SBIR/STTR Programs Introduction John Ujvari, MBA SBIR Program Specialist North Carolina SBTDC Phone: Web:
Brief History Small Business Innovation Development Act of 1982 Federal Agencies with R&D Budgets in Excess of $100 Million Set Aside % of Extramural Research Budget Currently 2.5% = $1.8 Billion 50,000 Awards Made Since Inception Over $12 Billion Awarded Since Inception
SBIR in a nutshell R&D funds set aside for high-risk/high-payoff research conducted by small (<500), for-profit firms…. ….that are likely to lead to a commercializable product Three phases
Funding Breakdown Phase I Evaluate viability and feasibility of an idea Up to $100K for 6 month period* Phase II Expand results Further pursue development Up to $750K for up to 24 months* Phase III Commercialization No SBIR funds
Federal Agencies Participating in SBIR (11) 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 NASA National Science Foundation
SBIR Eligibility Checkpoints Organized for-profit U.S. business At least 51% U.S. owned and independently operated Business is located in U.S. P.I.’s primary employment is with small business during the project 500 or fewer employees
STTR in a nutshell Three phase program that parallels SBIR Aimed at moving tech from academia through small business into marketplace R&D must be a joint effort between small business (not <40%) and non-profit research institution (not <30%) Program and funds are managed by the small business, but P.I. may be from non-profit
STTR Cont’d Largest five SBIR agencies participate DOD DOE HHS NASA NSF Phase 1 – Up to $100K (12 months) Phase 2 – Up to $750K Phase 3 - Commercialization
SBIR/STTR Critical Differences Research Partner SBIR: Allows for, but does not require, research institution partners STTR: Requires partners from research institutions (e.g., universities)
SBIR/STTR Critical Differences Principal Investigator Principal Investigator SBIR: PI’s primary (>50%) employment must be with small business concern STTR: Primary employment not stipulated [PI can be from research institution or from small business concern]
SBIR vs. STTR Unique Features SBIRSTTR Set-Aside of Agency Budget2.5%.30 % Award Guidelines Phase I$100K $100K 6 mo 12 mo Phase II $750K $750K 2 yrs 2 yrs Subcontracts Phase I 33% 60% Phase II 50% 60% Academic Component Not Required 30% << << >
NC’s SBIR/STTR Rankings NC’s lead SBIR outreach agency since 1999 High potential for continued ranking increases Lag time issue NORTH CAROLINA’S SBIR/STTR NATIONAL RANKING YEAR Overall SBIR Increase Over Previous Year Overall STTR th68% increase4 th st 24% increase22 nd nd 28 th
Major Advantages of Programs Significant amount of funds reserved for small, innovative firms Funds high risk projects Firm retains IP – no dilution Provides valuable credibility Offers a simplified route to obtaining federal R&D funds
Important Facts to Remember Eligibility determined at time of award PI is not required to have a Ph.D PI is required to have expertise to oversee project scientifically and technically Applications may be submitted to different agencies for similar work Awards may not be accepted from different agencies for the same project
Solicitations Search all agencies for a fit Some solicitations very general, some very specific Do not force fit Will not help you win Not good for the direction of your company Do not send in an unsolicited idea
Solicitation Release Sample Calendar Agency / ProgramReleaseClosing NIH - SBIR/STTRJanuary 9, 2004April 1, 2004 DoD - STTRJanuary 2, 2004April 15, 2004 DOT - SBIRFebruary 17, 2004May 3, 2004 EPA - SBIRMarch 25, 2004May 28, 2004 DoD - SBIRMarch 1, 2004June 17, 2004 NIH - SBIR/STTRJanuary 9, 2004August 1, 2004 USDA - SBIRJune 1, 2004August 29, 2004
Sample Solicitations DoD NIH
Where to Look for Information Each agency has a website Solicitation lists Applications Excellent portals
Submission Done electronically for most agencies now Proposals are not read on a rolling-basis
Review Timeline Write Proposal: January - April 1 Submit Proposal: April 1 Agency Review: April - August Receive Confirmation: August - October Receive Funding if Successful: October - December Generally a 9 month process Note this is a hypothetical sample – all agencies are different
How the SBTDC can Assist you Help determine if your company is eligible Answer general questions during proposal process Put you in contact with key individuals, universities and agencies Review proposals from a business perspective and make recommendations
Information Resources Brochure Brochure Clear overview of all services provided on one sheet
Information Resources SBIR Newsletter SBIR Newsletter SBIR Newsletter Content: Calendar of events Success stories Agency updates/announcements Solicitation release and proposal deadlines Proposal tips
Information Resource SBIR Website SBIR Website SBIR Website Content: Program handbook Proposal deadline calendar Newsletter archives Proposal Tips Sample Proposals Proposal tips Success Stories Agency Presentations
Counseling Strategize Answer questions during proposal process Review proposals
Team Support SBIR is the rallying point for our Tech Team 6 members statewide
Questions ? John Ujvari, MBA SBIR Program Specialist North Carolina SBTDC Phone: