Frequently Asked Questions

What are the objectives of the SBIR/STTR Program?

The SBIR/STTR program aims to boost innovation by supporting small businesses. Its main goals are to:

  • Encourage new technology development
  • Help the government meet research and development needs through small businesses
  • Support disadvantaged small businesses in innovation
  • Turn research funded by the government into real products and services in the private sector
Does the SBA make any awards under the SBIR/ STTR Program?

No, the SBA doesn’t give out awards directly. Instead, it oversees the program, helps agencies run it, tracks progress, reports to Congress, and shares information about funding opportunities.

What is an SBIR/STTR funding agreement?

It's a contract, grant, or agreement between a federal agency and a small business to carry out research or development work funded by the government.

May a portion of an SBIR award be subcontracted?

Yes. In Phase I, the small business must do at least two-thirds of the work; up to one-third can be subcontracted. In Phase II, the business must do at least half of the work.

May a portion of an STTR award be subcontracted?

Yes. The small business and research institution can subcontract part of the work, but no more than 30% can go to a third party. The small business must do at least 40% of the R&D, and the research institution must do at least 30%.

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