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Small Business Technology Transfer (STTR)

  1. What is the STTR program?
  2. What are the three phases of the STTR program?
  3. Must you be an established business when you propose?
  4. Who can propose?
  5. What is the size criterion?
  6. How are future rights to projects developed under STTR determined?
  7. Who are the federal participants in the STTR program?
  8. Can I skip Phase I and begin at Phase II?
  9. Can you subcontract in STTR-either party or both?
  10. Can a small business concern participate in both SBIR and STTR simultaneously at the same or differing agencies?
  11. Must a successful Phase I small business concern use the same institution in Phase II?
  12. Will an unsolicited proposal be accepted in the STTR program?
  13. Must the small business concern and/or the research institution be located in the United States?
  14. Can a Phase III follow-on contract for funding be made, without competition, to the firm that successfully completes Phase I and II?
  15. What is the minimum percent breakout for small firms and institutions in conducting research?
  16. Where can I go for further information on how I get started or if there is other assistance available?

1. What is the STTR program?
STTR is a highly competitive three-phase program that reserves a specific percentage of federal research and development funding for award to small businesses in partnership with nonprofit research institutions to move ideas from the laboratory to the marketplace, to foster high-tech economic development, and to address the technological needs of the federal government.

2. What are the three phases of the STTR program?
Phase I is the start-up phase for the exploration of the scientific, technical, and commercial feasibility of an idea or technology. Awards are for periods of up to one year in amounts up to $100,000. Phase II is to expand Phase I results. During this period the R&D work is performed, and the developer begins to consider commercialization potential. Awards are for periods of up to two years in amounts up to $500,000. Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. There is no STTR funding in this phase.

3. Must you be an established business when you propose?
No. However, you must be organized as a business at the time of award.

4. Who can propose?
Only small for-profit businesses can propose.

5. What is the size criterion?
The applicant must be a small business concern with 500 or fewer employees including subsidiaries and affiliates. The size of the nonprofit collaborator is not relevant.

6. How are future rights to projects developed under STTR determined?
The small business concern and the research institution must develop a written agreement prior to a Phase I award. This agreement must be submitted to the awarding agency if requested.

7. Who are the federal participants in the STTR program?
The following five federal departments and agencies are eligible to participate:

  • Department of Defense
  • Department of Energy
  • National Aeronautics and Space Administration
  • Department of Health and Human Services
  • National Science Foundation

8. Can I skip Phase I and begin at Phase II?
No. Phase II awards can be awarded only to firms having successfully completed Phase I at the same awarding agency.

9. Can you subcontract in STTR-either party or both?
Yes. Either party may subcontract or they may jointly fund a subcontractor.

10. Can a small business concern participate in both SBIR and STTR simultaneously at the same or differing agencies?
Yes, but they may not perform the same or essentially similar work under more than one contract or grant. Collecting funds more than once for the same work is fraud.

11. Must a successful Phase I small business concern use the same institution in Phase II?

No. The small business concern can change research institutions in Phase II.

12. Will an unsolicited proposal be accepted in the STTR program?
No. Proposals must respond to the solicitation as published by one or more of the participating agencies.

13. Must the small business concern and/or the research institution be located in the United States ?
Yes. Both the small business concern and the institution must be on U.S. soil.

14. Can a Phase III follow-on contract for funding be made, without competition, to the firm that successfully completes Phase I and II?
Yes, the firm may be given a sole source contract in Phase III for further work or production.

15. What is the minimum percent breakout for small firms and institutions in conducting research?
Small business concerns must perform at least 40 percent of the work, and research institutions must perform at least 30 percent.

16. Where can I go for further information on how I get started or if there is other assistance available?
Information can be obtained from the SBA Online Bulletin Board by dialing 800-697-4636. To receive information on other SBA programs, contact your local SBA office or call the SBA Answer Desk at 800-8-ASK-SBA.

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