Small Business Innovation Research and Small Business Technology Transfer Programs (Phase II) – US

The SBIR/STTR programs are Congressionally mandated and intended to support scientific excellence and technological innovation through investment of Federal research funds to build a strong national economy by stimulating technological innovation in the private sector; strengthening the role of small business in meeting Federal research and development needs; and increasing the commercial application of Federally supported research results. The SBIR and STTR Programs are administered by NIFA on behalf of USDA.

Further, the objective of the STTR program is to stimulate formal cooperative partnerships of ideas and technologies between small businesses and partnering research institutions (e.g., Universities and Federal laboratories). The USDA SBIR/STTR programs, Assistance Listing 10.212, are therefore in a unique position to meet both the goals of USDA and the purpose of the SBIR/STTR legislation by transforming scientific discovery and innovation with both social and economic benefit, and by emphasizing private sector commercialization.

Program Areas

• NIFA is soliciting applications under the following ten SBIR/STTR topics/program areas:
  • Forests and Related Resources
    • The Forests and Related Resources topic area aims to address the health, heterogeneity, and productivity of the Nation’s forests to meet the needs of present and future generations through the use of technologies that protect forestry, develop approaches to increase productivity of forest lands, improve sustainability, and develop value-added materials derived from forest resources.
  • Plant Production and Protection (Biology)
    • The objective of this topic area is to develop novel ways of enhancing crop production and protection against abiotic and/or biotic stresses through the use of novel diagnostic technologies, plant improvement approaches, and tools or management practices that ensure healthy pollinators.
  • Animal Production and Protection
    • The Animal Production and Protection topic area aims to develop innovative, marketable technologies that will provide significant benefit to the production and protection of agricultural animals
  • Management of Natural Resources
    • The Management of Natural Resources topic area aims to develop innovative technologies that are developed with the purpose to manage, monitor, improve, and/or protect the quality and/or quantity of natural resources while sustaining optimal farm and forest productivity and profitability. They encourage new technologies and innovations that will help improve soil health, reduce soil erosion, improve water and air quality, improve nutrient management, and conserve and use water more effectively.
  • Food Science and Nutrition
    • The Food Science and Nutrition topic area aims to fund projects that support research focusing on developing new and improved processes, technologies, or services that address emerging food safety, food processing, and nutrition issues.
  • Rural and Community Development
    • The Rural and Community Development topic area aims to fund the development of new technologies, or the utilization of existing technologies, that address important economic and social development issues or challenges in rural America. The applications need not be centered on agriculture but may be focused on any area that has the potential to provide significant benefit to rural Americans.
  • Aquaculture
    • The Aquaculture topic area aims to develop new technologies that will enhance the knowledge and technology base necessary for the expansion of the domestic aquaculture industry as a form of production agriculture.
  • Biofuels and Biobased Products
    • The objective of this topic area is to promote the use of biofuels and non-food biobased products by developing new or improved technologies that will lead to increased production of biofuels, industrial chemicals, and other value-added products from agricultural materials.
  • Small and Mid-Size Farms
    • The Small and Mid-Size Farms topic area aims to promote and improve the sustainability and profitability of small and mid-size farms and ranches.
  • Plant Production and Protection – Engineering
    • The objective of this topic area is to enhance crop production by creating and commercializing engineering technologies that enhance system efficiency and profitability and protect crops from pests and pathogens in economically and environmentally sound ways.

Funding Information

• Available Funding USDA NIFA plans to fund approximately 45% of the Phase II applications within each of the ten topic areas identified in this RFA. The amount available for the Phase II SBIR Program is approximately $19,500,000 for FY 2025. The anticipated amount available for the Phase II STTR Program is approximately $3,250,000 for FY 2025. USDA is not committed to funding any particular application or making a specific number of awards.
• Phase II applications may not request more than $600,000 (not including TABA), with the maximum award available $650,000 (including TABA) for a period normally not to exceed 24 months. In special cases, NIFA can allow a period of performance up to 36 months, but applicants may not request more than $600,000 (not including TABA) or $650,000 (including TABA).

Eligibility Criteria

• SBIR/STTR Phase I awardees are eligible to apply for Phase II support through this FY 2025 RFA. This includes those awardees identified via a “novated” or “successor-in-interest” revised funding agreement.
• Each applicant must qualify as an SBC through registration with the SBA for R/R&D purposes at the time of selection. Failure to meet an eligibility criterion by the application deadline may result in the application being excluded from consideration or, even though an application may be reviewed, will preclude NIFA from making an award. For those new to Federal financial assistance, NIFA’s Grants Overview provides highly recommended information about grants and other resources to help understand the Federal awards process.
• SBIR/STTR program eligibility requirements are in place to ensure that the funds go only to small, independent U.S. businesses. The regulations include restrictions about (1) the type of firm, (2) its ownership structure, and (3) the firm’s size in terms of the number of employees.
• Type of Firm
  • An SBIR/STTR small business awardee must be a business concern – it must be organized as a for-profit concern and meet all of the other requirements for a “business concern” in 13 CFR § 121.105. Non-profit entities are not eligible (except as the partnering research institution collaborator under the STTR Program).
  • If an awardee is a joint venture, limited partnership, or venture capital partner, each party to the joint venture must be a concern that satisfies all program eligibility requirements regarding type, size, ownership, and control.
• Ownership & Control
  • A majority (more than 50%) of a firms’ equity (e.g., stock) must be directly owned and controlled by one of the following:
  • One or more individuals who are citizens or permanent resident aliens of the United States,
  • Other for-profit SBC (each of which is directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States).
  • This includes single venture capital operating companies (VCOC), hedge funds, or private equity firms that are SBCs that are more than 50% directly owned and controlled by individuals who are U.S. citizens or permanent resident aliens of the United States
  • This also includes applicants more than 50% directly owned and controlled by Alaska Native Corporations, Native Hawaiian Organizations, or Indian tribes or by a wholly owned subsidiary of an Alaska Native Corporation, Native Hawaiian Organization, or Indian tribe.
  • A combination of (1) and (2) above.
  • For SBIR only, multiple venture capital operating companies (VCOCs), hedge funds, private equity firms, or any combination of these, so long as no one such firm owns or controls more than 50% of the equity. This option is allowed only for SBIR awards from agencies that are using the authority provided in § 5107 of the SBIR/STTR Reauthorization Act of 2022 (majority‐VC‐owned authority), 15 U.S.C. § 638(dd)(1). USDA has not elected to make a portion of its SBIR awards to SBCs that are majority-owned by multiple VCOCs, hedge funds, or private equity firms under 15 U.S.C. § 638(dd)(1).
• Size
  • The purpose of the size restriction (number of employees of the firm and its affiliates) is to limit program funding to SBCs that have a unique capacity for innovation and are more likely to be constrained by lack of access to such funding. An SBIR/STTR awardee, combined with its affiliates, must not have more than 500 employees.

For more information, visit Grants.gov.