What's happening
This bill creates a three-year matching grant program to support small New York businesses awarded federal innovation or technology transfer grants, prioritizing green and sustainable development.
Why it matters
Creates a structured, multi-year funding pipeline. The bill establishes a three-year, tiered grant program that supports small businesses at different stages of commercialization, potentially increasing their odds of moving from early research to viable, job-creating enterprises.
Addresses funding gaps not covered by federal grants. State funds can be used for critical commercialization activities (like business planning, patents, and marketing) that federal innovation grants typically do not cover, helping companies bridge the “valley of death” between research and market entry.
Incentivizes in-state business growth and retention. By requiring businesses to remain headquartered and operational in New York for at least five years post-commercialization (with clawback provisions), the program aims to ensure that public investment benefits the state’s economy and job market.
Prioritizes green and equitable innovation. The bill gives preference to businesses focused on green and sustainable development, encouraging innovation aligned with state climate goals and fostering a more socially equitable transition to clean energy industries.
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Who cares
Headline styles
Match Grants for Small Innovators
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to small business
- Print number 4507a
- Amend (t) and recommit to small business
- Referred to small business
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4507--A
2023-2024 Regular Sessions
IN ASSEMBLY
February 16, 2023
Introduced by M. of A. KELLES -- read once and referred to the Committee on Small Business -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the New York state urban development corporation act, in relation to establishing a matching grant program for certain small businesses receiving funding under the federal small business innovation research program or the small business technology transfer program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 52-a to read as follows:
§ 52-a. Small business innovation research and small business technology transfer matching grant program. 1. The corporation, in consultation with the department of economic development's division for small-business, shall establish a matching grant program to provide funds to small businesses who have been awarded phase one or phase two grants under the federal small business innovation research program or the small business technology transfer program within the last four years. Such grants shall be awarded based on a company's potential for commercialization and job growth. As used in this section, "small business" shall have the same meaning as provided for in section one hundred thirty-one of the economic development law.
2. The matching grant program established pursuant to this section shall be staged over a period of three years. The funding amounts for such grant program shall be as follows:
(a) For small businesses that have been awarded phase one funding under the federal small business innovation research program or the small business technology transfer program, the amount shall be one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03425-03-3
hundred thousand dollars in year one, two hundred thousand dollars in year two, and five hundred thousand dollars in year three.
(b) For small businesses that have been awarded phase two funding under the federal small business innovation research program or the small business technology transfer program, the amount shall be one hundred thousand dollars in year one, two hundred thousand dollars in year two, and five hundred thousand dollars in year three.
3. (a) In the first year of the program, twenty small businesses shall be awarded grants of one hundred thousand dollars.
(b) In the second year of the program, ten small businesses shall be chosen from the companies that were awarded a grant in the first year, to receive grants in the amount of two hundred thousand dollars.
(c) In the third year of the program, four small businesses shall be chosen from the companies that were awarded a grant in the second year, to receive grants or equity, depending on the situation, in the amount of five hundred thousand dollars.
4. (a) Such funds awarded pursuant to this section shall be used to expedite commercialization and generally used to cover expenses not allowed under the federal small business innovation research program or the small business technology transfer program, including but not limited to business planning, commercialization, patents and marketing studies in sales efforts.
(b) Companies applying to the federal programs named herein shall receive a commitment letter from the corporation that may be included in their applications to the small business innovation research program or the small business technology transfer program or to be used to secure grants from other funding sources. Such commitment letter shall demonstrate contingent state support, and therefore increasing their likelihood of receiving federal funding. State matching grants shall only be provided to small businesses that are selected for an award through the federal small business innovation research program or the small business technology transfer program.
5. Such funds shall be awarded on condition that the small business recipient remains headquartered and operates or manufactures in the state for at least five years following the successful commercialization of the business's product or products. Any small business that has received funding under this program that is not headquartered and operates or manufactures in the state for at least five years following the successful commercialization of the business's product or products shall return all grant awards to the state. If the small business ceases operations before five years after the commercialization of its product or products, such business shall be eligible for a waiver of this clawback provision, as determined by the corporation, in consultation with the department of economic development's division of small business.
6. The corporation, in consultation with the department of economic development's division for small business, shall establish the form and manner in which applications for grant awards shall be submitted and shall establish guidelines for the grant program. Preference for grant awards shall be for applicants that can demonstrate to the satisfaction of the corporation that: (a) green and sustainable development is a priority in their business planning, operations or manufacturing. For the purposes of this section, "green and sustainable development" shall mean a business model that promotes the use of products or product components, manufactures, develops technologies or processes that are primarily targeted at reducing greenhouse gas emissions or supporting the use of clean energy in a socially equitable manner;
(b) such grant awardees' business headquarters and operations or manufacturing shall be located in New York state; and
(c) grant awardees shall certify to the corporation that future research and development shall be performed principally in this state.
The corporation shall review each application for compliance with the eligibility criteria and other requirements set forth in the program guidelines established by the commissioner. The corporation may approve or reject each application or may return an application for modifications, if necessary.
7. The corporation, beginning on June first, two thousand twenty-four, and annually thereafter, provided program funds remain, shall submit a report to the governor, the temporary president of the senate, and the speaker of the assembly. Such annual report shall include, but need not be limited to: the number of applicants by stage; the number of applicants approved to receive grants; the total amount of grants awarded and the average amount of such grants awarded; and such other information as the corporation determines necessary and appropriate. Such report shall be included on the corporation's website and any other publicly accessible state databases that list economic development programs, as determined by the corporation.
§ 2. This act shall take effect one year after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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