STTR Phase I and II Review 2026

Name: STTR Phase I and II
Brand: 11 Federal Agencies

SBIR companion for R&D requiring a university or non-profit research partnership.

Get started at 11 Federal Agencies → Pre-qualify (where available) with a soft credit pull — no score impact.

ClearValue Rating: 3.8 / 5 — our editorial assessment (how we rate)

Editorial3.6

Cost4.0

Value3.9

Access3.8

Editorial confidence (30%), cost (25%), value (25%), accessibility (20%) — scored consistently across every product, independent of compensation.

At a glance

Award size: Similar to SBIR (Phase I $50K–$295K; Phase II $750K–$2M+)
Partnership: 30% minimum (Non-profit research institution does ≥30% of work)
PI flexibility: Either entity (PI can be at the business or the research institution)
Cycle: Multiple/yr (Same participating-agency schedule as SBIR)

Who STTR Phase I and II is best for

R&D businesses pursuing technical work that genuinely requires a non-profit research institution partner (university, federal lab).

Pros

Same dollar amounts as SBIR with more PI placement flexibility
Specifically designed for university-SMB collaboration
Non-dilutive, non-repayable
Stronger fit when the technical approach requires academic research infrastructure

Cons

Research institution partnership must be real — not nominal
Contract and IP-sharing arrangements with the partner institution add complexity
Same 20-40+ hour application requirement as SBIR
30% minimum partner institution work share is a meaningful constraint

STTR Phase I and II requirements

All SBIR eligibility criteria
Non-profit research institution partner confirmed
30% of work performed at the partner institution

STTR Phase I and II alternatives

SBIR Phase I (11 Federal Agencies (DoD, NIH, NSF, DOE, NASA, USDA, others)) — For-profit U.S. businesses under 500 employees with an R&D project aligned to a participating agency's published topic areas.
Read review Get started at 11 Federal Agencies (DoD, NIH, NSF, DOE, NASA, USDA, others) →

SBIR Phase II (11 Federal Agencies (DoD, NIH, NSF, DOE, NASA, USDA, others)) — Phase I SBIR winners with demonstrated feasibility ready to move to full R&D development over 24 months.
Read review Get started at 11 Federal Agencies (DoD, NIH, NSF, DOE, NASA, USDA, others) →

USDA Rural Business Development Grant (RBDG) (USDA Rural Development) — Small businesses physically located in USDA-defined rural communities (under 50,000 population) seeking equipment, rehabilitation, training, or tech assistance funding.
Read review Get started at USDA Rural Development →

Bottom line

STTR Phase I and II — SBIR companion for R&D requiring a university or non-profit research partnership. Best for: R&D businesses pursuing technical work that genuinely requires a non-profit research institution partner (university, federal lab).. Compare it against alternatives before applying; the right fit depends on your situation, credit, and goals.

Questions about STTR Phase I and II

What is the difference between STTR and SBIR?

STTR (Small Business Technology Transfer) is the companion program to SBIR and offers similar award amounts, but it requires a formal partnership with a non-profit research institution such as a university or federal lab. Under STTR, the research institution must perform at least 30% of the project work.

How much funding can STTR Phase I and II provide?

Award sizes are similar to SBIR: Phase I awards generally run from $50K to $295K, and Phase II awards from $750K to $2M and up, depending on the agency. The funding is non-dilutive and non-repayable — you do not give up equity or take on debt. Confirm current amounts with the participating agency at sbir.gov.

Who is STTR best for?

STTR is best for R&D businesses whose technical work genuinely requires a non-profit research institution partner — a university or federal lab — rather than a nominal arrangement. It is a strong fit when your technical approach depends on academic research infrastructure. A real, documented partnership and an IP-sharing agreement with the institution are required.

Does the principal investigator have to work at my business under STTR?

No. One advantage of STTR over SBIR is that the principal investigator (PI) can be based at either the small business or the partner research institution, giving you more placement flexibility. The defining constraint is that the non-profit research institution must perform at least 30% of the project work.

How do I apply for STTR funding?

You apply through the participating agency's solicitation — STTR runs across 11 federal agencies on the same schedule as SBIR, with multiple cycles per year. Start by reviewing open topics at sbir.gov/topics to find a match for your technology, then confirm your research institution partner and the 30% work share before submitting. Plan for a substantial application effort, often 20–40+ hours.

How we rate

Every pick gets a 1–5 ClearValue Rating computed from four weighted factors: Editorial confidence (30%), Cost (25%), Value (25%), and Accessibility (20%).

Scored consistently across every product and independent of any compensation. Full methodology →

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Editorial disclaimer & disclosure

Not financial advice. ClearValue Lending is a financial education and comparison platform — not a bank, card issuer, lender, or financial advisor. This review is independent editorial content presenting publicly available information about STTR Phase I and II. Nothing on this page is a recommendation to apply for, purchase, or open this product, nor is it individualized financial or credit advice.

How we rate. Every factual claim in this review is attributed to a named source: J.D. Power satisfaction studies, CFPB consumer data, FDIC deposit insurance data, Federal Reserve / FRED rate benchmarks, or official issuer disclosures. Ratings reflect editorial opinion grounded in that data — applied consistently and independent of compensation. Full review methodology →

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