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SB 1918

DCEO-SBIR/STTR GRANTS

104th Regular Session Introduced by Adriane Johnson

Illinois expands its SBIR/STTR matching program, increasing Phase I grants to up to 75,000 and adding Phase II matching up to 250,000 to help local firms commercialize federally fu

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Bill Summary · SB 1918

Summary — SB 1918 (Senate Amendment 001)

Title: DCEO – SBIR/STTR Grants
Statute amended: 20 ILCS 605/605-1055 (Department of Commerce & Economic Opportunity Law)

Main purpose / intent

To expand and clarify Illinois’ matching-grant program that supports small businesses that win federal SBIR (Small Business Innovation Research) or STTR (Small Business Technology Transfer) awards. The bill increases the maximum Phase I matching amount and establishes a Phase II matching option to help Illinois small businesses advance federally funded R&D toward commercialization and job creation.

Key provisions

  • Administrator: Department of Commerce and Economic Opportunity (DCEO).
  • Eligible program: Illinois SBIR/STTR Matching Funds Program (20 ILCS 605/605-1055).
  • Eligibility requirements (selection):
    • For‑profit business with principal place of business in Illinois.
    • Must have received an SBIR/STTR Phase I award from a participating federal agency in response to a specific federal solicitation.
    • Must satisfy all federal SBIR/STTR requirements.
    • Must not receive duplicate concurrent funding for the same purpose.
    • Must certify that at least 51% of the Phase II research will be conducted in Illinois and that the business will remain Illinois‑based for the duration of Phase II.
    • Must demonstrate capability to conduct the Phase II research in the federal proposal.
  • Phase I matching grants:
    • Maximum match increased from $50,000 to $75,000.
    • Payment schedule: 75% upon receipt of the federal Phase I award and DCEO application; 25% upon submission of a Phase II application and acceptance of the Phase I report by the federal agency.
    • Limits: one Phase I grant per business per year; one grant per federal proposal; lifetime maximum of 5 Phase I awards per business.
  • Phase II matching grants (new/explicit in bill):
    • DCEO may (subject to appropriation) match Phase II awards up to $250,000.
    • Payment schedule: 50% upon receipt of the federal Phase II award and application; 50% upon submission of the Phase II final report to the federal agency.
    • Limits: one Phase II grant per business per year; one grant per federal proposal; lifetime maximum of 2 Phase II awards per business.
  • Application: under oath on DCEO form including business identity, management, acknowledgment of federal filings (Phase I report and Phase II proposal), and other evaluation information.

Who is affected

  • Primary: Illinois-based, for‑profit small businesses that receive federal SBIR/STTR Phase I or Phase II awards.
  • Secondary: DCEO (administration and budget), state budget/appropriations (Phase II grants are subject to appropriation).

Procedural / timeline notes

  • Introduced by Sen. Adriane Johnson (first reading 2/6/2025).
  • Senate Committee Amendment No. 1 filed 3/7/2025; amendment re-referred to Assignments and assigned to Appropriations.
  • Read first time and referred to committees in March 2025.
  • Companion bill: HB 4870.

Potential impact

  • Increases state assistance for early-stage federal awardees (Phase I) and adds substantial support for Phase II, potentially improving Illinois firms’ ability to commercialize federally funded R&D and retain jobs in state.
  • Fiscal impact depends on appropriations and program uptake; lifetime and per‑year caps limit exposure.

Compiled from official sources — confirm details with the bill’s official record.

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