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Technology Development

Office of Research

Office of Research

SBIR Program (Small Business Innovation Research)

Facts about SBIR
The Small Business Innovation Research (SBIR) program is a highly competitive three-phase award system that provides qualified small businesses with opportunities to propose innovative ideas that meet specific research and research and development needs of the Federal Government. Enacted in 1982 as part of the Small Business Innovation Development Act (and then reauthorized in 2000), the program requires federal agencies with more than $100 million in extramural R&D to allocate a percentage of their budgets exclusively for small businesses. This set-aside began in 1983 at 0.2% and is currently 2.5%, resulting in the availability of approximately $1.6 billion for R&D in small businesses.

Objectives of SBIR
  • Stimulate technological innovation
  • Strengthen the role of small businesses in meeting federal research and development needs
  • Increase private sector commercialization of innovations derived from federal research and development.

Participating Federal Agencies
Only solicited proposals are accepted for SBIR grants. Agency websites have the most up-to-date active solicitations for SBIR grants. Be sure to check the solicitations from all agencies, as they often are more broad-based than expected.
Small Business Eligibility
  • 500 or fewer employees
  • American-owned and independently operated
  • For profit
Submission Each year the ten participating agencies issue program solicitations describing the technical areas in which they are interested. The solicitations, their release and due dates, and submission instructions are available at each agency website (links above).

Three Phases
SBIR is a three-phase program, of which two are federally funded. Phase I is a feasibility study to evaluate the proposed project's technical merit, for which an awardee may receive a maximum of $100,000 for approximately six months. Phase II is the principal R&D effort that expands on the Phase I results. This two-year project may receive up to $750,000 in funding. Only Phase I awardees are eligible to compete for Phase II funds. Phase III is the commercialization of the Phase II results and moves the innovation from the laboratory to the marketplace. This requires use of private sector or other non-SBIR funding. Some agencies do provide follow-up "Phase IIB" and/or matching funds to assist with commercialization activities.

Assistance
Operating procedures vary between agencies, so it is wise to become familiar with the agencies by viewing their websites and/or contacting them as appropriate. The U.S. Small Business Administration (SBA) website also provides information about both SBIR and STTR programs at http://www.sba.gov/sbir/

Evaluation Criteria
  • Scientific and technical quality and innovation of the idea and the significance of the scientific or technical challenge
  • Ability to carry out the project (i.e. qualifications of the principal investigator and other key personnel, adequacy of facilities and equipment, soundness of work plan)
  • The impact as evidenced by technical and/or economic benefits, the likelihood that the work would lead to a marketable product, or the likelihood the project could attract further funding.