Federal glossary · Process
SBIR (Small Business Innovation Research) is a three-phase competitive program: Phase I (feasibility, ~$150K, 6 months), Phase II (development, ~$1M, 2 years), Phase III (commercialization, no SBIR funding — uses other federal or private funding). Federal agencies with $100M+ extramural R&D budgets must allocate 3.2% to SBIR. Phase III contracts are sole-source and have no dollar limit.
Reference record · Sources: Small Business Innovation Research · Verified Jul 2, 2026 · Covers definition, governing source
Small Business Innovation Research
Also known as
SBIR (Small Business Innovation Research) is a three-phase competitive program: Phase I (feasibility, ~$150K, 6 months), Phase II (development, ~$1M, 2 years), Phase III (commercialization, no SBIR funding — uses other federal or private funding). Federal agencies with $100M+ extramural R&D budgets must allocate 3.2% to SBIR. Phase III contracts are sole-source and have no dollar limit.
(Small Business Innovation Research) is a process concept federal contractors and grant writers run into across solicitations, regulations, and award filings
SBIR is a step or workflow in the federal-procurement lifecycle. Knowing where SBIR fits in the larger acquisition arc — from market research through award through performance — helps contractors time their engagement, identify the right contracting officials, and avoid showing up too late to influence the requirement. Many proposal failures trace back to misunderstanding when SBIR occurs, who owns it, and what artifacts it produces. The related terms above name the adjacent process steps that most commonly precede or follow SBIR, and tracking those transitions over time is one of the more reliable ways to build pipeline visibility ahead of formal solicitations.
Meaning in practice
SBIR is a step in a government workflow or procurement lifecycle.
Where you’ll see it
You will see it in NOFOs, solicitations, evaluation sections, award letters, and procedural instructions.
Common confusion
People often confuse the document that describes the process with the process itself.
What to do next
Identify the deadline, owner, and artifacts the process produces before you move forward.
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