A Complete Overview of Small Business Innovation Research (SBIR) For High-Tech Innovators

Innovation in the U.S. often begins with a small company and a bold idea but accessing early-stage capital is one of the biggest obstacles founders face. The Small Business Innovation Research (SBIR) program provides billions in non-dilutive funding each year to help startups prove, develop, and commercialize breakthrough technologies. For deep-tech solutions, SBIR is a critical pathway from concept to commercial product.  

Organizations like Eagle Point Funding (EPF) simplify the SBIR process by giving you targeted support where it matters. EPF helps you find the right SBIR opportunities and craft competitive proposals that increase your chances of getting funded. 

 Table of Contents 

1. What Is a SBIR? 

2. Why SBIR Matters for Small Businesses 

3. Who Is Eligible? 

4. SBIR Phases & Award Amounts 

5. Industries & Technology Areas That Benefit Most 

6. Participating Federal Agencies 

7. How EPF Can Help You Succeed 

8. FAQ – Common Questions About SBIRs 

9. Key Takeaways 

1. What Is a SBIR? 

The Small Business Innovation Research (SBIR) program is the U.S. government’s largest source of non-dilutive R&D funding dedicated only to small businesses. It supports high-risk, high-impact technology development while accelerating commercialization. 

Managed by the SBA, SBIR provides competitive funding across 12 federal agencies, each with its own topics, schedules, and review processes. 

Schedule a free call to learn which agency, topic, and funding amount your company can qualify for.  

2. Why SBIR Matters for Small Businesses 

SBIR funding enables startups to: 

• Advance early-stage R&D without giving up equity 

• De-risk technology for future customers or investors 

• Build federally validated prototypes 

• Enter federal procurement pathways 

• Attract follow-on investment, pilots, and commercial partners 

For deep-tech companies, SBIR is often the bridge from laboratory concepts to viable commercial products. 

3. Who Is Eligible? 

To qualify, a company must be: 

• A for-profit U.S. business 

• ≤ 500 employees 

• 51% U.S.-owned (citizens or permanent residents) 

4. SBIR Phases & Award Amounts 

Phase I – Feasibility (Proof of Concept) 

• Awards: $75k–$300k 

• Duration: 6–12 months 

Phase II – R&D and Prototype Development 

• Awards: $4000k–$2M+ 

• Duration: 12–24 months 

Phase III – Commercialization 

• No SBIR funds 

• Unlimited award amount 

• Supported through: 

• Private investment 

• Government procurement 

• Commercial sales 

Some agencies offer Phase II follow-on opportunities or commercialization supplements. 

5. Industries & Technology Areas That Benefit Most 

SBIR spans nearly every advanced sector, including: 

• Defense & Space 

• Drones & Manufacturing  

• Energy & Advanced Computing 

• AI & Autonomy 

• Cyber & Quantum 

• Environmental & Climate Tech  

• Transportation & Mobility  

• Food Tech & AgTech  

SBIR funding exists to strengthen and advance U.S. based innovation. 

6. Participating Federal Agencies 

Key SBIR agencies include: 

• DoW (DARPA, AFWERX, NOAA) 

• DOE 

• NSF 

• NASA 

• DHS 

• DOT 

• EPA 

• USDA 

• NIST 

Together, these programs distribute over $3.5–$4B annually. 

7. How EPF Can Help You Succeed 

For more than 25 years, Eagle Point Funding (EPF) have helped dual-use startups cross the “Innovation Valley of Death” through funding, government access, and market support. 

Eagle Point Funding (EPF) 

EPF helps companies maximize non-dilutive R&D funding by providing: 

• Identification of top federal R&D and commercialization opportunities 

• Assisting in drafting proposals for federal grants and contracts 

• Support for LoIs, MoUs, and matching funds 

• Multi-agency funding strategies to build long-term pipelines 

Next Step: Set up a free call so we can pinpoint the right agency, topic, and funding amount for your company. 

8. FAQ – Common Questions About SBIRs 

Q1: Do I need to have a prototype before applying? 

No. You only need a strong concept and feasibility plan for Phase I. Prototypes are developed in Phase II. 

Q2: How competitive is SBIR? 

SBIRs are very competitive, with most agencies funding only 10–20% of applicants. But companies with strong technical merit and commercialization plans have a major advantage and that’s where we can help. Learn more on a call with our experts. 

Q3: Can foreign founders apply? 

No, the program is only open for US-based and operated companies. Companies that have foreign ownership must be able to declare more than 50% direct ownership and control by US citizens, and disclose any foreign involvement in the company 

Q4: Can I apply to multiple agencies? 

Yes, many companies build multi-agency strategies across DoD, NSF, DOE, etc. 

Q5: How long does it take to receive funding? 

Typically 2–6 months from submission, depending on the agency. 

Q6: Do SBIR awards need matching funds? 

Generally no. Some supplements (like Phase IIB) may require matches. 

Q7: Can I raise VC funding and still apply? 

Yes, as long as the company remains U.S.-owned and meets all eligibility criteria. 

9. Key Takeaways 

• SBIR is the premier non-dilutive funding mechanism for U.S. deep-tech startups. 

• Awards range from $75k–$2M+ across Phase I and II. 

• Nearly every advanced technology sector is eligible. 

• Success depends on aligning with the right agency and demonstrating commercialization potential. 

• EPF offers an end-to-end solution, from identifying opportunities and writing proposals to securing partners and scaling commercialization. 

Next Steps: Review upcoming deadlines with EPF to start your SBIR funding journey today.