TRANS-NIH SMALL BUSINESS INNOVATIVE RESEARCH PROGRAMS
(Updated: September 10, 2002)

TRANS-NIH SMALL BUSINESS INNOVATIVE RESEARCH PROGRAMS

The Institutes and Centers of the NIH participate in two research programs reserved for small business concerns.

SMALL BUSINESS INNOVATION RESEARCH PROGRAM

The SBIR program was established under the Small Business Innovation Development Act of 1982 (P.L. 97-219), reauthorized until September 30, 2000 by the Small Business Research and Development Enhancement Act (P.L. 102-564), and reauthorized again until September 30, 2008 by the Small Business Reauthorization Act of 2000 (P.L. 106-554). The Act requires Federal agencies with extramural research and development budgets over $100 million to administer SBIR programs using an annual set-aside of 2.5% for small companies to conduct innovative research or research and development (R/R&D) that has potential for commercialization and public benefit. Currently, ten Federal agencies participate in the SBIR program: the Departments of Health and Human Services (DHHS), Agriculture (USDA), Commerce (DOC), Defense (DOD), Education (DoED), Energy (DOE), and Transportation (DOT); the Environmental Protection Agency (EPA), the National Aeronautics and Space Administration (NASA), and the National Science Foundation (NSF). To date, over $10 billion has been awarded by the SBIR program to various small businesses.

The SBIR Program includes the following objectives: using small businesses to stimulate technological innovation, strengthening the role of small business in meeting Federal R/R&D needs, increasing private sector commercialization of innovations developed through Federal SBIR R&D, increasing small business participation in Federal R/R&D, and fostering and encouraging participation by socially and economically disadvantaged small business concerns and women-owned business concerns in the SBIR program.

Purpose of program: Commercialization of research project.

Fiscal Year (FY) 1996: 2.0 percent
FY 1997 and beyond: 2.5 percent

Application/proposal receipt dates:

Grant applications: April 1, August 1, December 1 each year

Potential applicants may also consider subscribing to the NIH Guide for Grants and Contracts (http://grants.nih.gov/grants/guide/index.html) to stay apprised of funding opportunities.

Contract proposals: First week in November each year

Three phases of program:

Phase I: Objective is to determine the scientific and technical merit, feasibility, and potential for commercialization of the proposed project and the quality of the performance of the small business concern, before consideration of additional Federal support in Phase II. Generally, not more than one-third of the project in Phase I may be conducted through consultant and contractual arrangements.

Phase II: Objective is to continue the research efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II grant application or contract proposal. Generally, not more than one-half of the project in Phase II may be conducted through consultant and contractual arrangements.

Phase III: Objective of this phase, where appropriate, is for the small business concern to pursue, with non-SBIR funds, the commercialization of the results of the research project funded in Phases I and II.

Amount and period of support:

Phase I: Normally not to exceed $100,000 for direct costs, F&A costs, and negotiated fee for a period normally not to exceed six months.

Phase II: Normally not to exceed $750,000 for direct costs, F&A costs, and negotiated fee for a period normally not to exceed 2 years. That is, a 2-year project may not cost more than $750,000 for that project. A Phase I award must have been received in order to apply for a Phase II award.

Eligibility:

Applicant organization: For-profit, small business concern (sole proprietorship, partnership, corporation, joint venture) with no more than 500 employees. Economically and socially disadvantaged small business concerns and women-owned small business concerns are encouraged to participate in the program, but there is no preferential treatment afforded to either group.

Principal investigator: The one individual designated by the applicant small business concern to be responsible for the scientific and technical direction of the project. The principal investigator must have his or her primary employment (more than 50 percent) with the small business concern at the time of award and during the conduct of the project.

Inquiries:

Solicitations for both the SBIR grant and contract programs contain eligibility requirements, definitions, application and proposal requirements, review considerations, and other pertinent information, including grant application and contract proposal forms and instructions for completion and submission thereof. Solicitations are available electronically on the NIH Small Business Funding Opportunities Web site at: http://grants/nih.gov/grants/funding/sbir.htm <http://grants.nih.gov/grants/funding/sbir.htm>.

Questions of a general nature about the NIH SBIR program should be directed to:

SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM

The STTR program was established by the Small Business Technology Transfer Act of 1992 (Public Law 102-564, Title II), reauthorized until the year 2001 by the Small Business Reauthorization Act of 1997 (P.L. 105-135), and reauthorized again until September 30, 2009, by the Small Business Technology Transfer Program Reauthorization Act of 2001 (P.L. 107-50).

Purpose of program: To facilitate cooperative research projects -- with potential for commercialization of the subject of the research -- between small business concerns and U.S. research institutions.

Amount set-aside from NIH extramural budget :

FY 2002 - FY 2003 0.15 percent

FY 2004 and beyond: 0.30 percent

Grant application receipt dates: April 1, August 1, December 1

Three phases of program: Same as SBIR program.

Cooperative R&D: At least 40 percent of the project (both Phases I and II) must be performed by the small business concern and at least 30 percent of the project must be performed by the U.S. research institution (college or university; other non-profit research organization; or Federal R&D center, such as Oak Ridge National Laboratory; but not laboratories staffed by Federal employees).

Amount and period of support:

Phase I: Normally not to exceed $100,000 for direct costs, F&A costs, and negotiated fee for a period normally not to exceed 1 year.

Phase II: Normally not to exceed $500,000 for direct costs, F&A costs, and negotiated fee for a period normally not to exceed 2 years. A Phase I award must have been received in order to apply for a Phase II award.

Eligibility:

Applicant organization: Same as SBIR program. The applicant small business concern will be the recipient of the award and will execute a subcontract with the research institution for that institution's performance under the STTR award.

Principal investigator: Same as SBIR program, EXCEPT that the principal investigator may have his or her primary employment with other than the small business concern, including the U.S. research institution.

Inquiries:

Questions of a general nature about the NIH SBIR program should be directed to: