Each year, millions of dollars are set aside by the United States Government and private organizations to fund technology research and development activity. Grant funding is available for real technology development. That includes developing something that does not presently exist but which furthers science or mankind - such as innovative electronic components that operate effectively in space, or new approaches to disease prevention, or alternative fuel technologies. The majority of grants are strictly for scientific research rather than business development. Companies that are developing technology applications of potential interest to the government, military, or private research organizations would benefit most from a grant search.

SBIR (Small Business Innovation Research) is a highly competitive program that encourages small business to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.

Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses compete for federal research and development awards. Their contributions have enhanced the nation's defense, protected our environment, advanced health care, and improved our ability to manage information and manipulate data.

SBIR targets the entrepreneurial sector because that is where most innovation and innovators thrive. However, the risk and expense of conducting serious R&D efforts are often beyond the means of many small businesses. By reserving a specific percentage of federal R&D funds for small business, SBIR protects the small business and enables it to compete on the same level as larger businesses. SBIR funds the critical startup and development stages and it encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy.

With SBIR & STTR, inventors and small businesses can:

1. Fund innovative, high risk, early stage projects to start or expand a business.

2. Receive funding quickly -- in as little as 4 months from the application.

3. Apply for funding with very little paperwork, time or effort.

4. Retain full ownership of their technology & intellectual property.
   (And the government must keep the project results secret for 4 years)

5. Retain full equity ownership.

6. Retain cash for operations (the Govt. only counts it a success when the company's funded project     has commercial success. They will, therefore, work to help SBIR companies commercialize the     product).

7. Receive additional active support for business planning, commercialization and private venture     funding at no cost.

8. Establish a bid-advantaged, sole-source marketing position with the world's largest, ready-made
    customer base -- potentially worth billions to an SBIR firm.

9. Gain credibility with their marketplace and their potential investors.

10. Receive real cash revenues, usually paid in advance of the work required.
     (Funding can exceed $1 million per project -- NOT per company or per year)

Questions and Answers

1. What agencies are funded through SBIR?

There are currently ten agencies. These are Department of Agriculture, Department of Commerce, Department of Defense, Department of Education, Department of Energy, Department of Health and Human Services, Department of Transportation, Environmental Protection Agency, National Aeronautics and Space Administration, National Science Foundation.

2. What qualifications does SBIR require of a company?

The company must not have more than 500 employees, including affiliates, and must be 51% or more owned and controlled by one or more individuals who are citizens of, or permanent resident aliens of the US.

3. What if the PI is not an employee of the company?

A letter of intent must be sent in with the grant, that the PI is willing to devote more than 50% of their time to the company project, if funded. If they are with a University, a letter from the University allowing them to devote more than 50% of their time is required.