The New Mexico Economic Development Department is accepting applications for its 2024 Science & Technology (S&T) Business Start-up grant to support small businesses engaged in research and development (R&D) with the potential for commercialization of their technology.
Donor Name: New Mexico Economic Development Department
State: New Mexico
County: All Counties
Type of Grant: Grant
Deadline: 09/04/2023
Size of the Grant: $10,000 – $25,000
Details:
Program Objectives
The funding provided through the NM S&T grants is intended to assist early-stage technology companies to commercialize their technologies and continue to do business in New Mexico. These awards will fund New Mexico-headquartered technology companies with the goal of market entry, customer acquisition, business expansion, and job creation. Every eligible NM S&T application will be evaluated based on these objectives.
- Recruitment, retention and expansion, or creation of jobs in economic-base businesses
- An economic-base business is one that manufactures a product in New Mexico (example: manufacture wire harnesses in New Mexico for sale in California). A business that provides a nonretail service with a minimum of 50% of its revenue coming from a customer base outside of New Mexico is also included (example: payroll company in New Mexico providing services to clients throughout the USA). Economic-base businesses bringing new money into the local economy from outside of the area – generally considered to be out of state.
- Develop the tax base
- More jobs in a community leads to more revenue for the community as employees spend money in local businesses. The businesses and the employees pay property and sales taxes. This will result in more money to enhance government-funded community services that contribute to the quality of life – everything from libraries to roads.
- Developing the tax base does not require increasing taxes. On the contrary, developing the tax base is about creating more assets on the tax rolls (e.g., new or improved business properties, more properties generating tax revenue) to spread the cost of operations across more entities.
- Encourage Business Development
- Most jobs and investment come from expanding an existing business, but every business starts small – sometimes as just one person with an idea. Business growth involves providing advice, support, and resources to enable new businesses to start up; small businesses to grow; medium businesses to expand; large businesses to diversify; and all businesses to succeed. Incubators, business accelerators, and shared workspaces help business get off the ground. Programs that provide network development, technology assistance, training and marketing are used to encourage business development.
Funding Information
High-growth New Mexico companies in the science and technology field may qualify for a grant of $10,000 – $25,000.
Uses of funds
Funds can be used for expenses such as intellectual property assessment, patent filing, outside lab testing and validation, regulatory assessment and certifications, meeting with customers, partners, investors, attend trade shows (no more than 10% of total awarded funds), market research and data acquisition.
Eligibility Criteria
Businesses that may apply to participate in the NM S&T Business Start-up Grant:
- Must be headquartered in New Mexico.
- Must have a NM CRS Tax ID, a physical NM address, EIN number, and a valid NAICS code corresponding to a science/technology business. (The business’s staff must be physical present in the state and occupy a physical space). Businesses with a virtual headquarters in New Mexico or a business with more than 40% of their staff outside the state will not be considered.
- Must be a for-profit technology business (a technology business creates a technology-based device, software, etc.) with a focus on aerospace, bioscience, cybersecurity, intelligent manufacturing, or sustainable and green energy.
- Technology-enabled companies will not be considered. (i.e. a company that uses technology to sell a service or product that is not a device/software.)
- Examples of technology-enabled companies (ineligible) include, but are not limited to the following:
- Business A is a small New Mexico business that has received technical assistance from a national laboratory to improve the process of compacting wood chips to build a dining table. Business A sells products like dining tables derived from wood using their improved process developed with assistance from the New Mexico Small Business Assistance Program.
- Business B is a small New Mexico business that consults with private sector technology companies and universities to connect STEM graduates with STEM careers.
- Business C is a small New Mexico business that is technically a home builder/construction company, but I build LEED-certified homes (Leadership in Energy and Environmental Design).
- Must certify they do not have overdue tax debt or are not a party to any claim or lawsuit.
- Must agree to all reporting and claw-back requirements.
Eligible companies must be working in a science and technology sector:
- Aerospace
- Biosciences
- Cybersecurity
- Intelligent Manufacturing
- Sustainable and Green Energy.
High-Growth-Potential
The following guidelines will be used to determine whether an applicant qualifies as high growth:
- Unique product or service
- Clear and compelling business proposition
- Scalable product and business model
- Capable team
- Exit potential, potential to create jobs in New Mexico, and/or private investment
- Economic benefit to the state will be greater than the grant award.
For more information, visit EDD.
