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SBIR and STTR

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

  1. Target a topic Target service topics that match your product.
  2. Phase I Early feasibility research.
  3. Phase II Prototype development.
  4. 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.