Grants, Tax Credits, and Financial Incentives

Review the following resources available for research and development.

Small Business Innovation Research &Small Business Technology Transfer Grants
The United States distributes $2 billion a year in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants designed to help small businesses stimulate technological innovation and technology commercialization.

Program Benefits

  • 13 of all Phase I grantees are new to the program
  • 41% have two to nine employees
  • Administrative burden is manageable
  • Can apply for more than one grant at a time
  • A grant program, with no repayments
  • One in ten applicants are successful
  • Proprietary information is kept confidential
  • Startup firms are eligible
  • Successful grantees are typically small firms
  • Support research and development for your firm

SBIR Program Solicitation Agencies

The Small Business Innovation Research (SBIR) program solicitations are issued by 11 federal agencies.
  • Department of Agriculture
  • Department of Commerce
  • Department of Defense
  • Department of Education
  • Department of Energy
  • Department of Health and Human Services
  • Department of Homeland Security
  • Department of Transportation
  • Environmental Protection Agency
  • National Aeronautics and Space Administration
  • National Science Foundation
SBIR Eligibility Requirements
  • 51% U.S. owned
  • For profit company
  • Less than 500 employees
  • Primary investigator must work for the company
  • Proposal must meet agency objectives
Program Phases
The SBIR program funds are issued in three phases:
  • Phase I - Prove Feasibility (typically $50,000 - $100,000)
  • Phase II - Prototype Development (typically $250,000 - $750,000)
  • Phase III - Commercialization Stage (typically no funding, but can re-apply for Phase II)
STTR Program Solicitation Agencies
The Small Business Technology Transfer (STTR) program solicitations are issued by five agencies.
  • Department of Defense
  • Department of Energy
  • National Institutes of Health
  • National Aeronautics and Space Administration
  • National Science Foundation
STTR Eligibility Requirements
  • Applicants must be a small business (51% U.S. owned for-profit, less than 500 employees) partnered with a nonprofit research institution (college, university, or other nonprofit research organization).
  • Principal Investigator can be employed by the small business or the research institute.
  • An Intellectual Property Agreement must be in place between the partners.
SBIR / STTR Solicitation Resources
Ten Things to Know About R&D Tax Credits
Review the Manufacturing Advancement Center information page on federal tax research and development tax credits.

USA National Innovation Marketplace
  • Promote your business or innovation in a national online marketplace
  • Research possible business opportunities, innovations and solutions by industry sector
  • Post or research buying opportunities
  • Post or research innovation acceleration services