Funding

SIU Participation in SBIR/STTR Programs (All Campuses)

The following information is provided by and followed by all campuses of SIU.

Faculty researchers have a unique opportunity to partner with small businesses and access non-dilutive federal funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

About SBIR/STTR

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) encourage small businesses to participate in federal research and development (R&D). 

Collectively known as Small Business Programs, also known as America’s Seed Fund awards technology-focused entrepreneurs, startups, and small businesses with non-dilutive funding to develop their technology ideas (focuses on fostering technological innovation) and chart a path toward commercialization (economic growth) that encourages small businesses to participate in federal research and development (R&D).  Powered by a network of federal agencies, entrepreneur support organizations, and the Small Business Administration (SBA), America's Seed Fund advances federal missions and fosters a culture of innovation in the United States.

These programs offer funding for innovative research and development, with a key aspect being the protection of the resulting intellectual property (IP). Understanding IP rights is crucial for participating companies, as it involves balancing the need to protect their innovations with the government's right to use the data for specific purposes.   In essence, SBIR/STTR programs provide a framework for small businesses to develop and protect their innovations while also allowing the government to utilize the data for specific purposes. Companies should proactively manage their IP to maximize its value and ensure compliance with the program's requirements. 

• SBIR provides equity-free funding through federal agencies to American small businesses.  It allows small businesses to partner with research institutions but does not require it.  Its goal is to help small businesses bring innovations to market independently or with partners.  SBIR allows small businesses to apply independently; university collaboration is optional.
• The STTR (Small Business Technology Transfer) program is a federal program that requires small businesses to collaborate with research institutions or Federally Funded Research and Development Centers (FFRDCs) on research and development projects. Its primary goals are to stimulate technological innovation, foster technology transfer, encourage participation by socially and economically disadvantaged individuals plus encourage joint ventures between small businesses and research institutions to commercialize technology.  The program also aims to commercialize innovations derived from federal funding.   In STTR, the small business must be the prime contractor and perform at least 40% of the work, with the research partner performing at least 30% of the work. The balance can be done by either party and/or a third party.
• The federally funded Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs encourage domestic small businesses to engage in research and development that has the potential for commercialization.  Competitive grants are made directly to the small business.  The two programs share the same phases unless noted below.
  • Phase I is innovation and research to study the scientific merit and commercial viability of an innovation.  A Phase I award helps you focus on the feasibility, technical merit, and commercial potential of your research project.
  • Phase II is available to companies whose technology shows commercial promise during the Phase I study.  A Phase II award lets you continue the research and development efforts initiated in Phase I. Once you’ve reached your Phase I milestones, you can apply for a Phase II award, even before the end of the Phase I award. You may submit your application for a Phase II award up to six receipt dates after your Phase I budget period expires.
• Fast-Track's process allows you to submit both Phase I and Phase II in one application for review. The Fast-Track mechanism can minimize the funding gap between phases but requires a fully developed Phase II application/plan at the time of submission.
• Direct to Phase II (SBIR Only) is available if your project has already demonstrated feasibility, but you have not received a Phase I SBIR or STTR, you can apply for a Direct to Phase II award and bypass Phase I.
• Phase IIB some NIH Institutes and Centers offer Phase IIB awards for Phase II projects that require extraordinary time and effort beyond the standard Phase II period of 2 years. Refer to our Phase IIB FAQs for more information.
• Commercialization Readiness Pilot (CRP) Program provides awarded Phase II and Phase IIB small businesses technical assistance and funding for late-stage development. Read more about the CRP program.
• In Phase III, which is not federally funded, the small business concern pursues commercialization based on its successful Phase I/II research and development activities.

See also SBIR.gov, including the online tutorials.

Why Apply?

• Non-dilutive funding (you don’t give up equity)
• Support for innovation and commercialization – progress from feasibility to product development.
• Prestige and validation awarded through competitive peer review by federal agencies.
• Opportunities for university collaboration – faculty can contribute research expertise, facilities, and technology.
• Support for commercialization (Phase I → feasibility, Phase II → development, Phase IIB & TABA → transition & assistance)

Why it Matters for Faculty

For faculty interested in entrepreneurship, SBIR and STTR awards can bridge the gap between academic research and viable products or services. The programs also protect intellectual property while allowing the government limited use of data generated under the award. 

SBIR/STTR programs can also serve as a powerful mechanism for faculty to:

• Translate research discoveries into commercial applications
• Establish or collaborate with small businesses to advance technology development
• Access early-stage funding without giving up equity
• Contribute to economic growth through university–industry partnerships

Eligibility for the Small Business

• American-owned
• organized as a for-profit entity
• less than 500 employees

Funding Amounts (2025)

• Phase I: ~$300,000 for 6–12 months (feasibility)
• Phase II: ~$2 million for up to 2 years (R&D and commercialization)
• Phase IIB / TABA: Follow-on and technical assistance opportunities

Differences between SBIR and STTR

While the two programs share many similarities, to stimulate technological innovation and meet federal R&D needs by supporting small businesses they have some important differences. While SBIR is geared to small businesses (SB), STTR grants are only available to SB’s in collaboration with a nonprofit research institution (RI), such as universities and federal laboratories. See below for a summary of key differences.

 ^1. _{In most situations a full-time university employee cannot serve as the PI at the small business during the academic year unless they have taken a leave of absence, have a reduced university appointment, or have the appropriate level of effort “bought out” by the small business via a formalized agreement with the University.}

SBIR and STTR Participating Agencies

1. Department of Defense (DoD)
2. Department of Energy (DOE)
3. Department of Health and Human Services (HHS)/National Institutes of Health (NIH)
4. National Aeronautics and Space Administration (NASA)
5. National Science Foundation (NSF)

STTR Only Participating Agencies

1. Department of Agriculture (USDA)
2. Department of Commerce (DOC)
   • National Institute of Standards and Technology (NIST)
   • National Oceanic and Atmospheric Administration (NOAA)
3. Department of Education (ED)
4. Department of Homeland Security (DHS)
5. Department of Transportation (DOT)
6. Environmental Protection Agency (EPA)

Individuals Serving as the University PI and Small Business (SB) PI:

• SBIR:  SB PI must be primarily employed by the SB and, therefore, full-time faculty cannot serve as PI for the SB. To serve as PI for the SB, the faculty member cannot have an appointment of greater than 49%.
• STTR:  The PI named on the award may be primarily employed by either the SB or the University. The exception is for NSF STTR awards, in which the PI named on the award must be primarily employed by the SB.
• Serving as both SB and University PI: For both SBIR and STTR awards, the SB PI and the RI PI may not be the same individual. While not explicitly stated, the STTR/SBIR policy, instructions, and project percentage requirements make clear that establishing a separation of entities and roles is important. Having the same person on both sides of the collaboration blurs the respective parties’ project roles, responsibilities, and effort/time commitments.

Role and Responsibility of Small Business (SB) vs. Research Institute (RI)

SB: The PI at the SB must complete and submit the proposal; it cannot use the university’s sponsored project office for its portion of the proposal.  If awarded, the SB must comply with all requirements in the federal agreement, including but not limited to submitting all programmatic and financial reports. Additionally, the SB must issue a subaward to the RI.

RI: The PI must work with their university sponsored project office for review and approval of their scope of work, budget, and any additional materials to be provided to the SB. If awarded, the university sponsored project office will review and negotiate as needed the terms and conditions of the subaward from the SB.

Small Business Using University Resources

The small business may not use University facilities or other resources for the conduct of the company’s business or activities on a proposal, primary award, or any other company-related activities (e.g., employee benefits and payroll). 

The small business must pay for the use of all university resources, including but not limited to space, equipment (including phones), software (including email), use of review committees (such as for animal and human subjects research), and personnel.  Payment can be through contractual services or a sub-award; the latter requires a University PI and is processed through the University’s sponsored projects office. See SIUE’s Policy 6A3 Governing Lease of University Space or Real Property. In addition to sub-awarding to the University on an SBIR/STTR, there are opportunities to contract for fee-for-service work (see Small Business Development Center)

The small businesses may choose to occupy space in an officially designated Technology Park or Incubator Laboratory Facility. Work conducted at the Technology Park or Incubator Laboratory Facility is not considered to be a university activity or use of university resources. Companies that occupy space in these facilities must have a written agreement with the University to compensate the University at fair market value.

Potential Conflicts of Interest and Commitment

Faculty who are associated with the small business can hire but cannot advise or grade students.  The faculty member must comply with the terms of their conflict of interest management plan regarding notifying students of the faculty member’s relationship with the small business.

If there is a relationship between university personnel and small business personnel, then that relationship must be disclosed prior to submission of a proposal.  

Managing IP

If university technologies are desired by a small business, the SIU Office of Technology Management and Industry Relations (OTMIR) can assist with the required intellectual property asset interests the government demands for the business to submit a competitive SBIR/STTR application.  Frequently, for Phase I applications, option agreements or licenses are not required for a successful proposal, but a bona fide intent to enter into such an agreement with the University is required.  For Phase 2, a license agreement will be required.  The OTMIR can assist with both requirements and assist with information on additional resources that the University might be able to provide.

If no university technology is involved, the contractual agreement with the University will dictate the intellectual property terms.

If NIH funding will be involved, see their FAQ regarding SBIR/STTR projects and data sharing.

If you have qustions regarding IP disclosure reviews, licensing, MTAs, CDAs, please contact Rob Patino (rpatino@siumed.edu) with the Office of Technology Management and Industry Relations.

Key IP Considerations in SBIR/STTR:

• Data Rights: SBIR/STTR programs grant the government a license to use the data generated under the award, primarily for evaluation and review purposes during a protection period (typically 20 years from the award date). The government does not have the right to commercialize the invention, and the small business retains the right to commercialize their innovation.
• Patent Protection: Companies can pursue patents to protect their inventions developed under SBIR/STTR. This is a separate form of protection from the SBIR/STTR data rights. SBIR/STTR funding can be used to cover costs associated with patent applications and prosecution.
• Commercialization: SBIR/STTR programs are designed to foster commercialization of the technologies developed. Companies should develop a comprehensive IP strategy that includes not only patents but also other forms of protection like trademarks, especially if they plan to commercialize globally.
• Collaboration Agreements: When collaborating with research institutions under STTR, it's essential to clearly define IP ownership and licensing terms in the collaboration agreement.
• About SIUE Intellectual Property

Resources

ILLINOIS SPECIFIC RESOURCES

• Understanding SBIR and STTR
• Illinois I-Corps – SBIR & STTR Assistance
• Fast Center of Illinois
  • Calendar of Free Training
  • SBIR/STTR Monthly Webinars Replay
  • FAQs

GENERAL RESOURCES

America's Seed Fund also offers resources to help small businesses develop and commercialize innovative technologies. Resources include information on eligibility, funding opportunities, application processes, and commercialization support.   These resources are designed to help small businesses navigate the SBIR/STTR process, secure funding, and ultimately bring their innovative ideas to market. 

• gov: The central hub for information on both SBIR and STTR programs, including program details, solicitations, award data, success stories, and tutorials. 
• America's Seed Fund: The official name for the combined SBIR/STTR programs, emphasizing the focus on early-stage funding for innovative technologies. 
• SBIR and STTR Tutorial: In this tutorial we will introduce you to two important programs: the Small Business Innovation Research Program, also referred to as SBIR; and the Small Business Technology Transfer program, also referred to as STTR. These two initiatives, the SBIR and STTR programs, are sometimes referred to as the Nation’s largest source of early stage/high risk funding for start-ups and small business.
• NIH SEED: The NIH's small business funding program provides resources for small businesses seeking to develop health-related technologies. 
• Participating Federal Agencies: Various agencies like the NIH, NSF, USDA, and NASA (.gov) participate in the SBIR/STTR programs, offering specific funding opportunities and resources related to their respective areas of research and development. 
• NIH RePORTER: Find previously funded projects and program trends
• NSF SBIR/STTR: The NSF program focuses on stimulating technical innovation from diverse entrepreneurs and startups by translating scientific and engineering discoveries into commercialized products and services. 
• Technical and Business Assistance (TABA): TheDOE SBIR/STTR program offers assistance with commercialization plans through its TABA program. 
• Phase Shift (formerly Energy I-Corps):The DOE also provides Phase I awardees with resources to maximize their chances of a Phase II award and long-term commercialization potential.
• NASA SBIR/STTR: NASA offers program resources for potential proposers, current awardees, and the wider community to learn more about the program and connect with potential partners.
• NIDA SBIR/STTR Portfolio: The NIDA SBIR/STTR programprovides access to a database of past projects and resources for identifying collaborators and potential partners. 
• Support Organizations: Various support organizations, such as accelerators and technical assistance centers, can help startups identify and apply for awards. 
• SBIR/STTR Flyer:  Flyer faculty can share with industry partners

Link to Graduate School FAQs

Key Tips

• Start early: Registrations (SAM.gov, eRA Commons, Grants.gov) can take weeks.
• Match your idea to a relevant NIH Institute or Center (IC).
• Engage a Program Officer before submitting.
• Use review criteria (Significance, Innovation, Approach, Team) as a proposal framework.

Next Steps

1. Review open Funding Opportunity Announcements (FOAs) on grants.gov or NIH SBIR Funding page.
2. Register your business (DUNS, UEI, SAM, eRA Commons).
3. Draft Specific Aims page early and get feedback.
4. Submit on time! NIH standard deadlines: Jan 5, April 5, Sept 5.

Contacts at Each Campus

If you have additional questions, below is a contact within the sponsored projects office for each campus. 

• Carbondale Campus:  Pre-Award Manager, Pre-Award Proposal Services
• Edwardsville Campus:  Director of Grant Development 
• School of Medicine:  grants@siumed.edu