The Small Business Innovation Research (SBIR) program provides non-dilutive federal funding for research and development conducted by small businesses. With Phase I awards up to $275,000 and Phase II awards up to $1.85 million, SBIR represents one of the most significant funding opportunities for innovative Texas companies. This step-by-step guide covers the complete SBIR application process.
Step 1: Determine Eligibility
- The business must be organized for profit and located in the United States
- At least 51 percent owned and controlled by U.S. citizens or permanent resident aliens
- Fewer than 500 employees including affiliates
- The principal investigator must be primarily employed by the applicant small business during the award period
Step 2: Identify Target Agencies and Topics
Eleven federal agencies participate in SBIR. Each releases solicitations with specific research topics aligned to their mission:
- DoD: Defense-related technologies, cybersecurity, materials, communications
- NIH: Biomedical research, therapeutics, diagnostics, medical devices
- DOE: Energy technologies, nuclear, renewable energy, grid modernization
- NSF: Broad technology areas, no specific topic restrictions
- NASA: Aerospace, earth science, space exploration technologies
Browse current solicitations at SBIR.gov and each agency’s SBIR portal. Texas SBIR overview.
Step 3: Complete Required Registrations
- Register in SAM.gov (required for all federal awards)
- Register at SBIR.gov (the central SBIR portal)
- Register at each target agency’s application portal (e.g., Research.gov for NSF, DSIP for DoD, eRA Commons for NIH)
- Allow 2-4 weeks for all registrations to process
Step 4: Develop Your Phase I Proposal
A Phase I proposal typically includes the following components:
- Technical proposal: Describes the innovation, research objectives, methodology, and expected results (typically 15-25 pages depending on agency)
- Budget: Itemized budget covering salaries, supplies, equipment, travel, subcontracts, and indirect costs
- Commercialization plan: Describes the market opportunity, competitive landscape, path to commercial sales, and revenue projections
- Key personnel: Resumes and qualifications of the principal investigator and key team members
- Facilities and equipment: Description of available resources for conducting the research
Step 5: Address the Review Criteria
SBIR proposals are evaluated on criteria that typically include:
- Technical merit and innovation
- Qualifications of the principal investigator and team
- Potential for commercialization
- Adequacy of the budget and facilities
- Alignment with the solicitation topic
Step 6: Submit Before the Deadline
Submit your proposal through the agency’s designated submission system before the solicitation deadline. Late submissions are not accepted. Allow time for system issues and submit at least 48 hours before the deadline.
Step 7: Review Process and Award
Review timelines vary by agency, typically ranging from 3 to 6 months. If selected, you will negotiate a final budget and receive a Phase I award. Phase I typically lasts 6 to 12 months.
Step 8: Pursue Phase II
Successful Phase I projects can apply for Phase II funding to continue research and development. Phase II proposals require demonstrating Phase I results and an updated commercialization plan.
Texas SBIR Resources
- SBDC advisors for proposal review
- PTAC for federal registration help
- NSF SBIR for Texas
- NIH SBIR for Texas
Check Your SBIR Eligibility
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