SBIR/STTR Introduction
Small Business Innovation Research (SBIR) Program Overview
Small Business Technology Transfer (STTR) Program Overview
Small Business Innovation Research (SBIR) Program
Established in 1982, the SBIR program is a $2.3 Billion program is a highly competitive three-phase program that encourages small business 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. Currently, there are 11 federal agencies participating in this program.
Three Phase Program:
- Phase I is a feasibility study to evaluate the scientific and technical merit of an idea. Awards are for periods of up to six months in amounts up to $100,000.
- Phase II is to expand on the results of and further pursue the development of Phase I. Awards are for periods of up to two years in amounts up to $750,000.
- Phase III is for the commercialization of the results of Phase II and requires the use of private sector or non-SBIR Federal funding.
Eligibility Requirements
The business eligibility requirements for the SBIR program include the following:
- American owned (at least 51%) and independently operated
- For-profit entity
- Principal researcher employed (at least 51%) by small business
- Able to perform two-thirds of the Phase I and one-half of the Phase II work
- An SBA-defined small business (less than 500 employees)
The specific definitions regarding principal investigator requirements vary among the agencies so check to determine the guidelines for the agency you are applying.
Agency Participation
Each year there are eleven federal departments and agencies that are required to participate in the SBIR program. This paritcipation is to set aside a portion of their R&D funds for awards to small businesses.
-
Department of Commerce
-
Department of Defense (Note: there are 9 subagencies within DoD that participate in the SBIR Program)
-
Department of Education
-
Department of Homeland Security
These agencies designate R&D topics and accept proposals.
Small Business Technology Transfer (STTR) Program
The STTR program is a highly competitive program and an important small business program that expands funding opportunities in the federal innovation research and development arena. Central to the program is expansion of the public/private sector partnership to include the joint venture opportunities for small business and the nation's premier nonprofit research institutions. STTR's most important role is to foster the innovation necessary to meet the nation's scientific and technological challenges in the 21st century. The STTR Program reserves a specific percentage of federal R&D funding for award to small business and nonprofit research institution partners. Small business has long been where innovation and innovators thrive. But the risk and expense of conducting serious R&D efforts can be beyond the means of many small businesses.
Three-Phase Program
- Phase I awards are up to $100,000 for approximately one year to fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology.
- Phase II awards are up to $750,000 for approximately two years to expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercial potential. Only Phase I award winners are considered for Phase II.
- Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No STTR funds support this phase. The small business must find funding in the private sector or other non-STTR federal agency funding.
Eligibility Requirements
The business eligibility requirements for the STTR program include the following:
- American owned (at least 51%) and independently operated
- For-profit entity
- Principal researcher need not be employed by small business
- An SBA-defined small business (less than 500 employees)
The nonprofit research institution must also meet certain eligibility criteria. There are no size limits for nonprofit research institutions.
- Located in the US
- Meet one of three definitions
- Nonprofit college or university
- Domestic nonprofit research organization
- Federally funded R&D center (FFRDC)
Agency Participation
Each year there are five federal departments and agencies who are required to participate in the STTR program. This participation is to set aside a portion of their R&D funds for small business/nonprofit research institution partnerships.
- Department of Defense
- Department of Energy
- Department of Health and Human Services
- National Aeronautics and Space Administration
- National Science Foundation
These agencies designate R&D topics and accept proposals.