SBIR Programs

SBIR / STTR

The Small Business Administration (SBA) Office of Technology strengthens and expands the competitiveness of U. S. small high technology research and development businesses in the federal marketplace. This office assists in achieving the commercialization of the results of the federal research and development programs mandated by the Small Business Innovation Development Act of 1982, the Small Business Research and Development Enhancement Act of 1992, and the Small Business Innovation Research Program Reauthorization Act of 2000.

The Office of Technology carries out its mission through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, providing grants and contracts to small businesses and individual entrepreneurs seeking to start a small business to meet the research and development needs of the federal government and military.

SBIR and STTR programs fund over $1.2 billion annually in early-stage R&D projects at small high-tech firms – projects with potential for commercialization in private and government-sector markets.

Rochester PTAC is helping small business concerns explore SBIR and STTR opportunities. We can use "SBIR" and "STTR", along with other key words, in your unique search profile for bid matching. Now, you can access an easy and efficient tool to learn about solicitations for which you may qualify.

SBIR

The Small Business Innovation Research (SBIR) was established in 1982 under the Small Business Innovation Development Act. Each agency with an extramural R&D budget in excess of $100 million must establish an SBIR program using a set-aside of 2.5 percent. Since its enactment, SBIR has helped thousands of small businesses compete for federal R&D grants and contracts.

The SBIR program helps to create new technologies that offer solutions to the nation's most pressing scientific and engineering problems. The principle objectives of the SBIR program are to stimulate technological innovation; strengthen the role of the small business concern in meeting federal R&D needs; encourage participation of socio-economic disadvantaged and women owned small businesses in technological innovation; and increase private sector commercialization of federally supported R&D.

SBIR program solicitations are issued by eleven federal agencies, including the Department of Agriculture, the Department of Commerce, the Department of Defense, the Department of Education, the Department of Energy, the Department of Health and Human Services, the Department of Homeland Security, the Department of Transportation, the Environmental Protection Agency, the National Aeronautics and Space Administration, and the National Science Foundation.

SBIR Program Eligibility

• Be qualified as a small business concern as defined by the Small Business Administration.
• Be a for-profit U.S. business concern. Business structure can be a sole proprietorship, partnership, corporation, joint venture, association, trust or a cooperative agreement.
• Be at least 51% owned and independently operated.
• Have no more than 500 employees at the time of award.
• Primary Investigator’s primary employment (more than 50%) must be with the small business during award period.
• For Phase I, small business concern must perform 67% of research. Consultant fees and contracts to third parties for portions of the research cannot exceed 33% of the total budget.
• For Phase II, small business concern must perform 50% of the work.

STTR

The Small Business Technology Transfer (STTR) program was established by the Small Business Technology Transfer Act of 1992. Federal agencies with R&D budgets in excess of $1 billion must establish an STTR program using a set-aside of .15 percent (expected to increase to .3 percent in 2004). Central to the STTR program is expansion of the public/private sector partnership to include joint venture opportunities for small business and the nation's premier nonprofit research institutions. STTR's most important role is to foster the innovation necessary to meet the nation's scientific and technological challenges in the 21st century.

Small business has long been where innovation and innovators thrive. But the risk and expense of conducting serious R&D efforts can be beyond the means of many small businesses. Conversely, nonprofit research laboratories are instrumental in developing high-tech innovations. But frequently, innovation is confined to the theoretical, not the practical. STTR combines the strengths of both entities by introducing entrepreneurial skills to high-tech research efforts. The technologies and products are transferred from the laboratory to the marketplace. The small business profits from the commercialization, which, in turn, stimulates the U.S. economy.

STTR program solicitations are issued by five federal agencies, including the Department of Defense, the Department of Energy, the Department of Health and Human Services, the National Aeronautics and Space Administration, and the National Science Foundation.

STTR Program Eligibility

• At least 40% of the work must be performed by the small business and the research institution must perform at least 30 percent.
• The Primary Investigator must have a formal appointment with or commitment to the applicant small business organization.
• Small business must be qualified as a small business concern as defined by the Small Business Administration.
• Small business must be a for-profit US business firm. Business can be in the form of a sole proprietorship, partnership, corporation, joint venture, association, trust or a cooperative agreement.
• Small business concern must be at least 51% owned and independently operated.
• Small business must have no more than 500 employees at the time of award.
• Research institutions eligible to participate must meet one of the following criteria:
  • Be a contractor-operated, federal-funded research and development center
  • Be a non-profit research institutions
  • Be a non-profit college or university

Three Phases of SBIR and STTR

• Phase I is the pre-prototype phase. Small businesses are funded up to $100,000 for approximately 6 months (1 year for STTR) to explore the technical merit or feasibility of an idea, concept, or technology.
• Phase II is the prototype phase. Small businesses previously funded a Phase I award are funded up to $750,000 ($500,000 for STTR), for a period of up to 2 years, to expand on phase I results. During this phase, R&D work is implemented and commercialization potential is evaluated.
• Phase III is the commercialization phase. The innovation is moved from the laboratory into the marketplace, and outside funds (non-SBIR and non-STTR) are used to market the product.