Florida FAST program launches webinar series on SBIR and STTR training

By Cassidy Mills, Staff Writer

 

The Florida High Tech Corridor launched a virtual training series to help early-stage technology companies access federal innovation grants through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, April 15 – 17.

 

The initiative was part of the Florida FAST (Federal and State Technology) program, funded by the U.S. Small Business Administration (SBA) and aimed to increase the number of competitive SBIR/STTR proposals submitted by Florida-based businesses.

 

The training was delivered in partnership with BBC Entrepreneurial Training & Consulting (BBCetc) and structured as a three-part series. The sessions covered an introduction to SBIR/STTR and the National Science Foundation’s (NSF) funding approach, followed by proposal development with a focus on the technical project description and concluding with budget planning, supporting documents and application logistics.

 

Megan Varnum, senior principal consultant at BBCetc, delivered the presentation and walked participants through key aspects of the SBIR/STTR programs. The sessions were targeted at technology entrepreneurs, researchers and startup founders seeking to leverage federal research dollars to support product development and commercialization.

 

SBIR and STTR are federal programs that provide early-stage funding to small businesses pursuing technological innovations with commercial potential. Both follow a three-phase structure: Phase I supports feasibility studies, Phase II funds full-scale research and development, and Phase III focuses on commercialization, which must be supported by private or other non-federal funds.

 

Varnum discussed the structural differences between the SBIR and STTR programs. STTR requires a formal partnership with a nonprofit research institution, typically a university, while SBIR does not mandate such collaborations, although they are allowed.

 

“In both cases, the applying company must be a U.S.-based, for-profit small business that is majority-owned and operated by U.S. citizens or permanent residents,” Varnum said. “The proposal must demonstrate a clear market need and outline how the proposed innovation addresses that need.”

 

Varnum noted that federal registrations must be completed ahead of the proposal submission. These include the System for Award Management (SAM), Grants.gov, and other agency-specific platforms. Registration can take several weeks, and it is important to ensure all registrations are in place before submitting a proposal.

 

The National Science Foundation (NSF) offers flexible funding terms compared to some other agencies that are more focused on specific deliverables. However, Varnum said the Principal Investigator (PI) must be employed by the small business for at least 51% of their time at the time of the award. NSF requires that the company, not a university, leads the project.

 

The budget allocation for both programs is strictly regulated. In SBIR Phase I, at least 67% of the total budget must be spent by the small business, with no more than 33% subcontracted. In STTR Phase I, at least 40% of the budget must go to the small business, and at least 30% must be allocated to the nonprofit research partner, with the remaining 30% being flexible.

 

“You can subcontract to universities, consultants, or other firms, but the small business must maintain control of the project,” Varnum said.

 

Companies that are already operating in the market may still be eligible for funding, provided their proposal includes significant new technical development. In some cases, a Direct-to-Phase II application may be an option, though not all agencies offer this path or fund clinical trials.

 

“If the company is attempting to overcome regulatory challenges, expand into a new clinical use, or address a novel technical issue, the proposal may be eligible,” Varnum said. “However, expanding the market without substantial innovation is generally not considered.”

 

Varnum encouraged participants to schedule one-on-one consultations through the BBCetc website to assess eligibility and find the most appropriate agency for their needs. Each of the 11 federal agencies that run SBIR/STTR programs has its own review process, funding priorities, and eligibility requirements.

 

While NSF is broadly open to a wide range of technologies, other agencies, such as the Department of Defense (DoD) or NASA, focus on specific technological areas. Varnum also addressed the long-term outlook for the programs, noting that they require periodic reauthorization by Congress.

 

“The programs are currently funded, and reauthorization is due in September,” Varnum said. “Changes could occur, but the current structure will remain in effect at least until then.”

 

Agencies may reduce their participation in the SBIR/STTR programs if their annual R&D budgets fall below certain thresholds: $100 million for SBIR and $1 billion for STTR.

 

In closing, Varnum recommended that companies planning to collaborate with universities begin that process early, as universities often require significant lead time to prepare the necessary documentation, such as subcontracts, budgets, and conflict of interest disclosures.