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.
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