What Is SBIR (Small Business Innovation Research)?

SBIR (Small Business Innovation Research) in plain English

Eleven agencies run SBIR, led by the Department of Defense and the National Institutes of Health. Each one publishes research topics you can propose against. The money comes as a grant or a contract, depending on the agency, and you don't pay it back. Awards come in three phases, from a feasibility study to commercialization.

To apply, your business must be a for-profit company in the United States, more than 50% owned and controlled by U.S. citizens or permanent residents, with 500 or fewer employees, counting affiliates. That is a different size test from the NAICS-based standards used on regular set-asides.

Congress reauthorized SBIR on April 13, 2026, through September 30, 2031, after the program's legal authority lapsed on October 1, 2025.

Related terms

• STTR (Small Business Technology Transfer): STTR (Small Business Technology Transfer) works like SBIR, but you must team up with a research institution, such as a university.
• SBIR and STTR phases (Phase I, II and III): Phase I tests whether an idea is feasible, Phase II funds the full R&D, and Phase III is commercialization paid for with non-SBIR money.
• BAA (broad agency announcement): A broad agency announcement (BAA) is an open call where an agency asks for research ideas and proposals in broad topic areas, not for one specific product.
• Affiliation: Affiliation means SBA adds another company's size to yours because one of you controls or can control the other, or a third party controls both.
• UEI (Unique Entity ID): A UEI (Unique Entity ID) is the 12-character ID SAM.gov assigns to your business. It replaced the DUNS number on April 4, 2022.

Put it to work

• SBIR and STTR: a small business guide
• SBIR and STTR awards, topics and top winners by agency
• SBIR.gov, the official program site

Looking for another term? Browse the full glossary or the government contracting glossary guide.