Small Business Technology Transfer (STTR) Program and the Small Business

Innovative Research (SBIR) Program.

The United States Small Business Administration (SBA) administers the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program. Through these two competitive programs, the Federal government ensures that the nation’s small, high-tech, innovative businesses are a significant part of the government’s research and development efforts. SBIRs and STTRs are designed to foster innovation and research while supporting small businesses. The ultimate goal of these programs is to help small businesses develop products that can be commercialized.

More than $1 billion is awarded to United States small businesses each year through these two grant programs, which were developed out of the government’s recognition that smaller firms are a great source of new innovation but that most of these firms often struggle for funding, especially for funds to pursue research and development projects.

Both the SBIR and STTR program share common traits. First, both programs are only available to for-profit, small businesses located in the United States and that physically perform their research and development activities in the United States. Both SBIR and STTR are applied for and funded in phases – Phase I is feasibility, Phase II allows further development and Phase III is commercialization. In general, the maximum grant for both programs, across Phase I and Phase II, is $1.15 million.

Phase IIICommercialization

Phase IFeasibility Phase IIDevelopment

SBIR and STTR are set up as two unique programs, and there are some key differences between them. The main difference between the two is that the STTR program has a requirement that the project include a non-profit research institution as a research program collaborator, whereas the SBIR program does not.

In order to be eligible for either STTR or SBIR funding, your company must have 500 or fewer employees, it must be a for-profit entity and it must be located in the United States. If your firm meets these qualifications, you may be eligible for funding through the STTR or SBIR programs.

*

SBIR

STTR*

Both STTR and SBIR are highly competitive programs that require a great deal of preparation. In particular, there are two components that are especially important to developing a successful STTR or SBIR funding proposal.

First, the project for which you are requesting funding must have translation potential. This essentially means that if the approach (or technology, process, etc.) isn’t sustainable, can’t be commercialized or doesn’t have market potential beyond the funding period, then it’s not going to get funded. Therefore, when developing your proposal, it is absolutely critical that you demonstrate the long-term viability or market potential of what you are proposing to accomplish with STTR or SBIR funds.

Not only do you need to demonstrate that what you are proposing is sustainable, but you’ve also got to show that you and your team of the capacity, expertise and resources to make it happen. Plenty of people have great ideas but very few can actually bring their ideas to life. Successful STTR/SBIR applicants make certain to describe their past accomplishments (track record of success), management team expertise, facilities and other resources that will contribute to the project’s success.

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