Manufacturing 4.0 grant program
The Maryland Manufacturing 4.0 grant program application opened on August 1 and is set to close Aug. 30, 2024. Businesses engaged in qualifying manufacturing and incorporating advanced technologies into its operations could receive significant benefits. The highly competitive program offers grants covering at least 50% of project costs with a minimum grant of $25,000.
The Manufacturing 4.0 grant program assists small and mid-sized manufacturers in Maryland in investing in ‘Industry 4.0-related technologies’, machinery, robotics and digital business practices, aiming to stay competitive and promote growth. Projects must demonstrate a connection to Industry 4.0, i.e., certain modern technology. Projects must be new or significantly enhance existing capabilities and should not have commenced before the grant application period.
The grants range from $25,000 to $500,000, and will vary based on the applicant's total investment A matching fund is required. For companies with three to 50 employees, there is a 25% match requirement, with grants covering up to 75% of the total project costs. For companies with 51-250 employees, a 50% match requirement is in place, with grants covering up to 50% of the total project costs.
To be eligible for the grant, the business must meet all of the following requirements:
- Be an existing business in good standing with the state of Maryland
- Have between three and 250 full-time employees (defined as an employee who works at least 1,800 hours in a 12-month period)
- Have a two-digit NAICS code of 31, 32 or 33, indicating a manufacturing focus
- Have been established for a minimum of two years
- Be in good standing with the federal Occupational Safety and Health Administration and Maryland Occupational Safety and Health regulations
- Demonstrate an ability to successfully implement the proposed project
- Demonstrate an overall commitment to, or strategy for, Industry 4.0 adoption
- Demonstrate ability to provide matching funds
Eligible costs include but are not limited to, expenses such as machinery, installing new robotic or automated equipment, software, implementation/installation costs and employee training on the use of new technology. Additionally, consultant fees directly associated with the implementation of eligible project costs, such as design and layout of new equipment, and soft costs like license fees and training costs, are permitted and will be assessed on a case-by-case basis. Before beginning the online application, it is necessary to prepare the required documents, such as a list of the project's total costs, a recent income statement, and a balance sheet or other summary showing revenues and cash available to perfect the matching funds, copies of all vendor quotes whether for equipment, services performed and other required documents.
Lastly, applicants will receive correspondence about their application status within the month. Funds will be disbursed as follows: 50% upon notice of award, with the remaining 50% paid upon completion with proof of expenses.
Build Our Future Grant Pilot Program
The Build Our Future Grant Pilot Program has been funded for fiscal year 2025 with $7 million in grant funds available. The application for the program will open in late August 2024. Grant funds must be matched by the applicant depending on the amount of award. The program is scheduled to run through June 30, 2027. The grant program is operated by the Maryland Department of Commerce, which will provide grant funds for innovation infrastructure projects intended to support innovation in eligible technology sectors.
Grant funds may be used for cost incurred to acquire, construct, rehabilitate, install, improve or equip an eligible innovation infrastructure project. Projects must support innovation in technology sectors including:
- Advanced manufacturing
- Aerospace
- Agriculture
- Artificial Intelligence
- Biotechnology
- Blue technology
- Cybersecurity
- Defense
- Energy and sustainability
- Life sciences
- Quantum
- Sensors and robotics
Examples of eligible projects include sensitive compartmented information facilities, wet laboratories, cyber ranges, prototype manufacturing centers, and other specialized workforce training, skill certification or research-related spaces.
To be eligible for the program applicants must demonstrate an ability to cover their share of the project costs and be a private company, nonprofit entity, local government, or college/university in state. There are no fees or costs to apply for the grant, but the grants are subject to tax. A single entity may not receive more than $2 million in grants per fiscal year.
Takeaways
The Manufacturing 4.0 program is expected to be highly competitive and, with the short application window, requires eligible manufacturers to prepare and apply for the program as soon as possible. The Build Our Future Grant Pilot Program is expected to open the application process in late August, but businesses can begin to prepare for the application now. It is important to note that these programs often have many nuances for eligibility and complex applications that emphasize preparation and timely due diligence.
Even in a slowing economy, states continue to fund credits and incentives programs. The Maryland programs offer just two examples of available benefits, but many states maintain programs that encourage hiring, capital investment, innovation and worker training. Businesses with questions about these programs should reach out to their credits and incentives advisers.
