Shalawam family
Federal Small Business Grant: SBIR Program
Grant amount: $150,000-$1 million
The SBIR program grants small businesses and entrepreneurs the to develop and research high-tech innovations with the potential for commercialization for federal agencies. Common areas for businesses that receive this funding include homeland security, clean drinking water, healthcare, green construction, and more.
The mission of this program is to support scientific excellence and innovative technology to grow and build the US economy. For technology businesses, the SBIR program provides substantial seed money and contracts with government agencies that will help qualifying businesses research and develop new technologies.
To apply for an SBIR business grant, you need to meet the following criteria/eligibility requirements:
Applicants must be a for-profit business.
Applicants must have less than 500 employees.
A majority of ownership must be held by one or a combination of the following:
One or more individuals that are citizens or permanent residents
Other for-profit businesses
Venture capital-operating companies, hedge funds, or private equity firms.
Pros
Winners can be provided with grants and contracts with 12 government agencies.
While the amount starts at $150,000, promising and successful candidates can receive up to $1 million in additional funding.
Each of the participating government agencies creates its own guidelines and eligibility requirements which means you have a better chance at securing funding if they align with a specific agency’s requirements.
Cons
Highly competitive, which means only a small number of applicants receive money through this program.
The application process is lengthy and time-consuming, which can be a struggle for new entrepreneurs.
