11 Federal Agencies
STTR Phase I and II Review 2026
SBIR companion for R&D requiring a university or non-profit research partnership.
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).
At a glance
- Award size
- Similar to SBIR
- Partnership
- 30% minimum
- PI flexibility
- Either entity
- Cycle
- Multiple/yr
Phase I $50K–$295K; Phase II $750K–$2M+
Non-profit research institution does ≥30% of work
PI can be at the business or the research institution
Same participating-agency schedule as SBIR
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
Top alternatives worth comparing from Best Small Business Grants 2026.
11 Federal Agencies (DoD, NIH, NSF, DOE, NASA, USDA, others)
SBIR Phase I
For-profit U.S. businesses under 500 employees with an R&D project aligned to a participating agency's published topic areas.
11 Federal Agencies (DoD, NIH, NSF, DOE, NASA, USDA, others)
SBIR Phase II
Phase I SBIR winners with demonstrated feasibility ready to move to full R&D development over 24 months.
USDA Rural Development
USDA Rural Business Development Grant (RBDG)
Small businesses physically located in USDA-defined rural communities (under 50,000 population) seeking equipment, rehabilitation, training, or tech assistance funding.
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See if you qualify→Last verified at the issuer on 2026-08-16
The full lineup
See all picks in Best Small Business Grants 2026
Editorial methodology + complete ranking criteria + side-by-side comparison of all picks.
Read the full guide →Bottom line
STTR Phase I and II scores 3.8 / 5 on the ClearValue Rating — a deterministic editorial composite from the product's own published fees, terms, and eligibility. Best for: R&D businesses pursuing technical work that genuinely requires a non-profit research institution partner (university, federal lab).
◆ How we scored it
The ClearValue Rating, broken down.
- Cost
- 35%
- Fit & approval odds
- 30%
- Speed & terms
- 20%
- Transparency
- 15%
Cost (35%), Fit & approval odds (30%), Speed & terms (20%), Transparency (15%) — scored consistently across every product, independent of compensation. Full methodology →
Frequently asked
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.
Related guides
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