximum award. A single resubmission of a proposal that already received an Incentive award can get a further award of up to 50% of the statutory maximum ($6,000), limited to additional data-collection and consulting costs.

Matching Program: pays a business that has already won a federal SBIR/STTR Phase I award an amount equal to 50% of that federal award, capped at $75,000. Businesses located in counties the Board has identified as significantly impacted by Hurricane Helene are eligible for an additional $25,000 on top of that cap (per the FY2025-2026 solicitation).

Matching awards are disbursed in two stages: Stage 1 releases 75% of the total Match award once proof of the Phase I award is submitted; Stage 2 releases the remaining 25% only after the company is specifically invited to apply for it — which happens once its Phase I federal report has been accepted and it has submitted a Phase II proposal to the same federal agency. Unsolicited Stage 2 applications are not accepted.

Both programs run on an annual Solicitation Period (recent cycles have run July 1 – June 30) and award funds on a rolling, first-come-first-served basis until the solicitation's allocated funding is exhausted or the period closes — whichever comes first. A new solicitation, with its own funding pool, deadline and any updated terms, is issued each cycle; the current cycle's exact dates and caps should always be confirmed on the official page before applying, since they can change year to year (e.g. the Helene-impacted-county bonus was specific to the FY2025-2026 cycle).

Every applicant using either program is limited on lifetime and per-solicitation awards: an Incentive applicant may receive no more than one Incentive award per solicitation period and no more than ten over its lifetime; a Match applicant may receive no more than one Match award per solicitation period, and Tier 3 (lower-distress) county businesses are capped at no more than three Match awards total unless they're in a Helene-impacted county.

Who can apply

The applicant must be a for-profit small business with its principal place of business in North Carolina, and must conduct at least 51% of the activity described in its federal Phase I proposal in North Carolina (and maintain significant NC operations for the life of the project, if federally funded).

For the Incentive Program, the applicant must have received official notification that a federal SBIR/STTR agency received its Phase I proposal within the current solicitation period. Direct-to-Phase-II proposals are not eligible for Incentive funding.

For the Matching Program, the applicant must have already received official notification of a federal SBIR or STTR Phase I award during the solicitation period, and must meet either of two county-tier conditions: be located in a Development Tier 1 or 2 county, or be located in a Tier 3 county and not have already received more than three prior Match Program awards (this county-tier restriction does not apply to Helene-impacted-area applicants). Direct-to-Phase-II and Phase II federal awards are not eligible for Match funding.

For STTR awards under either program, only the fraction of the federal award or proposal cost directly attributable to the small business (not the partnering research institution) is eligible.

An applicant cannot have received other concurrent funding support that duplicates the purpose of the award, must have no overdue tax debts, must not be on the state's Suspension of Funding List, and must be current on reporting for any prior One NC award before a new application will be considered.

How to apply

Confirm your county's current Development Tier designation (Tier 1/2/3) on the NC Department of Commerce's county tier map — designations update every November and take effect the following January, and the tier directly sets the Incentive reimbursement rate and Matching eligibility.
Register with the NC Secretary of State (if not already) and obtain a Certificate of Existence / Certificate of Authorization (also called a Certificate of Good Standing) dated no more than 90 days before your application.
Submit your application electronically through CyberGrants, the Board's grant management system, linked from the official One NC Small Business Program page — there is no paper application path except by approved hardship waiver.
For an Incentive application: submit the completed Grant Application and Agreement (generated in CyberGrants and sworn/notarized by an authorized official), the relevant pages of the federal SBIR/STTR Phase I solicitation, a full copy of the federal Phase I/Fast Track proposal, evidence the federal agency received the proposal, a Supplier Electronic Payment Request Form with bank verification, and a Certified Expense Table with receipts for every claimed cost.
For a Matching Stage 1 application: submit the notarized Application Certification and Location Certification, your Articles of Incorporation/by-laws or partnership agreement, the Certificate of Existence, the relevant federal solicitation pages, your full federal Phase I proposal, and an Official Notification of Award (executed federal contract or an official notice from the funding agency's finance/contracting unit — no other form of notice is accepted).
For a Matching Stage 2 application: apply only after OSTI invites you to do so (following your Interim Status Report and Phase I federal report acceptance), supplying evidence of the accepted Phase I final report, proof of final Phase I payment (or a certified letter confirming eligibility for it), proof your federal Phase II proposal was received by the agency, and a full copy of that Phase II proposal.
Once approved, execute the state grant agreement, submit the additional compliance documents requested (conflict-of-interest policy, board list, no-overdue-tax-debt statement, NC Substitute W9, electronic payment form), and the award is disbursed electronically to the bank account on file (a first-time state payment may arrive as a mailed check instead).

Documents you’ll typically need

Grant Application and Agreement (Incentive) or Application Certification + Location Certification (Match) — generated and notarized in CyberGrants
Certificate of Existence / Certificate of Authorization from the NC Secretary of State, dated within 90 days of application
Relevant pages of the federal SBIR/STTR Phase I solicitation (topic description, closing date, topic reference number — a link is not accepted)
Full copy of the federal Phase I/Fast Track proposal (SF424 if applicable)
Evidence of federal agency receipt of the Phase I proposal (Incentive) or an Official Notification of Award from the federal agency (Match Stage 1)
Supplier/Vendor Electronic Payment Request Form with bank account verification
Certified Expense Table with itemized receipts (Incentive) meeting the required invoice details (vendor, date, invoice #, amount, reference to the SBIR/STTR proposal)
Articles of Incorporation/by-laws, trust indenture or partnership agreement (Match)
Conflict-of-interest policy, board/trustee list, and a sworn no-overdue-tax-debt statement (required before either award type disburses)
For Match Stage 2: accepted federal Phase I final report, proof of final Phase I payment, proof of federal Phase II proposal receipt, and the full Phase II proposal

Frequently asked

What's the difference between the Incentive Program and the Matching Program?

The Incentive Program reimburses part of the cost of preparing and submitting a federal SBIR/STTR Phase I proposal — you don't need to have won anything yet. The Matching Program pays you only after you've actually won a federal Phase I award, as a percentage match of that award. A company can potentially use both across the life of a project, but they are separate applications with separate eligibility rules.

How much money can my business actually get?

Incentive awards reimburse 75% of eligible proposal-prep costs for Tier 1/2 county businesses or 50% for Tier 3, up to a $12,000 cap. Matching awards pay 50% of your federal SBIR/STTR Phase I award, capped at $75,000 (with an additional $25,000 available in the FY2025-2026 cycle for Hurricane Helene-impacted counties). Always confirm the current cycle's caps on the official page, since amounts have changed between solicitations.

Does my county matter for eligibility?

Yes. North Carolina's Development Tier designation (1, 2 or 3) for your county sets your Incentive reimbursement percentage and, for the Matching Program, whether you're automatically eligible (Tier 1/2) or capped at a lifetime maximum of three Match awards (Tier 3, unless in a Helene-impacted county). Tiers update every November for the following January, so verify your county's current tier before applying.

How are Matching Program funds actually paid out?

In two stages. Stage 1 pays 75% of your total Match award once you prove you received the federal Phase I award. Stage 2 pays the remaining 25%, but only after OSTI specifically invites you to apply for it — which happens after your federal Phase I report is accepted and you've submitted a Phase II proposal to the same federal agency. You cannot apply for Stage 2 unsolicited.

What can Incentive funds be used for?

Reimbursable costs include proposal-preparation consulting fees, salaries directly tied to preparing the proposal, typing/word-processing services, project-related supplies and postage, literature/database search fees, space or equipment rental specifically for proposal preparation, and certain USPTO utility-patent fees tied to the proposal. Travel, equipment purchases over $300, facility improvements, legal fees, fringe benefits and indirect costs are explicitly not reimbursable.

How many times can my business receive an award?

Per solicitation period, an applicant can receive at most one Incentive award and one Match award. Over its lifetime, a business is capped at ten Incentive awards. Tier 3 businesses are capped at three lifetime Match awards (this cap does not apply to Helene-impacted-area applicants). A grant to a business partnered with a NC public university may not count toward these caps, subject to budget constraints.

How does the application actually get submitted?

Everything is filed electronically through CyberGrants, the Board's grant management system, linked from the official One NC Small Business Program page. Applications are reviewed and approved on a rolling, first-come-first-served basis until the solicitation period's funds are exhausted or it closes, whichever happens first — so completeness and timing both matter. A hardship waiver from electronic filing can be requested in writing, but is granted case by case.

Do awardees have ongoing reporting obligations?

Yes. Incentive award recipients file a Final Report within 30 days of their federal Phase I outcome. Match award recipients file an Interim Status Report every six months until they hear on Phase II, plus a Final Report within 30 days of that Phase II outcome. Any recipient receiving $25,000–$500,000 in state funds in a fiscal year must also file the standard State Grant Compliance Report package. Missing reporting deadlines can place a business on the state's Suspension of Funding List, which blocks future awards.

Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.