Small Business Innovative Research (SBIR)
Small Business Innovation Research
The SBIR program was established in 1982 to provide increased opportunities for small businesses to:
- meet federal research and development needs,
- increase employment
- foster and encourage participation in technological innovation by socially and economically disadvantaged persons,
- increase private-sector commercialization of innovations derived from federal research and development.
The program will not fund market research, marketing activities or minor improvements to existing products.
About SBIR
SBIR Program Realities
Determine Eligibility
Types of Research Supported by SBIR Programs
SBIR Program Mechanics
Participating Agencies & Schedule
About SBIR
SBIR Program Advantages
SBIR provides over $2 billion annually to small businesses for high risk research
SBIR funds do not have to be repaid
SBIR does not require owner to sacrifice equity in the company
SBIR related patents and proprietary rights remain with the small business
SBIR solicits research in a wide variety of areas
SBIR Program Realities
Highly Competitive: Historically only 15% of SBIR Phase I proposals are funded. The South Dakota SBIR Center can help improve your odds of receiving an award.
Hard Work: Preparing a competitive Phase I SBIR proposal takes time, energy, and in some cases money.
Slow Process: Most agencies accept proposals once a year and the Phase I review process can take months. There is frequently a gap of months between the end of Phase I and funding for Phase II.
Commercialization: The real pay off is in Phase III. While Phase I and II funding allows a company to develop in approaches and prototypes, a company is limited to a 7% profit during Phase I & II. A sound and well financed commercialization plan is critical to success in the SBIR program.
Determine Eligibility
American owned (at least 51%) small business
For-profit entity
Less than 500 employees
Able to perform 2/3 of the Phase I and 1/2 of the Phase II work
Types of Research Supported by SBIR Programs
Communications
Computers
Electronics
Energy
Environmental Technologies
Life Sciences
Materials
Mechanics
Health Sciences