SBIR Policy Directive - SBA - Small Business Administration 2025

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Can a small business switch between the Small Business Innovation Research (SBIR) program or the Small Business Technology Transfer Research (STTR) programs after receiving Phase I funding? Yes.
Also, the budget supplied with the grant application is very tight with very little room for funds to be allocated to unforeseen costs that will inevitably pop up for any startup taking on a high technology development project. Clearly, a company cannot commercialize a high tech product on SBIR grant funding alone.
Each participating federal agency administers its own SBIR/STTR program within guidelines established by Congress. As of October 2024, agencies may issue a Phase I award (including modifications) up to $314,363 and a Phase II award (including modifications) up to $2,095,748 without seeking SBA approval.
Eligibility requirements Be an operating business. Operate for profit. Be located in the U.S. Be small under SBA size requirements. Not be a type of ineligible business. Not be able to obtain the desired credit on reasonable terms from non-federal, non-state, and non-local government sources.
Together, these programs are known as Americas Seed Fund. The SBIR and STTR programs are one of the largest sources of early-stage capital for technology commercialization in the United States.

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An SBIR award gives flexibility in partnering with subcontractors and allows up to 33% of the funding to be used for partners. An STTR award requires that 40% of the funding goes to a research institution, 30% goes to the small business applicant and 30% is discretionary.

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