SBIR/STTR Programs Introduction

1. SBIR/STTR Programs Introduction John Ujvari, MBA SBIR Program Specialist North Carolina SBTDC Email: sbir@sbtdc.org Phone: 919-962-8297 Web: www.sbtdc.org/technology/sbirsttr.asp

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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)

10. SBIR/STTR Critical Differences 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]

11. 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 ComponentNot Required 30% > < < < <

12. NC’s SBIR/STTR Rankings • NC’s lead SBIR outreach agency since 1999 • High potential for continued ranking increases • Lag time issue

13. 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

14. 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

15. 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

16. Solicitation Release Sample Calendar

17. Sample Solicitations • DoD • NIH

18. Where to Look for Information • Each agency has a website • Solicitation lists • Applications • Excellent portals • www.zyn.com • www.sbirworld.com

19. Submission • Done electronically for most agencies now • Proposals are not read on a rolling-basis

20. 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

21. 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

22. Information ResourcesBrochure • Clear overview of all services provided on one sheet

23. Information ResourcesSBIR Newsletter • Content: • Calendar of events • Success stories • Agency updates/announcements • Solicitation release and proposal deadlines • Proposal tips

24. Information ResourceSBIR Website • www.sbtdc.org/technology/sbirsttr.asp • Content: • Program handbook • Proposal deadline calendar • Newsletter archives • Proposal Tips • Sample Proposals • Proposal tips • Success Stories • Agency Presentations

25. Counseling • Strategize • Answer questions during proposal process • Review proposals

26. Team Support • SBIR is the rallying point for our Tech Team • 6 members statewide

27. Questions ? John Ujvari, MBA SBIR Program Specialist North Carolina SBTDC Phone: 919-962-8297 Email: sbir@sbtdc.org