SBIR/STTR 101
The Small Business Innovation Research program is the US government's $4B/year fund for startup R&D. Non-dilutive — you keep 100% of your company.
First-time applicants with strong proposals win at 15-20%.
$4B+
Annual funding
11
Federal agencies
0%
Equity given up
SBIR vs STTR
SBIR
Small business does the work. PI must be employed by the company. Can subcontract up to 33% (Phase I) or 50% (Phase II).
STTR
Requires a research institution partner (university, lab). At least 30% must be done by the small business, 30% by the research partner.
The Three Phases
Phase I — Proof of Concept
$50,000 - $275,000Duration: 6-12 months · Goal: Prove your idea is technically feasible
- + Focus on the technical innovation, not the business plan
- + You need a clear problem → solution → why it matters narrative
- + Prior research or a prototype significantly increases your chances
- + Budget should be realistic — reviewers know what things cost
Phase II — Full R&D
$500,000 - $1,750,000Duration: 2 years · Goal: Build the full prototype and prove it works
- + Phase I results are critical — show what you learned
- + You need a path to commercialization (Phase III)
- + Customer letters of intent strengthen your application
- + Budget for testing, iteration, and customer discovery
Phase III — Commercialization
No SBIR funding — use private/agency contractsDuration: Ongoing · Goal: Bring the product to market using non-SBIR funds
- + Federal agencies can sole-source contracts to Phase III companies
- + This is where the real revenue comes from
- + Phase II results + agency relationships = contracts
Funding Agencies
DOD
Defense technology, cybersecurity, materials, logistics
$2.2B
View topics →NIH
Biotech, medical devices, digital health, therapeutics
$1.2B
View topics →NSF
Deep tech, AI/ML, advanced manufacturing, clean energy
$250M
View topics →DOE
Energy, climate, nuclear, grid, batteries, hydrogen
$400M
View topics →NASA
Space tech, propulsion, materials, Earth observation
$200M
View topics →USDA
Agriculture, food safety, rural development, forestry
$35M
View topics →How to Apply (5 Steps)
- 1. Register — Get a SAM.gov registration and DUNS/UEI number (takes 2-4 weeks — start now)
- 2. Find your topic — Browse open solicitations at SBIR.gov. Match your tech to agency needs
- 3. Write the proposal — Technical plan + team qualifications + budget. Use SBDC or SCORE for free help
- 4. Submit — Through the agency's portal (usually SBIR.gov or agency-specific). Don't miss deadlines
- 5. Wait 3-6 months — Review panels score proposals. Awards announced on rolling basis