top of page
Writer's pictureRon Ben Tsvi

SBIR & STTR – a strategic financial non-dilutive instrument to fund your R&D costs SBA awards $2 bil


SBA - Eagle Point Funding
ABA awards $2 billion to small high-tech businesses every year

The SBA Office of Technology have two R&D funding programs:

  1. SBIR - Small Business Innovation Research program

  2. STTR- Small Business Technology Transfer program

Each year, eleven federal departments and agencies are required by SBA to reserve a portion of their R&D funds for award to small high-tech business

  • Department of Agriculture

  • Department of Commerce

  • Department of Defense

  • Department of Education

  • Department of Energy

  • Department of Health and Human Services

  • Department of Homeland Security

  • Department of Transportation

  • Environmental Protection Agency

  • National Aeronautics and Space Administration

  • National Science Foundation

In average SBA awards $2,000,000,000 to small high-tech companies.

Let’s explore these 2 programs

SBIR


SBIR Qualifications:

Small businesses must meet certain eligibility criteria to participate in the SBIR program.

· American-owned and independently operated

  • For-profit

  • Principal researcher employed by business

  • Company size limited to 500 employees

10 Key elements for getting an award:

  1. Scientific and technical merits

  2. Responsiveness to the topic of the opportunity and contribution to the Federal Department

  3. The degree of innovation

  4. Soundness of technical concept

  5. Offeror's awareness of the state of the art and understanding of the scope of the problem

  6. Significance and originality of the technical approach effort needed to address/solve the problem,

  7. The anticipated scientific impact within the field

  8. The Offeror’s capabilities, related experience, facilities, techniques or unique combinations of these which are integral factors for achieving the proposal objectives

  9. The qualifications, capabilities and experience of the proposed Principal Investigator (PI), team leader and key personnel who are critical to achieving the proposal objectives

  10. Future market potential.


The SBIR Process: These agencies designate R&D topics and accept proposals with three phase programs:

  • Phase I - Awards of up to $100,000 for approximately 6 months

Phase I support exploration of the technical merit or feasibility of an idea or technology.

  • Phase II - awards of up to $750,000, for as many as 2 years

Phase II expand Phase I results. During this time, the R&D work is performed and the

developer evaluates commercialization potential. Only Phase I award winners are

considered for Phase II.

  • · Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace.

No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding.

STTR

STTR - Small Business Technology Transfer Program program expands funding opportunities in the federal innovation research and development arena. Central to the program is expansion of the public/private sector partnership to include the joint venture opportunities for small business and the nation’s premier nonprofit research institutions.

Each year, five federal departments and agencies are required by STTR to reserve a portion of their R&D funds for award to small business/nonprofit research institution partnerships:

  • Department of Defense

  • Department of Energy

  • Department of Health and Human Services

  • National Aeronautics and Space Administration

  • National Science Foundation


STTR Qualifications:

Small businesses must meet certain eligibility criteria to participate in the STTR Program:

  • American-owned and independently operated For-profit

  • Principal researcher need not be employed by small business

  • Company size limited to 500 employees (No size limit for nonprofit research institution)

  • The nonprofit research institution must also meet certain eligibility criteria.

  • Located in the US

  • Meet one of three definitions:

1. Nonprofit college or university

2. Domestic nonprofit research organization

3. Federally funded R&D center (FFRDC)


The STTR Process: These agencies designate R&D topics and accept proposals with three phase programs:

  • Phase I- Awards of up to $100,000 for approximately one year fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology.

  • Phase II -awards of up to $750,000, for as long as two years, expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercial potential. Only Phase I award winners are considered for Phase II.

  • Phase III - is the period during which Phase II innovation moves from the laboratory into the marketplace. No STTR funds support this phase. The small business must find funding in the private sector or other non-STTR federal agency funding. #SBIR #STTR #non_dilutive

74 views0 comments

Recent Posts

See All

Comments


bottom of page