What is the SBIR Program?
The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization.
Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.
Three-Phase Program
The SBIR Program is structured in three phases:
Phase I.
The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small business awardee organization prior to providing further Federal support in Phase II. SBIR Phase I awards normally do not exceed $150,000 total costs for 6 months.
Phase II.
The objective of Phase II is to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II. Only Phase I awardees are eligible for a Phase II award. SBIR Phase II awards normally do not exceed $1,000,000 total costs for 2 years.
Phase III.
The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. The SBIR program does not fund Phase III. Some Federal agencies, Phase III may involve follow-on non-SBIR funded R&D or production contracts for products, processes or services intended for use by the U.S. Government.
Eligibility
Only United States small businesses are eligible to participate in the SBIR program. An SBIR awardee must meet the following criteria at the time of Phase I and II awards:
Organized for profit, with a place of business located in the United States;
More than 50 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, or by another for-profit business concern that is more than 50% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States; and
No more than 500 employees, including affiliates
For awards from agencies using the authority under 15 U.S.C. 638(dd)(1), an awardee may be owned and controlled by more than one VC, hedge fund, or private equity firm so long as no one such firm owns a majority of the stock.
Phase I awardees with multiple prior awards must meet the benchmark requirements for progress toward commercialization.
See the Eligibility Guide for more detailed information.
What is the STTR Program?
The Small Business Technology Transfer (STTR) program expands funding opportunities in the federal innovation arena. Central to the program is the expansion of the public/private sector partnership to include joint venture opportunities between small businesses and nonprofit research institutions. The unique feature of the STTR program is the requirement for the small business to formally collaborate with a research institution in Phase I and Phase II. STTR's most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations .
What are the three phases of the STTR Program?
The STTR Program is structured in three phases:
Phase I.
The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed Federal Research/R&D efforts and to determine the quality of performance of the small businesses prior to providing further Federal support in Phase II. STTR Phase I awards normally do not exceed $150,000 total costs for 1 year.
Phase II.
The objective of Phase II is to continue the Federal Research/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the Phase II project proposed. Only Phase I awardees are eligible for a Phase II award. STTR Phase II awards normally do not exceed $1,000,000 total costs for 2 years.
Phase III.
The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. STTR does not fund Phase III awards. In some Federal agencies, Phase III may involve follow-on non-STTR funded R&D or production contracts for products, processes or services intended for use by the U.S. Government.
How does the STTR program differ from SBIR program?
STTR differs from SBIR in several ways, including:
For and STTR award, the small business must perform at least 40% of the work and the single partnering research institution must perform at least 30% of the work.
STTR requires the Small Business Concern (SBC) and its partnering institution to establish an intellectual property agreement detailing the allocation of intellectual property rights and rights to carry out follow-on research, development or commercialization activities.
What are the objectives of the SBIR/STTR Program?
The mission of the SBIR program is to stimulate technology innovation by strengthening the role of innovative SBCs in Federal Research/ R&D.
The program’s goals are four-fold:
Stimulate technological innovation
Use small businesses to meet Federal R&D needs
Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged small businesses
Increase private-sector commercialization of innovations derived from Federal R&D funding
Which Federal Agencies participate in the SBIR Program?
Each year, federal agencies with extramural R&D budgets that exceed $100 million are required to allocate a certain percentage of their R&D budget to the SBIR program. Currently, eleven federal agencies participate in the program:
Department of Agriculture
Department of Commerce - National Institute of Standards and Technology
Department of Commerce - National Oceanic and Atmospheric Administration
Department of Defense
Department of Education
Department of Energy
Department of Health and Human Services
Department of Homeland Security
Department of Transportation
Environmental Protection Agency
National Aeronautics and Space Administration
National Science Foundation
Each of these agencies has an SBIR program office and administers the program within guidelines established by Congress in the Small Business Act and by SBA in the SBIR Policy Directive. The agencies designate R&D topics in their solicitations and accept proposals from small businesses. Awards are made on a competitive basis after proposal evaluation.
Which Federal Agencies participate in the STTR program?
Each year, Federal Agencies with extramural R&D budgets that exceed $1 billion are required to reserve a certain percentage of the extramural research budget for STTR awards to small businesses. These agencies designate R&D topics and accept proposals. Currently, five agencies participate in the STTR program.
Department of Defense
Department of Energy
Department of Health and Human Services
National Aeronautics and Space Administration
National Science Foundation
Each agency administers its own program within guidelines established by Congress in the Small Business Act and by SBA in the STTR Policy Directive. These agencies designate R&D topics in their solicitations and accept proposals from small businesses. Awards are made on a competitive basis after proposal evaluation.
Does the Small Business Administration (SBA) make any awards under the SBIR/STTR Program?
No, the SBA does not directly administer the awards. The SBA has the responsibility for directing the participating agencies in the administration of the program. It helps the participating agencies implement SBIR/STTR, reviews their progress, reports annually to Congress on its operation, and aggregates agency solicitation announcement information.
What is an SBIR/STTR funding agreement?
An SBIR/STTR funding agreement is a contract, grant, or cooperative agreement entered into between an SBIR/STTR participating Federal Agency and a small business for the performance of research, experimental, or developmental work funded by the Federal Government.
What is my SBC Control ID? How do I get my registration PDF?
Go to www.sbir.gov/user and log into your SBIR.GOV user account
To retrieve and print the SBC Control Registration form, navigate to (left navigation):
[+] “Company Information” >
“View Company Information” >
“Download SBC Registration” (PDF)
Where is the best place for more information on the SBIR/STTR program?
Colorado SBDC TechSource
Sign up for assistance through our TechSource: Commercialization program. SBDC TechSource is designed to maximize the economic potential of Colorado science and technology companies—especially those in the advanced industries. Subject matter expertise is provided through specialized consulting, accelerator programs, workshops and events to provide tangible help for small innovative businesses and entrepreneurs in order to overcome hurdles to growth. Companies can benefit at every stage of maturity—from those just starting out with a great idea, to experienced innovators and second-stage businesses looking to expand. TechSource: Commercialization is unique in the state because of its heavy emphasis on non-dilutive capital sources for small innovative businesses—where the company does not give up ownership—while also preparing companies for equity financing when the timing is right. Programs focus on SBIR/STTR grants, federal R&D tax credits and support for technology commercialization to get to market faster (the ideal non-dilutive capital, from customers)!
SBIR.GOV Online Tutorials
The online tutorials at sbir.gov feature courses designed to help interested parties learn more about the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs. From learning the nuances of each agency’s programs to figuring out how to calculate indirect rates, the tutorials covers all of the bases within the application process for federal funding. While some tutorials are broad and can be helpful to the novice, others are tailored to more seasoned SBIR/STTR awardees.