The NSF Small Business Innovation Research (SBIR) / Small Business Technology Transfer (STTR) Phase II Programs (NSF 24-580) is a funding opportunity provided by the U.S. National Science Foundation (NSF) to support small businesses in further developing their innovative technological solutions based on science and engineering discoveries. The program aims to stimulate technical innovation, foster economic growth, and encourage the commercialization of high-risk, high-reward technologies. It is administered by the Directorate for Technology, Innovation and Partnerships (TIP) within NSF, specifically under Translational Impacts.

This Phase II program is exclusively available to small businesses that have previously received an NSF SBIR/STTR Phase I award and demonstrated the feasibility of their technology. The funding is intended to support the continued research and development (R&D) necessary to advance the technology towards commercialization. The goal is to help small businesses bridge the gap between proof-of-concept and the market by providing non-dilutive funding. The program prioritizes projects that demonstrate strong technical risk and technological innovation, ensuring that funded technologies have the potential to disrupt existing markets or create new ones.

NSF anticipates funding 90 to 100 awards annually under this solicitation, with approximately 85–90 SBIR Phase II awards and 8 STTR Phase II awards. The total funding available is $120 million, with up to $1,250,000 per award, covering direct and indirect costs, Technical and Business Assistance (TABA), and the small business fee. Phase II projects typically run for 24 months, with the possibility of adjustments based on project needs. Award conditions include requirements for due diligence, milestone tracking, and compliance with commercialization objectives.

To apply, eligible small businesses must submit their Phase II proposal within 6 to 24 months after the start date of their Phase I award. Proposals must be submitted through Research.gov and cannot be submitted via Grants.gov. Applications require a Commercialization Plan, a Phase I Technical Narrative, a Project Description, and supporting documents such as Biographical Sketches, Budget Justifications, and Letters of Support from potential customers or users. The review process evaluates Intellectual Merit, Broader Impacts, and Commercialization Potential, ensuring that selected projects demonstrate strong market viability, a compelling value proposition, and a capable business team.

Key deadlines for this funding cycle include September 18, 2024; November 6, 2024; March 5, 2025; July 2, 2025; and November 5, 2025. NSF SBIR/STTR Phase II recipients are required to submit annual and final reports on their progress. Applicants must also ensure compliance with federal regulations, including intellectual property rights agreements for STTR proposals and required certifications regarding foreign talent recruitment programs.

For further inquiries, applicants are encouraged to contact their Phase I Program Officer or reach out via email at sbir@nsf.gov or by phone at (703) 292-8050. Additional resources, including templates and commercialization guides, are available on the NSF America’s Seed Fund website.