Understanding the Small Business Innovative Research [SBIR] Contract

Definition & Meaning

The Small Business Innovative Research (SBIR) contract is a federal program designed to encourage technological innovation among small businesses with 500 or fewer employees. It supports research and development projects that can lead to new technologies and commercial applications. The SBIR program follows a three-phase approach:

  • Phase I: Concept development and feasibility study
  • Phase II: Primary research efforts
  • Phase III: Transitioning the technology to commercial use

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A small tech startup develops a new software solution for data analysis and applies for an SBIR contract to fund the research needed to enhance the product's capabilities.

Example 2: A biotechnology firm seeks an SBIR contract to support the development of a new medical device aimed at improving patient outcomes in a specific area of healthcare. (hypothetical example)

Comparison with related terms

Term Description Difference
SBIR Contract A federal program for small businesses to obtain funding for R&D. Focuses specifically on small businesses and innovation.
STTR Contract Similar to SBIR but requires collaboration with research institutions. Involves partnerships with research entities, unlike SBIR.

What to do if this term applies to you

If you believe your small business could benefit from an SBIR contract, consider the following steps:

  • Review the eligibility requirements to ensure your business qualifies.
  • Develop a clear project proposal that outlines your innovative idea and its commercial potential.
  • Utilize resources like US Legal Forms to access templates and guidance for your application.
  • If the process seems complex, consider consulting with a legal professional for tailored advice.

Quick facts

Attribute Details
Eligibility Small businesses with 500 or fewer employees
Phases Three phases: feasibility, research, commercialization
Funding Amount Varies by phase and agency, typically ranges from $150,000 to $1 million

Key takeaways

Frequently asked questions

Projects must demonstrate technological innovation and have commercial potential.