Free Money: Unlocking Federal Funding for Small Businesses via SBIR & STTR grants

In the realm of federal funding, two programs stand out for their commitment to fostering innovation and collaboration: the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs. Both programs are designed to support small businesses in their research and development endeavors, but they differ in their approach and requirements.

Understanding SBIR

The SBIR program is a federal initiative that provides grants and contracts to small businesses to conduct research and development (R&D) with the potential for commercialization. It aims to stimulate technological innovation, meet federal R&D needs, foster participation by women and minorities, and increase private-sector commercialization of federal R&D.

The SBIR program is structured in three phases:

  1. Phase I: Feasibility study or proof-of-concept of the proposed technology. Awards typically range from $50,000 to $250,000 for 6 to 12 months.
  2. Phase II: Full-scale R&D of the technology. Awards typically range from $500,000 to $1.5 million for 2 to 3 years.
  3. Phase III: Commercialization of the technology. No SBIR funds are provided in this phase, but businesses may seek funding from other sources.

Delving into STTR

The STTR program, while sharing similarities with SBIR, emphasizes collaboration between small businesses and nonprofit research institutions. This partnership aims to bridge the gap between foundational scientific research and its commercialization.

Key features of the STTR program include:

  • Collaborative Essence: A formal collaboration between the small business and a nonprofit research institution is required.
  • Allocation of Work: The small business must undertake at least 40% of the R&D, while the partnering research institution must perform at least 30%.
  • Intellectual Property: The program necessitates an IP agreement detailing the allocation of rights and follow-on activities.

Intellectual Property Considerations

Both SBIR and STTR programs have specific guidelines regarding intellectual property:

  • SBIR: Small businesses retain primary IP rights, but the federal government reserves “Government Use Rights.”
  • STTR: An IP agreement between the small business and its partnering institution is mandatory, detailing the allocation of rights.

Navigating Funding Opportunities

For both programs, businesses must identify relevant agencies and apply to specific solicitations. Unsolicited proposals are not accepted. Regularly checking the solicitation schedules of each agency and planning ahead is crucial to meet the deadlines.

In Closing…

The SBIR and STTR programs offer unparalleled opportunities for small businesses and research institutions to drive innovation and address the nation’s technological challenges. By understanding the intricacies of both programs, businesses can navigate the landscape effectively and maximize their chances of success.