What is the difference between SBIR and STTR?

SBIR (Small Business Innovation Research) requires the principal investigator to be primarily employed by the small business. STTR (Small Business Technology Transfer) requires the principal investigator to be primarily employed by a research institution (university, nonprofit, etc.) and collaborate with a small business.

What are the eligibility requirements for SBIR/STTR?

To be eligible, you must be a U.S. small business (500 employees or fewer), be at least 51% U.S.-owned, have the principal place of business in the U.S., and meet agency-specific requirements. For STTR, you must also partner with a research institution.

How much funding can I receive?

Phase I typically provides $50K-$300K for 6-12 months. Phase II provides $500K-$2M for 24 months. Phase III uses non-SBIR/STTR funds for commercialization.

What is the success rate for SBIR/STTR proposals?

Success rates vary by agency, typically ranging from 10-20%. NIH and NASA tend to have higher success rates (15-20%), while DoD and DOE are typically 12-18%.

Can I apply to multiple agencies?

Yes, you can submit proposals to multiple agencies simultaneously, as long as each proposal is tailored to the specific agency's mission and requirements.

SBIR/STTR Funding Guide

Complete guide to securing federal R&D funding for your innovation through Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

Use SBIR/STTR Navigator Tool Get Commercialization Support

$4B+

Annual SBIR/STTR Budget

Participating Agencies

10-20%

Average Success Rate

$50K-$2M

Typical Funding Range

What are SBIR and STTR?

SBIR (Small Business Innovation Research)

SBIR is a competitive program that encourages domestic small businesses to engage in federal R&D with potential for commercialization. The principal investigator must be primarily employed by the small business.

STTR (Small Business Technology Transfer)

STTR requires small businesses to formally collaborate with research institutions (universities, nonprofits, etc.). The principal investigator must be primarily employed by the research institution.

Key Difference: SBIR allows the principal investigator to work for the small business, while STTR requires the principal investigator to work for a research institution and collaborate with a small business.

Program Phases

Phase I

$50K - $300K

6-12 months

Purpose: Proof of concept and technical feasibility

Demonstrate the scientific and technical merit and feasibility of your proposed innovation.

Deliverables:

Technical report
Prototype or proof of concept
Market analysis

Success Criteria: Technical feasibility demonstrated

Phase II

$500K - $2M

24 months

Purpose: Development and demonstration

Continue R&D efforts initiated in Phase I. Develop a working prototype and validate market potential.

Deliverables:

Working prototype
Market validation
Commercialization plan

Success Criteria: Prototype validated and market opportunity confirmed

Phase III

Non-SBIR/STTR funds

Ongoing

Purpose: Commercialization

Commercialize the innovation using non-SBIR/STTR funding. Can include follow-on government contracts or private investment.

Deliverables:

Commercial product
Revenue generation
Market penetration

Success Criteria: Successful commercialization

Eligibility Requirements

General Requirements (Both SBIR & STTR)

U.S. small business (500 employees or fewer, including affiliates)
At least 51% U.S.-owned and independently operated
Principal place of business located in the United States
For-profit organization

STTR-Specific Requirements

Formal collaboration with a research institution (university, nonprofit, etc.)
Principal investigator primarily employed by the research institution
Minimum 30% of work performed by the small business, 40% by the research institution

Focus Areas

Clean Energy, Advanced Energy, Nuclear Technology, Sustainability

Other participating agencies: Department of Agriculture (USDA), Department of Commerce (DOC), Department of Education (ED), Department of Homeland Security (DHS), Department of Transportation (DOT), Environmental Protection Agency (EPA).

Application Process

1. Identify Relevant Agencies

Research agencies whose missions align with your innovation. Review agency topics, funding priorities, and past awards.

2. Review Agency Topics

Each agency publishes topics/solicitations that describe areas of interest. Find topics that match your innovation.

3. Develop Your Proposal

Write a compelling proposal that includes:

Clear technical objectives and innovation
Market analysis and commercial potential
Team qualifications and capabilities
Detailed work plan and budget
Commercialization strategy

4. Submit Application

Submit through the agency's designated portal (often Grants.gov or agency-specific systems) by the deadline. Ensure all required documents are included.

5. Review and Response

Proposals are reviewed by technical experts. If selected, you'll receive feedback and prepare for award. If not selected, incorporate feedback and consider resubmission.

Success Strategies

1. Align with Agency Mission

Clearly demonstrate how your innovation addresses the agency's mission and priorities. Review past awards to understand what gets funded.

2. Demonstrate Technical Merit

Provide strong technical justification, clear objectives, and a feasible approach. Include preliminary data if available.

3. Show Commercial Potential

Clearly articulate the market opportunity, customer needs, and commercialization pathway. Include market research and competitive analysis.

4. Build Strong Team

Assemble a team with relevant expertise, including technical, business, and commercialization capabilities. For STTR, ensure strong university partnership.