SBIR Grants for Small Business Startups (USA)
This week’s column highlights a government grant program for prerevenue-stage and expansion-stage small businesses. This program is called the Small Business Innovation Research program, or SBIR.
SBIR funds are granted in two phases: Phase I awards provide up to $100,000 to help businesses research and test the feasibility of a new product or service idea. Often Phase I goals involve the development of a working prototype. With completion of all Phase I development goals, award recipients can then apply for a second, Phase II, grant award of up to $500,000 to help bring developed technologies or services to market. […]
The neat thing about the SBIR grant program is that it helps qualifying businesses at the time when funding options are most scarce. Typically startup and early-stage entrepreneurs have to exhaust personal savings, prey upon family members to support their dreams, or give up a high percentage of their business to sources of seed or early-stage investors to develop their products or services.