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SBIR/STTR Phase I awards are generally $50,000 - $250,000 for 6 months (SBIR) or 1 year (STTR). Phase II.
In a Fast-Track, the Phase I work is the first component of the project period. Direct-to-Phase II bypasses this step; instead, Direct to Phase II applicants must have performed the equivalent of Phase I research prior to submission of the application.
The Three Phases of SBIR/STTR The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/RD efforts and to determine the quality of performance of the small business awardee organization prior to providing further Federal support in Phase II.
Phase II Proposal and Program Objectives. An SBIR Phase II proposal must describe the research effort needed to continue the research and development efforts initiated in the Phase I award.
The SBIR/STTR Phase I Programs are highly competitive. While success rates vary year-to-year, approximately 10-15% of the full proposals submitted are selected for an award. Thus, there are many qualified businesses applying to the program each year that do not receive funding.
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A Phase I award helps you focus on the feasibility, technical merit, and commercial potential of your research project. A Phase II award lets you continue the research and development efforts initiated in Phase I.
Drawbacks of SBIR Grants It can be difficult to find the right topic fit. SBIR grant proposals are time-consuming and difficult to prepare. There can be a long timeframe between submission and funding. Only about 3% to 8% of all SBIR proposals submitted are awarded funding.
Eligibility. Your company must be a small business (fewer than 500 employees) located in the United States. At least 50% of your companys equity must be owned by U.S. citizens or permanent residents.

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