SBIR/STTR Eligibility and Compliance – The Basics!

The SBIR and STTR programs are designed to support small, independent U.S. businesses. To ensure eligibility, firms must certify that they meet specific size, ownership, and control requirements at the time of award.

Key Eligibility Criteria

• Size Requirement: Your business, including its affiliates, must not have more than 500 employees. Note that size is determined by the number of employees, not revenue.

• Ownership and Control:

• Your business must be more than 50% owned by U.S. citizens or permanent residents, or by other small businesses that are similarly owned.

• If your business is majority-owned by venture capital, hedge funds, or private equity firms, special rules apply, and no single firm can control more than 50%.

Registration Requirements

• Mandatory Registration: All applicants must register on the SBIR/STTR Company Registry before submitting applications.

• Certification: You must certify your eligibility at the time of award and may need to recertify if there are significant changes, like a merger or acquisition.

Affiliation Rules

Affiliation with other businesses can impact your size status. This includes common ownership, management, or shared resources. It's important to understand these rules to maintain eligibility.

Important Compliance Points

• Ensure that your business structure aligns with SBIR/STTR requirements before applying.

• Keep accurate records of ownership and control to simplify the certification process.

• Regularly review your company’s size status to avoid any surprises during the award process.

Stay compliant, stay eligible, and keep innovating! For detailed guidance, visit SBIR.gov.

This summary is designed to keep you informed without getting bogged down in details that may not apply to most small businesses. If you have any questions, feel free to reach out!