How to Apply for an SBIR Grant

Small Business Innovation Research (SBIR) grants from the federal government provide small businesses with funding for technological innovation projects. Winning an SBIR grant can be a unique and potentially lucrative opportunity for eligible small businesses. Wondering how to apply for an SBIR grant? Scroll down to learn the basics.

Starting the SBIR Grant Application Process

Research Eligibility Requirements

Before determining how to apply for an SBIR grant, you’ll first need to decide whether or not you are eligible to apply for an SBIR grant. To qualify for SBIR Phase I or Phase II funding, your business must qualify as a U.S. Small Business Concern (SBC) as defined by the Small Business Administration (SBA). Per the SBA, an SBC must be all the following:

An independently operated business in the United States
Organized for profit
Not considered dominant in its field
In the legal form of an individual proprietorship, partnership, limited liability company (LLC), corporation, association, trust, cooperative, or joint venture (joint ventures can have no more than 49 percent participation by foreign business entities)
Below the threshold for relevant size standards to be considered a small business for the contract or procurement action in question

Phase I applicants must have completed a minimum of one-third of their research or analytical development before applying, while Phase II applicants must have completed at least half.

Identify and Locate Relevant Opportunities

Beyond the basic requirements above, it’s important to remember that each federal agency participating in the SBIR program has its own focus and priorities, so start by identifying the federal agency that aligns with your business and research goals.

All federal agencies with extramural research and development (R&D) budgets above $100 million must set aside 3.2% of their extramural R&D budget for the SBIR program. The 11 federal agencies currently participating in the SBIR program are the following:

Department of Agriculture
Department of Commerce – National Institute of Standards and Technology
Department of Commerce – National Oceanic and Atmospheric Administration
Department of Defense
Department of Education
Department of Energy
Department of Health and Human Services
Department of Homeland Security
Department of Transportation
Environmental Protection Agency
National Aeronautics and Space Administration
National Science Foundation

You can find SBIR grant opportunities currently being solicited on SBIR.Gov or FedBizOpps. The SBIR portal will also provide detailed information about the solicitation, including specific requirements, points of contact, submissions timeline, latest amendments, notices, and more.

Relevant federal agencies may also post solicitations on grants.gov or their agency website. Some agencies post solicitations for proposals on an as-needed basis, while others follow a yearly proposal cycle, so it’s wise to check back regularly for updates.

Follow SBIR Application Guidelines

Because each federal agency participating in the SBIR has its own application and proposal submission guidelines, application steps may vary slightly between agencies. However, generally speaking, most applicants can expect that they will be required to abide by the following steps as part of submitting an SBIR grant proposal:

Registering your company or organization on SBIR.gov
Submitting a Pre-Submission Inquiry when applicable
Logging in with your credentials (which you will receive after registering)
Submitting a Phase I proposal (and, later, if relevant, a Phase II proposal)

Create a Grant Proposal

Before applying for an SBIR grant, be prepared to create a detailed, compelling proposal highlighting your project’s innovation and commercial potential and addressing the goals and requirements specified by the soliciting agency.

The specific requirements of an SBIR grant proposal may vary across agencies. Still, most Phase I proposals require applicants to include a completed business plan, an executive summary, a cost proposal, and a technical proposal.

Once you’ve completed your proposal, submit it through the agency’s designated online portal or submission system. Once submitted, your proposal will undergo a rigorous peer review process wherein experts in the field will evaluate your project’s technical and commercial merits. The agency will announce the winning proposals based on peer review evaluations and available funding, and grant proposal winners will be notified.

An SBIR grant is an excellent resource if your business is focused on technological innovation. Federal funds issued via SBIR grants can be an innovative and lucrative way for small companies to develop groundbreaking new technologies. If you have more questions about how to find and win federal contracts, GovCon can help.

For over 20 years, GovCon has helped hundreds of clients navigate the complex world of DCAA compliance, streamline their operations, pass audits, and win federal contracts. We use our real-world experience to simplify your process, reduce the cost of compliance, and improve accuracy. We’d love to show you how GovCon can streamline the government contracting process for you. Contact us any time.

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