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  4. Small Business Innovation Research Program

Small Business Innovation Research Program

SBIR Growth map of the U.S.

The Small Business Innovation Research (SBIR) program, created in 1982 through the Small Business Innovation Development Act and reauthorized in 2011, is one of the largest public–private partnerships in the United States. The SBIR program encourages U.S. small businesses with fewer than 500 employees to provide quality research and to develop new processes, products and technologies in support of the missions of the U.S. government. Administered by DHS S&T, the DHS SBIR Program supports a full spectrum of SBIR initiatives serving all components. 

DHS SBIR Program Phases. Phase 0: Education and Support. Free for all potential offerors Assists in understanding program purpose, process, and goals; Proposal development best practices and submission guidance; Increases awareness of support resources. Phase 1: Proof of concept. Typically $175,000 threshold; Funded with SBIR dollars; 2/3 of work must be performed by the small business; All work must be performed in the U.S.; Typically 5 months in duration; Up to an additional $6,500 may be provided for Technical and Business Assistance (TABA); Opportunity for DHS/NSF I-Corps Program at $50K. Phase 2: Prototype Demonstration. Typically $1,000,000 to $1,500,000 threshold; Funded with SBIR dollars; 50% of work must be performed by the small business, typically 24 to 36 months in duration; All work must be performed in the U.S.; $50K may be proposed for TABA (inclusive of threshold); Potential for Commercialization Readiness Program funds. Phase 3: Commercialization. Funded with non-SBIR dollars; No dollar or time limits; SBIR small business size requirements do not apply; Work must derive from, extent, or complete Phase I or II effort; Can be directed award; competition satisfied in Phase I & II.

The DHS SBIR Program is a competitive award system which provides qualified small business concerns with opportunities to propose innovative ideas that meet specific homeland security research and development technology needs.

Phase 0 leverages existing resources and organizations to conduct outreach and provide education on the requirements and processes of the DHS SBIR program to new and former applicants. Phase 0 engages Small Business Corporations through webinars, trainings, educational events, industry days, virtual one on ones, assistance initiatives, and additional tools and services available to applicants. Visit the Phase 0 homepage for more information.

Phase I typically funds up to $175,000 for five months to determine the scientific and technical merit, and feasibility, of the proposed effort. Phase I awards are typically made within 45 days after selection.

Phase II typically funds up to $1,000,000 to $1,500,000 for 24-36 months to continue the R&D effort from the completed Phase I project and work towards a prototype demonstration. Only SBIR Phase I awardees are eligible to participate in subsequent phases. Options may be exercised for S&T SBIR Phase II projects that have firm commitments for follow-on funding.

Phase III is funded from a private or non-SBIR government source for commercialization or continued development and testing from an effort made under prior SBIR funding. Phase III work is typically oriented toward commercialization of an SBIR effort which can include products, production, services, research and development or any such combination. Phase III has no limit on the number, duration, type or dollar value. There is also no limit on the time that may elapse between a Phase I or Phase II award and a Phase III award, or between a Phase III award and any subsequent Phase III award.

Last Updated: 02/20/2025
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