About Small Business Programs

The SBIR and STTR programs support NCATS’ mission to transform the translational science process so that new treatments and cures for disease can be delivered to patients more efficiently. These programs serve as an engine of innovation, offering grants, contracts and technical assistance to small businesses and research organizations focused on advancing translational research and technologies that will improve disease prevention, detection and treatment. Learn about the SBIR & STTR program structure.

SBIR & STTR Benefits

The SBIR and STTR programs are one of the largest sources of funding for early-stage companies in the United States. There are many benefits to securing SBIR or STTR funding, including:

• Funding is stable, predictable and not a loan.
• Capital is non-dilutive.
• Small businesses retain intellectual property rights.
• NIH’s rigorous peer-review provides recognition, validation and visibility to early-stage companies.
• Prestige associated with the award can help attract more funding or support (e.g., venture capital, strategic partner).

SBIR & STTR Program Structure

Phase I

The objective of Phase I is to establish the technical merit and feasibility of the proposed research and development efforts and to determine the quality of performance of the small business prior to providing further federal support in Phase II. Phase I support is normally $150,000 provided over a period of six months for both SBIR and STTR programs. However, with proper justification, applicants may propose longer periods of time and greater funding amounts necessary to establish the technical merit and feasibility of the proposed project.

• SBIR: Support may not exceed $350,000 in total costs for six months.
• STTR: Support may not exceed $350,000 in total costs for one year.

Phase II

The objective of Phase II is to continue the research and development efforts initiated in Phase I. Generally, only Phase I awardees are eligible for a Phase II award. Phase II awards are normally $1 million over two years for SBIR and STTR. However, with proper justification, applicants may propose longer periods of time and greater funding amounts necessary for completion of the project.

• Funding is based on Phase I results and may not exceed $2,150,000 in total costs for a two-year period. In addition, a commercialization plan is required.

Occasionally, NCATS may accept Phase IIB SBIR Competing Renewal grant applications of NCATS supported Phase II awards to continue research and development of products that have a potential to address bottlenecks in the translational process, and where additional time and effort is needed to reach a stage where interest and investment by third parties would be likely. Such products are expected to have broad applicability and be consistent with the mission of NCATS. Applicants are strongly encouraged to speak to NCATS Program staff prior to submitting their Phase IIB application. Budgets for Phase IIB grant applications must be approved by NCATS program staff prior to submission.

Phase III

The objective of Phase III, where appropriate, is for the small business to pursue with non-SBIR/STTR funds the commercialization objectives resulting from the Phase I/II research and development activities.

While Phase III funding does not directly come from the SBIR/STTR program, the support provided in Phases I and II plays a critical role in laying the foundation for successful commercialization. SBIR/STTR funding helps validate the technology, de-risk investment for non-SBIR/STTR funders, and position the small business for growth and success in Phase III.

SBIR & STTR Differences

The SBIR and STTR programs have the same goal: to help entrepreneurial researchers launch small businesses, engage in research and development, and commercialize new products that will benefit the public. The programs have two key differences.

Project Leadership

• SBIR requires the project’s principal investigator to be employed primarily (more than half-time) by the small business during the award period, unless NIH grants a waiver of this requirement.
• STTR does not define employment criteria for the project’s principal investigator.
  • STTR requires the small business to have a formal collaboration agreement with a nonprofit research institution during Phases I and II. The research institution is responsible for at least 30% of the total effort for the project, and the small business is responsible for at least 40%.
  • SBIR encourages but does not require nonprofit research institution partnership. A research institution can complete up to 33% of the total effort for a Phase I project and up to 50% of the total effort for a Phase II project, as applicable.

See more details on NIH's SEED site.