SBIR/STTR Agencies
Several federal agencies participate in the SBIR and STTR programs, each contributing a portion of their extramural research budgets to fund small businesses. Federal agencies with extramural research and development (R&D) budgets exceeding $100 million are required to allocate 3.2% (since FY2017) of this budget to fund small businesses through the SBIR program. Agencies with extramural R&D budgets over $1 billion must reserve 0.45% (since FY2016) of this budget for the STTR program.
Each agency has specific research interests and priorities, guiding the allocation of SBIR and STTR funds to projects that align with national research and development goals. SBIR/STTR Phase I awards range from $50,000 to $250,000 for 6 months (SBIR) or 1 year (STTR). Phase II aims to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the proposed project's scientific and technical merit and commercial potential. Only Phase I awardees are typically eligible for a Phase II award, which generally provides $750,000 for 2 years.SBIR and STTR support scientific excellence and technological innovation through federal research funds invested in critical American priorities to build a strong national economy.
The key difference between the programs lies in their structure and partnership requirements. SBIR grants and contracts are awarded to small businesses focused on research and development with commercial potential but do not necessarily require collaboration with a research institution. Contracts are typically more directive, requiring specific deliverables and having terms negotiated directly with the funding agency, whereas grants provide financial support for research with more flexibility regarding objectives.
Agency | Agency Logo | Award Type | Phase I Release | Phase II Release | TABA Availability |
|---|---|---|---|---|---|
Department of Health and Human Services (HHS) | Grants | Multiple Due Dates throughout the Year | 6 Months after Phase I | Available | |
Department of Commerce (DOC) | Grants | December - February | 6 Months after Phase I | Available | |
U.S. Department of Agriculture (USDA) | Grants | July - October | 6 Months after Phase I | Available | |
National Science Foundation (NSF) | Grants | Multiple Due Dates throughout the Year | 6 - 12 months after Phase I | Available only for Phase II | |
Department of Energy (DOE) | Grants | December - February; August - October | 6 Months after Phase I | Available | |
Department of Homeland Security (DHS) | Contracts | November - January | 6 Months after Phase I | Available (discretionary) | |
Department of Defense (DOD) | Contracts | Variable but generally: Dec - Feb, Apr - Jun, Aug - Oct | 6 Months after Phase I | Varies by branch | |
Department of Transportation (DOT) | Contracts | February - March | 6 Months after Phase I | Available | |
Department of Education (ED) | Contracts | December - February; August - October | 6 Months after Phase I | Available | |
Environmental Protection Agency (EPA) | Contracts | June - August | 6 Months after Phase I | Available | |
National Aeronautics and Space Administration | Contracts | January - March | 6 Months after Phase I | Available |
Grants vs. Contracts
STTRs, on the other hand, mandate formal collaboration with a US-based nonprofit college or university, domestic nonprofit research organization, or Federally Funded R&D Center (FFRDC) in Phases I and II, fostering a direct connection between basic science and commercialization.Both programs are designed to help small businesses explore their technological potential and provide solutions that meet the U.S. government's specific research and development needs. The SBIR and STTR programs offer funding through grants or contracts. Contracts are typically more directive, requiring specific deliverables and having terms negotiated directly with the funding agency, whereas grants provide financial support for research with more flexibility regarding objectives.Additionally, small businesses and partnering institutions must establish an IP agreement detailing the allocation of IP rights and the rights to conduct follow-on research, development, or commercialization activities.
