SBIR & STTR Grants Complete Guide
Everything you need to know about Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants. Win up to $1.7M in federal R&D funding.
What are SBIR & STTR Grants?
Federal program that encourages domestic small businesses to engage in R&D with commercialization potential.
- • Small business must own 51%+ of the company
- • Focus on innovation and commercialization
- • No required partnerships
- • Principal investigator must be primarily employed by the small business
Requires partnership between small business and research institution to foster technology transfer.
- • Required partnership with research institution
- • Small business performs 40%+ of work
- • Research institution performs 30%+ of work
- • Promotes technology transfer from academia
SBIR/STTR Three-Phase Structure
Establish technical merit, feasibility, and commercial potential. Determine if the research idea has merit and if the company can perform the research.
Continue R&D efforts, build prototypes, and demonstrate commercial potential. Only Phase I recipients can apply for Phase II.
No SBIR/STTR funds provided. Companies pursue commercialization through private investment, partnerships, or federal contracts.
Participating Federal Agencies
Major SBIR/STTR Agencies:
- Department of Defense (DoD) - $1.8B annually
- National Institutes of Health (NIH) - $900M annually
- National Science Foundation (NSF) - $200M annually
- Department of Energy (DOE) - $150M annually
- NASA - $130M annually
Other Agencies:
- Department of Agriculture (USDA)
- Department of Homeland Security (DHS)
- Department of Transportation (DOT)
- Environmental Protection Agency (EPA)
- Department of Education (ED)
Eligibility Requirements
✅ You Must Be:
- Small Business: ≤ 500 employees, for-profit company
- US Owned: ≥ 51% owned by US citizens or permanent residents
- Principal Investigator: Primarily employed by your company
- R&D Focus: Conducting research with commercial potential
❌ Restrictions:
- No Large Businesses: Cannot be majority-owned by large companies
- No Foreign Ownership: Cannot be majority foreign-owned
- No Current Federal Funding: Cannot use other federal funds for same work
- Employee Limit: Must maintain small business status throughout
Ready to Apply for SBIR/STTR Grants?
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