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Small Business Grant Writing – Part 3





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If you have read Part 1 and Part 2 of this series, you know that small business grant writing quite a challenge.

Fortunately, here is some good news for businesses that engage in science and technology research.

Research & Technology Grant Programs

There are 2 major grant programs offered by the federal government targeting small businesses and entrepreneurs. The Small Business Innovation Research (“SBIR”) program and the Small Business Technology Transfer (“STTR”) program are specifically designed for entrepreneurs engaged in science and technology related research.

Small Business Innovation Research Program

The SBIR Program operates with the following objectives:

  • Using small businesses to stimulate technological innovation,
  • Strengthening the role of small business in meeting federal R&D needs,
  • Increasing private sector commercialization of innovations developed through federal R&D,
  • Increasing small business participation in federal R&D, and
  • Fostering and encouraging participation by socially and economically disadvantaged small business concerns and women-owned business concerns in the SBIR program.

SBIR is a 3-phase grant program that offers qualified small businesses the opportunity to propose ideas that meet specific R&D needs of the federal government.

Phase I grants provide up to $100,000 to test the scientific merit or feasibility of an idea. Phase II grants provide up to $750,000 for pilot testing and prototype development. By Phase III, SBIR projects are expected to attract private sector investment and end in the commercialization of the project.

SBIR made available $2.5 billion of grant money for small businesses in fiscal year 2009. Since its inception, over $12 billion has been awarded by the SBIR program to small businesses.

Currently, 11 federal agencies participate in the SBIR program:

  • Departments of Health and Human Services (DHHS)
  • Agriculture (USDA)
  • Commerce (DOC)
  • Defense (DOD)
  • Education (DoED)
  • Energy (DOE)
  • Homeland Security (DHS)
  • Transportation (DOT)
  • Environmental Protection Agency (EPA)
  • National Aeronautics and Space Administration (NASA)
  • National Science Foundation (NSF)

Small Business Technology Transfer Program

STTR provides the opportunity for small businesses to work collaboratively with nonprofit research institutions on research or R&D projects. STTR made available $150 million for small businesses in fiscal year 2009.

Five federal agencies participate in the STTR program:

  • Defense (DOD)
  • Energy (DOE)
  • Health & Human Services (NIH)
  • National Aeronautics and Space Administration (NASA)
  • National Science Foundation (NSF)

Your Small Business Grant Writing Eligibility

Eligibility for SBIR and STTR is limited to American-owned, independently operated, for-profit small businesses, with 500 or fewer employees.

SBIR and STTR grant applications are evaluated using the following criteria:

  • Scientific and technical quality and innovativeness of the idea;
  • The significance of the scientific or technical challenge;
  • The ability of the small business to carry out the project;
  • The impact of the project, judged by technical and/or economic benefits, and the likelihood that the work would lead to a marketable product, or the likelihood the project could attract further funding.

Many states offer programs that work in conjunction with SBIR and STTR.  Some states provide funds that can be used to help pay for the costs incurred in preparing and submitting SBIR and STTR proposals. Some states offer matching funds.

Contact the Small Business Administration for more information.

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