SBIR and STTR research awards
Federal research and development funding for small US businesses, won in competitions run by 11 federal agencies. Nothing to repay and no ownership given up, but your project must match an agency's published topic.
- No security
How it works
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are coordinated by the SBA and funded through 11 federal agencies, including the Departments of Agriculture, Commerce, Energy and War, the National Science Foundation and NASA. Each agency runs its own program and publishes solicitations with research topics. Proposals that do not address a topic in a current solicitation are not funded.
- Phase I: a proof of concept, usually over 6 to 12 months.
- Phase II: continues the research and development, usually over 24 months. Normally only Phase I winners can apply.
- Phase III: you take the results to market, through private sales or federal contracts. There is no SBIR or STTR money in Phase III.
As of October 16, 2026, an agency may award up to $335,937 in Phase I and up to $2,239,578 in Phase II without asking the SBA for a waiver. An award is a contract, a grant or a cooperative agreement with the agency.
SBIR or STTR? For STTR, the business must partner with a research institution (a nonprofit college or university, a nonprofit research organization or a federally funded R&D center). The business does at least 40% of the work and the institution at least 30%, under a written agreement on intellectual property. Under SBIR, the business does at least two-thirds of the work in Phase I and at least half in Phase II.
You need a Unique Entity ID from SAM.gov to receive an award. Congress reauthorized both programs in April 2026, through September 30, 2031.
Upsides and downsides
Upsides
- Nothing to repay and no ownership given up
- Can pay for research before you have any sales
- Phase II awards can reach $2,239,578, still with nothing to repay
Downsides
- Only for research that matches an agency's published topic
- Ownership and size rules exclude many businesses
- Reviews take time and vary by agency, so the money does not arrive quickly
- The award may not cover all of your costs
Risks
- You may spend weeks on proposals that are not funded
- Breaking the program rules during the award, for example on ownership, can put the money at risk
What it costs
- How it is priced
- No interest and nothing to repay. The cost is the time spent on proposals and on meeting the award's rules
- Costs that are easy to miss
- Writing proposals takes time, and the competitions are highly competitive
- The award may not cover all of your research and development costs
- During the award, you must keep meeting the program rules and certify that you do
Phase I up to $335,937 and Phase II up to $2,239,578 without an SBA waiver (limits as of October 16, 2026).
Applying to an SBA program? Is my business small?: check whether your business counts as small
Does it fit?
Could fit when
- You are developing a new product, process or technology
- You need money for research and development
Unlikely to fit when
- Your project is routine development rather than research
- You need the money within weeks
- The business is mostly owned by people who are not US citizens or permanent residents
- The business, with its affiliates, has more than 500 employees
Who can use it
- Business types: Sole proprietorship, Partnership, LLC, S corporation, C corporation, Benefit corporation, Cooperative
- Open to businesses with no sales yet
- A for-profit business located in the US
- No more than 500 employees, counting affiliates
- More than 50% owned and controlled by US citizens or permanent residents. For SBIR only, some agencies also accept businesses more than 50% owned by several venture capital, hedge fund or private equity firms
- Nonprofits cannot receive awards, though they can be subcontractors or STTR research partners
- A Unique Entity ID from SAM.gov
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all grants, tax credits and prizes
0%
0 of 5 ticked
- SAM.gov registration
- A matching topic
- Research plan
Regulation and protections
Regulators: U.S. Small Business Administration (SBA).
Who runs it: Federal program.
Not a loan, so lending rules do not apply. Each agency runs its own competitions under program rules set by the SBA, which also publishes the award limits. Eligibility rules are in federal regulations at 13 CFR 121.702.
Types of provider: Federal agencies with SBIR or STTR programs.
Also consider
What has changed
No changes since this page was published. It was last checked against its sources on October 17, 2026.
Sources
- SBIR.gov: About SBIR and STTR (agencies and award limits) · checked October 17, 2026
- SBIR.gov: How to apply (phases and eligibility) · checked October 17, 2026
- SBIR.gov: Frequently asked questions · checked October 17, 2026
- SBIR.gov: Participating agencies · checked October 17, 2026
- 13 CFR 121.702: size and eligibility standards for the SBIR and STTR programs · checked October 17, 2026
- SBA: Administrator applauds SBIR-STTR reauthorization (April 13, 2026) · checked October 17, 2026
- Federal Register, June 22, 2026: USDA notice on SBIR/STTR lifecycle certification · checked October 17, 2026
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