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About SBIR/STTR Funding

America’s Seed Fund: SBIR/STTR Programs

America’s Seed Fund is one of the largest sources of early-stage capital for technology commercialization in the United States. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs involve multiple federal agencies, each with unique funding priorities and application processes. These programs enable US-owned and operated small businesses to conduct research and development that has a strong potential for commercialization.

America’s Seed Fund is a $4 billion program each fiscal year that awards funding to develop your technology and chart a path toward commercialization. The federal government invests in your solution and gives you the freedom to run your business according to your vision. The goal of any successful SBIR/STTR project is commercialization of your innovation, which means bringing it to market for use by industry, consumers or the federal government.

America’s Seed Fund has invested in a diverse portfolio of startups and small businesses across technology areas and markets to stimulate technological innovation, meet Federal research and development (R&D) needs, and increase commercialization to transition R&D into impact. America’s Seed Fund fosters and encourages participation in innovation and entrepreneurship by all people, including women, people of color, people with disabilities, and entrepreneurs located in all 50 states and U.S. territories.

America's Seed Fund | SBIR/STTR

SBIR/STTR Participating Agencies

Eleven federal agencies, as well as a handful of sub-agencies, participate in the SBIR program based on their level of extramural R&D budgets that exceed $100M.  Six agencies participate in the STTR program as a result of their extramural R&D budgets that exceed $1B. STTR projects must include a research institution as a collaborative research partner. Aligning your proposal with an agency’s mission and focus areas is crucial for success.​

  1. Department of Defense (DoD) — SBIR/STTR
    1. Department of the Navy (DoN)
    2. Department of the Air Force (AFWORX)
    3. Department of the Army (ARMY)
    4. Defense Advanced Research Projects Agency (DARPA)
    5. Defense Health Agency (DHA)
    6. United States Special Operations Command (USSOCOM)
  2. Department of Energy (DOE) — SBIR/STTR
  3. Department of Health and Human Services (HHS) — SBIR/STTR
    1. National Institutes of Health (NIH)
    2. Advanced Research Projects Agency for Health (ARPA-H)
  4. National Science Foundation (NSF) — SBIR/STTR
  5. National Aeronautics and Space Administration (NASA) — SBIR/STTR
  6. Department of Education (ED) — SBIR
  7. Department of Homeland Security (DHS) — SBIR
  8. Department of Transportation (DOT) — SBIR
  9. Environmental Protection Agency (EPA) — SBIR
  10. Department of Commerce — SBIR
    1. National Institute of Standards and Technology (NIST)
    2. National Oceanic and Atmospheric Administration (NOAA)
  11. Department of Agriculture (USDA) — SBIR/STTR

SBIR/STTR Technology Development Phases

General SBIR/STTR Phase Structure

  1. Phase I – Establishes the technical feasibility of an innovation.
  2. Phase II – Further develops the technology, bringing it closer to commercialization.
  3. Phase III – Commercialization stage, funded through non-SBIR/STTR sources (government or private).

  • Detailed Phase Descriptions

    NOTICE:
    As of October 2024, agencies may issue a Phase I award (including modifications) up to $314,363 and a Phase II award (including modifications) up to $2,095,748 without seeking SBA approval. Any award above those levels will require a waiver. Agencies considering this authority should review SBIR/STTR Policy Directive §7(i)(4) for additional information.

    Phase I: The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small business awardee organization prior to providing further Federal support in Phase II.

    Phase II: The objective of Phase II is to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II.

    Fast-Track: The National Institutes of Health (NIH) SBIR Fast-Track incorporates a submission and review process in which both Phase I and Phase II applications are submitted and reviewed together as one application to reduce or eliminate the funding gap between phases.

    Direct to Phase II: For small businesses that have already demonstrated scientific and technical merit and feasibility but have not received a Phase I SBIR or STTR for that project, NIH can issue a Direct to Phase II award. The NIH will accept Direct to Phase II applications regardless of the funding source for the proof of principle work on which the proposed Phase II research is based.  Other agencies that offer Direct to Phase II opportunities include the Department of Defense and the Department of Education.

    Sequential Phase II/Phase IIB: A Phase II Awardee may receive one additional, sequential Phase II award to continue the work of an initial Phase II award. The additional, sequential Phase II award has the same guideline amounts and limits as an initial Phase II award.  For example, some agencies administer Phase IIB awards that differ from the base Phase II in that they require third party matching of the SBIR/STTR funds.

    Phase III: The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. The SBIR/STTR programs do not fund Phase III. At some Federal agencies, Phase III may involve follow-on non-SBIR/STTR funded R&D or production contracts for products, processes or services intended for use by the U.S. Government.

    Additional Notes

    • Phase III is not funded by SBIR/STTR programs but may involve government contracts, private investment, or commercialization agreements.
    • The Fast Track program allows companies to submit both Phase I and Phase II in one application for review.
    • Some agencies allow Direct-to-Phase II (skipping Phase I) for firms with previous proof-of-concept data.
    • Certain agencies offer Phase IIB funding (e.g., NIH, NSF) to provide additional Phase II support.
    • The DOE has three unique phases: Phase IIA, Phase IIB, and Phase IIC.
Agency Phase I
Funding & Duration		 Phase II
Funding & Duration		 Phase III (Commercialization)
Department of Defense (DoD) $110K–$250K (6–12 months) $750K–$1.8M (24 months) Funded through government contracts or private investment.
National Institutes of Health (NIH) $300K–$400K (6–12 months) Up to $2M (24–36 months) May include NIH grants, partnerships, or VC funding.
National Science Foundation (NSF) Up to $275K (6–12 months) Up to $1M (24 months) Private funding or government contracts.
Department of Energy (DOE) Up to $250K (6–12 months) Up to $1.6M (24 months) Can receive non-SBIR DOE funding or private investment.
NASA Up to $150K (6 months) Up to $850K (24 months) Funded through NASA contracts or industry partners.
Department of Homeland Security (DHS) Up to $150K (5 months) Up to $1M (24 months) Funded through DHS contracts.
Department of Agriculture (USDA) Up to $175K (8 months) Up to $600K (24 months) Private investment, USDA grants, or contracts.
Department of Commerce – NIST & NOAA Up to $175K (6–12 months) Up to $500K (24 months) Government or private funding sources.
Environmental Protection Agency (EPA) Up to $100K (6 months) Up to $400K (24 months) Private or government funding.
Department of Transportation (DOT) Up to $150K (6 months) Up to $1M (24 months) Funded through DOT contracts.
Department of Education (ED/IES) Up to $250K (8 months) Up to $1M (24 months) Private investment or licensing agreements.
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