What is an SBIR?

Summary of the SBIR Program?

The SBIR program was first put into effect by the Small Business Innovation Development Act. The goal was to increase innovative research and development (R&D) for a number of federal agencies. Each agency has its own individual topic with custom solicitation and award requirements. The SBIR program has been renewed and updated multiple times, the most recent of which occurring in 2022.

There are 11 total agencies that offer their own SBIR grant and contract programs. Some of these also offer STTR (Small Business Technology Transfer Research) programs meant to encourage collaborations between small business and non-profit research organizations.?

HHS?- Department of Health and Human Services (consists of the NIH - National Institutes of Health, CDC – Center for Disease Control and FDA – Food and Drug Administration)?

DOD?- Department of Defense (encompasses branches like the US Air Force, Army, Navy, DARPA etc.)

DOE?- Department of Energy?

HHS?- National Science Foundation?

NASA?- National Aeronautics and Space Administration?

DHS?- Department of Homeland Security??

USDA?- Department of Agriculture?

DOT?- Department of Transportation?

DOC?- Department of Commerce (consists of NIST – National Institute of Standards and Technology and NOAA – National Oceanic and Atmospheric Administration)

ED?- Department of Education (consists of the IES – Institute of Educational Sciences)??

EPA?- Enviromental Protection Agency?

These programs each have their own goals, missions, and innovation focuses. Each agency has “cycles” where solicitations open at specific times of the year and/or a specific number of times a year. You can apply to multiple agencies and win multiple SBIRs/STTRs. However, you must make a point to customize your work proposal in order to avoid “double-dipping”.?

Each agency also has a custom budget that can be allocated towards their SBIR/STTR programs. There is a total of ~$4 B available across all of the agencies. This budget is determined by each agency setting aside a small percentage of the R&D budget, between 1.5% and 3.2%, to fund their SBIR programs. It is also important to note that if an agency’s budget exceeds $100 million, they must allocate the maximum amount, 3.2%, to the SBIR program, meaning that some agencies like the DoD and the HHS (NIH) have much larger budgets (and award larger number of companies with higher $) than some of the other agencies with smaller budgets.?

When selecting whether you are a better fit for an SBIR or STTR, you may want to consider the following circumstances:

• You wish to submit a proposal where you can include another organization as a subcontractor. Subcontractors are often used to solidify and unify the team and the proposal. An example of a possible subcontractor is a non-profit university faculty or federally funded researcher. While this is optional for SBIRs, it is mandatory for STTRS.?
• STTRs require that your company establish and agreement between the small business and a Research Investigator. This also requires an agreement on the allocation of intellectual property. Sometimes investors do not want to back a startup that has involved a non-profit because of how it may complicate the claim to the IP of the product.?
• It is always recommended you obtain a research investigator (RI). With this in mind, an RI may prefer to work as a private consultant versus someone who represents an entire university or lab. SBIRs allow private consultants to be a part of the proposal however STTRs do not.?

Requirements Before Applying?

• Have less than 500 employees.?
• Are a for-profit organization with a place of business within the United States. Must also be based primarily within the U.S.?
• Must have less than 50 percent participation by a foreign business entity.?
• Must be more than 50% directly owned and controlled by U.S. citizens or permanent residents of the United States and for most agencies, less than 50% owned by multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these (some agencies allow majority VC-owned startups).?
• System for Award Management (SAM) registration. This can take up to 6 weeks to process so it is recommended to obtain this ASAP.?
• SBA Company Registry: Best practice to complete your SAM registration first so that all the data sync’s well across multiple registrations, since these govt systems share data on the back end.?
• Other registrations such as eRA Commons, Grants.gov, DSIP, Research.gov etc. can be custom requirements, depending on the agency that you are applying for?

For a more detailed breakdown of these requirements refer to:

https://www.turbosbir.com/education/blog/sbir-sttr-application-requirements/

The Phases?

Depending on the stage or need of your startup, the SBIR program offers multiple grant application pathways:?

• Phase 1/I: All startups irrespective of the stage of your company are eligible only for Phase 1. It is strongly encouraged to begin with a Phase 1 if you have never been a steward of federal funding. SBIR Phase 1s primary purpose is to aid in establishing the technical merit and feasibility of the R&D proposed by the applicant.?
• Direct-to-Phase 2 or Fast Track: These applications allow the startup to either skip to Phase II directly or submit both Phase I and Phase II together in order to bridge the gap between the phases. Only some agencies allow direct-to-Phase II or fast-track proposals.?
• Phase 2/II: Phase 2 awards are often a “Follow On” application awarded after startups have successfully been awarded a Phase 1 proposal, have achieved the established technical merit of their R&D, and apply and compete successfully for the prototyping and field-testing Phase 2 of their project. The purpose of Phase 2 funding is to aid the small business in getting ready to commercialize their product or technology in their intended markets. Typically, only one Phase 2 proposal is awarded per Phase 1 award.?

How to Get Started?

If you are interested in applying for an SBIR, meet all of the requirements, and have completed all of the required registrations you can begin searching for the best SBIR grant for you and beging writing. You can search for grants on the TurboSBIR app for free. The app allows you to filter based on agency, grant phase, SBIR or STTR program, etc. It combs through all portions of the internet to connect you to a grant that best suits you without you wasting your time filtering through numerous sources and sites yourself. Furthermore, if you are seeking support in applying for funding, you can also do so with the help of TurboSBIR, using one of the available contingency or upfront paid plans, some of which also include a range of expert services, such as proposal writing, consulting, and review. You can get started here:?

https://www.turbosbir.com/

References

https://www.sbir.gov/sites/default/files/SBA_Final_FY19_SBIR_STTR_Annual_Report.pdf??

https://seed.nih.gov/sites/default/files/HHS_Topics_for_Budget_Waivers.pdf??

https://www.sbir.gov/sites/all/themes/sbir/dawnbreaker/img/documents/Course1-Tutorial3.pdf?

SBIR.gov,3 Oct. 2022,?https://sbir.gov/

“Funding.”Funding | SBIR.gov,?https://www.sbir.gov/funding