The NSF SBIR/STTR Phase I Programs (NSF 24-579) are designed to support small businesses in advancing high-risk, high-impact innovations with significant commercial and societal potential. This funding, also referred to as “America’s Seed Fund powered by NSF,” aims to foster technology innovations that are grounded in new scientific discovery or engineering advancements, focusing on early-stage research that still requires substantial technical risk reduction. Successful projects should promise a competitive advantage and offer broader societal benefits, from public health and economic growth to strengthening the U.S. workforce. Both SBIR and STTR solicitations allow companies to test feasibility and development, with the option to continue into Phase II for further development, provided Phase I milestones are met.

The program will provide up to $305,000 in funding per Phase I award for research and development, covering a period of 6-18 months. Budget limitations apply, including a 7% cap on small business fees and restrictions on foreign travel and participant support costs. The award includes an option to allocate up to $6,500 for Technical and Business Assistance (TABA) to facilitate commercialization activities, as well as a recommended $25,000 for I-Corps training to aid entrepreneurial skills. SBIR/STTR recipients are also required to attend the NSF Phase I Awardees Workshop as part of their project commitment.

Eligibility is limited to small businesses (under 500 employees) that are U.S.-owned and operated, with research conducted domestically. For STTR projects, a research institution partnership is required, where the small business performs at least 40% of the work and the partner institution at least 30%. Principal Investigators (PIs) must primarily be employed by the small business during the award and hold necessary U.S. work authorizations. Proposals from organizations majority-owned by venture capital, hedge funds, or private equity firms are not eligible, and each small business may submit only one proposal per submission deadline.

The submission process begins with a Project Pitch, which potential applicants must submit to determine if their project aligns with NSF objectives. Upon receiving an invitation, applicants must prepare their proposals using Research.gov. The proposal deadline for Phase I submissions includes several dates across 2024 and 2025, with the next upcoming deadlines on November 6, 2024, and March 5, 2025. A complete submission includes a project description, budget justification, facilities statement, biographical sketches, and certifications on current and pending support.

NSF evaluates proposals based on Intellectual Merit, Broader Impacts, and Commercial Impact. Intellectual Merit assesses the potential for scientific advancement, Broader Impacts looks at societal contributions, and Commercial Impact evaluates market potential, competitive advantage, and the applicant’s ability to drive commercialization. Reviewers assess the technical and business acumen of the project team, their understanding of market needs, and their commercialization strategy, including intellectual property protections.

Notification of awards follows an intensive review and due diligence process, which includes checks for conflicts of interest, cybersecurity practices, and verification of foreign influence compliance. NSF reserves the right to convert meritorious SBIR Phase I proposals to STTR awards and vice versa as needed. All awardees must comply with federal reporting requirements, including quarterly and annual project reports and a final report within 120 days of project completion. Compliance with federal standards, such as Buy America provisions, is mandatory. For assistance, NSF provides support through the Research.gov Help Desk and the SBIR/STTR Inbox.