Understand the basics of the Small Business Programs, including:
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR), collectively the Small Business Programs, are also known as America’s Seed Fund. By setting aside more than $1.3 billion from its Research & Development Funding specifically for our Small Business Programs, the NIH provides support to early-stage small businesses throughout the nation.
Many companies leverage NIH funding to attract the partners and investors needed to take an innovation to market. We focus on a variety of high-impact technologies ranging from research tools to diagnostics, digital health, drugs, medical devices, and others. The NIH SBIR and STTR programs can provide the seed funding you need to bring your scientific innovations from the bench to the bedside.
The goals of our program are to:
Our staff is equipped to guide you through every part of the process to maximize success. Without taking any ownership of your small business, the NIH provides funding for the research and development of innovations and supports commercialization efforts for your product. It is important to note that the NIH is generally not the final purchaser of technologies generated through the programs. View our Program Descriptions for more information.
Although the scope of the work is the same, there are a few critical differences between the SBIR and STTR regarding whether partnerships with a non-profit research institution are allowed (SBIR) or required (STTR). The money always goes to the small business.
Small businesses may outsource:
Minimum work requirements:
The remaining work may be done by either or outsourced
Our programs provide funding based on milestones achieved during given phases. Please note that the NIH Small Business funding phases are separate from and not aligned with clinical trial phases. Below is an overview of application types within NIH Small Business phases that fund research and provide commercialization support.
You can begin with either a Phase I, Fast Track, or Direct to Phase II. Which path you choose depends on the amount of preliminary research and technology development you have done in advance of applying to NIH. Reach out to program staff to discuss which path is right for your small business.
The budget guidelines are the same for both programs, but individual NIH Institutes and Centers can set their own budget limits.
We recognize that some biomedical innovations require additional funding to reach the marketplace. For those topics, the NIH has a waiver from the Small Business Administration (SBA) to allow larger awards. Please refer to a list of SBA approved waiver eligible topics.
Applicants are strongly encouraged to contact program officials before submitting any application in excess of the total award amounts listed above and early in the application planning process.
NOTE: The Tax Cuts and Jobs Act of 2017 included major changes to section 174 of the Internal Revenue Code that took effect in 2022. These changes require businesses to amortize R&D expenses over a five-year period instead of deducting them in the year they were incurred. Although federal income/excess profits taxes are strictly not allowable charges to NIH awards, either as direct or indirect costs. (see FAR 48 CFR 31.205-41), SBIR and STTR application budgets may include a “fee” that may be used by the small business for any purpose, including payment for a tax liability. See the NIH GPS Section 18.5.4.2 “Profit or Fee” for more information.
NIH staff cannot provide tax guidance. Small businesses that receive SBIR or STTR funding should seek guidance from the IRS or a trusted tax/accounting advisor on how this change may affect them.
Learn which criteria are evaluated for your business to be eligible for the small business programs and other considerations NIH takes into account.
We also offer a variety of support and resources, including Technical and Business Assistance (TABA), at each application point. Explore our support for awardees.
