SBIR & STTR Grants
The Small Business Innovation Research (SBIR) program is one of the largest sources of early-stage funding for technology companies in the United States. With over $4 billion awarded annually, SBIR grants fund research and development across a wide range of industries — from defense and healthcare to energy and agriculture. Unlike traditional grants, SBIR awards are competitive contracts that let small businesses retain intellectual property rights to their innovations.
The Three Phases of SBIR Funding
Phase I: Feasibility Study
Phase I awards typically range from $50,000 to $275,000 and last 6 to 12 months. The goal is to establish the technical merit and feasibility of your proposed innovation. This is where you prove the concept works. Roughly 20% of Phase I proposals are funded, though rates vary by agency.
Phase II: Research and Development
Phase II awards range from $500,000 to $1.5 million over two years. You develop the prototype based on Phase I results. Only Phase I awardees are eligible, and the selection rate is higher than Phase I since the pool is smaller and the technology is already validated.
Phase III: Commercialization
Phase III has no set funding limit and involves transitioning the technology to the marketplace. This phase may involve production contracts, additional R&D, or sales to government and commercial customers. No separate SBIR funds are allocated for Phase III — funding comes from the agency's operational budget or private investment.
Participating Agencies
Eleven federal agencies participate in the SBIR program, each with their own research priorities and solicitation schedules. The Department of Defense (DoD) is the largest participant, followed by the National Institutes of Health (NIH) and the National Science Foundation (NSF). Other participating agencies include the Department of Energy (DOE), NASA, USDA, EPA, Department of Commerce (DoC), Department of Homeland Security (DHS), Department of Transportation (DOT), and the Department of Education (ED).
Eligibility Requirements
To qualify for an SBIR award, your company must be a for-profit business organized in the United States, majority-owned by U.S. citizens or permanent residents, and employ fewer than 500 people. The principal investigator must be primarily employed by your company at the time of the award. These requirements ensure that SBIR funding reaches the small businesses it was designed to support.
STTR: The Research Partnership Track
The Small Business Technology Transfer (STTR) program is closely related to SBIR but requires a formal partnership with a university or nonprofit research institution. At least 30% of the work must be subcontracted to the research partner. STTR is ideal when your innovation depends on academic research or specialized laboratory capabilities that your company does not have in-house.
Finding SBIR Solicitations
Open SBIR solicitations are published on SBIR.gov, SAM.gov, and individual agency portals. Each agency releases solicitations on its own schedule — the DoD typically posts topics two to three times per year, while NIH operates on a rolling basis. Tracking all of these sources manually is time-consuming, which is why many small businesses miss relevant opportunities.
GovSentry monitors SBIR.gov, SAM.gov, and agency-specific portals automatically. When a new SBIR or STTR solicitation matches your NAICS codes and capabilities, you receive an alert with a relevance score and AI-generated bid strategy — so you can focus on writing proposals instead of searching for them.
Stop searching. Start winning SBIR awards.
GovSentry finds SBIR and STTR solicitations that match your business and delivers them with AI-powered bid intelligence.