SBIR/STTR grants enable the transfer of technology from universities and support the development of a product for commercialization.
SBIR/STTR programs provide over $4 billion annually in non-dilutive funding to U.S. small businesses for innovative solutions. These grants are structured in three phases: Phase I offers about $300K for proof of concept, Phase II provides over $1.5M for technology development, and Phase III focuses on commercialization. Some agencies also allow Fast Track submissions for combined Phase I/II or Direct to Phase II awards. Through partnerships like UF Innovate and BBCetc, SBIR/STTR training is available year-round. These programs support scientific and technological innovation critical to U.S. economic growth.
Source: SBIR.gov
Winning an SBIR/STTR award requires an understanding of the different types of SBIR and STTR funding available, the specific federal agency’s goals, timelines and requirements, and the important components of the proposal. It also requires an understanding of the university guidelines for participation in this program. This will enable you to avoid pitfalls, select the right agency and prepare a competitive proposal if you determine that a SBIR or STTR is right for you. Academic innovators typically do not apply for SBIR/STTR contracts therefore the below information is focused on SBIR/STTR grant mechanisms.
Unlike a basic science grant, a SBIR/STTR grant is awarded to advance the development of a product for commercialization. Give yourself at least 12 months to learn about the program, complete I Corps training and prepare a strong proposal for submission. Here are a few things to consider:
Attend live or on- demand seminars so you understand the program guidelines.
Before you consider forming a startup and submitting a SBIR/STTR, it is important to determine the commercial potential of your innovation. Contact UF Innovate I Pathways and enroll in NSF I Corps training so that you can be better prepared to develop a strong commercialization plan and translate your technology. A commercialization plan that outlines your business model and how you will advance your technology towards commercialization is an important part of a SBIR/STTR proposal.
An eligible applicant is a company that:
– Must be an organized small business in the US with 500 or fewer employees
– 50% or greater US owned by individuals and independently operated
– Located in the US with all R&D performed in the US
– Have company research space that is suitable to do the work (at time of award)
– Have all required registrations completed
The 11 agencies that provide SBIR/STTR funding are listed in this link.
The applicant(company) needs to have a) a small business registered b) an address and c) a bank account. Six company registrations are required for submission so start early.
The PI for an SBIR must be primarily (>50%) employed by the small business, however, the PI on an STTR may be primarily employed either at the university or the small business (except for NSF). Each agency may have specific requirements, so it is important that you review the requirements of the agency you are submitting a proposal to.
Typically, academic investigators pursue STTR grants as that allows them to remain as a faculty member in the university. UF Innovators will need to determine who will be the driving the research from the small business side as all research cannot be conducted at the university. University of Florida researchers should also carefully review the program differences and agency requirements and seek university conflict of Interest and outside activities approval before submitting a proposal.
| SBIR | STTR | |
|---|---|---|
| Principal Investigator (PI) | PI must be primarily employed (>50%) with the small business at the time of award and for the term of the award | PI may be employed either at the university or the small business but must put in at least 10% effort on the project |
| Grant Submission/funds awarded | Grants are submitted by the small business and funds are awarded to the small business | Grants are submitted by the small business and funds are awarded to the small business |
| Work Requirement/Subcontracting | Small business MAY outsource to a third party a maximum of: 33% of funds (Phase I) 50% of funds (Phase II) | Small business MUST subcontract a minimum of 30% (maximum of 60%) of funds to research institution/university under a subcontract agreement executed by the Office of Sponsored Programs. Small business minimum work requirement is 40% |
| Partnering Requirement | Permits partnering but not required | Requires a non-profit research institution/university partner |
| Facilities | Small business must have company controlled facilities suitable to do work proposed at time of award | Small business must have company controlled facilities suitable to do work proposed at time of award |
University of Florida employees will need both outside activities and research compliance approval before submitting a proposal. You can contact: Amber Moore ( apeabody@ufl.edu ) from the research integrity, security and compliance team for conflict of interest approval.
Discuss your project role and responsibilities at the small business and the university and your percent effort and time commitments at each entity. You should also discuss the role of any of your lab members in the proposal / small business. A researcher may not be on the SBIR or STTR budget both on the small business side and the university side. Keep in mind that effort on the grant budget is not the same as percent employment at the university or the small business concern.
If your small business is expected to be based on UF intellectual property, speak to your UF Innovate licensing officer so that you can secure rights to the intellectual property by executing an option agreement to the technology before you submit the grant proposal. Some proposals require an intellectual property agreement that outlines allocation of rights if new IP is created from the collaborative work with the university. If you require an Intellectual Property Agreement, Sharon Lu at UF Division on Sponsored Programs can assist you.
SBIR/STTR grants usually require support letters from UF Innovate if the proposal is based on UF IP and UF resources are to be used in the conduct of the project. You can obtain support letters for your proposal by contacting your licensing officer at least 15 days prior to proposal submission date.
Securing company-controlled facilities to conduct research is a requirement at the time of grant award and it is advisable to identify facilities (lab/office) you would need and how much it would cost before grant submission so that you can include that in the budget. You can contact, UF Innovate I Accelerate incubator so that you can get a support letter and they have you on their radar for lab space allocation if you get the grant.
If the grant is expected to be awarded the applicant needs to have secured 1) a team, 2) facilities and 3) any other resources required to conduct the research.
SBIR and STTR grants are submitted by the small business and all grant management activities and all accounting functions including managing the budget are also conducted by the small business. UF Division of Sponsored Programs (DSP) is typically not involved in SBIR and STTR grant submissions however if a subaward to the university is expected then the university investigator should submit the university scope of work and the proposed budget through UFIRST for review by the proposals team.
DSP also assists with Intellectual Property Allocation of Rights agreements if needed at the time of grant submission and with research subcontract agreements at the time of award if a portion of the SBIR/STTR work is to be subcontracted to the university. You can contract Sharon Lu at sharonlu@ufl.edu if you need an agreement executed.
The small business should identify potential team members at the time of proposal submission however actual hiring may be done at the time of award. The small business should also seek appropriate external accounting and legal or other professional advice for any company related activities.
Three times a year the NIH Applicant Assistance Program (AAP) provides a free 10-week grant writing workshop for selected first time Phase I SBIR/STTR biotech applicants, to prepare and submit a competitive Phase I proposal. For more information on the NIH AAP program and applicant deadlines and visit the agency website and the AAP Applicant Portal.
UF Innovate in collaboration with our SBIR partner BBC Entrepreneurial Training and Consulting (BBCetc) provides proposal development and submission guidance. Based avail;bale funding and the eligibility and project suitability and readiness assessment, selected applicants may be eligible for consideration for subsidized one-on-one guidance from the experts at BBCetc that will include the following:
Eligibility for one-on-one Proposal Development Support for UF Innovators
In order to be eligible for consideration for this competitive one-on-one proposal development support, UF innovators looking to form a startup should meet the below requirements and contact Ask UF Innovate.
All UF start-up applicants should follow the guidelines above and contact UF Innovate Pathways at ufinnovatepathways@research.ufl.edu. UF Innovate Accelerate I Hub and Sid Martin clients should should contact the, Karl R. LaPan at klapan@ufl.edu for any SBIR/STTR applicant support.
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Check the UF Innovate l Pathways newsletter for training sessions or reach out to ASK UF Innovate.
Additional live and on-demand training as well as upcoming open solicitations can be accessed by visiting SBIR.gov and at bbcetc.com or the FL FAST Florida High Tech Corridor website.
747 Southwest 2nd Avenue, Suite 108 Gainesville, FL 32601
P.O. Box 115575
Gainesville, FL 32611-5575
UF Innovate provides a range of paid internships for upper-level undergraduates, graduate students, and postdoctoral researchers at UF.
Tech Licensing: (352) 392-8929
Ventures: (352) 392-8929
Pathways: (352) 392-2577
The Hub: (352) 294-0885
747 SW 2nd Avenue
Gainesville, FL 32601
Sid Martin Biotech: (386) 462-0880
12085 Research Drive
Alachua, FL 32615
