For over 40 years, the U.S. federal government has provided non-dilutive funding for small businesses across the country through the Small Business Innovation Research (SBIR) programs. Ten years after the initiation of SBIR, a companion effort was launched to support small businesses partnerships with research institutions, the Small Business Technology Transfer (STTR) programs. SBIR and/or STTR grants or contracts are currently awarded by 11 federal agencies.
Though these programs have been continuously renewed by Congress, they are not permanent despite their established positive impacts on the U.S. economy. (The Department of Defense estimates a 22:1 ROI from their SBIR/STTR awards.)
Funding for SBIR/STTR was renewed for 3 years in 2022 and thus is set to expire this year. While there is general bipartisan support for the programs, lawmakers have expressed concerns about technology security. Several U.S. Representatives recently distributed letters to the eleven participating agencies asking for data and reassurance that the awarded companies are protecting their technology specifically from benefitting Chinese interests. Based on a recent discussion in a subcommittee hearing by the House Committee on Science, Space, & Technology, we may expect federal investments in early-stage companies to come with additional guardrails to curtail the distribution or theft of R&D advances by other countries.
Nonetheless, SBIR/STTR remains broadly popular. Though specific agency opportunities are likely to change as priorities and funding change, SBIR/STTR looks to be a solid bet for funding in this time of federal uncertainty.
If you’re considering commercializing your tech, Artemis Editing has extensive experience and broad expertise in SBIR/STTR grant applications. Our services extend beyond traditional grant writing and editing; we can provide guidance and feedback on:
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agency-specific needs and areas of focus
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how to tailor your application to different agencies
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how write to appeal to reviewers
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developing a roadmap for funding through SBIR/STTR
If you’re unfamiliar with these programs, here are some basic things to know:
Phased program
The SBIR/STTR programs are divided into three phases:
Phase I focuses on establishing the technical feasibility of a proposed innovation. Small businesses can receive funding ranging from $100K to a little more than $300k for 6- to 12-month periods of performance to conduct preliminary research and prove the concept. (Award amount and time allowed vary by agency.) For SBIR, at least 2/3 of the work must be performed by the small business; for STTR, it’s at least 40% by the small business and 30% by the partnering institution.
Phase II builds on successful Phase I results by supporting further R&D and prototype development. Funding can go up to about $2 million for a period of performance of up to 2 years to advance the technology towards commercialization. For SBIR, at least 50% of the work must be performed by the small business; for STTR, it’s at least 40% by the small business and 30% by the partnering institution.
Phase III is the commercialization phase where no additional SBIR funding is provided. Businesses are expected to secure private or non-SBIR federal funding to bring their innovation to the market.
Visit https://www.sbir.gov/ and reach out to me at [email protected] for more information on these funding opportunities!
Eligibility
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Be a for-profit small business (< 500 employees)
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US-based and > 50% US-owned
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For an SBIR award, the PI must work at the company >50% of the time during the project (STTRs allow PI from either the company or research institution)
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Registered with sbir.gov and sam.gov (additional registrations may be required for certain agencies).
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Note: all awards are made to the small business, even STTR.
Details on specific agency opportunities: https://www.sbir.gov/participating-agencies
