Who can qualify for an SBIR award?
To qualify for SBIR funding, you must:
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Be a for-profit small business of less than 500 people
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Perform the work in the U.S.
- Be the principal researcher/investigator's primary place of employment
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Perform at least 2/3 of a Phase I effort (allows you to subcontract 1/3)
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Perform at least 1/2 of a Phase II effort (allows you to subcontratc 1/2)
In addition, to be awarded a Phase II contract you must have a qualified accounting system.
How do I apply for an award?
Each participating agency posts topics of interest at least once a year (some DOD agencies post twice a year) on their SBIR websites. See my SBIR Links page for a list of most agencies and my SBIR Important Dates page for the list of proposal dates.
To apply you need to write a proposal that is limited to 25 pages for Phase I submissions, and that must follow a specific format. (e.g., DOD Proposal). You also must submit a cost proposal which is fairly simple for a Phase I and can be filled out online. Each agency has its own format and rules, though I believe most now require online electronic submission, which requires you to register in their database (e.g., for DOD)
You also need to register at the Central Contractor Registration Site. This puts you into the government contractor database. It's free, but does require a bit of work. One thing you will need is a DUNS number from D&B. There are additional classification numbers you need (such as NAIC and SIC) but the CCR site will link you to the appropriate website to obtain those numbers. Note, you don't have to register at CCR once you win an award, but it pays to register early on in the proposal process because government agencies will use the CCR to check whether you are a small business and to find out pertinent information.
How can I apply for a Phase II award?
Phase II awards are by invitation only. You need to have won a Phase I award in order to get a Phase II invitation. There are two ways to earn an invitation. The first, which I will call the standard way, is to successfully complete a Phase I and work with your sponsors to earn the invitation. The second is called Fast Track, whcih allows you to move to a Phase II program earlier through the use of investor's matching funds. It must be an outside investor -- your company can't put up the funds. If you have not been awarded a previous Phase II, the matching rate is 25 cents for every SBIR (or STTR) dollar. For example, if such a company receives interim and Phase II SBIR funding that totals $750,000, it must obtain matching funds from the investor of $187,500. For all other companies, the matching rate is 1 dollar for every SBIR (or STTR) dollar. For example, if such a company receives interim and phase II SBIR funding that totals $750,000, it must obtain matching funds from the investor of $750,000. This is a really neat way of amplifying an angel investor's funds. By the way, the source of the funds can be a US government program, so it pays to market to your topic's sponsors.