SBIR and STTR
Why it matters: Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) pay small companies for research and development (R&D). The programs are authorized by law through Sep 30, 2031, so they are stable for years.43
- Target a topic Target service topics that match your product.
- Phase I Early feasibility research.
- Phase II Prototype development.
- Phase III A follow-on contract that can be awarded without a new competition.
- New proposal caps from FY27 The 2026 law (P.L. 119-83) requires agencies to cap how many Phase I and Phase II proposals a company can submit each fiscal year ( CRS IN12705 ).
- Foreign-risk screening Agencies must screen foreign ties and reject proposals that present security risks.43,66 FOCI (Foreign Ownership, Control or Influence) can sink awards late.
- Strategic breakthrough awards Per CRS, agencies can make awards of up to $30M to a small business with at least one prior Phase II, matched dollar for dollar by new private or other federal money.
- Where it fits On the pathway map, SBIR sits in the prototype row for attack, ISR, component and software companies.
What this means for you
SBIR is money to mature a product, and Phase III is a path to production without a new competition. With proposal caps coming, pick topics carefully.
Next step: Search the current service SBIR topics for one that matches your product, and review your cap table for foreign ties.
Not sure which door fits?
Drone Pathway Review, $6,500. TallyPoint maps your product to the right doors, buyers and compliance gates, with a written plan.
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