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

SBIR/STTR Program Phases

Topics Early Funding SBIR/STTR: A Major Source of Seed Money SBIR/STTR Program Phases

Program Phases

  • Phase I is for proof of concept. It pays $50,000 to $295,924 (and additional money depending on the agency and circumstances) for 6 to 12 months. Some agencies offer a training in entrepreneurship, called I-Corps, completed during Phase I. (See TABA and Other Commercialization Support.)
  • Phase II is for research and development. It pays $500,000 to $1,972,828 (and additional money depending on the agency and circumstances) over two years. A commercialization plan for your business is required.
  • Alternatives:
    • A Fast Track combines Phase I and Phase II and requires more preliminary data.
    • A Direct to Phase II skipping Phase I may be possible if you have already completed a proof of concept. Talk with a program officer to learn if your proposal seems ready for this type of application.

Later Program Phases

  • SBIR Phase II B Bridge Award: Offered by NCI to help bridge the gap between Phase II and obtaining sufficient third-party investor funds. It pays up to $4 million over two to three years.
  • Phase III: In this phase, you implement your commercialization plan using non-SBIR/STTR funding.

The NIH also has business development consultants, entrepreneurs-in-residence, and regulatory and reimbursement experts, as well as partnering and investing opportunities that assist awardees with commercialization.

Source: SBIR Development Center. NCI. Accessed August 2, 2021.

Did You Know?

  • Some states offer Phase 0 grants to support inventors in writing Phase I proposals.
  • Some states provide Phase I & II matching funds for your funded SBIR grants.
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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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