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SBIR & STTR

SBIR & STTR Programs

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are federally funded initiatives supported by agencies such as the National Institutes of Health (NIH), National Science Foundation (NSF), and Department of Defense (DoD).

These programs provide non-dilutive funding to support early-stage research and development with strong commercialization potential. They help small businesses—including faculty-led startups—advance innovative technologies into market-ready products and services.

In Tennessee, Launch Tennessee (LaunchTN) provides additional support for companies pursuing SBIR/STTR funding, including proposal development assistance and commercialization resources.

NSF SBIR/STTR Program Updates

The National Science Foundation (NSF) has relaunched its SBIR/STTR programs with $250 million in funding to support startups and small businesses developing high-impact technologies.

As part of this update, NSF has introduced a $40 million pilot emphasis area focused on next-generation scientific instrumentation and experimental platforms. This initiative supports enabling technologies that can open entirely new fields of scientific discovery through advanced tools, equipment, and research platforms.

Learn more about the NSF SBIR/STTR program here

NSF Project Pitch Requirement

NSF SBIR/STTR applications begin with a required Project Pitch submission.

All applicants must:

  • Submit a Project Pitch to NSF before submitting a full proposal
  • Demonstrate alignment with NSF SBIR/STTR priorities
  • Receive an invitation before submitting a Phase I proposal
  • Submit pitches at any time during the year
  • Compete for Phase I, Phase II, Fast-Track, or supplemental funding opportunities

Submit a Project Pitch:

👉 https://seedfund.nsf.gov/apply/project-pitch/

NSF SBIR/STTR Program Information:

👉 https://seedfund.nsf.gov

Program Phases

Phase I: Feasibility and proof-of-concept research to evaluate technical merit of an idea.

Phase II: Expanded research and development based on successful Phase I results.

Phase III: Commercialization using non-SBIR/STTR funding sources.

Working with CTTC and SPA

CTTC Support

  • Proposal review and feedback
  • Commercialization strategy guidance
  • Intellectual property and licensing support
  • Assistance with subrecipient agreements

SPA Support

  • Budget development and institutional approvals
  • F&A rate guidance
  • Submission compliance review
  • Conflict of interest and administrative support
  • Templates and guidance for LOIs, subawards, and compliance documentation

Quick Reference: SBIR vs STTR

FeatureSBIRSTTR
Ownership>50% U.S.-owned≥51% U.S.-owned
Principal Investigator (PI)Primarily employed by small businessMay be employed by small business or research institution
Research InstitutionNot requiredRequired (U.S.-based nonprofit)
Small Business Research Effort≥67% of work≥40% of work
Research Institution Effort≤33%≥30% of work
SubmissionSmall business submitsSmall business submits

Key Considerations for Successful Proposals

Successful SBIR/STTR proposals clearly demonstrate:

  • Strong commercial potential
  • A well-defined and achievable research plan
  • A capable and experienced team
  • Alignment with the sponsoring agency’s mission
  • Full compliance with eligibility and submission requirements

Eligibility Requirements

Business Requirements

  • Must be a for-profit small business located in the United States
  • Must have 500 or fewer employees, including affiliates

Ownership & PI Requirements

SBIR

  • More than 50% owned and controlled by U.S. citizens, permanent residents, or qualifying U.S. for-profit businesses
  • Principal Investigator primarily employed by the small business

STTR

  • At least 51% owned and controlled by U.S. citizens or permanent residents
  • Principal Investigator may be employed by either the small business or partnering research institution

Resources