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Small Business Innovation Research and Small Business Technology Transfer Programs

The Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program are two competitive grant programs that ensure the nation's small, high-tech, innovative businesses are a significant part of the Federal government's research and development efforts. Each year Federal agencies with research and development (R&D) budgets that exceed $100 million are required to allocate 2.5 percent of their R&D budget to the SBIR programs. Currently, eleven Federal agencies participate in the SBIR program. Federal agencies with extramural R&D budgets that exceed $1 billion are required to reserve 0.3 percent of the extramural research budget for STTR grants to small businesses Currently, five Federal agencies participate in the STTR program.

Eligibility: Businesses must meet the following criteria to be eligible for SBIR Program grants: (1) Organized for profit, with a place of business located in the United States; (2) At least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, or (3) At least 51 percent owned and controlled by another for-profit business concern that is at least 51% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States; and; (4) No more than 500 employees, including affiliates. Only United States small businesses are eligible to participate in the STTR program. The small business must meet the following criteria at time of award: (1) Organized for profit, with a place of business located in the United States; (2) At least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, and; (3) No more than 500 employees, including affiliates. Nonprofit research institution must also meet certain eligibility criteria: (1) Located in the US (2) Meet one of three definitions: Nonprofit college or university Domestic nonprofit research organization Federally funded R&D center (FFRDC)
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