Innovation Grant Q and A

1. Question: What is the maximum grant amount for the incubator and accelerator grants?

Answer: The maximum grant amount is $100,000 per organization. There is $500,000 available in total for grants with no stated minimum award.

2. Question: My organization is not based in the city. Can we apply for the incubator and accelerator grants?

Answer: Yes, but programming must be held in the geographical boundaries of the city of Sacramento so that the residents or resident businesses of Sacramento may access and use the programming, with some allowances for remote meetings and training. Proposers should outline plans for in-person and remote programming in their applications.

3. Question: Can entrepreneurs and businesses participating in my program be from outside of the city?

Answer: Yes, but 90% of participants must either reside or have a business located in the city of Sacramento.

4. Question: The requirement of 90% of entrepreneurs and businesses either residing or having a business in the city limits may be difficult for proposers to meet. Has the city considered this and does the city have recommended solutions?

Answer: The City of Sacramento is focused on city grant funding directly benefiting city residents as businesses to the maximum extent possible.

The city also understands that a rich regional entrepreneurial ecosystem has positive economic development impacts within the city because it encourages talent attraction, business attraction, knowledge spillover, the growth of networks outside the city, regional collaboration, increased economic activity, and increased access to capital spurred by the actual and perceived improvement of the entrepreneurship ecosystem.

An option for applicants is to apply for funding for the portions of the proposed program that benefit participants that meet the requirements. For example, if a program has 10 participants and five meet the city participant requirements, 60% of program costs could be prorated and applied for, based on meeting 50% of the requirements and the 10% allowance.

The city will prefer program applications that commit to funding 90% or more participants that meet the city requirements by using the scoring rubric.

5. Question: Does every cost for the program need to be prorated if some participants are from outside the city?

Answer: Yes, all costs should be prorated to ensure that funds are primarily benefiting those tied directly to the city.

6. Question: If 20% of participants are from outside the city, how should costs be prorated?

Answer: You can take advantage of the extra 10% allowance for participants from outside the city, so the prorating would be 90-10.

7. Question: Are previous grant recipients eligible for this program?

Answer: Yes, previous grant recipients are eligible to apply again.

8. Question: Does my project qualify?

Answer: It depends. Applicants should read through the guidelines and consider the goals and objectives outlined to determine if their specific program qualifies.

9. Question: Do all metrics listed in the grant guidelines need to be provided?

Answer: No, not all metrics are required, but proposers should list insightful and relevant metrics that will help measure the success of their proposed program. The City may include additional metrics, such as the metrics listed in the guidelines to measure success beyond just enrollment and graduation rates.

10. Question: Related to the proposed metrics in the grant guidelines, what if a participant company in an awarded grant program raised no funding while part of an incubator or accelerator program?

Answer: If “funding raised” is included by the City or grantee as a key performance indictor in a grant contract and a company raises no funding, that will be recorded as such.

11. Question: What is the application-to-awarded ratio for previous grant cycles?

Answer: The grant application and award process has been very competitive in recent funding rounds. In 2023, there were approximately 120 applications with 28 grantees awarded funding.

12. Question: Who can we contact for questions during the application process?

Answer: Please use the question form available on the grant website at www.cityofsacramento.org/innovationgrants.

13. Question: I would like to know how interested is the incubator is for foreign investments generating profit in California.

Answer: The incubator and accelerator grant solicitation seeks proposals from third parties who will operate programs. The City doesn’t have an incubator itself with a specific interest.

14. Question: Hello! I've searched on Submittable, and looked through the documentation twice. I couldn't find a way to access or RSVP for the info session on the 29th, and was wondering when links to that would be posted?

Answer: The Technical Assistance link was held on July 31, 2024. A link to the recording is now on the city grant website at www.cityofsacramento.gov/innovationgrants.

15. Question: How does program work?

Answer: Please review the program guidelines at www.cityofsacramento.gov/innovationgrants.

16. Question: I wanted to make sure I'm meet the qualifications. I have been in business as a technical resource director (librarian) for architects, designers and engineers for 38 years. Due to COVID, I have evolved into a software tool that I launched June 2023. Because I software is new do I qualify?

Answer: Please review the guidelines and submit a program application that is consistent with the stated requirements www.cityofsacramento.gov/innovationgrants.

17. Question: Can an existing company apply? We applied on the Secretary of State website on March 1, 2024.

Answer: An existing company is welcome to apply to provide incubator and accelerator programming.

18. Question: If an application is rejected, will it be returned with reasoning, to allow the applicant to revise and resubmit?

Answer: Applications will not be reviewed and scored until after the application deadline. There will not be an opportunity to consider City feedback and revise applications.

19. Question: Do you have founders attorneys?

Answer: No. The incubator and accelerator grant solicitation seeks proposals from third parties who will operate programs. The City itself is not offering incubator or accelerator services.

20. Question: How early can i be answered?

Answer: The City has committed to posting answers to program questions by August 23, 2024 at 5 p.m. at www.cityofsacramento.gov/innovationgrants.

21. Question: Does "Salaries for staff delivering programming;" include overhead costs? Such as: time spent doing payroll related to the project, workers compensation, etc.? In the words of our CEO, is this the "fully loaded" costs?

Answer: Salaries and benefits can be included. Overhead costs such as program administration should be listed in a separate budget category by grantees.

22. Question: How long does it take to get a grant?

Answer: The program timeline is listed in the grant guidelines. www.cityofsacramento.gov/innovationgrants.

23. Question: Do you have mentors in the architectural or building industry field?

Answer: No. The incubator and accelerator grant solicitation seeks proposals from third parties who will operate programs. The City itself is not offering incubator or accelerator services.

24. Will there be word/character limits in the online application form?

In the online application, the answer box states if there is a character limit.

25. Can an existing company apply? We applied on the Secretary of State website on March 1, 2024.

Existing companies with planning or currently implementing incubator and accelerator programs serving businesses and residents in the City of Sacramento are eligible for grant funding. 

26. Are these grants to expand existing incubator programs in this area?

Existing and new incubator and accelerator programs in the City of Sacramento are eligible for the grant. Providers with proven expertise will be preferred through the scoring criteria, which is listed in the program guidelines.

27. What areas are these incubator/accelerator grants given to? Food, farming, arts, medical.

The City encourages applicants to propose programs that advance emerging industries and efforts in Sacramento. By focusing on specific areas, we aim to amplify Sacramento’s unique strengths and advance key sectors that promise long-term economic and social benefits. Examples of emerging industries and efforts include, but are not limited to:

  • The Farm to Fork Movement (including Food and AgTech)
  • Clean Technology and Sustainability
  • Life Sciences and Healthcare
  • Creative Economy and the Arts
  • Government and Smart City Initiatives

An incubator or accelerator focused on a specific industry is not required but encouraged as these industries play a crucial role in the city economic development. The city requests applicants provide reasoning for their choice of industry focus or lack thereof, and how that choice benefits the innovation ecosystem of the City of Sacramento and the six-county Sacramento region.

28. Can these incubator and accelerator grants be used in other Sacramento County organizations such as EMD, community colleges?

Colleges and Universities, non-profit organizations, and other organizations with incubator and accelerator programs serving businesses and residents in the City of Sacramento are eligible.

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