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Program guide

SBIR and STTR: phases, award sizes and eligibility

Last verified: October 14, 2026

SBIR and STTR are US federal programs that fund early-stage research and development at small, for-profit, US-owned companies without taking equity. SBIR stands for Small Business Innovation Research and STTR for Small Business Technology Transfer; together they are called America's Seed Fund, coordinated by the Small Business Administration (SBA) and funded through 11 participating federal agencies. This guide covers the three phases with their current award ceilings, who qualifies, how topics open, how long decisions take and why applications fail, based only on sbir.gov pages.

What SBIR and STTR fund

SBIR is a highly competitive program that encourages domestic small businesses to do federal research and development with commercial potential. STTR follows the same model, but the small business must formally partner with a research institution.

The funding is non-dilutive: you keep your equity and the rights to your intellectual property, and you do not repay it, because it is not a loan. Depending on the agency, an award is a contract, a grant or a cooperative agreement.

SBIR.gov is explicit that the programs do not retroactively pay a company for development it has already accomplished.

The three phases and what they pay

Phase I is a proof of concept lasting 6 to 12 months, with award amounts of $50,000 to $323,000. Phase II continues the work for 24 months, with $650,000 to $2.2 million, and typically only Phase I awardees are eligible. Phase III is commercialization with private or non-SBIR federal money; SBIR and STTR do not fund it.

As of April 2026, agencies may issue a Phase I award, including modifications, of up to $323,090 and a Phase II award of up to $2,153,927 without seeking SBA approval; anything above those levels needs a waiver. These are ceilings: each agency sets its own amounts and may award less. The Policy Directive and the FAQ still print the original $150,000 and $1,000,000 guidelines, which SBA adjusts every year for inflation.

Agencies cannot require cost sharing for Phase I or Phase II, and they must allow a reasonable fee or profit on the award.

Who qualifies

The applicant must be a for-profit business with a place of business in the US; nonprofits cannot receive an award directly. With its affiliates it must have no more than 500 employees, and part-time and leased staff count toward that limit.

More than 50% of its equity must be directly owned and controlled by US citizens or permanent residents, or by other small businesses they own and control. Non-US owners cannot hold the majority.

Venture funds can hold minority stakes as long as they do not control the company. Some SBIR agencies may also fund companies majority-owned by several US-based venture, hedge or private equity funds, up to 25% of SBIR funds at the National Institutes of Health (NIH), the Department of Energy and the National Science Foundation (NSF) and 15% elsewhere; STTR has no such option.

The principal investigator must be primarily employed by your company, meaning more than half of their time, at the award and during the project, which rules out a full-time job elsewhere. You can apply while still working full-time at a university or large company, but at award your company must be the investigator's primary place of employment. The work must be done in the US, except for rare cases an agency approves in writing.

You certify eligibility only at award, and most agencies let you apply before the company exists. Self-certification is your responsibility, so check eligibility first and talk to the agency's contracts or grants officer.

How STTR differs from SBIR

In SBIR the company must perform at least two-thirds of the Phase I work and half of the Phase II work. In STTR it must perform at least 40% and a single partnering research institution at least 30%. The institution must be a US nonprofit college or university, a domestic nonprofit research organization or a Federally Funded R&D Center.

In STTR the small business is still the applicant and keeps overall responsibility, the partners must establish an agreement on intellectual property, and the principal investigator may be primarily employed by the research institution.

Which agencies run the programs and how topics open

Eleven federal agencies take part in SBIR: the Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security and Transportation, plus the Environmental Protection Agency, NASA and NSF. Six also run STTR: Agriculture, Defense, Energy, Health and Human Services, NASA and NSF.

Agencies publish topics in their own solicitations, and SBIR.gov states that the programs do not fund unsolicited proposals: you must answer a specific topic in a current solicitation. Some agencies release several solicitations a year, others one, so use SBIR.gov's funding planner and topic search.

From topic to award: the timeline

An agency posts a solicitation. SBIR.gov advises reading all of it, because administrative mistakes can disqualify a proposal, and submitting through the agency before the closing date. You also need an SBIR.gov company registration updated within 6 months of submitting, and a Unique Entity ID from SAM.gov to receive an award.

Review times vary. The SBA Policy Directive sets the outer limits: most agencies must tell each applicant whether it was recommended within 90 calendar days of the closing date and should issue the award within 180 days; NIH and NSF must notify within one year and should award within 15 months.

Phase I awardees then apply for Phase II, and some agencies ask for a Phase II proposal as a Phase I deliverable.

Why applications fail

SBIR.gov lists mistakes new applicants commonly make: missing the deadline, including too many pages, not registering with an organization the solicitation names and going over the budget limit. Any of them can eliminate a proposal in administrative review.

Forcing a fit is another. SBIR.gov warns that stretching an idea to match a topic typically produces a proposal the agency did not ask for, which may be rejected quickly, and that a project that is only basic research will not appeal to reviewers.

Agencies weigh scientific and technical merit and feasibility together with commercialization potential, and SBIR.gov tells applicants to state their innovation explicitly.

How getfund tracks SBIR and STTR

getfund keeps each SBIR and STTR agency program or solicitation as its own catalog row, with its status and the deadline when the agency publishes one. The open rows are listed under this guide.

getfund checks your startup's country and company type against each row's eligibility rules, and Radar alerts you when a solicitation you match opens or moves its deadline.

getfund helps you draft application answers from your startup profile. It never submits on your behalf: you make the final call and press submit yourself.

Frequently asked questions

What is the difference between SBIR and STTR?
SBIR lets a small business do the research itself and subcontract part of it. STTR requires a formal partnership with a US nonprofit research institution: the company does at least 40% of the work, the institution at least 30%, and the two establish an agreement on intellectual property. In both programs the small business is the applicant.
How much does an SBIR or STTR award pay?
SBIR.gov lists Phase I at $50,000 to $323,000 over 6 to 12 months and Phase II at $650,000 to $2.2 million over 24 months. As of April 2026, agencies can award up to $323,090 in Phase I and $2,153,927 in Phase II without an SBA waiver. Each agency sets its own amounts in its solicitation, so check the topic you apply to.
Do I give up equity or intellectual property?
No. SBIR.gov describes the funding as non-dilutive: you keep your equity and the rights to your intellectual property, and you do not repay the money because it is not a loan. The agencies expect good research that can lead to a commercial product that benefits the nation, and they cannot require cost sharing for Phase I or Phase II.
Can a startup with outside investors or non-US founders apply?
Investors are allowed, but your company must be more than 50% owned and controlled by US citizens or permanent residents, or by other small businesses they own and control. Several US-based venture, hedge or private equity funds can together hold a majority only for SBIR awards at agencies that use that option. A company majority-owned by non-US founders does not qualify.
How long after the deadline do agencies decide?
Under the SBA Policy Directive, most agencies must tell each applicant whether it was recommended within 90 calendar days of the closing date and should issue the award within 180 calendar days. NIH and NSF have up to one year to notify and 15 months to award. Agencies are encouraged to be faster.

Official sources

Programs in the United States