Small businesses in Pennsylvania may soon get a funding boost under bipartisan legislation advanced by a two local state senators.
With Bucks County Republican Sen. Frank Farry holding the gavel at its inaugural voting meeting, the new Senate Institutional Sustainability and Innovation Committee voted in favor of Senate Bill 811 Tuesday.
The bill, co-sponsored by Farry and Sen. Tracy Pennycuick (R-Montgomery), creates two state programs that provide matching grants for businesses receiving federal funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
Philadelphia Democrat Sen. Art Haywood is also a co-sponsor of the bipartisan bill.
If passed, eligible Pennsylvania businesses that receive awards from Phase I of SBIR and STTR could also get a $50,000 grant from the Pennsylvania Small Business Innovation Research and Small Business Technology Transfer Matching Funds Program. Businesses would then be encouraged to apply for Phase II awards from the federal government.
“By supporting innovation and ensuring the integrity of our public infrastructure, we’re laying the foundation for a stronger, more competitive Pennsylvania,” said Farry.
The grants are meant for companies involved in early-stage technology development and commercialization efforts. Thirty-one other states already have similar federal fund-matching programs.
In a co-sponsorship memo released last month, Farry said the legislation is based on the federal programs, and the goals are the same: Help fund small businesses conducting research and development that has potential for commercialization and, eventually, job creation and revenue generation.
“We hope by providing matching grants for these loans we can encourage more small businesses to start, grow, and stay in Pennsylvania in an ever-growing industry,” states the memo.
SB 811 restricts grants to businesses with at least one principal place of business in the commonwealth.
Other requirements include making sure the company does not receive concurrent funding from the state government that’s similar to the proposed program. At least 51 percent of research in Phase II has to be conducted in Pennsylvania and the company has to remain located in the commonwealth.
The legislation could especially benefit Delaware Valley businesses.
Last year, more than 220 Pennsylvania businesses received SBIR/STTR awards totaling around $168 million. That includes 20 Bucks County businesses that received $12.1 million.
Farry noted Bucks County is “very well known” for its life sciences incubator program. “We hope by providing matching grants for these loans we can encourage more small businesses in their infancy stage to grow, and stay in Pennsylvania in an ever-growing industry,” he said.
