A Three-Phase Program
PHASE I
- Feasibility study
- $100K and 6 months
PHASE II
- Prototype or Pilot Program
- $750K and 2 years
PHASE III
- Commercialization
- Private sector funding
SBIR has three phases. In Phase I, a small business submits a proposal in response to a solicitation topic. Proposals are reviewed to determine the scientific, technical and commercial merit and feasibility of the proposed approach. Awardees can receive as much as $100,000 (dollars) over six to nine months to develop the idea.
Phase I projects that demonstrate the most potential are invited to submit a Phase II proposal to further develop the idea and produce a well-defined prototype. This is where the major R&D effort is conducted. Phase II awards can be up to $750,000 (dollars) over two years.
In Phase III, there is no grant money. Companies are expected to obtain private or non-SBIR government funding to turn the prototype developed in Phase II into a commercial product or service for sale to customers—which could be both military and non-military customers.
