SBIR

Small Business Innovation Research

A highly competitive grant program run by the U.S. government that provides funding to small businesses engaged in research and development (R&D) that has the potential for commercialization.

The SBIR program aims to stimulate technological innovation, use small businesses to meet federal R&D needs, foster and encourage participation by socially and economically disadvantaged persons and women-owned small businesses in technological innovation, and increase private sector commercialization of innovations derived from federal R&D funding.

SBIR Program

• It is administered by 11 federal agencies with eligibility requirements and focus areas.
• Grants are awarded in phases:
  • Phase I grants are typically around $150,000 for feasibility studies.
  • Phase II grants can be up to $1 million for more extensive R&D.
  • Phase III focuses on commercialization. No SBIR funds are awarded in this phase.
• The research must have potential for commercialization and must meet specific R&D needs of the federal government.
• Only U.S. businesses with fewer than 500 employees are eligible.
• A certain percentage of SBIR funds are set aside for businesses owned by socially and economically disadvantaged persons, women, and veterans.

The SBIR program provides a great opportunity for small tech businesses to secure non-dilutive funding to advance their cutting-edge ideas.

• Abbreviation: SBIR