Cabinet for Economic Development
Kentucky Awards Funding to Nine High-Tech Small Businesses
Nationally recognized program
encourages local business growth; attracts out-of-state companies to relocate
FRANKFORT, Ky. (Jan. 15, 2015) – Governor
Steve Beshear announced nine high-tech companies have been awarded $2.7 million
as part of a program to support and attract technology-based small businesses
are receiving funding through the state’s competitive Small Business Innovation
Research (SBIR) and Small Business Technology Transfer (STTR) Matching Funds
program. Kentucky’s program matches all or part of federal SBIR-STTR awards
received by Kentucky-based companies. It also provides a match to out-of-state
companies, should they be willing to relocate to the Commonwealth.
“These companies are developing some of the nation’s most
promising new technologies,” said Gov. Beshear. “From improving motors for
electric vehicles, to improving treatments for patients with neurodegenerative diseases, to developing technology
to make missiles more accurate, Kentucky is proud to support these innovators
and entrepreneurs creating high-tech businesses and high-paying jobs throughout
In all, 30 Kentucky companies received a combined $7.4
million in SBIR-STTR matching grants from the state last year.
Since its inception in 2006, Kentucky’s SBIR-STTR program
has awarded nearly $51 million to support more than 100 companies. These
businesses have leveraged an additional $89 million in federal funds. A total
of 36 companies have or are planning to relocate their businesses to Kentucky
for the program.
Eligible high-tech companies can apply for the federal
grants in two phases. Businesses in the concept or feasibility phase can apply
for Phase I funding while companies in full-scale research and development can
request Phase II assistance.
Kentucky’s competitive program will match federal Phase I
grants up to $150,000 and match Phase II funding up to $500,000 per year for
two years. Funds are awarded on a quarterly basis.
Kentucky is the only state that matches Phase II awards at
Kentucky’s program has grown substantially in the past eight
years. Currently, the state ranks 27th in the nation, based on the
amount of federal funding received compared to 42nd in 2006
(SBIRSource.com). Since the start of the Commonwealth’s program, Kentucky
businesses have achieved a higher success rate in receiving federal SBIR-STTR
grants compared to the national average.
“The fact that dozens of high-tech companies are bringing
their operations to Kentucky shows that our incentive programs are gaining
national attention,” said Cabinet for Economic Development Secretary Larry
Hayes. “It’s also further proof that Kentucky is doing a good job of creating
an innovative small business climate.”
The nine companies receiving awards in the fourth quarter of
Advanced Energy Materials LLC (Jefferson County) – Creating a
process to lower sulfur levels in transportation fuels, making them more
Advanced Genomic Technology LLC (Jefferson County)
– Developing a blood test for early prognosis of Alzheimer’s
disease. The blood test would project dementia risk without relying on family
Gen9 Inc. (TBD – relocating from New York) – Developing
a device to help the elderly living in a home-based care environment and to
assist their caregivers by facilitating remote monitoring of daily activities.
Innovative Diagnostics Inc. (Fayette County) – Creating a
new device that uses saliva to determine periodontal health.
MEMStim LLC (Jefferson County) – Developing a
process to create small electrode arrays for cochlear implants. The product
will assist in residual hearing prevention, as well as drug delivery for
inner ear health and cell regeneration.
Mercury Data Systems Inc. (Fayette County) – Developing a
new inertial measurement unit for missile systems to make them more accurate.
nGimat LLC (Fayette County) – Developing
insulation materials enabling electric vehicles and other motors and coils to
operate longer and more efficiently.
Pyrochem Catalyst Company (Jefferson County –
relocating from Pennsylvania) – Developing a flame spray technique,
which will improve the chemical reactions used to create fuel cells.
TwinStar TDS LLC (Fayette County) – Developed a
new porous needle for brain infusion catheters, which will allow improved
drug delivery for treatment of neurodegenerative and malignant diseases of
the central nervous system.
The Cabinet manages the Kentucky SBIR-STTR Matching Funds
program, which is administered under contract by the Kentucky Science and
Technology Corporation (KSTC). Applications for the program are accepted by
KSTC four times per year. A link to the online guidelines and application form
for the Kentucky program are posted at www.ThinkKentucky.com/dci/SBIR.
Information on Kentucky’s economic
development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can
also join the discussion on Facebook
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the Cabinet’s “This is My Kentucky” video on YouTube.