Comprehensive 2026-2027 guide to NASA SBIR/STTR grants providing up to $850,000 in non-dilutive funding for satellite systems, remote sensing, advanced propulsion, aeronautics, lunar surface technology, and space exploration innovations. Complete application strategies, eligibility requirements, success rates, and funding timelines for Phase I ($150,000) and Phase II ($850,000) awards supporting space tech startups across all 50 states. NASA SBIR takes no equity, requires no repayment, funding transformative aerospace R&D advancing space exploration and aeronautics through innovative small business solutions supporting NASA missions to Moon, Mars, and beyond[web:202][web:204][web:207].
Aerospace Innovation:
120+ NASA awards annually
Space Exploration:
80+ NASA awards annually
Aeronautics & Space:
50+ NASA awards annually
New Space Industry:
40+ NASA awards annually
The NASA SBIR/STTR program provides non-dilutive grants for research and development of innovative space technologies addressing NASA mission needs and commercial space market opportunities. NASA seeks breakthrough innovations in satellite systems, remote sensing, propulsion, lunar surface technology, Mars exploration, aeronautics, and dual-use space applications with strong commercialization potential[web:202][web:204][web:207].
Space tech startups can access Phase I funding (up to $150,000) to prove technical feasibility and space application over 6 months, followed by Phase II awards (up to $850,000) for prototype development, space testing, and commercial transition over 24 months. NASA evaluates proposals on technical innovation, NASA mission relevance, commercial viability, and dual-use potential supporting Artemis lunar program, Mars exploration, Earth science satellites, space stations, and aeronautics advancing American leadership in space[web:202][web:203][web:207].
Complete breakdown of Phase I, Phase II funding programs with space tech topic areas and application timelines
Phase I Space Tech Objectives:
• Technical Feasibility: Prove space technology works in relevant environment with space-grade performance metrics
• NASA Mission Relevance: Demonstrate technology addresses specific NASA need supporting Artemis lunar Mars exploration satellites
• Space Application: Validate technology functions in space conditions vacuum thermal radiation microgravity
• Commercial Viability: Identify commercial space market applications beyond NASA enabling dual-use business model
• Phase II Readiness: Develop prototype design manufacturing plan testing strategy for Phase II development
🚀 Silicon Valley Satellite - $150K Phase I
California satellite startup received NASA Phase I for miniaturized propulsion system enabling 50% mass reduction CubeSat missions validated through ground testing. Transition to Phase II with commercial launch customer.
Location: Silicon Valley CA | Tech: Propulsion | Phase II: Funded $850K
🚀 Houston Lunar Tech - $145K Phase I Grant
Texas lunar technology company obtained NASA SBIR Phase I for regolith excavation system supporting Artemis lunar base construction validated through lunar simulant testing. NASA Johnson Space Center partnership.
Location: Houston TX | Tech: Lunar Systems | Mission: Artemis program
🚀 Boston Remote Sensing - $150K Phase I Award
Massachusetts Earth observation startup secured NASA Phase I for hyperspectral imaging sensor achieving 10x resolution improvement for climate monitoring validated through airborne testing. Commercial agriculture customers identified.
Location: Boston MA | Tech: Remote Sensing | Resolution: 10x improvement
🚀 Seattle Aeronautics - $140K Phase I Funding
Washington aeronautics startup received NASA SBIR Phase I for electric propulsion system reducing aircraft emissions 80% validated through wind tunnel testing. Commercial aviation partnerships with regional carriers exploring adoption.
Location: Seattle WA | Tech: Aeronautics | Emissions: -80% reduction
Annual Solicitations:
Review Timeline:
SBIR Ignite Program:
Visit nasa.gov/sbir_sttr for topic releases and ProSAMS submission portal[web:202][web:208]
Phase II Space Activities:
💎 LA Satellite - $850K Phase II + $10M Contract
California satellite company received $850K NASA Phase II for advanced propulsion system deployed on NASA Earth science mission. Subsequently secured $10M NASA contract for 5 additional satellite missions plus $20M commercial contracts with imaging companies.
Location: Los Angeles CA | Contract: $10M NASA | Commercial: $20M
💎 Houston Lunar - $800K Phase II Award
Texas lunar technology startup obtained $800K NASA Phase II for excavation system selected for Artemis lunar mission technology demonstration. Commercial mining partnerships with $30M contracts demonstrating terrestrial applications. Pre-IPO valuation $150M.
Location: Houston TX | Mission: Artemis | Valuation: $150M
💎 Boston Remote Sensing - $850K Phase II Funding
Massachusetts Earth observation company secured $850K NASA Phase II for hyperspectral sensor deployed on International Space Station. Commercial agriculture customers generating $25M ARR. Acquired by aerospace prime contractor for $200M validating dual-use business model.
Location: Boston MA | Exit: $200M acquisition | Revenue: $25M ARR
A NASA SBIR proposal is a strict 19-page technical document. Evaluators score these specific sections. Here is how to structure for maximum points.
The Hook: State clearly: "We will demonstrate X performance by Y metric." Do not explain why space is important; explain what you are building. Map specific TRL movement (e.g., "From TRL 3 to TRL 5").
The Meat: Break down the 6-month project into strictly defined tasks. Bad: "We will study the problem." Good: "Task 1: Design Vacuum Chamber Mount (Weeks 1-2). Task 2: Conduct Thermal Cycling -40C to +120C (Weeks 3-6)."
Credibility: Why you? Highlight the Principal Investigator's (PI) specific experience with this exact technology. Mention past NASA work or relevant academic publications. prove you have the "chops."
The Payoff: NASA wants to buy the product, but they also want others to buy it. List 3 potential non-NASA customers (e.g., "SpaceX, Blue Origin, Planet Labs"). Quantify the market size. "Dual-use" (military/commercial) is the golden ticket.
Unlike other agencies, NASA lives and dies by Technology Readiness Levels (TRL). Your proposal must explicitly state your current TRL (Start TRL) and where you expect to be after Phase I (End TRL). Misunderstanding this scale is the #1 reason for rejection.
"Don't inflate your TRL. If you claim TRL 4 but haven't tested in a vacuum chamber, we will know. Honest self-assessment wins points. Phase I is specifically designed to move you from TRL 2/3 to TRL 4/5."
NASA solicits proposals in specific "Focus Areas." Aligning your innovation with one of these priorities exponentially increases your funding odds.
Low Earth Orbit is open for business. NASA needs tech to support private space stations.
3D printing of medical tissues, fiber optics, or large structures in microgravity.
Sensors for tracking < 10cm debris and active removal systems (nets, lasers, tugs).
Autonomous docking systems and "smart containers" for cargo transfer between vehicles.
Closed-loop air/water recycling with >98% efficiency for long-duration orbital stays.
Technology to sustain human presence on the Lunar surface and eventually Mars.
Extracting water ice from lunar regolith and converting it to rocket fuel (Hydrogen/Oxygen).
Coatings and electrodynamic shields to keep abrasive lunar dust off spacesuits and solar panels.
Fission surface power and vertical solar array technology for the lunar south pole (eternal light/dark).
High-bandwidth optical (laser) communications to transmit HD video from Mars to Earth.
Monitoring our changing planet with unprecedented precision.
Compact sensors detecting methane leaks, crop health, or phytoplankton from orbit.
Edge AI chips to process terabytes of raw data in orbit and downlink only relevant insights.
High-altitude, long-endurance autonomous aircraft for atmospheric sampling.
Dedicated micro-launch vehicles to place specific science payloads into precise orbits.
Not all SBIR money is created equal. Here is how NASA stacks up against the other big funders.
| Feature | NASA (Space) | DoD (Defense) | NSF (Science) |
|---|---|---|---|
| Topic Focus | Niche Tech (Mission Specific) | Warfighting Needs (Very Specific) | Broad Science (Tech Agnostic) |
| Commercialization | Priority (NASA + Commercial) | Sole Customer (DoD) | Mass Market (Commercial Only) |
| Phase I Amount | $150,000 | $140,000 - $180,000 | $275,000 |
| Phase II Amount | $850,000 | $1.2M - $1.8M | $1,000,000 |
| Contracting Officer | Helpful / Collaborative | Strict / Bureaucratic | Hands-off / Grant-like |
| Verdict | Best for "Deep Tech" Space Startups | Best for Military Tech | Best for Platform Tech |
Clearly articulate how technology addresses specific NASA need supporting Artemis lunar program Mars exploration Earth science satellites with quantified mission benefits
Demonstrate technology functions in space environment vacuum thermal radiation microgravity with test data proving space readiness reducing NASA technical risk
Identify commercial space market opportunities beyond NASA enabling business sustainability with commercial customers revenue demonstrating dual-use viability
Engage NASA centers (JPL, JSC, Glenn, Langley, Goddard) for technical support facility access mission integration opportunities strengthening NASA relationships
Generic space technology without clear connection to specific NASA mission or program. Must address topic description requirements and NASA strategic priorities
Technology not validated for space conditions vacuum thermal radiation. NASA needs proof technology survives space environment before funding development
Technology only useful for NASA without commercial applications. Need dual-use business model showing commercial space market enabling company sustainability beyond government contracts
Yes. You do not need a team, an office, or even a formed company at the time of writing the proposal. However, you must be a legally formed US small business (LLC, C-Corp, etc.) by the time the award is granted (usually 4–6 months after submission). Many winners are solo founders who hire contractors or employees after receiving the Phase I funds.
SBIR (Small Business Innovation Research) permits you to partner with a research institution (like a university) but doesn't require it. The small business must perform at least 66% of the work in Phase I.
STTR (Small Business Technology Transfer) requires you to partner with a non-profit research institution (University, FFRDC). The small business performs 40% minimum, and the research partner performs 30% minimum. STTR is less competitive but more complex to manage IP rights.
Zero. NASA SBIR grants are non-dilutive. You retain 100% ownership of your company and, crucially,you retain the Intellectual Property (IP) data rights for 20 years. NASA gets a royalty-free license to use the tech for government purposes, but they cannot share your trade secrets.
Technical and Business Assistance (TABA) is extra money on top of your grant for commercialization help. You can request up to $6,500 in Phase I and $50,000 in Phase II. ALWAYS ask for TABA. It pays for market research, IP lawyers, or financial strategy, and does not reduce your R&D budget.
Yes, and you should! You can submit identical or similar proposals to multiple agencies (NASA, DoD, NSF, DOE). However, you cannot accept funding twice for the exact same work. If both say "Yes," you must choose one or de-scope one project to remove the overlapping tasks.
SBIR is "high risk, high reward." NASA expects some failure. If Phase I fails to prove feasibility, you simply won't win Phase II. You do not pay back the money. You still own the data/research produced. Many companies pivot and win with a different idea next year.
Phase III is the "holy grail." It refers to any funding that comes from non-SBIR budgets to continue the work. This could be a $10M contract from a NASA program office, funding from the Air Force, or private investment. Crucially, Phase III contracts can be awarded as Sole Source (no competitive bidding required) because you already won the competition in Phase I/II.
NASA is one of 11 agencies offering SBIR/STTR funding. Explore sector-specific guides:
NASA SBIR Phase I awards typically provide up to $150,000 for a 6-month period to establish the technical merit, feasibility, and commercial potential of the proposed innovation.
SBIR Ignite is a newer solicitation funded by STMD designed for early-stage companies with active commercial potential. It focuses on reduced documentation and faster potential award times.
Yes, critically. NASA expects Phase I proposals to start at TRL 2-3 (concept/proof) and exit at TRL 4-5 (component validation). Overstating your TRL is a common cause of rejection.
No. SBIR funds are for R&D. However, you can use TABA (Technical and Business Assistance) funds (up to $6,500) to hire a consultant for market studies or IP strategy.
Yes. For SBIR Phase I, the small business must perform at least 67% of the work. For Phase II, it's 50%. STTR allows more subcontracting (up to 60%) to a research institution.
Yes, Phase I awardees are heavily encouraged to apply for the NASA I-Corps program, which provides an additional $10,000 to conduct intense customer discovery training.
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🚀 NASA SBIR Grant Assistance: Phase I $150K • Phase II $850K • Satellite systems • Remote sensing • Propulsion technology • Lunar surface • Mars exploration • Aeronautics innovation • Space qualification • NASA mission integration • Artemis program • Commercial space • Dual-use technology supporting American space leadership advancing exploration Moon Mars beyond
NASA SBIR is moderately competitive with niche focus:
Unique factor: NASA SBIR has the highest commercialization rate of any federal SBIR program — 35% of awardees generate commercial revenue within 5 years.