SBIR and STTR funding information

Learn about the basics of SBIR and STTR funding and the application process.

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Funding structure

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are structured in phases and funding is available for the first two phases. This phase information is quoted from the eligibility section of the SBIR and STTR program information.

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/STTR Phase I awards are generally $50,000 - $315,000 for 6 months (SBIR) or 1 year (STTR).

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. Typically, only Phase I awardees are eligible for a Phase II award. SBIR/STTR Phase II awards are generally $1,500,000 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/STTR programs do not fund Phase III. At some Federal agencies, Phase III may involve follow-on non-SBIR/STTR funded R&D or production contracts for products, processes or services intended for use by the U.S. Government.

 

Certain funding agencies support additional application types beyond Phase I and Phase II. For the most recent and up to date information be sure to check each agency’s SBIR/STTR-related website directly.

If your business requires funding for legal fees, marketing, website development, and operational assistance during Phases I or II, applying for Technical and Business Assistance (TABA) funding may help. Research the availability and specific guidelines of TABA funding within the federal agency you are pursuing, and if awarded, you can either a) utilize services through an agency-selected vendor, or b) identify your own vendor. Funds range from $6,500 for Phase I to $50,000 for Phase II.

Alternatively, TCEF is supplemental funding available to Current Phase II awards to boost commercialization (up to 20% of award).

Review each federal agency for updated information on supplemental funding.

 

Differences between the SBIR and STTR programs

Differences between the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs
Description of program features or requirements SBIR STTR
Partnering requirement Allows partnering Requires a non-profit research institution partner
Principal investigator Primary employment (>50%) must be with the small business PI may be employed by either the research institution partner or small business (check solicitation)
Work requirement May subcontract up to:
33% (Phase I)
50% (Phase II)		 Minimum:
40% Small Business
30% Research Institution Partner
Program overall budget FY19 - $3.28 billion FY19 - $453 million
Participating agencies 11 agencies (extramural R&D budget > $100M) 5 agencies (extramural R&D budget > $1B)
IP Allocation Agreement required No Yes

Partnering and budget allocations

A Small Business Innovation Research award gives flexibility in partnering with subcontractors and allows up to 33% of the funding to be used for partners.

A Small Business Technology Transfer award requires that 40% of the funding goes to a small business concern, 30% goes to the research institution and 30% is discretionary.

IP allocation agreement

Before receiving an STTR award, a small business must negotiate a written agreement between the small business and the partnering research institution, allocating intellectual property rights and, if relevant, rights to conduct follow-on research, development or commercialization.

 

Working with Nevada’s higher education research institutes

You may decide to partner with the University with either SBIR or STTR awards, but the STTR program requires the partnership. There are many benefits to partnering with a university, such as:

  • Attaining access to pre-existing, top-tier research and intellectual property
  • Leveraging existing research infrastructure such as expertise, equipment, chemical and biological waste management, safety policies and procedures
  • Cultivating a long-term relationship around joint research and development
  • Connecting to a large employment talent pool
  • Utilizing support and compliance structures for grant and intellectual property management
 

Further research

  • Online SBIR and STTR tutorials from sbir.gov: View multimedia tutorials covering all of the information you’ll need for the application process, including specific details regarding individual agency’s programs.
  • Heilmeier Catechism: Review these criteria used by DARPA and other agencies to evaluate projects. It is important to have clear answers to this set of criteria for your proposal.
  • Technology Readiness Levels (summary provided from a 3rd-party, non-government entity): Technology innovators should be aware that federal agencies investing in research programs that support product commercialization use Technology Readiness Levels (TRLs) to evaluate the maturity of the platform and the suitability for investment. Be sure to review the Broad Agency Announcement (BAA) or the Notice of Funding Opportunity (NOFO) for the TRL requirements.
  • Salary validation for budget: National occupational and wage information from the U.S. Bureau of Labor Statistics.