SBIR & STTR Grants 2025: Complete Guide to Small Business Innovation Research
Learn how to win SBIR and STTR grants for your small business. Understand eligibility, funding phases, application process, and tips for success from federal agencies.
Quick Answer: What are SBIR/STTR Grants?
SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are federal programs that fund R&D at small businesses. Combined, they award over $4 billion annually to help small companies develop innovative technologies. SBIR focuses on small business R&D, while STTR requires partnership with a research institution.
What is SBIR/STTR?
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive funding programs that encourage small businesses to engage in federal research and development with potential for commercialization.
Program Overview
SBIR Program
- • Established in 1982
- • 11 participating federal agencies
- • 3.2% of extramural R&D budget
- • Small business performs primary R&D
STTR Program
- • Established in 1992
- • 6 participating federal agencies
- • 0.45% of extramural R&D budget
- • Requires research institution partner
SBIR vs STTR: Key Differences
| Criteria | SBIR | STTR |
|---|---|---|
| Research Partner | Optional | Required (university, nonprofit, FFRDC) |
| Work Location | Small business performs 2/3 (Phase I) or 1/2 (Phase II) | Small business: 40%, Partner: 30% minimum |
| PI Employment | Must be employed by small business | Can be at research institution |
| Agencies | 11 agencies | 6 agencies |
Eligibility Requirements
Small Business Requirements
Size Standard
Must have 500 or fewer employees (including affiliates)
Ownership
More than 50% owned and controlled by U.S. citizens or permanent residents, or by other small businesses
For-Profit Status
Must be organized for profit with a place of business in the United States
Principal Investigator
PI must be primarily employed by the small business (SBIR) or can be at partner institution (STTR)
SBIR/STTR Funding Phases
Phase I: Feasibility
Establish technical merit, feasibility, and commercial potential of the proposed R&D.
Phase II: R&D
Continue R&D based on Phase I results. Only Phase I awardees can apply.
Phase III: Commercialization
Pursue commercialization using non-SBIR/STTR funding. Can include federal contracts.
Participating Federal Agencies
Major SBIR/STTR Agencies
- $DoD - Department of Defense (~$2B)
- $NIH - National Institutes of Health (~$1.2B)
- $DOE - Department of Energy (~$400M)
- $NASA - National Aeronautics (~$200M)
- $NSF - National Science Foundation (~$250M)
Other Participating Agencies
- →USDA - Agriculture
- →EPA - Environmental Protection
- →DHS - Homeland Security
- →DOT - Transportation
- →ED - Department of Education
- →DOC/NIST - Commerce/Standards
SBIR/STTR Application Process
Step-by-Step Application
Register in Required Systems
SAM.gov, SBA Company Registry, Grants.gov, agency-specific portals
Find Open Solicitations
Check SBIR.gov, agency websites, or use BidFinds to track opportunities
Match Topic Areas
Review agency topics and find alignment with your technology/innovation
Prepare Technical Proposal
Technical approach, innovation, commercial potential, team qualifications
Submit Before Deadline
Follow format requirements exactly, allow buffer time for portal issues
Award Decision (3-9 months)
Review timeline varies by agency; expect 3-9 months for decisions
Tips for Winning SBIR/STTR Awards
Proposal Best Practices
- ✓Clearly articulate innovation and technical approach
- ✓Demonstrate strong commercialization potential
- ✓Show team qualifications and relevant experience
- ✓Address all evaluation criteria explicitly
- ✓Include realistic budget and timeline
Common Mistakes to Avoid
- ✗Submitting generic proposals not tailored to topic
- ✗Weak or vague commercialization plan
- ✗Missing page limits or formatting requirements
- ✗Incomplete registration in required systems
- ✗Last-minute submission causing technical issues
Frequently Asked Questions
Can startups apply for SBIR/STTR?
Yes! SBIR/STTR is excellent for startups. Many successful tech companies received early funding through these programs. You need to meet the small business criteria (500 or fewer employees, U.S. ownership) but there's no minimum company age requirement.
Do I need a patent to apply?
No patent is required to apply. However, you should have a novel innovation and be able to articulate why your approach is unique. Patents can strengthen your proposal by demonstrating IP protection strategy.
Can I apply to multiple agencies?
Yes, you can submit proposals to different agencies for different projects. However, submitting the same proposal to multiple agencies is generally not allowed. Each proposal should be tailored to the specific agency's topics and requirements.
What is the success rate?
Phase I success rates typically range from 15-30% depending on the agency and topic area. Phase I to Phase II transition rates are around 40-50%. First-time applicants often have lower success rates, so persistence is important.
How long does it take to get funded?
From submission to award can take 3-9 months depending on the agency. DoD typically has faster turnaround (3-4 months), while NIH can take 6-9 months. Plan your cash flow accordingly and don't count on SBIR as immediate funding.
Track SBIR/STTR Opportunities
BidFinds aggregates SBIR/STTR solicitations from all 11 participating agencies. Get AI-powered matching to find opportunities aligned with your technology.
Related Articles
Ready to Find Your Next Contract?
Get instant access to thousands of government construction bids with our AI-powered platform.
Get Started