If your business does real research and development, the federal government is still the largest source of money that doesn't cost you equity. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, together called America's Seed Fund, award roughly $4 billion a year to small companies.
For six months, that pipeline was shut.
What happened
The programs' legal authority lapsed on September 30, 2025, and agencies stopped issuing new awards.
On April 13, 2026, the Small Business Innovation and Economic Security Act became law, reauthorizing both programs through September 30, 2031.
Agencies can carry unused fiscal 2026 SBIR money into fiscal 2027, which helps make up for the lost months.
What's new
Strategic Breakthrough Awards. A new Phase II-style tier of up to $30 million for companies that already hold a prior Phase II award and are moving technology toward real deployment.
Tighter security review. Agencies must screen for foreign ownership, foreign ties and cybersecurity risk before making awards. Expect more disclosure questions.
Proposal limits. Agencies can cap how many proposals one company submits, a response to so-called "SBIR mills" that win many awards with little commercialization.
How the program works
Phase I funds a feasibility study, typically over six months to a year.
Phase II funds full development, usually over two years, for Phase I winners.
Phase III is commercialization with non-SBIR money, often government contracts.
STTR works the same way but requires a formal partnership with a university or nonprofit research institution.
Who participates
Eleven federal agencies run SBIR, including the Department of War (formerly Defense), NIH, NSF, DOE, NASA and USDA. Each sets its own topics, deadlines and award sizes. After reauthorization, the Department of War restarted solicitations first, and other agencies have been restarting on their own schedules.
Do you qualify?
A for-profit U.S. small business, generally with 500 or fewer employees
Majority owned by U.S. citizens or permanent residents (with some exceptions for venture-backed firms at certain agencies)
Research that matches an agency's published topic, or for some agencies, an open topic
How to start
Register early in SAM.gov. It can take weeks.
Browse open topics at sbir.gov and each agency's own SBIR site.
For NSF, submit a short Project Pitch first to get invited to apply.
Talk to your state's SBIR support office or SBDC. Many offer free proposal reviews.
Why it's worth the paperwork: SBIR money doesn't dilute ownership, doesn't need repaying, and a Phase II win is a credibility signal investors and customers notice.
Unboring is educational content. Agency deadlines and rules change; always confirm with the agency solicitation.
