Accounting & Auditing

I am a CPA attempting to take a walk in the shoes of a scientist/business owner. So when I recently attended the “BioOhio Annual Conference: Innovation Road Show” to learn more about the Biotech and Life Sciences industries, one of the areas of discussion that I found to be most beneficial was the SBIR and STTR eligibility requirements that was presented by Susan Pucie of the NHLBI.   I thought, here is something of value to my clients. An overview of the presentation that took place and the key points are included below. For those of us who aren’t savvy in the alphabet soup lingo of this industry please see the abbreviations listed at the end. 

3 Phase Program for SBIR (grants and contracts) 

Phase 1 - Feasibility Study                

• Average award period - 6 months
• Average costs - $150,000
• Award can’t be greater than 33% of total costs unless approval from the program is received based on the award recipient’s justification 

Phase 2 Research and Development

• Average award period - 2 years
• Average costs - $1,000,000
• Award can’t be greater than 50% of total costs unless approval from program is received based on the award recipient’s justification
• $750k and 2 year (STTR)
• (Fast Track - Combines Phase 1 and 2 applications and shortens funding cycle between phases)

Phase 3 Commercialization Stage

• Non-SBIR Funds 

Eligibility Requirements

• For-profit business in the United States
• 500 employees or fewer (including affiliates)
• Primary employment of the PI must be the small business at the time of the award and for the duration of the project (> than 50%)
• Business must be at least 51% owned by individuals and independently operated

OR

• Business must be at least 51% owned and controlled by a for-profit business that is at least 51% owned and controlled by individuals
• Part of the research must take place at the business’ location
• Research must be done in the United States unless approval from the program is received based on the award recipient’s justification

Abbreviations

NIH - National Institute of Health

SBIR - Small Business Innovation Research

STTR - Small Business Technology Transfer

NHLBI – National Heart, Lung and Blood Institute

PI – Principal Investigator

Click here to learn more about Small Business Technology Transfer eligibility requirements. If have questions about SBIR or STTR eligibility requirements, please leave a comment or contact our Biotech Group at (440) 449-6800.