Small Business Innovation Research (SBIR) Program

The Small Business Innovation Research (SBIR) Program, administered by the U.S. Department of Education through the Institute of Education Sciences (IES), offers non-dilutive federal funding to stimulate technological innovation among small businesses while addressing national research and development priorities. Established under the Small Business Innovation Development Act of 1982 and reauthorized in 2020, the SBIR program aims to support the development and commercialization of innovative education technology products through a phased funding structure. The ED/IES SBIR program provides three phases of support. Phase I awards $250,000 for an 8-month period to develop and test the feasibility and usability of a prototype product. Phase II offers up to $1,000,000 for two years to further develop the product into a commercially viable solution. Successful Phase II applicants are expected to demonstrate implementation in educational settings, evaluate potential impact, and prepare for commercialization. Phase III does not offer federal funding but encourages private sector commercialization and scaling of products developed under prior phases. Annual solicitations are typically posted each winter on SAM.gov, with a 60-day proposal window and award notifications issued about 90 days later. ED/IES SBIR typically funds 10 to 15 Phase I projects per year from 175–275 submissions and supports about half of Phase II proposals from prior Phase I awardees. Priority areas include educational technology products for classrooms, special education solutions, and early intervention tools. All projects must clearly align with the intended educational outcomes and demonstrate potential for broad application. Eligibility is restricted to U.S.-based, independently owned, for-profit small businesses with no more than 500 employees. The principal investigator must be employed by the company at least 51% of the time. Applicants may partner with universities or nonprofits for up to one-third of Phase I funding and up to one-half of Phase II. Venture-capital majority-owned firms are also eligible under specific conditions. Eligibility certification is required at the time of award, with compliance governed by SBA regulations. Applications are evaluated for innovation, feasibility, commercial potential, and alignment with national educational goals. Funding is competitive, and no matching or cost-share is required. To support innovation in manufacturing, projects related to manufacturing systems, AI, IT, and hardware design are encouraged in line with Executive Order 13329. Full details, including the latest Policy Directive and reporting requirements, are available at SBIR.gov.

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.