You might want to consider another competitive SBA program: the Small Business Technology Transfer (STTR) program.

The main difference between the SBIR and STTR programs is that all research and development in the STTR pilot program must be conducted jointly by the small business (that’s you!) and a nonprofit research institution. Not less than 40 percent of the work conducted under an STTR program award is to be performed by the small business, and not less than 30 percent of the work is to be performed by the nonprofit research institution.

Following submission of proposals, agencies make STTR awards based on small business/nonprofit research institution qualification, degree of innovation, and future market potential. Small businesses that receive awards then begin a three-phase program.

Phase I. Start-up. Awards may be as much as $100,000 for up to a one-year effort to fund exploration of the scientific, technical, and commercial feasibility of your idea or technology.

Phase II. Awards may be as high as $7.5 million for a two-year effort that expands the results of Phase I. During this period, the R&D work is performed and you begin to consider commercial potential. Only Phase I award winners are considered for Phase II.

Phase III. This is the period during which Phase II innovation moves from laboratory to marketplace. No STTR funds support this phase. You must find funding in the private sector or other non-STTR federal agency funding.

Five federal agencies with an extramural budget for research or R&D presently participate in the STTR Program: