SBIR STEP 1:
Finding an Appropriate Solicitation
by
Julie Seward Nagel, PhD, Biotechnology Business Consultants, LLC
Research and development is critical to the success of technology-based companies. However, investment capital to fund R&D is not always available for small businesses. Federal grants and contracts can be a reliable source of non-dilutive capital to fund R&D for small businesses. The largest federal program to fund R&D toward commercialization is the SBIR/STTR program, which has 11 participating federal agencies awarding over $2 billion annually.
Each of the 11 participating agencies issues solicitations on varying calendars and topics. Finding an appropriate solicitation that is a match for a company's technology development goals can be a challenge. Here are four suggested rules to meet the challenge:
Rule #1 - Know the General
& the Specific
Each Federal Agency that participates in the SBIR/STTR program publishes a
general solicitation. Every entrepreneur looking for federal funding should
first know and understand the general solicitations. Each agency is different;
different deadlines, different rules, etc. Know the details of the agency
that funds your specific technology.
Most agencies only accept proposals
in response to specific published topics of interest to the specific agency.
To be competitive, what you propose must fit a specific topic identified in
the solicitation. The Department of Health and Human Services (NIH, CDC, FDA)
are different; they publish an annual general solicitation and a list of topics
of interest. They accept investigator initiated ideas. Further, NIH also publishes
special solicitations to fund specific topics of interest. In making a decision
to respond to a general or special solicitation, carefully consider the fit
between the company's technology and the goals of the program, and the amount
of money available. If you are considering applying under a NIH special solicitation,
always contact the program director listed in the solicitation.
Rule #2 Tools for Accessing Solicitations
There are many differences between SBIR/STTR programs across participating
agencies. Each agency varies on the timing of solicitations and the topics
they seek to fund. There are several electronic sources which allow users
to quickly and easily identify open solicitations from government agencies.
The single best portal for all things SBIR is http://www.sbirworld.com maintained by the National Science Foundation. SBIRworld.com has an open solicitation search engine that searches all open SBIR and STTR solicitations across agencies by key word. Most agencies also maintain listservs that alert one to the opening of solicitations.
Rule #3 Don't Assume
What a particular agency is looking fund in the SBIR/STTR program is not always
intuitive. For example, historically there has been funding for proteomics,
prostate cancer, and hydrogen fuel cells at the Department of Defense SBIR
program. NIH funds worker safety and environmental research as well as drug
development. Do your homework on what various agencies have funded in the
past by viewing closed solicitations at http://www.sbirworld.com.
Rule #4 Stay Informed
It is critical to stay abreast of all the information that is out there regarding
SBIR/STTR contracts and grants. One mechanism to do so is the use of electronic
listservs and e-newsletters. Check agency websites and for information about
subscribing to listservs and newsletters. Agencies can make changes to solicitations
after their initial release; check for these at http://www.sbirworld.com.
There is a wealth of opportunity for funding research and development endeavors for small companies at the federal level. Awareness of these opportunities is the first step in developing a strategic plan on how to effectively use SBIR/STTR grants and contracts to further the goals of your company.