Resource Guide
Unlocking Federal Funding: An Intro to SBIR and STTR
Some of our greatest technological breakthroughs have come out of defense contracts. From jet engines to plasma transfusions, small private-sector companies have a rich history of developing pivotal new technologies.
Often developed initially for government use, many have ultimately revolutionized both the military and civilian markets. This synergistic relationship is fundamental to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
The SBIR and STTR programs provide funding and contracts to small businesses to develop technology that may be useful to specific departments and missions within the federal government. Small and large defense companies have a particular edge in securing funding through these programs as the Department of Defense distributes over one billion dollars annually on funding for its projects.
Program Structure
Phase I
A 6–12 month proof-of-concept stage. Teams generate agency interest, develop blueprints, and define scope and impact. Funding ranges from $50,000–$250,000.
Phase II
A 24-month prototype development phase that builds on Phase I. It’s more competitive and offers $500,000–$1.5 million in funding. By the end, teams should be ready to scale manufacturing and commercialization.
Phase III
The commercialization stage. No new federal funding is provided, but successful projects often secure long-term contracts with agencies and private partners.
Application and Funding Support
Explore local and national firms that help navigate the complexities of funding processes.
LSI
LSI is a consulting firm based out of Utah that specializes in crafting applications to help its clients secure funding through a multitude of different federal programs. For over 50 years, the LSI team has been a trusted resource to small businesses, Fortune 500 companies, federal agencies, and state and municipal entities. They deliver innovative and cutting-edge solutions that solve complex business, economic, social, supply chain, and logistics challenges across all levels of government, and industry, for our diverse client set.
The firm has secured over $470 billion in contracts for its clients throughout its five decades of operation. The firm has deep connections with Utah and serves as a major advocate for the Governor's Office of Economic Opportunity and Utah Workforce Services. LSI also offers consulting services in supply chain management, social impact, economic development, and business development.
LSI can be a critical advocate for any company attempting to secure funding for an aerospace and defense project. To learn more about LSI, visit their website.
APEX Accelerator
APEX is an organization established by Congress in 1985 to serve as a conduit for local businesses and the Department of Defense. The organization provides a variety of services that focus on helping businesses get into defense contracting, including helping businesses get registered into DoD databases, identifying different departments that may be interested in a specific project, assisting with grant applications, helping companies with audits following receiving a reward, and much more.
APEX can help you navigate the complexities of applying for SBIR and STTR grants and contracts.
Utah Innovation Center
The Utah Innovation Center, housed within the Governor’s Office of Economic Opportunity, is a free resource for Utah-based companies interested in pursuing SBIR/STTR opportunities at the 11 federal participating agencies. For 15 years, the Center has supported Utah small businesses with proposal assistance and review, training and workshops, checklists of required tasks, and templates and samples. The Center now offers microgrants and nonrecourse loans through the Utah Technology Innovation Funding (UTIF) program, and a commercialization cohort for SBIR/STTR companies.
Team members have science, technology, and business expertise and are available to consult and assist any Utah company. The Center has been instrumental in helping Utah companies push above their weight in these programs. In 2021, 80% of the dollars coming to the state were from current and former clients of the Center.