Kentucky is the only state in the nation that offers high-tech entrepreneurs the chance to essentially double their investment money with Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These programs match 100 percent investment that young companies have raised, and according to GLI, this unique program is in danger from budget cuts.
The Economic Development Cabinet has announced that due to state budget cuts, they will need to restrict the SBIR and STTR program matches from 100 percent to just 75 or 80 percent.
GLI is urging people to join them in encouraging lawmakers and cabinet officials to reconsider before making such drastic cuts to the two programs.
In an advocacy blog post, GLI reports: “In the last year alone, four out of the 13 companies that received these matching funds actually relocated their business to Kentucky to take advantage of this program. Any economic development professional will tell you that a few thousand dollars for a relocation is an incredible bargain.”
The kinds of companies that the programs grow and attract have a highly skilled, highly paid workforce that creates commercial products that produce long-term payoffs for our city and regional economy. They are research intensive and rely on cutting-edge technology
On Wednesday, officials will be sending House Speaker Greg Stumbo this letter outlining their objections. The letter concludes:
We, the undersigned businesses, encourage you, other members of the legislature, and the Economic Development Cabinet, to reconsider the cuts to these critical programs. While we all understand the need for Kentucky to be fiscally conscious, we must also consider the needs of our entrepreneurial leaders who call Kentucky home and are building our future. We did not create the current pension crisis but our tax dollars will pay to correct it all the same. Please do not punish us twice by weakening the SBIR and STTR match funds.
If you wish to be a signee Click here.