SBIR/STTR Programs

The nation's largest source of early stage/high risk funding for start-ups and small business

What is SBIR and STTR?

The Small Business Innovation Research ( SBIR) and Small Business Technology Transfer Research ( STTR) programs, also known as America's Seed Fund, are one of the largest sources of early-stage capital for technology commercialization in the United States.

SBIR and STTR are federal programs that allow small businesses to compete for research dollars to test, prototype and commercialize new products. Small businesses are creative and flexible and can bring new solutions to the market quickly.

SBIR 101 (Quick Review)

Quick introduction to SBIR and STTR

What does the money to fund SBIR and STTR programs come from?

The money to fund SBIR and STTR programs come from every federal agency with an extramural R&D budget over $100 million is required to contribute 2.8% to the SBIR program. In addition, every federal agency with an extramural R&D budget over $1 billion is required to contribute 0.4% to the STTR program. This equates to a combined total of $2.5 billion available annually.

*Numbers based on 2015 data

Who is the administrator?

The administrator is SBA (Small Business Administration).

Which agencies participate in the SBIR and STTR programs?

The agencies participating in SBIR are as follows:

DOD – Department of Defense
NIH – National Institute of Health
NSF – National Science Foundation
DOE – Department of Energy
NASA – National Aeronautics and Space Administration
DHS – Department of Health and Human Services
USDA – U.S. Department of Agriculture
DOC – Department of Commerce
DOT – Department of Transportation
EPA – Environmental Protection Agency
DoEd – Department of Education

The agencies participating in STTR are as follows:

DOD – Department of Defense
NIH – National Institute of Health
NSF – National Science Foundation
DOE – Department of Energy
NASA – National Aeronautics and Space Administration
USDA – Department of Agriculture

How much money is awarded?

The money is awarded into three Phases.

Phase I	Phase II	Phase III
Feasibility/Proof of Concept: $150-225K	Prototype: $1-2.5M	Commercialization: Funded by private sector or by federal agencies

Who can apply?

A small business with a defensible idea or intellectual property can apply. (SBA definition < 500 employees.)

For SBIR the small business must perform 67% of the R&D in Phase I and 50% of the R&D in Phase II.
For STTR the small business must have a research institution* as a partner and the small business must perform 40% of the R&D in Phase I & II.

A university or a national lab