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Home › Topics › Early Funding › SBIR/STTR: A Major Source of Seed Money

Distinctions Between SBIR and STTR

Topics Early Funding SBIR/STTR: A Major Source of Seed Money Distinctions Between SBIR and STTR

The US government, through the National Institute of Health (NIH) and National Science Foundation (NSF), has two types of small business seed funds: Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). Here’s a breakdown of the differences.

Small Business Innovation Research (SBIR)

SBIR funds small, early-stage businesses that are developing and want to commercialize innovative biomedical technologies.

  • Institution partners, such as universities, are permitted but not required.
  • Division of Labor: Your business must complete at least 67% of the labor needed during Phase I and 50% needed during Phase II. The remainder may be outsourced.
  • The principle investigator/program director must have primary employment (more than 50% of their employed time) with the small business.
  • Eleven federal agencies participate in SBIR. The ones providing the most funding in the life sciences include the National Institute of Health in the Department of Health and Human Services and the National Science Foundation.

Small Business Technology Transfer (STTR)

STTR funds small businesses that are developing and want to commercialize innovative biomedical technologies in collaboration with a nonprofit research institution.

  • Institution partnership, such as with a university, is required.
  • Division of Labor: Your business must complete at least 40% of the labor needed, and the research institution must complete at least 30%. The remainder may be outsourced.
  • The principle investigator/program director must have at least 10% effort (10% of their employed time) on the project.
  • Only five government agencies participate in STTR:
    • Department of Defense
    • Department of Energy
    • Department of Health and Human Services
    • National Aeronautics and Space Administration
    • National Science Foundation

Resources

The 11 federal agencies participating in SBIR

Source: Franca-Koh J. & Davis S. Funding and Commercialization Resources for Small Businesses. SBIR Development Center. July 13, 2021.

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Topic Home Expand All
SBIR/STTR: A Major Source of Seed Money
9 Articles
Seed Funding Introduction
Intro to SBIR/STTR
SBIR/STTR Program Phases
Benefits of SBIRs/STTRs Beyond Money
Distinctions Between SBIR and STTR
Government Agencies That Fund SBIRs/STTRs
Tips from Entrepreneurs on Seed Money
Case Example: Before Starting an SBIR Proposal
Resources on Seed Money
Starting an SBIR/STTR Proposal
6 Articles
Steps in the SBIR/STTR Application Process
Getting Started with an SBIR: Tips & FAQs
Which Agency and Program Official to Contact
Grants vs. Contracts
Case Example: Getting Started with an NIH SBIR
Resources to Get Started with SBIR/STTR Funding
Writing and Submitting SBIR/STTR Proposals
4 Articles
Programs to Help with Proposal Writing
Case Example: Applicant Assistance & Technical and Business Assistance Programs
Tips and Resources on Proposal Writing
Proposal Submission
Peer Review Process
4 Articles
The Review Process
Proposal Review Details
Case Example: Post Proposal Review
Proposals Funded and Resubmission
Return to Early Funding
End Resources

This project is funded by National Institute of General Medical Sciences (Grants 1R43 GM131458-01 & 2R GM131458-02)


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