Part IV: The NIH Phased Program


There are 3 phases to SBIR/STTR awards.

Phase I: to establish the technical merit, feasibility, and commercial potential of the proposed R&D efforts. The awards to both SBIR/STTR generally do not exceed $225K; though for SBIR this amount is for 6 months, and for STTR, this amount is for 1 year. Waivers exist for several institutions increasing the max budget allowed.

Phase II: to continue the R&D efforts initiated in phase I. This is why it is recommended to submit a phase II application immediately after submitting phase I. The funding is based on the result achieved in phase I and the scientific merit and commercial potential of the project proposed in phase II. Only phase I awardees are eligible for phase II.

The awards generally do not exceed $1.5M over 2 years, but as with phase I, waivers exist for some institutes to allow for increased budgets.

Phase IIB: can be awarded to continue a phase II project. This award is not as well known, but is not a new award, it has actually been available for several years. The purpose is to support the next stage of development for federally funded SBIR phase II projects, and overcome the “Valley of Death” funding gap between the end of phase II award and the subsequent round of financing needed for commercialization. It usually requires matching funds.

Fast Track Program: incorporates a submission and review process in which both phase I and phase II are submitted and reviewed together as a single application. The fast-track mechanism can reduce or even eliminate the funding gap between phases. This is not offered by the NSF.

Look for PART V next week!

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