Guiding Kansas Innovators Through SBIR/STTR Success

Each year, federal departments and agencies reserve a portion of their R&D funds to award small businesses. Through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, America’s Seed Fund awards non-dilutive funding to develop your technology and chart a path toward commercialization.

Infographic supplying some information on SBIR and STTR funding. It states that 4 billion dollars in funds are invested each year, 4,000 is the average number of companies funded per year, and 0 percent equity or IP ownership is taken by the government.

What is the difference?

SBIR: Small Business Innovation Research

  • Allows but does not require the involvement of a non-profit research institution.
  • Principal investigator (PI) must have primary employment with the small business.
  • 11 federal agencies participate.

Each year, ten federal departments and agencies are required by SBIR to reserve a portion of their Research and Development (R&D) funds for award to small businesses. These departments are as follows: 

STTR: Small Business Technology Transfer

  • Requires partnering with a U.S. non-profit research institution or university.
  • Principal Investigator (PI) may be employed by either the small business or the research institution (except at NSF).
  • 6 federal agencies participate.

Each year, five federal departments and agencies are required by STTR to reserve a portion of their Research and Development (R&D) funds for award to small business/nonprofit research institution partnerships. These departments are as follows: 

Participating Federal Agencies

SBIR

STTR

Infographic providing eligibility requirements for the SBIR and STTR programs via an, “Are you eligible?” set of questions. Question one is, “Does your business employ 500 or fewer employees?” Question 2 is, “Is your business at least 51% owned and operated by a U.S. citizen or permanent resident?” Question 3 is, “Is your business a for-profit entity or will you form a for-profit entity?” Question 4 is, “Is your business located in the U.S.?” The final question is, “Is your principal investigator (main researcher) devoting at least 51% time to the business? This is required for SBIR but not for STTR.” Finally, the infographic notes that you must meet all of the above to be eligible for the SBIR or STTR programs.