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GRANTS
3 min read
The Government Might Fund Your
Idea Before Anybody Else Will
The Most Expensive Domain
Names in Internet History
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$15,000 Could Be Yours If You
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The Government Might Fund Your Idea Before Anybody Else Will
Finance
Is Your Business
Eligible for a
Government Grant?
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@
JULY 30, 2014
In 2009, I decided to attend the National Small
Business Innovation Research (SBIR)
Conference to understand how the
government could partner with businesses
and support innovative ideas and
technologies.
I was frustrated with the lack of capital
available for small businesses. Most of the
funds being promoted in the finance
community were either debt financing
requiring the repayment of a loan or equity
financing requiring the business to give up a
percentage of the profit in exchange for the
necessary funding.
Related: Hidden Cash: Tap Into R&D Tax
Credits
Sitting at the SBIR conference, I listened to
agency after agency share their funding
allocation for research and development. I
couldnt believe that these agencies were
willing to pay for the infancy stage of
innovation and kept pinching myself to make
sure I wasnt dreaming. That experience led
me to host the 2012 national conference and
introduce the opportunity for free research
and development dollars to thousands of small
KEDMA OUGH
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Here are the five key things to understanding
the SBIR funding program.
1. The Small Business Innovation Research
(SBIR) mission. The SBIR program,
established in 1982, is focused on providing
grants and contracts to small businesses with
500 employees or fewer in the development
of a new concept. More than $2 billion is
distributed annually to support early-stage
concepts that need the necessary research
and development to validate feasibility and
compete in the global innovation marketplace.
2. The benefits of winning an SBIR grant or
contract. There are several benefits to winning
an SBIR grant or contract. The small business
doesnt have to pay back the funds or give up
a percentage of equity in the business. Any
intellectual property is owned exclusively by
the small business. Collateral or exceptional
credit is not a requirement. In almost all cases,
the goal of the program is to fund early-stage
high-risk technologies, a completely different funding philosophy to
standard lenders or venture capitalists.
3. The typical award size and success ratio. In a phase-one grant, the
small business can receive a grant up to $150,000 for the initial
research and development of the idea. Assuming the project is
successful, the small business can apply for a second grant ranging up
to $1 million over a two-year period.
Related: Take It for Granted
The average success ratio of a phase one grant is one in 10
applications reviewed. In phase two, its one in five.
4. The type of topics that can be found in an SBIR solicitation
varies. The SBIR program solicit topics through 11 federal agencies,
including the Departments of Health, Defense, Education, Energy and
Agriculture, the National Institutes of Health and many more.
Hundreds of topics are released quarterly, ranging from software
system development, health-care solutions, online learning tools
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5. Resources and information available about the SBIR. Tapping into
the opportunity to apply for government grants begins with learning
about the grants process. One of my favorite sights to research SBIR
funding is the SBIR Gateway This site is filled with a lot of valuable
SBIR information including solicitation dates, calendar of events and
upcoming trainings in your area.
The SBIR program has provided hundreds-of-thousands of small
businesses the opportunity to develop their concept in collaboration
with the government in the pursuit of innovation.
Granted: Is Your Business Eligible for a Government Grant?
Grants R&D First Steps In Government Business Finance
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