Ask Questions 
Share Tips 
People in Biz - Profiles 
Coffee Talk with Experts 
Biz Planning | Sample Plans 
Idea 
Name 
$ 
Do It! 
Marketing | Sales | Customers
Managing | Operations
Work @ Home 
Yoga @ Your Desk 
SBIR/STTR Programs
Hey! Are you an inventor? Do you have ideas on how to improve air travel, develop alternative fuels, or grow a super-duper new crop of wheat? Or do you see your business doing important, ground-breaking – maybe even revolutionary research and development – in certain fields of study? Well, if you're an entrepreneur or inventor with R&D and high-tech talents with a goal of starting a small business, or you're in business already, then the federal government's SBIR/STTR programs are a major source of possible venture capital for your business ideas.
These specialized, targeted funding programs offer thousands of technological small business grants each year. See if your small business could benefit from the SBIR/STTR programs.
First of all, let's clear up what SBIR/STTR mean.
SBIR stands for Small Business Innovation Research and STTR stands for Small Business Technology Transfer (yeah, we're not sure how they got STTR either!) The federal government, thru a handful of agencies, administers these two programs to develop business relationships that are for the greater good of the U.S. and its economy. The whole idea behind these programs is to bring public and private resources together, where small businesses can find the funding to do important research and to profit from its hopeful commercialization; and the federal government benefits from the technological advancements and discoveries as well. It brings the strengths of each sector together in a positive way, and these grants are a vital way of helping those qualified small businesses to compete and succeed in the highly competitive technological and R&D fields.
SBIR Program
To qualify for funding thru the SBIR program, your small business must have less than 500 employees; be located in the USA; be for-profit; and have the main researcher as an employee. Your business must also be able to perform cutting-edge R&D that meets a certain need of one of the federal agencies involved in the SBIR program. The ten federal agencies involved in the SBIR program are:
- U.S. Department of Agriculture
- U.S. Department of Commerce
- U.S. Department of Defense
- U.S. Department of Education
- U.S. Department of Energy
- U.S. Department of Health and Human Services
- U.S. Department of Transportation
- U.S. Environmental Protection Agency
- National Aeronautics and Space Administration
- National Science Foundation
How It Works:
Find out which agencies you're interested in working with and visit their websites to see if they're soliciting applicants. According to the Small Business Administration, the SBIR system is highly competitive and involves a three-phrase award system. The SBA does not award the grants, the respective federal agencies do. The SBA's role is limited to monitoring the program and providing reports to Congress; however, the agency is a great informational resource on the programs too.
According to the SBA, the SBIR three-phase system includes:
-
Phase I is a feasibility study to evaluate the scientific and technical merit of an idea. Awards are for periods of up to six months in amounts up to $100,000.
-
Phase 2 is to expand on the results of and further pursue the development of Phase I. Awards are for periods of up to two years in amounts up to $750,000.
- Phase 3 is for the commercialization of the results of Phase II and requires the use of private sector or non-SBIR federal funding.
To find out which agencies are soliciting, visit the respective federal agency websites or visit the SBA's SBIR/STTR Announcements & Solicitation page.
STTR Program
To qualify for the STTR program, your small business must have less than 500 employees; be a U.S. company and for-profit, but the primary researcher does not have to be an employee (as is required in the SBIR program). Another difference between the STTR and SBIR program is the STTR program involves a partnership with a nonprofit research facility rather than a federal agency. However, nonprofit research facilities aren't the ones who dish out the funds. They have to apply for the STTR program's awards just like your small business does. Five federal agencies are responsible for developing and funding these partnerships and they are the ones who offer solicitations for proposals.
Each year, five federal departments and agencies are required by STTR to reserve a portion of their R&D funds for awards or grants to small business/nonprofit research institution partnerships. These agencies are:
- U.S. Department of Defense
- U.S. Department of Energy
- U.S. Department of Health and Human Services
- National Aeronautics and Space Administration
- National Science Foundation
How It Works
Find out which agencies you're interested in working with and visit their websites to see if they're soliciting applicants. According to the Small Business Administration, the STTR system is highly competitive and involves a three-phrase award system. The SBA does not award the funds, the respective agencies do. The SBA's role is limited to monitoring the program and providing reports to Congress; however, the agency is a great informational resource on the programs too.
According to the SBA, the STTR three-phase system includes:
- Phase I is the startup phase for the exploration of the scientific, technical, and commercial feasibility of an idea or technology. Awards are for periods of up to one year in amounts up to $100,000.
- Phase II is to expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercialization potential. Awards are for periods of up to two years in amounts up to $500,000.
- Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. There is no STTR funding in this phase.
To find out which agencies are soliciting, visit the respective federal agency websites or visit the SBA's SBIR/STTR Announcements & Solicitation page.
Resources on the SBIR/STTR Process
We've just skimmed the surface on what the SBIR/STTR programs could potentially do for your high-tech, innovative small business. To better understand how to go thru the process, here are a few resources for you -- compliments of the house.
Frequently Asked Questions about SBIR/STTR Programs -- The SBA's page on the basic questions of each of these programs. Easy to understand and follow.
National SBIR Program Resource Center -- A search site for SBIR/STTR data. Find out about date solicitations & conferences or sign up for an applicable state and regional SBIR newsletter.
SBA Office of Technology's SBIR/STTR Main Home Page -- Select from a wide assortment of links to various aspects of the SBIR/STTR program. Explore options, find out about workshops & conferences, link to other sources.
SBIRWorld.com --This site is sponsored by the National Science Foundation and features State Resources and a News section that features up-to-date SBIR news, solicitations and events.
SBIR Resource Center -- A private website that explains the in's and out's of the SBIR/STTR process. From people who've been there, and can help you do the same. They offer SBIR software & tools designed to help you speed up the proposal process.
For More grants, see other federal grants and contracts, corporate grant help and Idea Cafe's Grants du Jour.
Small Business Tax Center • Idea Cafe Home • Sign Up • Biz Grant Center • CyberSchmooz •Coffee Talk with Experts • People in Biz Profiles • Starting Your Biz • Biz Planning • Running Your Biz • FREE Trade Publications • Marketing • Financing Your Biz • Human Resources • Legal & Biz Forms • Managing Your Biz • eCommerce • You and Your Biz • Gen X • Work@Home • The Fridge • De-Stress • Send an Award • Send an eGreeting • Yoga @ Your Desk • Web Guide • Idea Cafe in the News • About Idea Cafe • Advertise on Idea Cafe • Contact Us • Privacy Policy • Site Map • Small Biz News
Copyright 1995-2008, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.
DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe, Inc. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.
TRADEMARKS: The following are Registered Trademarks or Servicemarks of Idea Cafe, Inc. or M.F. Ward: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.