Arlington Innovation Fund

Minimum Qualifications

• Must be a registered LLC, S-Corp or C-Corp, with the principal office address in Arlington according to the Virginia State Corporation Commission (virtual addresses and P.O. boxes are NOT ELIGIBLE)
• Must be a for-profit company 
• Must have at least one full-time employee
• Must have raised a minimum of $25,000 but no more than $1,000,000. Please see FAQ section for a full list of eligible matching capital types.
• Primary source of revenue must be derived from the sale, licensure or distribution of proprietary technology
• Must be current on all applicable Arlington County taxes 

Application Requirements 

Complete an online application for the Catalyst Grant and provide the following items:

• A three-minute fundraising pitch video
• A business plan executive summary, no more than three pages
• A copy of your most recent Arlington business license

*Applicants that proceed to the next evaluation stage will be required to submit additional information.

Award Calculation

Companies must demonstrate that they have raised a minimum of $25,000, up to $1,000,000. Once verified, grants will be between $25,000 and $50,000, with the maximum amount being a 1:1 match to the amount the company has raised at the time of application.

Award Usage

Funds awarded through the Catalyst Grant can be used for any business operation expenses incurred by the startup. Examples include machinery and equipment, office supplies, hiring consultants or advisors, purchasing of services, and tenant upgrades to commercial office space.

Award Distribution

Grants will be disbursed in two equal payments. Payment one will be disbursed when the company has completed the SBDC 2.5-week introductory course or submitted an approved waiver. Payment two will be disbursed when the company completes its 6-month check-in with Arlington Economic Development staff.

Company Obligations 

If a company is awarded a grant, they will be required to sign a performance agreement between the company and Arlington County. The company will be responsible for obligations outlined in the performance agreement including, but not limited to:

• Maintaining an Arlington presence for a two-year performance period;
• Enrolling in and completing the Virginia SBDC’s ICAP 2.5-week introductory course within 90 days of IDA approval;
• Completing a virtual or in-person reporting check-in with AED at the initial 6-month period; and
• Completing two annual, written reporting check-ins after the initial 6-month reporting period. 

Grant Award Selection Criteria

An internal committee of AED staff, supported by a third-party vendor, will evaluate all applications for the Arlington Innovation Fund’s Catalyst Grant Program. Only selected companies that meet the base qualifications of the program will be asked to proceed to the next evaluation stage.

At the request of County staff and the third-party vendor, applicants may be required to provide additional information prior to funding an award.

Applications are assessed on factors, including but not limited to:

• Experience of the company’s leadership
• Strength of the business model
• Funding potential
• Proof of concept
• Potential for growth
• Return on investment to Arlington County

Any business not classified as a technology company will not be considered. For the purpose of this program, a technology company is classified as a business whose primary source of revenue is derived from the sale, licensure or distribution of proprietary technology.

Catalyst Grant Program funds are awarded to a company at the County's discretion and are based on the recommendations of the internal review committee and third-party vendor.

By applying, companies agree to have their company logo, company name, and founder information available to share with the public via Arlington Economic Development’s website, promotional materials, and social media handles. Additionally, companies agree to have their information included in any press releases applicable to the Arlington Innovation Fund.

Arlington Economic Development will not share confidential or sensitive information provided by the company.

Grant Terms and Conditions Summary

• Companies selected to receive award must sign a performance agreement with Arlington County and the Arlington County Industrial Development Authority (IDA). Funds will be distributed by the IDA.

• The agreement will last for two years. During these two years, companies must:
  • Have their primary office address in Arlington, Virginia
  • Submit three performance reports that include information on number and types of employees, square footage occupied and capital funding. There are no performance targets to receive payment.
• Funds will be distributed in two parts within six months of award
  • First 50% of funds will be distributed within 30 days of completion of ICAP or approved waiver
  • Second 50% of funds will be distributed within 30 days of receiving six-month performance report
• Repayment of funds can be required in one of four circumstances
  • If business relocates primary office address outside of Arlington, Virginia. Repayment of all funds required if it occurs in first year, 50% of funds to be repaid if it occurs in second year.
  • If business fails to submit performance reporting. Repayment of all funds required if either of the first two performance reports are not submitted; 50% of funds to be repaid if the final performance reporting is not submitted.
  • If business is found to have used Grant funds for illegal or otherwise unauthorized purposes, as detailed in the terms and conditions of the performance agreement, the business will be required to repay all funds received from the Grant Program.
  • If the business is later revealed to have been untruthful in its application materials, the business will be required to repay all funds received from the Grant Program.