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Small Business Innovation Research

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"SBIR" redirects here. For speaker boundary interference response, see Loudspeaker § Placement. Not to be confused with SBIRS.

The Small Business Innovation Research (or SBIR) program is a U.S. government funding program, coordinated by the Small Business Administration, intended to help certain small businesses conduct research and development (R&D). Funding takes the form of contracts or grants. The recipient projects must have the potential for commercialization and must meet specific U.S. government R&D needs.

Funds are obtained by allocating a certain percentage of the total extramural (R&D) budgets of the 11 federal agencies with extramural research budgets in excess of $100 million. Approximately $2.5 billion is awarded through this program each year. The United States Department of Defense (DoD) is the largest agency in this program with approximately $1 billion in SBIR grants annually. Over half the awards from the DoD are to firms with fewer than 25 people and a third to firms of fewer than 10. A fifth are minority or women-owned businesses. Historically a quarter of the companies receiving grants are receiving them for the first time.[1]

In April 2021, the DoD reported on a lack of due diligence for SBIR recipients, which permitted funds to go toward companies linked to the People's Liberation Army.[2] In 2022, the program was reauthorized with additional disclosure requirements for companies that have ties to "any foreign country of concern, including the People’s Republic of China.”[3]

Participating agencies

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Each Federal agency with an extramural budget for R&D in excess of $100,000,000 must participate in the SBIR Program and reserve at least 3.2% of such budget in fiscal year 2017 and each fiscal year after. A Federal agency may exceed these minimum percentages.[4] In 2010, the SBIR program across 11 federal agencies provided over $2 Billion in grants and contracts to small U.S. businesses for research in innovation leading to commercialization.

As of February 2018, SBIR programs are in place at the following agencies:[5]

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A similar program, the Small Business Technology Transfer Program (STTR), uses a similar approach to the SBIR program to expand public/private sector partnerships between small businesses and nonprofit U.S. research institutions. The main difference between the SBIR and STTR programs is that the STTR program requires the company to have a partnering research institution which must be awarded a minimum of 30% of the total grant funds.[19] As of 2014 federal agencies with external R&D budgets over $1 billion were required to fund STTR programs using an annual set-aside of 0.40%.[20]

The Small Business Technology Council, a member council of the National Small Business Association, hands out the Tibbetts Award annually "to small firms, projects, organizations and individuals judged to exemplify the very best in SBIR achievement."[21]

Federal and State (FAST) is a program of State-based business mentoring and assistance to aid small businesses in the preparation of SBIR proposals and management of the contracts.[22]

History

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The program was established with the enactment into law of the Small Business Innovation Development Act in 1982 to award federal research grants to small businesses. The SBIR program has four original objectives:[23] to stimulate technological innovation; to use small business to meet Federal research and development needs; to foster and encourage participation by minority and disadvantaged persons in technological innovation; and to increase private sector commercialization innovations derived from Federal research and development.

The program must be periodically reauthorized by the United States Congress, but reauthorization is generally included in each new budget. The program was re-authorized through FY2017 by the 2012 Defense Authorization Act (P.L.112-81).[20][24]

Rep. Kim Young (R-CA) and Angie Craig (D-MN) introduced the SCORE for Small Business Act of 2022 to reauthorize the SBIR program as HR 447 of the 117th Congress, which reauthorizes $13.5 million for the program for two years, ensures the SBA prevents abuse and misuse of funds, and expands counseling and training programs to provide online webinars, electronic mentoring platforms, and online toolkits to better serve small businesses.[25]

Historical minimum percentages of their "extramural" R&D budgets for awards to small business concerns are:

  • 2.5% of such budget in each of fiscal years 1997 through 2011;
  • 2.6% of such budget in fiscal year 2012;
  • 2.7% of such budget in fiscal year 2013;
  • 2.8% of such budget in fiscal year 2014;
  • 2.9% of such budget in fiscal year 2015;
  • 3.0% of such budget in fiscal year 2016; and
  • 3.2% of such budget in fiscal year 2017 and each fiscal year after.

A Federal agency may exceed these minimum percentages.[4]

See also

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References

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  1. ^ "Small Business Innovation Research". Small Business Administration.
  2. ^ O’Keeffe, Kate (2022-05-08). "Pentagon's China Warning Prompts Calls to Vet U.S. Funding of Startups". The Wall Street Journal. ISSN 0099-9660. Retrieved 2022-05-08.
  3. ^ Harris, Bryant (2022-09-29). "Congress reauthorizes DoD innovation grants with new China safeguards". Defense News. Retrieved 2022-09-30.
  4. ^ a b "Small Business Innovation Research (SBIR) Program Policy Directive" (PDF). 24 February 2014.
  5. ^ "About SBIR". SBIR.gov. Retrieved 2018-02-22.
  6. ^ "Small Business Innovation Research Program (SBIR)". National Institute of Food and Agriculture. Retrieved 2018-02-14.
  7. ^ "Small Business Innovation Research Program (SBIR)". NIST. Retrieved 2018-02-14.
  8. ^ "Small Business Innovation Research Program". NOAA. Retrieved 2018-02-14.
  9. ^ "DoD SBIR/STTR Program". U.S. Department of Defense. Retrieved 2018-02-15.
  10. ^ "Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Web Portal". U.S. Department of Defense. Retrieved 2018-02-14.
  11. ^ "Small Business Innovation Research Program (SBIR)". Institute of Education Sciences. Retrieved 2018-02-15.
  12. ^ "Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)". U.S. Department of Energy. Retrieved 2018-02-14.
  13. ^ "NIH Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs". National Institutes of Health. Retrieved 2018-02-14.
  14. ^ "Small Business Innovation Research (SBIR) Program Portal". U.S. Department of Homeland Security. Retrieved 2018-02-14.
  15. ^ "U.S. DOT's Small Business Innovation Research Program". Volpe National Transportation Systems Center. 2017-10-04. Retrieved 2018-02-14.
  16. ^ "Small Business Innovation Research (SBIR) Program". EPA. May 2015. Retrieved 2018-02-14.
  17. ^ "SBIR/STTR". NASA. Retrieved 2018-02-14.
  18. ^ "NSF SBIR". National Science Foundation. Retrieved 2018-02-14.
  19. ^ Garland, Eva (2014). Winning SBIR/STTR Grants: A Ten Week Plan for Preparing Your NIH Phase I Application. CreateSpace Independent Publishing Platform. p. iv. ISBN 978-1494784447.
  20. ^ a b "Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs". National institutes of Health. Retrieved 3 May 2014.
  21. ^ [1] Archived November 19, 2010, at the Wayback Machine
  22. ^ "Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs at the NIDCR". Nidcr.nih.gov. 2011-03-25. Archived from the original on 2008-09-17. Retrieved 2011-06-02.
  23. ^ "PUBLIC LAW 97-219" (PDF). history.nih.gov. The US Senate and House of Representatives. Archived from the original (PDF) on March 30, 2013. Retrieved July 1, 2015.
  24. ^ "National Defense Authorization for Fiscal Year 2012". www.govinfo.gov. Retrieved 2019-06-19.
  25. ^ https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf [bare URL PDF]
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