America's Seed Fund: Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Awards
Welcome to the U.S. Department of Energy’s SBIR/STTR Phase 1 Grant Application Guide. In the following pages, small business applicants will find step-by-step instructions for completing each section of an SBIR or STTR Phase 1 Grant application, along with sample documents and pro tips to assist with the application process. The guide will also address common mistakes along the way to help applicants avoid the usual pitfalls associated with SBIR and STTR applications. But first, a little bit about the history and purpose of the programs that have come to be known America’s Seed Fund.
History & Purpose
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are U.S. Government programs intended to help certain small businesses conduct R&D. These programs were established to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy. Federal agencies with large research and development budgets set aside a small fraction of their funding for competitions specifically among small businesses. Importantly, the small businesses that win these awards keep the rights to any technology developed and are encouraged to commercialize the technology.
Since its inception in 1982, small businesses have received over $3.194 billion in funding in SBIR awards alone. The STTR program, created in 1992 to encourage cooperative research between small businesses and research institutes, has extended this support by another $423.3 million in funding as of 2019. To read about some of the exciting projects and small businesses that DOE has sponsored through SBIR and STTR, please visit Success Stories.
The major goals of the SBIR Program, established in 1982 by Public Law 97-219, are to:
- Stimulate technological innovation
- Use small businesses to meet Federal R/R&D needs
- Foster and encourage participation by the socially and economically disadvantaged small businesses, and those that are 51 percent owned by women, in technological innovation
- Increase private sector commercialization of innovations derived from Feder R/R&D, thereby increasing competition, productivity, and economic growth
The major goals of the STTR Program, established in 1992 by Public Law 102-564, are to:
- Stimulate and foster scientific and technological innovation through cooperative research and development carried out between small business concerns and research institutions
- Foster technology transfer between small business concerns and research institutions
SBIR & STTR Research Topics at the Department of Energy
DOE offers more than sixty technical topics and 250 subtopics, spanning research areas that support DOE mission in Energy Production, Energy Use, Fundamental Energy Sciences, Environmental Management, Cybersecurity, Energy Security, & Emergency Response, and Defense Nuclear Nonproliferation. To develop the topics, each DOE program office considers its high priority research needs and program mission, as well as the Department’s goals for the program. For more information on the related DOE program offices please visit SBIR STTR DOE Program Office.
SBIR & STTR Phases and Award Amounts
Although this guide is concerned with Phase I applications only, applicants may want to consider applying for Phase II or Phase III awards if they successfully complete their Phase I project. The award amounts and purpose of each phase is outlined below.
- Phase I explores the feasibility of innovative concepted with awards up to 250 and 12 months
- Phase II is the principal R&D effort, with awards up toXYZand 2 years
- Phase III offers opportunities to small businesses to continue their Phase I and II R&D work to pursue commercial applications of their R&D with non-SBIR/STTR funding. Under Phase III, Federal agencies may award non-competitive, follow-on grants or contracts for products or processes that meet the mission needs of those agencies, or for further R&D.
Is the SBIR or STTR Program right for my company?
Before putting the time and effort into applying for an SBIR or STTR grant, it is important to determine whether or not your company is eligible. First and foremost, under the SBIR/STTR Programs the applicant company must be a small, for-profit business, with 500 or fewer employees. The applicant company must also be primarily U.S.-owned, meaning at least 51% of its ownership is by U.S. citizens and/or permanent resident aliens. Small businesses that are majority-owned by venture capital operating companies, hedge funds, or private equity funds are not eligible for DOE SBIR/STTR awards.
The SBIR and STTR Programs encourage participation by small businesses that are minority- and/or woman-owned. However, there are no quotas set aside for such firms. For information on SBIR/STTR initiatives and program assistance related to minority and/or underrepresented groups, please visit the Department of Energy, Office of Science, Office of Scientific Workforce Diversity, Equity, and Inclusion.
