Small Business Innovation Research and Small Business Technology Transfer Programs Phase II

The United States Department of Agriculture (USDA), through the National Institute of Food and Agriculture (NIFA), invites applications for its FY 2025 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase II Programs. These programs, authorized by the SBIR and STTR Extension Act of 2022, aim to support small businesses in the continued development and commercialization of research and innovations initiated under Phase I awards. This funding opportunity is listed under Assistance Listing Number 10.212 and is open exclusively to prior SBIR or STTR Phase I awardees. The USDA intends to fund research that has the potential to generate measurable commercial or societal benefits, particularly in agriculture, food systems, rural communities, and environmental sustainability. The USDA SBIR and STTR programs collectively offer over $22 million in funding for FY 2025, with $19.5 million allocated for SBIR and $3.25 million for STTR. The typical award ranges from $600,000 to $650,000, depending on whether the applicant includes Technical and Business Assistance (TABA) funding in the budget. Phase II projects may run for up to 24 months, or up to 36 months with special justification, and must demonstrate a clear plan for continuing research and commercializing the innovation developed under Phase I. Applications must outline a robust research and commercialization plan, and applicants may include letters of support or conditional funding commitments to strengthen their proposals. Eligibility is limited to U.S.-based small business concerns (SBCs) that previously received a USDA SBIR or STTR Phase I award. These businesses must meet federal small business size standards, be for-profit entities, and be primarily owned and controlled by U.S. citizens or permanent residents. Additional distinctions apply between SBIR and STTR: SBIR applicants must ensure the principal investigator is primarily employed by the SBC, while STTR applicants must partner with a U.S.-based research institution that conducts 30-60% of the research effort. Proposals for both programs must be submitted electronically via Grants.gov by the application deadline of September 23, 2025, at 5:00 PM Eastern Time. Applications must include a project narrative, commercialization plan, budget and justification, biosketches of key personnel, conflict of interest statements, and letters of support or intent, among other required documents. A commercialization plan of up to 10 pages is required for Phase II, detailing market analysis, revenue projections, intellectual property strategy, and post-Phase II financing plans. Applicants may also request up to $50,000 in additional TABA support by submitting a plan and vendor qualifications as part of the application. Proposals are reviewed through a two-part process: an administrative screening followed by scientific peer review. Evaluation criteria include Phase I results, scientific and technical merit of the Phase II proposal, commercial potential, the importance of the addressed problem, qualifications of personnel and partners, and overall budget justification. Letters of support and commitments for follow-on Phase III funding may enhance a proposal’s competitiveness. All research must be conducted within the United States unless a rare exception is granted. For assistance, applicants may contact the USDA SBIR/STTR Office via email at sbir@usda.gov or by phone at 202-401-4995. Applications must be submitted through Grants.gov using Funding Opportunity Number USDA-NIFA-SBIR-011120. Further information, including guidance on required forms and templates, can be found on the USDA NIFA website. Applicants are encouraged to begin early due to the time required for registration in SAM.gov and Grants.gov. USDA strongly encourages applicants to align proposals with agency priorities such as supporting American farmers, enhancing national food security, and advancing rural innovation.

Submit early on Grants.gov, include detailed commercialization plans, and submit letters of commitment for Phase III funding to enhance competitiveness.