SBIR/STTR FAQs

The mission of the SBIR program is to stimulate technology innovation by strengthening the role of innovative SBCs in Federal Research/ R&D.The program’s goals are four-fold:

• Stimulate technological innovation.
• Use small businesses to meet Federal R&D needs.
• Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged small businesses.
• Increase private-sector commercialization of innovations derived from Federal R&D funding.

No, the SBA does not directly administer the awards.  The SBA has the responsibility for directing the participating agencies in the administration of the program. It helps the participating agencies implement SBIR/STTR, reviews their progress, reports annually to Congress on its operation, and aggregates agency solicitation announcement information.

An SBIR/STTR funding agreement is a contract, grant, or cooperative agreement entered into between an SBIR/STTR participating Federal Agency and a small business for the performance of research, experimental, or developmental work funded by the Federal Government.

Yes.  For Phase I, the proposing firm must perform a minimum of two-thirds of the research and/or analytical effort.  One third may be subcontracted to another firm or research organization/facility.  For Phase II, the proposing firm must perform a minimum of one-half of the research and/or analytical effort.

Yes.  Both the small business and the research institution may subcontract or they may jointly fund a subcontractor, but no more than 30% of the total work can be subcontracted to a third party. The STTR program requires that the small business performs at least 40% of the R&D and the single partnering research institution to perform at least 30% of the R&D.