Small Business Innovation Research and Small Business Technology Transfer Programs Phase I

The USDA SBIR/STTR programs focus on transforming scientific discovery into products and services with commercial potential and/or societal benefit. Unlike fundamental research, the USDA SBIR/STTR programs support small businesses in the creation of innovative, disruptive technologies and enable the application of research advancements from conception into the market. The STTR program aims to foster technology transfer through formal cooperative R&D between small businesses and nonprofit research institutions.

Projects dealing with agriculturally-related manufacturing and alternative and renewable energy technologies are encouraged across all SBIR/STTR topic areas. USDA SBIR/STTR's flexible research areas ensure innovative projects consistent with USDA's vision of a healthy and productive nation in harmony with the land, air, and water. The USDA SBIR/STTR programs have awarded over 2000 research and development projects since 1983, allowing hundreds of small businesses to explore their technological potential, and providing an incentive to profit from the commercialization of innovative ideas. Click below for more SBIR/STTR information.

Applicants for the SBIR/STTR Phase I must meet all the requirements discussed in this RFA. Failure to meet the eligibility criteria by the application deadline may result in exclusion from consideration or, preclude NIFA from making an award. For those new to Federal financial assistance, NIFA’s Grants Overview provides highly recommended information about grants and other resources to help understand the Federal awards process.Each applicant submitting an application must qualify as a Small Business Concern (SBC) through registration with the SBA for R/R&D purposes at the time of selection (see definitions in section Part VIII). Failure to meet an eligibility criterion by the application deadline may result in the application being excluded from consideration or, even though an application may be reviewed, will preclude NIFA from making an award.A potential grantee that is a subsidiary must show that the parent company or parent companies are also a small business entity, and the parent company or parent companies must provide documentation supporting their small business status (the documentation should be included in, Other Attachments, of the Research and Related (R&R) Other Project Information form as directed by Part IV of this RFA). If the parent company or one of the parent companies is a nonprofit organization, then the subsidiary is not eligible to submit an SBIR/STTR application.For SBIR, the primary employment of the Project Director/Principal Investigator (PD/PI) must be with the small business concern at the time of award and during the conduct of the proposed research. Eligible primary employment means that more than one-half (51%) of the PD’s/PI’s time is spent in the employ of the small business during the award period of performance.Primary employment with the small business precludes the applicant as a full-time employee with another organization or academic institution. While the PD/PI must work more than one- half (51%) of his/her time for the small business during the entire grant period, there is no time requirement for the PD’s/PI’s work on the proposed research. Prior Federal Employees must provide documentation that post termination requirements from Federal Service has been completed at time of submission.For STTR, the PD/PI for the proposed project (or, if multiple PD/PIs, at least one PD/PI) must be employed by and perform more than one half (51%) of the PD/PDs time in the employ of either the small business concern or the partnering nonprofit Research Institution. For projects with multiple PD/PIs, at least one PD/PI must meet the primary employment requirement. That PD/PI will serve as the contact PD/PI for the Project Team. To apply to both the SBIR and STTR programs, the PD/PI must be employed more than one-half (51%) by the Small Business Concern.1. SizeAn SBIR/STTR awardee, combined with its affiliates, must not have more than 500 employees. The small business concern must be the primary performer of the proposed research effort. For SBIR Phase I, a minimum of two-thirds (66%) of the research or analytical work, as determined by budget expenditures, must be performed by the proposing small business concern. For STTR Phase I, as determined by budget32expenditures, a minimum of 30% and a maximum of 60% of the research or analytical work must be performed by a single nonprofit research institution (e.g., University, Federal Laboratory, etc.). To apply to both the SBIR and STTR programs, at least 30% but not more than 33% of the research must be conducted by a single nonprofit research institution (e.g., University, Federal Laboratory, etc.)2. Work in the United StatesFor Phase I, the R/R&D work must be performed in the United States. On rare and unique circumstances, for example, a supply, material or project requirement may not be available in the United States, agencies may allow that particular portion of the R/R&D work to be performed or obtained outside of the United States. Upon award, the Phase I awardee may request an exception as described in the award terms and conditions and submit to USDA NIFA for approval.3. BenchmarkAny company that has received at least 20 Phase I awards, regardless of the awarding agency, during the five-year period (Fiscal Year 2016 through 2021) must have received a minimum of five Phase II awards (25% conversion rate), regardless of the awarding agency, over the same five-year period to be eligible to submit a Phase I application in response to this solicitation. If a company has not received an SBIR/STTR award or has received less than 20 SBIR/STTR awards, this benchmark requirement does not apply.Duplicate or Multiple Submissions – Duplicate submissions of the same application to more than one topic area is not allowed. Multiple, distinctive proposals may be submitted in the same grant year. For those new to Federal financial assistance, NIFA’s Grants Overview provides highly recommended information about grants and other resources to help understand the Federal awards process.

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