SBIR/STTR Grants

What is the SBIR program?

The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation’s R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.

The SBIR Program is structured in three phases:

Phase I. The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small business awardee organization prior to providing further Federal support in Phase II. SBIR Phase I awards normally do not exceed $150,000 total costs for 6 months.

Phase II. The objective of Phase II is to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II. Only Phase I awardees are eligible for a Phase II award. SBIR Phase II awards normally do not exceed $1,000,000 total costs for 2 years.

Phase III. The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. The SBIR program does not fund Phase III. Some Federal agencies, Phase III may involve follow-on non-SBIR funded R&D or production contracts for products, processes or services intended for use by the U.S. Government.

SBIR Participating Agencies

Each year, Federal agencies with extramural research and development (R&D) budgets that exceed $100 million are required to allocate 3.2 percent (FY 2017) of their R&D budget to these programs. Currently, eleven Federal agencies participate in the SBIR program:

Department of Agriculture
Department of Commerce – National Institute of Standards and Technology
Department of Commerce – National Oceanic and Atmospheric Administration
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

Each agency administers its own individual program within guidelines established by Congress. These agencies designate R&D topics in their solicitations and accept proposals from small businesses. Awards are made on a competitive basis after proposal evaluation.

What is the STTR program?

The Small Business Technology Transfer (STTR) is another program that expands funding opportunities in the federal innovation research and development (R&D) arena. Central to the program is expansion of the public/private sector partnership to include the joint venture opportunities for small businesses and nonprofit research institutions. The unique feature of the STTR program is the requirement for the small business to formally collaborate with a research institution in Phase I and Phase II. STTR’s most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.

The STTR Program is structured in three phases:

Phase I. The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small businesses prior to providing further Federal support in Phase II. STTR Phase I awards normally do not exceed $150,000 total costs for 1 year.

Phase II. The objective of Phase II is to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the Phase II project proposed. Only Phase I awardees are eligible for a Phase II award. STTR Phase II awards normally do not exceed $1,000,000 total costs for 2 years.

Phase III. The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. The STTR program does not fund Phase III. In some Federal agencies, Phase III may involve follow-on non-STTR funded R&D or production contracts for products, processes or services intended for use by the U.S. Government.

STTR Participating Agencies

Each year, Federal agencies with extramural research and development (R&D) budgets that exceed $1 billion are required to reserve 0.3% of the extramural research budget for STTR awards to small businesses. These agencies designate R&D topics and accept proposals. Currently, five agencies participate in the STTR program:

Department of Defense
Department of Energy
Department of Health and Human Services
National Aeronautics and Space Administration
National Science Foundation

Each agency administers its own individual program within guidelines established by Congress.  These agencies designate R&D topics in their solicitations and accept proposals from small businesses. Awards are made on a competitive basis after proposal evaluation.

How can KOUSE support company candidates interested in the SBIR/STTR program to receive an award from SBIR/STTR?

If you are a foreign company or organization, KOUSE can help you open up a US office, form a joint venture, or explore other strategic relationships in order to create a US company controlling over 50% ownership of the company, in order to qualify for an award from SBIR/STTR.

KOUSE can prepare your SBIR/STTR applications in order to receive funding. KOUSE can review your technology and determine the appropriate federal agency to apply for funding. KOUSE researches, locates, and identifies the available SBIR/STTR funding, based on your technology areas.

KOUSE provides SBIR/STTR grant application drafting, analyzing, strategy, compliance, and consulting services that will significantly improve the quality of your SBIR/STTR grant applications. KOUSE creates a timeline for submitting proposals. SBIR/STTR uses a rating score procedure to ensure that only the best scientific proposals are funded. Therefore, it is very important and beneficial to use a consultant to increase the quality of your application for funding, in order to increase the likelihood of receiving an award from SBIR/STTR. In the SBIR/STTR application, it is important to convey your ideas in a clear, efficient, and straightforward manner.

KOUSE communicates with federal agencies and program officers. KOUSE can prepare the complete grant proposal documents. KOUSE can submit the grant application package. KOUSE covers all technology areas.