SBIR & STTR Grants
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide over $4 billion annually in non-dilutive R&D funding to small businesses driving technological innovation.
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How SBIR/STTR Works
The program is structured in three phases, taking innovations from concept to commercialization.
Prove the scientific and technical feasibility of your concept. Typically 6–12 months. Establishes whether the idea has commercial potential and warrants further investment.
Develop and demonstrate a working prototype based on Phase I results. Typically 24 months. Only Phase I awardees are eligible. Some agencies offer Phase II enhancements.
Transition technology to the marketplace or to government use. Funded by non-SBIR federal contracts, private investment, or revenue. No limits on contract size.
Top Participating Agencies
Dept. of Defense
The largest SBIR funder. Topics span defense technologies, AI, cybersecurity, autonomous systems, advanced materials, and biodefense across all service branches.
National Institutes of Health
Second-largest SBIR funder. Focuses on biomedical and health technologies including therapeutics, diagnostics, medical devices, and digital health.
National Science Foundation
Funds deep-tech innovations across all scientific and engineering disciplines. Known for the America's Seed Fund brand and open topic solicitations.
Dept. of Energy
Focuses on clean energy, nuclear technology, grid modernization, and advanced manufacturing. Strong emphasis on climate and sustainability technologies.
NASA
Funds space exploration technologies, propulsion, materials science, earth observation, and aeronautics. Phase III often leads to flight-ready technology contracts.
Eligibility Requirements
To qualify for SBIR/STTR funding, your business must meet all of the following criteria.
U.S.-Based Business
Must be organized and operating in the United States. The primary place of performance must be in the U.S. for both SBIR and STTR awards.
Fewer Than 500 Employees
Including all affiliates, the business must have fewer than 500 employees at the time of award. Most SBIR awardees have fewer than 25 employees.
For-Profit Entity
The business must be a for-profit entity (LLC, C-Corp, S-Corp, etc.). Nonprofits, universities, and government entities are not eligible as prime applicants.
51%+ U.S.-Owned
More than 50% of the business must be owned and controlled by U.S. citizens or permanent resident aliens. VC/PE-backed firms may qualify with additional documentation.
STTR Difference
STTR requires a formal partnership with a nonprofit research institution (university or federal lab). The small business must perform at least 40% of the R&D, and the research institution at least 30%. SBIR requires the small business to perform at least 67% (Phase I) or 50% (Phase II) of the work.
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