Indiana Economic Development Corporation

SBIR Overview

Congress created the SBIR Program in 1982 with the following goals:

Stimulate Technological Innovation
Increase Private Sector Commercialization of Federal R&D
Increase Small Business Participation in Federally Funded R&D
Foster Participation by Minority and Disadvantaged Firms in Technology Innovation

The program is the largest source of early stage technology financing in the United States and targets the entrepreneurial sector because that is where innovation thrives. The program is driven by solicitations that publish topics addressing the technological needs of the participating agency. After the submission of proposals, the agencies will make awards based on the evaluation of the submission against a set of key criteria points. Those small businesses that receive awards will then begin a three phased program.

PHASE I: The Startup Phase. Awards are up to $100K for approximately 6 months supporting and reporting on the feasibility of the idea or technology.
PHASE II: Prototype Phase. Awards are up to $750K for approximately 24 months, expanding upon the Phase I findings. During this time the true R&D work is performed and the evaluation of commercialization potential is addressed. Only Phase I awardees can be invited to participate.
PHASE III: Commercialization Phase. Non-SBIR funded transition. This is the phase that moves the technology/product from the lab to the marketplace.

Although the SBIR/STTR programs are administered the same, they have some noted differences that need pointed out. The STTR program must have an academia and/or research institution partnership. The SBIR program has 11 participating agencies while the STTR program has 5 agencies. The below diagram will provide a snapshot of the programmic differences between the two programs.

SBIR Qualifications:

Small businesses must meet certain eligibility criteria to participate in the SBIR program. They are as follows:

Organized for-profit US business independently operated
Principal Investigator must be 51% employed by business
Company size limited to 500 employees or less, including affiliates
PI’s employment must be with the small business concern at the time of award and for the duration of the project period
Subsidiaries are NOT eligible for STTR program

Participating Agencies:

Participating Agencies		SBIR/STTR
Department of Defense	DOD	SBIR/STTR
Department of Health and Human Services	HHS	SBIR/STTR
NASA	NASA	SBIR/STTR
Department of Energy	DOE	SBIR/STTR
National Science Foundation	NSF	SBIR/STTR
Department Homeland Security	DHS	SBIR
Department of Agriculture	USDA	SBIR
Department of Commerce	DOC	SBIR
Department of Education	ED	SBIR
Environment Protection Agency	EPA	SBIR
Department of Transportation	DOT	SBIR

Agency Differences:

Each agency is able to set policy and administer their program individually. These differences are one of the critical pieces of the process to understand. They range from highly specific topics from the contracting agencies to less specific topics from the granting agencies. The chart below will provide a quick glance into the differences and provide important information on each agencies specific process. Always remember to check with the agencies.

Entrepreneurs