Three Phase Program
Both the SBIR and STTR Programs fund critical topics of interest through a three-phase program. Over half of the SBIR/STTR awards made each year go to firms with no prior SBIR/STTR experience.
Phase I is the startup phase. Awards of up to $100,000 for approximately 6 months in SBIR and twelve months for STTR support exploration of the technical merit or feasibility of an idea or technology. A Principal Investigator (PI) for the project must be named in the proposal. The PI is the single individual responsible for the scientific and technical direction of the project.
| SBIR | STTR |
|---|---|
| 2/3 of the work must be conducted by the small business | 40% of the work must be conducted by the small business |
| 1/3 of the work may be subcontracted | 30% of the work must be conducted by the research institution |
| 6 months of research | 12 months of research |
| PI must be employed by the small business for at least 50% of their time | PI may be released from the research institution for the duration of the project |
Phase II awards of up to $750,000, up to 2 years to expand Phase I results. During this time, continued research and R&D is performed and the small business evaluates commercialization potential.
| SBIR | STTR |
|---|---|
| 50% of the work must be conducted by the small business | 40% of the work must be conducted by the small business; 30% of the work must be conducted by the research institution |
Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding.
