The Small Business Innovation Research (SBIR) Phase II grant for Fiscal Year 2025 is offered by the National Oceanic and Atmospheric Administration (NOAA) under the U.S. Department of Commerce (DOC). This competitive federal grant supports small business concerns (SBCs) in the research and development of technological innovations that align with NOAA’s mission. The Phase II funding opportunity is exclusively available to small businesses that successfully completed a Phase I award under NOFO number NOAA-OAR-TPO-2024-2008184 with project start dates of August 1, 2024, and project completion no later than January 31, 2025.

The SBIR program, authorized by 15 U.S.C. § 638, aims to stimulate technological innovation, strengthen the role of small businesses in federal research and development (R&D), increase private sector commercialization of federally funded innovations, and encourage participation of socially and economically disadvantaged small businesses. NOAA reserves a portion of its extramural R&D budget to support SBCs through a three-phase program: Phase I (feasibility research), Phase II (R&D and prototype development), and Phase III (commercialization). Phase II is the research and development stage, where NOAA will provide up to $690,000 per award for up to 24 months to further develop projects that showed feasibility in Phase I.

Eligibility for this grant is restricted to small businesses that meet the criteria outlined by the Small Business Administration (SBA). The principal investigator (PI) must be primarily employed by the SBC, and at least 50% of the R&D work must be conducted by the awardee. NOAA does not allow participation from venture capital operating companies (VCOCs), hedge funds, or private equity firms. All applicants must be registered with the SBA Company Registry (sbir.gov) and meet NOAA’s performance benchmark requirements. Additionally, awardees must comply with NOAA’s fraud, waste, and abuse prevention requirements, including the completion of mandatory training.

Applications must include a Project Narrative, a Commercialization Plan, and several supporting documents, including the SF-424 (Application for Federal Assistance), Budget Narrative, and Certifications. Proposals will be evaluated on scientific merit and technical approach (40 points), level of innovation (20 points), commercialization potential (20 points), and qualifications of key personnel (20 points). NOAA anticipates approximately 18 awards, subject to the availability of funds, with an expected award date around August 1, 2025.

Applications must be submitted via Grants.gov (NOFO number NOAA-OAR-TPO-2025-0002) by the deadline of March 14, 2025, at 11:59 p.m. Eastern Time. NOAA does not accept late applications, and applicants are strongly encouraged to register early in SAM.gov to avoid submission delays. The funding does not require cost-sharing, but awardees may request up to $50,000 for Technical and Business Assistance (TABA) to support commercialization efforts. The SBIR Phase II grant is a non-recurring funding opportunity, meaning Phase I awardees should plan for potential commercialization beyond this phase.