The National Science Foundation’s SBIR/STTR Phase II Programs (NSF 24-580) provide further funding for small businesses that have successfully completed a Phase I award. The objective of Phase II is to advance technology from early-stage research into development, positioning it closer to commercial readiness. Eligible businesses may request up to $1,250,000 for research and development costs over 24 months, including funds for Technical and Business Assistance (TABA) and a small business fee. Award amounts and availability are contingent on funding. Phase II allows SBIR recipients to submit STTR proposals and vice versa, enabling flexibility in continuing development. Proposals must demonstrate Phase I feasibility results and build on these to achieve commercialization objectives.

Eligibility for Phase II is limited to small U.S.-based businesses with fewer than 500 employees that have received an NSF Phase I award. Submission must occur within 6-24 months from the Phase I start date. Proposals with an international focus or majority ownership by venture capital or private equity firms are ineligible. The Principal Investigator must primarily work with the proposing business and may not hold other full-time positions. For STTR Phase II, at least 30% of the project must involve a research institution, while SBIR requires that at least 50% of the work be completed by the small business.

Proposals must be submitted through Research.gov and include a detailed commercialization plan, a technical narrative of Phase I results, and supporting documents, such as biographical sketches, a budget breakdown, and letters of support from prospective customers. Evaluation criteria focus on intellectual merit, broader impacts, and commercialization potential, with reviewers assessing each project’s market opportunity, competitive advantage, business model, and capacity for societal benefit.

Important deadlines for submission fall on multiple dates, including November 6, 2024; March 5, 2025; and July 2, 2025. Applications are reviewed in two phases: initial review by merit and a due diligence phase for award consideration, covering eligibility, company structure, and cybersecurity practices. Reporting requirements include quarterly and final reports submitted via Research.gov.