Funding Your Innovation: How to Navigate the SBIR/STTR Program

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All of us stand here today because of the amazing inventions of ingenious researchers, innovators and entrepreneurs. Science and technology has helped create some of the most essential and iconic items in our offices, in our pockets, and in our homes. Radar, microwave ovens, canned food, GPS navigation, digital cameras, the internet and many more technologies have changed our lives for the better. What if I told you, the technologies just mentioned were pioneered and popularized by militaries around the world, including our own?

Congress established the Small Business Innovation Research (SBIR) program was in 1982 to strengthen the role of innovative small businesses in federally-funded research and development (R&D). The program’s purpose is to stimulate technological innovation, use small businesses to meet federal R&D needs, foster and encourage participation by socially and economically/socially disadvantaged small businesses in technological innovation, and to increase private sector commercialization of federal R&D.

As of today, there are 11 federal agencies participating in SBIR/STTR Program. These include the Department of Energy, National Oceanic and Atmospheric Administration, National Science Foundation, United States Department of Agriculture, Department of Health and Human Services, Department of Defense, NASA, Department of Homeland Security, Department of Transportation, Environmental Protection Agency, and the Department of Education. Each agency uses the SBIR/STTR program to meet the needs and interests of their departments.

With so many participating agencies, you might be thinking: How do I know which agency is the best fit for my technology?

Each agency has its own unique mission, set of priorities, and technology needs. The best way to find your fit is to review previous and current SBIR/STTR topics published by each agency. You can access these through SBIR.gov or through individual agency websites. Look for keywords, focus areas, and past awarded projects that align with your innovation. Additionally, our Tech Bridge team is happy to help guide you through this process or connect you with subject matter experts through our partner network.

Federal agencies use two types of funding mechanisms to award SBIR dollars: grants and contracts. Grants are a flexible instrument designed to provide funds to support a public purpose. The principle investigator has more freedom in defining the scope of work and is easier to amend or revise. However, grant funds cannot be used for classified work. Contracts on the other hand, are a binding agreement between a buyer and a seller for goods and services. The scope of work is fairly inflexible and payments are based on deliverables and milestones. Additionally, they must be used for classified work and requires the delivery of promised goods and services determined by contract type. Unlike grants where the application defines the scope of the work, for contracts the government defines the scope of work.

To apply for federal grants and contracts, all organizations must register with SAM.gov and Grants.gov. As of April 2022, the federal government required all entities doing business with them to use the Unique Entity ID (UEI) created by SAM.gov. The registration process with SAM.gov can take several weeks to complete, so it is imperative that you start early.

Now that we’ve covered the broader SBIR landscape, let’s take a closer look at how the Department of the Navy plays a leading role in innovation through the SBIR/STTR programs. As of 2024, the Navy has funded over $11 billion to commercialize SBIR/STTR Technologies. The Navy’s investment in technology is driven by SYSCOM-unique mission needs and requirements which are released as SBIR/STTR topics.

The main goals of the Navy SBIR/STTR program is to stimulate technological innovation for the DoD to maintain technological superiority and military readiness to deter U.S. adversaries’ military operations, increase private sector commercialization of federal R&D to increase competition, productivity, and economic growth. Additionally, through STTR program the Navy aims to stimulate a partnership of ideas and technologies between innovative small businesses and research institutions.

Within the Navy, there are 8 System Commands (SYSCOMS) that participate in the SBIR/STTR program. These include: NAVAIR (Naval Air Systems Command), NAVSEA (Naval Sea Systems Command), NAVWAR (Naval Informations Systems Command), ONR (Office of Naval Research), SSP (Strategic Systems Programs), NAVSUP (Naval Supply Systems Command), MCSC (Marine Corps Systems Command), NAVFAC (Naval Facilities Engineering Command.

Four times a year, the Department of Defense issues topics, including open topics, through Broad Agency Announcements. The Broad Agency Announcements include DoD instructions, agency unique instructions, SBIR/STTR Topics, and Topic Author Information. When topics are first announced during the Pre-release period, small businesses and potential applicants can connect with topic authors to discuss proposed solutions. But during the open period, potential applicants can only ask questions through the online DoD SITIS Q&A System. This system is a publicly available anonymous electronic forum between small businesses and topic authors. Any questions and answers submitted here are available for all to view.

As I briefly mentioned earlier, during Broad Agency Announcements, the DoD releases new topics central to national security, including open topics. Open topics are used by the Navy to look for already commercialized solutions that can be tailored to meet Navy requirements. To qualify to apply for an open topic, you must be a U.S. based small business with fewer than 500 employees. SBIR Open Topics allow small businesses to propose any innovative idea that aligns with the agency’s mission. One caveat with open topics is that you will compete with other applicants across all domains and technologies.

In summary, SBIR/STTR programs are more than just funding opportunities—they are strategic pathways to growth, innovation, and impact. Whether you’re a startup looking to gain early traction, a growing company seeking to solve national security challenges, or a seasoned entrepreneur navigating new markets, these programs can serve as powerful launchpads for your technology and your business.

Stay connected with the people, programs, and partnerships driving technology, entrepreneurship, and economic growth across the Inland Empire by checking out innovationempire.us.