Pete HahnloserThe U.S. Economic Development Administration (EDA) is now accepting applications for its fiscal year (FY) 2024 Build to Scale (B2S) program, which will provide up to $50 million in matching grants to organizations focused on helping entrepreneurs develop and scale technology-driven businesses. The program also supports employees through the creation of new, high-quality jobs tied to innovative technology products and services.
New tech discoveries thrive in environments that offer resources, support and institutions to help businesses overcome challenges between an idea and a successful product. Technology-based economic development makes investments that help entrepreneurs grow their technology-driven businesses, which in turn create good jobs, boost economic opportunities and build future industries.
The full Notice of Funding Opportunity (NOFO) was published Monday on grants.gov. Applications are due by 4:59 p.m. ET on Oct. 28 and will only be accepted electronically through EDGE at sfgrants.eda.gov. The application process can take time, involving coordination with several organizations, such as SAM.gov, and requiring confirmation at various stages. Note that organizations applying for the first time may need three to four weeks to complete these steps due to system processing times.
Since the B2S program began in FY 2014, it has provided over $270 million in grants through 437 awards. FY 2023 marked the largest award cycle to date, distributing $53 million in federal grants across 60 awards.
California has received 27 B2S awards since 2014, the most of any state or territory. New York follows with 22 awards, while Ohio and Texas each have 20. Seven states — California, Texas, Ohio, New York, Missouri, Pennsylvania, and Louisiana — have received more than $10 million in total awards. Another 12 states and territories have secured over $5 million, and 26 have received over $1 million. Only seven states have been awarded less than $1 million in total B2S funding.
The EDA encourages applications for B2S funding from organizations that assist innovative technology-focused and high-growth companies, including startups, in developing, testing and implementing emerging technologies. The program aims to:
- build public and private capacity for entrepreneurs and innovators to invent, improve and bring to market new products and services in critical, emerging and transformative sectors and industries
- accelerate the growth of regional economies that are focused on industries of the future
- empower communities to provide proof-of-concept and commercialization assistance to technology innovators and entrepreneurs
- equitably and inclusively increase access to capital for technology-enabled entrepreneurs
The EDA plans to issue 40 to 50 awards, with amounts ranging from a few hundred thousand dollars to as much as $5 million.
Eligible applicants include states, American Indian Tribes, cities, and other political subdivisions, as well as entities supported by a state or political subdivision, such as:
- Nonprofit organizations
- Higher education institutions
- Public-private partnerships
- Science or research parks
- Federal laboratories
- Venture development organizations
- Economic development organizations or similar groups focused on advancing science, technology, innovation, or entrepreneurship
- Consortia of the above entities
Additionally, the EDA has introduced Tech Hub and National Science Foundation Engines benefits, offering extra consideration to B2S proposals that align with the strategy of a Tech Hub or Engine.
In FY24, the B2S program won’t have separate Venture and Capital challenges as in prior years, but the main goals remain the same: to help tech businesses grow and make sure more people have access to proven ways to support entrepreneurs, and to improve access to money in communities where there isn’t enough funding by supporting early-stage investment funds, networks and training programs that focus on both traditional and mixed equity financing.
Photo by ThisisEngineering on Unsplash
