SBIR and STTR explained for startups: phases, agencies, open topics

By GrantSnap team · Published 2026-10-31 · guide

The SBIR.gov about page for America's Seed Fund in October 2026 — SBIR.gov's about page, captured 31 October 2026.

SBIR and STTR are United States federal programmes that fund small businesses to develop technology without taking equity. Sbir.gov calls them America's Seed Fund and describes the money as equity free. Both programmes have three phases. STTR adds one rule: the business must partner formally with a research institution. Each participating agency runs its own programme, so there is no single application.

This guide is for a founder with a technical product who wants to know whether to apply, which agency to approach and where open topics are listed. Figures below come from sbir.gov, Grants.gov and NSF pages checked on 31 October 2026. Award sizes, topics and deadlines change, so confirm each one on the official page before you plan around it.

How SBIR and STTR differ

The sbir.gov apply page says that under STTR the small business must formally partner with a research institution and subcontract part of the award to it. Qualifying institutions include nonprofit colleges and universities, domestic nonprofit research organisations and federally funded research and development centres. The sbir.gov FAQ states that the small business must perform at least 40 percent of the work and the partner at least 30 percent. The two must also sign an agreement covering intellectual property and follow on work.

SBIR has no partner requirement. The SBIR/STTR Policy Directive, summarised on sbir.gov, says an SBIR awardee performs at least two thirds of the research effort in Phase I and at least one half in Phase II. Nonprofits cannot receive awards directly under either programme. In practice, STTR suits a team that already works with a university lab. SBIR suits a team whose core work is its own. On 31 October 2026 the sbir.gov topic search showed 302 SBIR and 279 STTR among 306 open topics. Those counts overlap, so many topics accept both.

The three phases and what they pay

The sbir.gov FAQ says Phase I normally goes up to $150,000, with a six month period of performance for SBIR and one year for STTR. Phase II normally goes up to $1,000,000 over two years and is generally open only to Phase I awardees. Phase I tests technical merit and feasibility. The policy directive says Phase II needs a commercialisation plan and evidence of commercial potential. Phase III is commercialisation with private or other federal money. Neither programme funds it.

Real awards are often larger than those guidelines. The sbir.gov about page says that, as of 16 October 2026, agencies may issue Phase I awards up to $335,937 and Phase II awards up to $2,239,578 without SBA approval. The apply page lists Phase I at $50,000 to $323,000 and Phase II at $650,000 to $2.2 million. It also warns that an award may not cover all R&D costs. Some states offer optional Phase 0 matching money for proposal costs. Use the range in the specific solicitation, not a general figure.

Which agencies take part

The sbir.gov participating agencies page lists 11 agencies. Agriculture, War, Energy (including ARPA-E), Health and Human Services, NASA and the National Science Foundation run both SBIR and STTR. Commerce (NIST and NOAA), Education, Homeland Security, Transportation and the Environmental Protection Agency run SBIR only.

The same page shows that the funding mechanism differs. Agriculture, Commerce and NSF use grants. War, Education, Homeland Security, Transportation, EPA and NASA use contracts. Energy uses agreements. HHS uses grants and contracts. Typical Phase I figures on that page run from $100,000 at Commerce and EPA to $300,000 at NSF, and Phase II from $400,000 to $2 million at the top of Energy's range.

The process differs too. NSF's seed fund page says you submit a project pitch at any time, submit a full proposal only if invited, and hear about funding about six months after that proposal. An ARPA-E listing on Simpler.Grants.gov for an earlier notice, ROCKS, shows small businesses only and submission through ARPA-E eXCHANGE. The policy directive says agencies aim to release solicitations around 1 October, the start of the fiscal year.

Who is eligible

The sbir.gov apply page says a company must be for profit, located in the United States, have fewer than 500 employees, and be owned and controlled by US citizens or permanent residents. It adds that extra restrictions apply to venture capital ownership. The policy directive says awardees certify their size and ownership, and agencies may not use venture or private equity investment as a criterion for award.

There is one catch for investor backed companies. The directive says that for SBIR, agencies may cap awards to companies majority owned by multiple venture capital operating companies, hedge funds or private equity firms. NIH, Energy and NSF may use up to 25 percent of their SBIR funds this way, and other agencies up to 15 percent. Those firms must register with SBA. The principal investigator must also be primarily employed by the small business, or by the research institution under STTR, meaning more than half of their employment time. Read each topic's eligibility text against your cap table and your team.

Registrations to start first

The sbir.gov apply page states that you must have a Unique Entity ID from SAM.gov to receive an award. Grants.gov's registration help says the UEI has 12 characters, SAM.gov registration has no fee and must be renewed every year, and completing it can take 7 to 10 business days. Your named contact then creates a SAM.gov account and adds an organisation profile on Grants.gov. Grants.gov warns that if these steps are not finished by the deadline, the organisation is unlikely to be allowed to apply.

Sbir.gov also links to a company registration overview, but the page checked does not describe its steps. Agencies add their own systems. The ARPA-E listing named above requires eXCHANGE registration, and NSF tells applicants to register their company before submitting. Finish all of this before you pick a topic, because it is the part you cannot rush.

Finding and reading open topics

The sbir.gov topic search has a keyword box and filters for status, agency, phase, program, funding year and open and close dates. On 31 October 2026 it showed 306 open topics, 299 of them Phase I and 7 Phase II. The first ten on the page were defence topics released on 7 October 2026, opening on 28 October and closing on 25 November. The page warns that its topic copies may not be the latest, so check the agency's own site before applying.

For each topic, note the agency, phase, programme and dates first. Then read the technical description and the agency's own solicitation in full. The sbir.gov apply page says reading the whole solicitation can prevent administrative mistakes that disqualify a proposal.

GrantSnap's catalog held 110 live Grants.gov listings on 31 October 2026. Most are research grants rather than startup grants, so expect to filter. Two are relevant here. The catalog lists "Unlocking New Levels of Output and Capacity for Key Subsurface Resources SBIR/STTR (UNLOCK SBIR/STTR)" from ARPA-E, with a deadline of 20 November 2026 and up to $4,630,944 per award. It also lists "NIH Research Evaluation and Commercialization Hubs (REACH)", with a deadline of 10 November 2026, limited to institutions partnered with small businesses on NIH STTR awards, so a startup cannot apply to it directly.

What the application asks and how long review takes

The sbir.gov apply page does not list proposal components, because each solicitation defines them. The steps it gives are to read the solicitation, prepare early, submit to the agency before it closes, and wait for agency review. Phase II adds the commercialisation plan described above. Expect questions on technical merit, feasibility, your team and the commercial case, then check the solicitation for page limits and forms.

Timing varies. The policy directive says most agencies must notify applicants within 90 days of the closing date and issue awards within 180 days. NIH and NSF may take up to one year to notify and 15 months to award. NSF's page gives about one to two months for a project pitch decision. Plan in months, and tell your team before you commit to a start date.

Common mistakes and next steps

The mistakes that cost founders most are administrative. Sbir.gov warns that missing a solicitation requirement can disqualify a proposal. Others follow from the rules above: starting SAM.gov registration too late, assuming an investor backed cap table is fine without checking the cap rules, planning an STTR without a signed partner agreement, naming a principal investigator who is not primarily employed by the right organisation, and treating a topic copy as current without checking the agency page.

Next, confirm eligibility, start registration, and pick one agency whose process fits your timeline. Then read the full solicitation for one open topic. GrantSnap tracks live calls like these, drafts answers from your profile and fills the form in Chrome, and you review every answer before submitting.

Common questions

What is the difference between SBIR and STTR?

STTR requires the small business to partner formally with a research institution, with the business doing at least 40 percent of the work and the institution at least 30 percent, according to sbir.gov. SBIR has no partner requirement.

How much can a Phase I or Phase II award be?

The sbir.gov FAQ says Phase I normally goes up to $150,000 and Phase II up to $1,000,000. The sbir.gov about page says that as of 16 October 2026 agencies may go to $335,937 and $2,239,578 without SBA approval, and each agency sets its own range.

Do I need a SAM.gov registration before applying?

Sbir.gov says you need a UEI from SAM.gov to receive an award. Grants.gov says registration can take 7 to 10 business days, so start before you choose a topic.

Can a company with venture capital investors apply?

Sbir.gov says additional restrictions apply to venture capital ownership. The policy directive says agencies may not use investment as an award criterion, but may cap SBIR awards to companies majority owned by multiple venture or private equity firms.

Sources

SBIR.gov: About (accessed 2026-10-31)
SBIR.gov: How to apply (accessed 2026-10-31)
SBIR.gov: Frequently asked questions (accessed 2026-10-31)
SBIR.gov: Participating agencies (accessed 2026-10-31)
SBIR.gov: SBIR/STTR Policy Directive (accessed 2026-10-31)
SBIR.gov: Open topics search (accessed 2026-10-31)
Grants.gov: Register as an organization (accessed 2026-10-31)
NSF America's Seed Fund: Get started (accessed 2026-10-31)
Simpler.Grants.gov: ARPA-E ROCKS SBIR/STTR listing (accessed 2026-10-31)

We checked the sbir.gov, Grants.gov, NSF Seed Fund and Simpler.Grants.gov pages listed above on 31 October 2026; listing titles, deadlines and award ceilings for the two open listings come from the GrantSnap catalog as of 2026-10-31.

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