The Fiscal Year 2025 USDA Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase II program offers funding to support small businesses in advancing research and development (R&D) projects that originated in Phase I. The program has two primary funding tracks: SBIR with $19.5 million in anticipated funding and STTR with $3.25 million available. Awards for Phase II projects range from $600,000 to $650,000, including an optional Technical and Business Assistance (TABA) allowance of up to $50,000. The program aims to foster innovation, address national agricultural challenges, and drive commercialization of technologies.

The USDA SBIR/STTR Phase II program specifically supports prior Phase I awardees in continuing their R&D efforts toward market-ready solutions. Objectives include commercialization of products, services, or technologies with societal and economic benefits, emphasizing USDA's strategic goals such as combating climate change, bolstering nutrition security, and enhancing rural and tribal economies. Applications must align with one of ten designated topic areas, including food science, biofuels, aquaculture, and conservation of natural resources.

Eligible applicants include small business concerns (SBCs) that meet specific size, ownership, and employment criteria. For STTR, applicants must also partner with a research institution that conducts 30-60% of the project work. Applicants must be U.S.-based and meet national security and financial disclosure requirements. The program does not require cost-sharing, and prior success in SBIR/STTR programs may influence funding decisions.

Applications must be submitted electronically via Grants.gov by March 18, 2025, at 5:00 PM Eastern Time. Submissions require the completion of detailed project narratives, commercialization plans, budget justifications, and relevant certifications. Applicants must also submit technical and business assistance plans if seeking TABA funding. The USDA recommends early submissions to mitigate potential technical issues.

Evaluation criteria include the technical merit of the Phase I outcomes, feasibility and innovation of the proposed Phase II R&D, and the commercialization potential of the technology. Proposals are reviewed for alignment with USDA priorities, the expertise of the project team, and the adequacy of the proposed budget. Letters of support, demonstrating market validation or external funding commitments, are encouraged.

Awards are announced within approximately six months post-submission. Phase II projects typically span 24 months, with potential extensions up to 36 months if justified. Grantees must comply with federal reporting, financial management, and performance requirements. Interim and final reports are required, focusing on technical progress and commercialization outcomes. Additional resources and support are available through USDA's SBIR/STTR program staff.