Small Business Innovation Research Program (SBIR) is a highly competitive program that encourages small business to explore their technological potential and provides the incentive to profit from its commercialization. SBIR funds the critical startup and development stages and it encourages the commercialization of the technology, product, or services, which in turn, stimulates the U.S. economy.

SBIR Qualifications

Small businesses must meet certain eligibility criteria to participate in the SBIR program.

• American-owned and independently operated
• For-profit
• Principal researcher employed by business
• Company size limited to 500 employees

Three-Phase Program

Following submission of proposals, agencies make SBIR awards based on small business qualification, degree of innovation, technical merit, and future market potential. Small businesses that receive awards or grants then begin a three-phase program.

• Phase I is the startup phase. Awards of up to $100,000 for approximately 6 months support the exploration of the technical merit of feasibility of an idea or technology.
• Phase II awards of up to $750,000, for as many as 2 years, expand Phase I results. During this time, the R&D work is performed and the developer evaluates commercialization 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 SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding.

Small Business Technology Transfer Program is an important new small business program that expands funding opportunities in the federal innovation research and development arena. Central to the program is expansion of the public/privite sector partnership to include the joint venture opportunities for small business and the nation's premier nonprofit research institutions.

STTR Qualifications:

Small businesses must meet certain eligibility criteria to participate in the STTR program.

• American-owned and independently operated
• For-profit
• Principal researcher employed by business
• Company size limited to 500 employees

(No Size limit for nonprofit research institution)

The nonprofit research institution must also meet certain eligibility criteria.

• Located in the US
• Meet one of three definitions
• Nonprofit college or university
• Domestic nonprofit research organization
• Federally funded R&D center (FFRDC)

Three-Phase Program

Following submission of proposals, agencies make STTR awards based on small business/nonprofit research institution qualification, degree of innovation and future market potential. Small businesses that receive awards or grants then begin a three-phase program.

• Phase I is the startup phase. Awards of up to $100,000 for approximately 1 year fund the exploration of the scientific, technical, and commercial feasibility of the idea or technology.
• Phase II awards of up to $500,000, for as long as 2 years, expand Phase I results. During this time, 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.

For further information on SBIR and STTR visit Small Business Administration site at
http://www.sba.gov/sbir/indexsbir-sttr.html or SBIR/STTR home page
http://www.eng.nsf.gov/sbir