ED/IES SBIR Program (Phases IA, IB, and Direct to Phase II)

The Small Business Innovation Research (SBIR) program, administered by the U.S. Department of Education through the Institute of Education Sciences (IES), is a federal initiative established under the Small Business Innovation Development Act of 1982 and last reauthorized in 2020. The program is designed to stimulate research and development within the small business sector while addressing national education needs and supporting technological innovation. With an annual allocation of $13 million for its education-focused program, the ED/IES SBIR program provides funding opportunities to eligible small businesses to create and evaluate education technology products with potential for widespread impact and commercialization. The ED/IES SBIR program operates in multiple phases. For Fiscal Year 2025, three solicitations have been released: Phase IA, Phase IB, and Direct to Phase II. Phase IA (Solicitation #91990025R0002) offers 9-month awards of $250,000 for developing prototypes of novel education technology products that are independent of any prior technology developed by the business or team members. These projects must introduce a first-of-its-kind approach to solving pressing problems in education. Successful Phase IA recipients will be eligible to apply for $1,000,000 Phase II awards in 2026 for two years of full development, evaluation, and commercialization planning. Phase IB (Solicitation #91990025R0003) also offers $250,000 for 9-month projects, but focuses on creating distinct new components to strengthen existing research-based prototypes or products. Awardees may then apply for Phase II funding in 2026 to further develop and commercialize these integrated technologies. Direct to Phase II (Solicitation #91990025R0004) provides $1,000,000 over two years to support the commercialization of existing evidence-based innovations created by universities or non-profit research organizations. These projects must scale up and prepare products for sustained use, without requiring a prior Phase I award. To be eligible, applicants must be for-profit small businesses based in the United States with no more than 500 employees. They must be at least 51 percent owned by U.S. citizens or lawful permanent residents, and the principal investigator must be employed at least half-time by the business. Eligible small businesses may partner with non-profits or other institutions, which can receive up to one-third of the award funds in Phase I or up to one-half in Phase II. ED/IES SBIR also allows participation from majority-owned portfolio small businesses backed by venture capital, hedge funds, or private equity firms, though no more than 15 percent of the program’s annual budget may be allocated to them. The program follows a competitive process. Historically, the ED/IES SBIR receives 175 to 275 Phase I applications annually and funds only 10 to 15. Roughly half of Phase II applicants receive awards. The FY 2025 solicitations opened on November 8, 2024, with a submission deadline of January 8, 2025, at 11:00 a.m. EST. Awards are generally announced within 90 days of the submission deadline, and projects begin shortly after. Applicants are required to register with SAM.gov and submit their Unique Entity Identifier (UEI) with proposals. Proposals submitted without a UEI will be rejected. Each solicitation specifies its requirements, and applicants are encouraged to review them carefully to determine fit. Duplicate or overlapping proposals across solicitations are not permitted, although multiple distinct proposals may be submitted if each has a unique focus. ED/IES SBIR identifies three priority areas for funding: education technology products for students, educators, or administrators to improve learning or outcomes; special education technology products for children with or at risk of disabilities and their educators or caregivers; and manufacturing-related innovations that support new methods, processes, or systems relevant to education technology. Funded projects are expected to show usability, feasibility, and promise of outcomes during Phase I, with commercialization plans and product efficacy evaluation during Phase II. Phase III commercialization is not funded by ED/IES but must be pursued by businesses independently. The solicitation also outlines restrictions on applicant communications. Potential applicants may submit questions by December 2, 2024, to the contracts specialist listed in each solicitation, with responses posted publicly as amendments to the solicitation on SAM.gov. Program staff and other federal personnel are not permitted to provide technical assistance during the solicitation and review period. Applicants are strongly encouraged to review the Frequently Asked Questions provided by ED/IES SBIR to better understand submission requirements and program structure. The competitive nature of the program, combined with its clear focus on education technology innovation and commercialization, underscores its role as a vital resource for small businesses working to bring research-based solutions into classrooms and learning environments nationwide.

Applicants must carefully review solicitations, avoid duplicates, and complete SAM.gov registration with UEI before submission. Questions allowed until 2024-12-02, but ED/IES staff cannot provide technical help during solicitation and review.