Introduction
If you’re a small business aiming to develop an environmental technology, applying for a Phase I award through the EPA’s Small Business Innovation Research (SBIR) program can provide a powerful boost. But for first-time applicants, the process may feel like a maze of acronyms, deadlines, and document requirements.
This guide walks you step-by-step through how to prepare and submit a competitive EPA SBIR Phase I proposal. You’ll learn how to find the right topic, register your business in the required systems, plan a six-month R&D project, and submit a complete, review-ready application. The process is highly structured—but that structure also gives you a clear path forward.
Whether you’re a startup or an established small business, this roadmap will help you avoid common pitfalls and maximize your odds of funding success.
Understand the Solicitation and Topic Fit
Before you write a single sentence, start by finding the most recent EPA SBIR Phase I solicitation. EPA typically releases its Phase I call for proposals once per year, usually around June. From the release date, you’ll have approximately eight weeks to submit—so acting early matters.
Once you’ve located the solicitation, read it thoroughly. Do not skip the topic descriptions. EPA’s SBIR program is contract-based, which means your proposal must align precisely with one of the listed topic areas to be considered. Unlike grant-based programs, there is no flexibility to propose unrelated innovations, no matter how compelling they may be.
Focus on what problem the EPA is trying to solve and ensure your technology directly addresses that challenge. If there’s any ambiguity, review EPA’s informational webinars or FAQs, or contact the program officer using the instructions provided in the solicitation.
Important:
EPA SBIR proposals that don’t match a listed topic will not be reviewed.
Confirm Eligibility and Requirements
Even a perfectly written proposal will be rejected if your business doesn’t meet SBIR eligibility rules. Before you invest time and resources, confirm that your company qualifies.
To apply, your business must:
- Be a for-profit entity with 500 or fewer employees
- Be located and operate primarily in the U.S.
- Be at least 51% owned and controlled by U.S. citizens or permanent residents
- Assign a Principal Investigator (PI) who is primarily employed by your company during the project
EPA also limits each business to one Phase I proposal per year, so choose your topic wisely. Additionally, you’ll need an Employer Identification Number (EIN) from the IRS before an award can be issued, and your PI must be available for the full duration of the project.
If you’re unsure about any eligibility rule, check both the EPA solicitation and the general SBIR program FAQ at SBIR.gov.
Warning:
Foreign ownership over 49% disqualifies your business from EPA SBIR eligibility (13 CFR 121.702).
Complete Required Registrations Early
Before you can submit your proposal—or receive an award—you must complete several registrations. These systems are used to verify your eligibility, accept your submission, and manage any future contract. The entire process can take 6–8 weeks, so start as soon as possible.
To apply for EPA SBIR funding, you’ll need to register with:
- SAM.gov: Get a Unique Entity Identifier (UEI) and activate your SAM profile. Choose “All Awards” to enable eligibility for federal contracts.
- FedConnect: This is EPA’s online portal for submitting SBIR proposals. Set up your free account early and get familiar with the interface.
- SBA Company Registry: Register your company on SBIR.gov and obtain your SBC Control ID, which you’ll include in your application forms.
Each of these steps may involve verification delays or multi-step authentication. SAM registration alone often takes several weeks and must be renewed annually.
Failure to complete these registrations is one of the most common reasons new applicants miss the deadline. Don’t let paperwork be the reason your innovation doesn’t get considered.
Register your business at SBIR.gov Company Registry to receive your SBC Control ID. This must be included in your proposal forms.
Create a Proposal Strategy Before Writing
Jumping straight into writing can lead to a disorganized and incomplete proposal. Instead, take time upfront to map out your project and writing strategy. This not only makes drafting easier—it also improves your chances of aligning with EPA’s evaluation criteria.
Start by clearly defining the environmental problem your technology addresses. Explain how it aligns with the specific EPA topic and why current solutions fall short. Then, describe your proposed innovation and what makes it unique.
Next, plan your Phase I work as a 6-month proof-of-concept project. Break the project into clear, achievable tasks. A sample structure might look like:
- Task 1: Design or modeling
- Task 2: Small-scale lab testing
- Task 3: Data analysis and feasibility assessment
Define specific milestones that show progress within the Phase I period. Make sure your project scope is feasible within the $100,000 cap and time frame.
Also consider what supporting elements you’ll need. This could include:
- Preliminary data or references from prior work
- Access to lab equipment or test sites
- Support letters from partners or stakeholders
- Design sketches or system diagrams
Finally, if you’re working with a team, assign roles and set writing deadlines. Early planning will help you meet the deadline with a complete and compelling proposal.
Write the Technical Proposal (R&D Narrative)
The technical narrative is the centerpiece of your application. This is where you lay out what you plan to do, how you’ll do it, and why it matters. It’s also where reviewers will spend most of their time—so clarity, structure, and substance are essential.
Follow the EPA solicitation’s required sections and titles. These typically include:
- Technical Approach: Describe your methodology in detail. What experiments or tasks will you perform? How will you measure success?
- Innovation: Explain what’s new or significantly improved about your approach compared to existing technologies.
- Relevance: Directly connect your proposed solution to the EPA topic. What environmental benefit or pollution reduction does it offer?
- Team Expertise: Highlight why your team is well-qualified to carry out the proposed work. Include technical skills, relevant experience, and any institutional support.
Use direct, plain language. Assume reviewers are technical but not specialists in your exact field. Avoid jargon, and back up your claims with references, data, or logic.
Also remember: Phase I is about proving feasibility—not delivering a finished product. Stay focused on what can reasonably be done in six months with $100,000.
Craft the Commercialization Plan
Although Phase I focuses on feasibility, EPA still wants to see that your innovation has real-world potential. That’s why one-third of your proposal’s review score comes from the commercialization plan—a short but important section.
Start by identifying the problem your product solves and who your likely customers are. Is the solution aimed at industrial users, municipalities, agricultural operators, or consumers? What market needs or regulatory drivers support demand?
Next, provide early market research. Even simple steps—like conversations with potential users or referencing industry reports—can show that you’ve investigated the opportunity. Include estimated market size and relevant growth trends if available.
Address the competitive landscape: What are customers using now? Why is your solution better—faster, cheaper, safer, more scalable?
Briefly describe your intellectual property status. Have you filed for a patent, or do you plan to? Even if you haven’t, say how you plan to protect your innovation (e.g., trade secrets, barriers to entry).
Finally, outline your commercialization path: What will you do in Phase I to prepare for market entry? This might include building a prototype, testing with early adopters, or gathering performance data to attract Phase II funding or investors.
Best Practice:
Use Phase I to gather real customer or stakeholder input—EPA reviewers look for early traction.
Build the Budget and Complete Forms
Your budget must be both realistic and within EPA’s strict limits. The maximum award for Phase I is $100,000, and that includes all costs—labor, materials, subcontractors, travel, and a profit (if desired) capped at 10%.
Start with EPA’s official budget template (often Appendix 3 in the solicitation). Break out costs into categories:
- Personnel: Salaries and time commitment for the PI and any staff
- Fringe benefits: Health insurance, retirement, etc.
- Materials and supplies: Consumables and components
- Equipment: Any major purchases (must be justified)
- Travel: If essential for the project
- Subcontracts or consultants: If using outside expertise or testing services
Check your totals carefully. The amount listed on your cover sheet must match the detailed budget. You may include a profit/fee line item, but it cannot exceed $10,000 on a $100,000 budget.
Alongside the budget, you’ll need to complete several forms:
- Proposal Cover Sheet (Appendix 1): Includes your SBC Control ID and basic project info
- Project Summary Abstract (Appendix 2): A <400-word plain-language summary
- Budget (Appendix 3): Line-item details as noted above
- Representations and Certifications (Appendix 4): Compliance declarations
Be sure to check for any additional appendices or instructions related to human subjects, environmental compliance, or certifications. Use the checklist (if provided) in the solicitation to verify you haven’t missed anything.
Review, Revise, and Proofread
A strong proposal isn’t just about good content—it’s about clear, complete, and error-free presentation. Set aside time to review your application thoroughly before submission.
Start by comparing your proposal against the EPA’s evaluation criteria:
- Have you clearly outlined your technical approach?
- Is your solution aligned with the selected EPA topic?
- Have you demonstrated commercial potential?
Use the solicitation as a checklist to verify formatting: page limits, font size, spacing, required sections, and file type. A Phase I proposal is typically limited to 25 pages, including all forms and appendices. Submissions that exceed page limits or violate formatting rules may be disqualified.
Next, ask a colleague or mentor to review your draft. Fresh eyes can spot unclear sections, inconsistencies, or missing details. Provide them with the EPA’s evaluation criteria so they can assess your proposal like a reviewer would.
Finally, proofread for spelling, grammar, and formatting issues. Confirm that all registration numbers (SAM UEI, SBA ID) are correct and that your budget totals match across forms.
Taking this extra time can mean the difference between a fundable proposal and one that’s passed over.
Submit via FedConnect (and Don’t Wait!)
Once your proposal is complete and reviewed, you’ll submit it electronically through FedConnect—EPA’s designated platform for SBIR submissions.
Log in to your FedConnect account and locate the correct solicitation. Follow the prompts to upload your full application as a single PDF file. Double-check that all required forms are included and properly labeled.
FedConnect does not accept email or paper submissions. The system must display a confirmation of receipt, so be sure to follow through until you see that message. Save a copy of the confirmation and your final PDF submission for your records.
Technical issues can occur—and EPA will not extend deadlines due to submission problems. That’s why it’s critical to upload early.
Tip:
Submit at least 48 hours before the deadline to avoid last-minute FedConnect issues.
If your proposal is selected, EPA will notify you via FedConnect—typically a few months after the deadline. If not, you can request feedback to improve your chances next time.
Regardless of outcome, submitting a Phase I proposal is a valuable learning experience and a critical step toward federal funding.