Funding Innovation
with Federal R&D Grants

Over $75 million in federal research and development grants has been awarded to CNY companies since 1992 through the SBIR and STTR programs. These little known programs, providing up to $850,000 per project, are available to firms with up to 500 employees.
SBIR & STTR fund critical start-up and development stages and encourage commercialization of technologies, products, and services. Projects funded through these grants enhance the nation’s defense, protect our environment, advance health care, and improve our ability to manage information and data.

What are SBIR & STTR?

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards are federal grant programs for early stage innovative technology development. Under the guidance of the U.S. Small Business Administration (SBA) , ten federal agencies independently and competitively award grants in categories of research supporting their strategic priorities. They set aside 2.5% of their external research and development budget each year for these awards. The agencies include:

  • Department of Agriculture
  • Department of Commerce
  • Department of Defense
  • Department of Education
  • Department of Energy
  • Department of Health and Human Services
  • Department of Transportation
  • Environmental Protection Agency
  • National Aeronautics and Space Administration
  • National Science Foundation

Products and services developed through these programs profit both the company and the country. Over 50% of both innovations and new jobs are created by small businesses. By supporting companies during the early, high-risk, stages of development, the government stimulates innovation and helps to build a strong economy.

Three-Phase Program

Following submission of proposals, agencies make SBIR awards based on small business qualification, degree of innovation, technical merit, and future market potential. Award recipients then begin a three-phase program:

  • Phase I is the start-up phase. Awards of up to $100,000 for approximately six months support exploration of the technical merit or feasibility of an idea or technology.
  • Phase II awards up to $750,000 for as many as two years to expand Phase I results. During this time, research and development is performed and the developer evaluates commercialization potential. Only Phase I winners are considered for Phase II.
  • Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No SBIR funds support this phase, but companies are eligible for contracts to implement the technology on a non-competitive basis.

Qualifications

  • Businesses must meet certain eligibility criteria to participate in the programs including:
  • American-owned and independently operated
  • For-profit
  • Principal researcher employed by business
  • Company size including all subsidiaries and divisions less than 500 employees

How TDO Can Help You

TDO guides companies in proposal development, communication strategies, intellectual property issues, and much more related to SBIR & STTR. Our SBIR Specialist Marcene Sonneborn, was nationally recognized with the Tibbetts’ Award for her efforts in helping companies succeed in securing awards. Her work is co-sponsored by the Onondaga SBDC.
TDO also runs the SBIR Academy for New York State; helping advisors in other regions to guide companies through the programs. If you’re interested in learning more about SBIR or STTR, contact Marcie at 425-5144 or msonneborn@tdo.org.

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