Small Business

Innovative Research

Presenter: Nicholas Tschohl

December 1, 2004

Overview

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December 1, 2004

• History

• Eligibility

• Funding Agencies

• Phases

• Fast Track

• STTR

• Tips for writing SBIR proposal

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History

• Established in 1982

• 10 funding agencies required to award a portion of research and development (R&D) budget to small business

• Supposed to increase opportunities for small businesses

• Increase private sector commercialization

• Utilize small business to meet federal R&D needs

• Stimulate US technological innovation

• 2.5% of agency extramural R&D budget

• Currently about $1.6 billion awarded annually 3

December 1, 2004

Eligibility

• 51% American Owned

• Independently operated

• Less than 500 employees

• Main business concern is in the United States

• Principle researcher’s (PR) primary employment is with the small business during the project

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December 1, 2004

Funding Agencies

• Currently ten participating agencies Department of Transportation

Environmental Protection Agency

National Aeronautics and Space Administration

National Science Foundation

Department of Health and Human Services

Department of Agriculture

Department of Commerce

Department of Defense

Department of Education

Department of Energy

• Each designates its own R&D topics and accepts proposals

• Each has its own set of regulations for proposals

• Creating a standard form for all funding agencies5

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Funding Agencies

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Sample grading criteria: (NASA)

• 50% - Feasibility and scientific and technical merit

• 25% - Experience, qualifications, and facilities

• 25% - Work Plan

• Adjectivally - commercial merit and feasibility

Proposal screening process

• Administrative review

• Technical review

• Commercial review

Funding Agencies

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December 1, 2004

Fact: SBIR funding is very competitive

• 20,000 SBIR proposals submitted each year

• 2,000 - 2,500 Phase I proposals funded annually

• 500 - 700 Phase II proposals funded annually

SThe S is for Sucks

Phase 0

• Choose a problem

• Determine project feasibility

• Determine estimated time and budget to produce a product

• Research SBIR funding agency

• Write SBIR funding proposal

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December 1, 2004

Phase I

Requirements and limitations:

• Six months for completion

• Up to $100,000

• At least 2/3 of workload must be done by small business

• One third may be done by subcontractors and/or consultants

During this time:

• Evaluate scientific and technical merit

• Develop a prototype

• Prepare Phase II grant proposal

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December 1, 2004

Phase II

During this time:

• Extensive testing of project

• Developing marketing plan

• Approaching potential investors

Requirements and limitations:

• Must have received Phase I funding

• Two years

• Up to $750,000

• Fifty percent must be done by the small business

• Fifty percent may be done by subcontractors and/or consultants

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Phase III

• Commercialization of Phase I and II

• No SBIR funding

• Marketing plan implementation

• Funding must be acquired from outside investors, companies, loans, and/or other non-SBIR federal funding

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December 1, 2004

Fast Track

What it is:

• Extra submission with outside investor for extra funds

What it does:

• Attracts outside investors

• Leverages SBIR funds to obtain additional funds from outside investors (contingent on Phase II approval)

• Prevents significant funding gaps between Phase I and II

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December 1, 2004

Fast Track

How it works:

A fast track application is submitted by the small business and the outside investor that includes:

• A statement that the investor will match both interim and phase II SBIR funding

• Certifies the outside funding qualifies as a “Fast Track investment” and the investor qualifies as an “outside investor”

• The funding agency will notify each company no later than 10 weeks after the end of Phase I

• Company and investor must certify within 45 days that the entire amount of the matching funds has been transferred to the company

Continued...

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December 1, 2004

STTR

• Only five funding agencies for STTR:

• Department of Defense

• Department of Energy

• NASA

• Up to one year for completion during phase I

• Only up to $500,000 for phase II

• Forty percent of workload must be done by small business

• PR may be from either the small business or the non-profit research facility

• Thirty percent must be done by a non-profit research facility

• Last third percent may be done by either party, subcontractors, or consultants

• National Institute of Health

• Nation Science Foundation

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December 1, 2004

Tips For Writing SBIR Proposals

• Follow the outline

• Submit exact number of forms

• Innovation

• Agency need

• Readability

• Use charts, graphs, and tables

• Consistency

• Cost Effectiveness

• Good abstract, specific aims, synopsis, etc.

Parts of a good SBIR proposal:

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December 1, 2004

Tips For Writing SBIR ProposalsContinued….

Writing a good proposal:

• Start writing phase I early

• Show/prove intent to go to phase III

• Project head published in the area

• Have a relationship with a university

• Ph.D. or M.D. personnel

• Assume readers are unfamiliar with subject area

• Tell a good story

• Show your project’s innovation

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December 1, 2004

Tips For Writing SBIR ProposalsContinued….

Things to include:

• Measurable activities

• Market Size

• Potential customers

• Letters of commitment and support

• Purchase orders

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December 1, 2004

Tips For Writing SBIR ProposalsContinued….

Things to avoid:

• Enumerating too many tasks

• Tasks that do not match goal objectives

• Plans with no tasks

• Controversial terms

• Lack of technical approach

• Unclear ideas

• Bad phase II and/or III potential

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December 1, 2004

Tips For Writing SBIR ProposalsContinued….

What to do if your proposal is not accepted:

• Contact the administrator

• Review and revise

• Aims

• Team

• Work plan

• Marketing and commercialization

• Resubmit 19

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QuestionsDecember 1, 2004

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Resources

History

•http://www.ed.gov/offices/OERI/SBIR/about.html

•http://www.dfrc.nasa.gov/Organizations/Technology/SBIR/history.html

Eligibility

• http://www.ed.gov/programs/sbir/eligibility.html

Funding agencies

•http://www.ed.gov/programs/sbir/faq.html

•http://www.sba.gov/sbir/indexsbir-sttr.html

•http://www.sbir.dsu.edu/SBHTI/home/faq.htm#How%20Many%20Projects%20are%20Funded%20Annually

Phases

•http://www.nsbdc.org/assistance/sbir_sttr/ 21

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ResourcesContinued...

Phases

•http://epi.grants.cancer.gov/ResPort/sbir.html

Fast Track

•http://epi.grants.cancer.gov/ResPort/sbir.html

•http://www.acq.osd.mil/sadbu/sbit/overview/index.htm#fasttrack

STTR

•http://sbir.state.mt.us/BRD_SBIR_difference.html

Writing Tips

•http://64.233.161.104/search?q=cache:mOZxcq9EQHoJ:www.edi.gatech.edu/nasa/SBIR2003/Bill%2520Tumblin%27s%2520Writing%2520SBIR%2520proposals%2520.ppt+Tips+on+writing+an+SBIR+proposal&hl=en

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December 1, 2004

ResourcesContinued...

Writing Tips

•http://64.233.161.104/search?q=cache:XHgEprUZSC8J:www.federallabs.org/northeast/ContentObjects/Proceedings/August2004_FLC-CTC_Meeting/Wednesday/August2004_SBIR_STTR_Workshop_Cohen_Winning_SBIR_RSC_6.pdf+Tips+on+writing+an+SBIR+proposal&hl=en

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December 1, 2004