Introduction
Navigating the SBIR and STTR programs often means encountering a sea of acronyms and technical terms. From BAAs to TRLs, understanding the vocabulary is key to writing better proposals, communicating effectively with agencies, and avoiding compliance pitfalls. This glossary is designed to demystify the most commonly used SBIR/STTR terminology—grouped by letter and explained in plain language.
Whether you’re submitting your first proposal or managing a multi-phase award, this resource will help you decode the language of federal innovation funding.
Glossary: A–C Terms
Allocation of Rights Agreement
A required document for STTR awards that outlines how intellectual property, licensing, and commercialization rights are shared between the small business and its partnering research institution.
America’s Seed Fund
A nickname for the SBIR/STTR programs, highlighting their role as a source of non-dilutive funding for early-stage tech development by U.S. small businesses.
Awardee
A small business that has been selected to receive SBIR or STTR funding through a grant or contract. The awardee is responsible for executing the funded project.
Broad Agency Announcement (BAA)
A general solicitation method used by agencies like DoD to describe broad R&D needs and invite small businesses to propose innovative solutions.
Commercialization
The process of transforming research into a product or service that is sold in the marketplace. A core goal of SBIR/STTR programs.
Commercialization Plan
A document that outlines how the company will bring its SBIR/STTR-funded innovation to market, including customer analysis, sales strategy, IP, and revenue forecasts.
Cooperative Research and Development
The joint research effort between the small business and research institution in an STTR project. Each party must perform a minimum share of the work by rule.
Contract
A funding agreement in which the federal agency specifies deliverables and milestones for a project. Commonly used by DoD and NASA in the SBIR program.
Glossary: D–F Terms
Direct to Phase II
A funding option that allows a business to skip Phase I and apply directly for Phase II, available only through select agencies and with proof of Phase I–equivalent work.
Department of Defense (DoD)
The largest federal SBIR/STTR agency by funding. DoD issues BAAs and awards contracts to develop technologies with military and dual-use potential.
Department of Energy (DOE)
A participating SBIR/STTR agency focused on energy technologies. Offers grants with commercialization expectations and often requires a pre-proposal Letter of Intent.
Fast-Track
A mechanism that allows simultaneous submission of Phase I and II proposals for continuous review, reducing funding gaps for qualified projects.
Fee (Profit)
An optional, unrestricted portion of the budget (typically up to 7%) that small businesses can request as profit in Phase I and II budgets.
Funding Agreement
The formal legal document that outlines the scope, deliverables, and terms under which a federal agency provides SBIR/STTR funding to a small business.
Glossary: G–I Terms
Grant
A type of funding mechanism where the agency supports a proposed R&D project without requiring deliverables. Used by agencies like NIH, NSF, and DOE.
Grants.gov
The central portal for federal grant applications, including SBIR/STTR submissions to agencies such as NIH, DOE, and USDA.
HUBZone Small Business
A business located in a Historically Underutilized Business Zone, certified by SBA. May receive added outreach or support in SBIR/STTR processes.
I-Corps
A federally supported entrepreneurial training program that helps SBIR/STTR participants validate market needs and refine their commercialization strategy.
Indirect Costs (F&A)
Overhead costs that support project performance but aren’t tied to specific tasks—e.g., rent, admin salaries. Typically included in the budget using a negotiated or de minimis rate.
Grants vs. Contracts
Grants are more flexible and applicant-driven; contracts are agency-driven with strict deliverables.
Glossary: L–P Terms
Letter of Intent (LOI)
A short pre-proposal document required by some agencies (like DOE) to preview proposals and manage review resources. Usually non-binding but mandatory if requested.
Level of Effort
A breakdown of how much work is performed by the small business and collaborators. SBIR and STTR have minimum percentage rules for in-house and partner effort.
NASA
An SBIR/STTR agency funding technologies aligned with space exploration, aerospace, and Earth science. Uses contracts and mission-driven topics.
NIH
The largest SBIR/STTR granting agency in the health sector. Issues Omnibus solicitations and focused RFAs. Requires detailed commercialization plans for Phase II.
NSF
The National Science Foundation awards SBIR/STTR grants in fields like AI, quantum, and climate tech. Known for its Project Pitch requirement and I-Corps emphasis.
- Phase I
- Phase II
- Phase III
Feasibility stage; typical awards are $150K–$275K for 6–12 months. Focused on establishing technical merit and commercial potential.
Development stage; larger awards ($750K–$1.25M) over up to 2 years. Requires a strong commercialization plan and proof of progress from Phase I.
No SBIR funding; agencies or private partners can fund further development or procurement. Often involves sole-source government contracts.
Principal Investigator (PI)
The lead technical contact for the SBIR/STTR project. For SBIR, the PI must be primarily employed by the small business; STTR allows employment at the research institution.
Project Pitch
A required pre-application for NSF’s SBIR/STTR programs. Describes the innovation, technical objectives, and commercial potential in a short form to determine fit.
Proposal
The formal application package submitted to an agency, including technical and business plans, budget, certifications, and forms as specified by the solicitation.
Glossary: R–Z Terms
Research Institution
An academic or nonprofit partner required in STTR projects. Performs at least 30% of the R&D work and collaborates under a formal agreement with the small business.
SBIR.gov
The official hub for SBIR/STTR solicitations, resources, tutorials, and company registrations. Maintained by the SBA.
STTR
The Small Business Technology Transfer program, distinct from SBIR by requiring formal collaboration with a U.S. research institution for all funded projects.
Subaward
A portion of the SBIR/STTR work contracted out to another organization, like a university or lab. Subject to agency rules on how much work can be subcontracted.
Technical Data Rights
Protections granted to SBIR awardees for their proprietary technical data, ensuring limited government use and disclosure for a period (usually 20 years).
Technology Readiness Level (TRL)
A nine-point scale used to assess how developed a technology is, from concept (TRL 1) to operational use (TRL 9). Frequently referenced in NASA and DoD SBIRs.
UEI Number
A Unique Entity Identifier required for all federal awards, replacing the DUNS number. Obtained through SAM.gov during registration.
USDA
The U.S. Department of Agriculture, an SBIR agency focused on rural development, food systems, climate-resilient agriculture, and bio-based products.
Work Plan
A detailed schedule and task breakdown submitted as part of the SBIR/STTR proposal, showing how the project will meet goals within time and budget.
Quick Reference Table
A–C
- Allocation of Rights Agreement: IP-sharing contract in STTR projects
- America’s Seed Fund: Nickname for SBIR/STTR
- Awardee: Company receiving an SBIR/STTR award
- BAA: Broad solicitation used by defense agencies
- Commercialization: Bringing innovations to market
- Commercialization Plan: Phase II requirement outlining market path
- Cooperative Research: Joint R&D in STTR
- Contract: Agency-directed funding with deliverables
D–F
- Direct to Phase II: Skip Phase I if feasibility is proven
- DoD: Largest SBIR funder, uses contracts
- DOE: Grant-focused SBIR agency in energy and science
- Fast-Track: Combined Phase I+II proposal path
- Fee: Optional profit portion in award budget
- Funding Agreement: The legal document for an SBIR/STTR award
G–I
- Grant: Flexible funding without deliverables
- Grants.gov: Portal for federal grant submissions
- HUBZone: SBA-certified disadvantaged area
- I-Corps: Commercialization training program
- Indirect Costs: Overhead expenses in budgets
L–P
- LOI: Pre-proposal summary (required by some)
- Level of Effort: Required work split percentages
- NASA: Aerospace-focused SBIR agency
- NIH: Health-focused SBIR grantor
- NSF: Science agency with unique pitch process
- Phase I/II/III: Sequential funding phases
- PI: Lead technical contact
- Project Pitch: NSF’s pre-application filter
- Proposal: The full SBIR/STTR application
R–Z
- Research Institution: STTR-required partner
- SBIR.gov: Official resource portal
- STTR: Program requiring institutional partner
- Subaward: Contracted portion of work
- Technical Data Rights: Proprietary protections
- TRL: Tech maturity scale
- UEI: Required federal identifier
- USDA: Ag-focused SBIR agency
- Work Plan: Project timeline and task breakdown
How to Use This Glossary in Practice
Knowing what these terms mean is just the first step. Here’s how small businesses can actively use this glossary throughout the SBIR/STTR lifecycle:
- Interpreting Solicitations: Many RFPs and BAAs use agency-specific jargon. Quickly looking up terms like “LOI” or “Direct to Phase II” can help you decide whether your project is a fit before you begin an application.
- Writing Proposals: Agencies expect precise and compliant language in technical and business plans. Using the correct definitions of terms like “PI,” “level of effort,” or “commercialization plan” can strengthen your credibility.
- Communicating with Agencies: Whether you’re in a pre-submission call or mid-project meeting, clarity matters. Referring back to official definitions can ensure your team is aligned with agency expectations.
- Avoiding Mistakes: Misunderstanding “indirect costs,” “technical data rights,” or “funding agreement” can lead to budget errors or IP missteps. Bookmarking and referencing these definitions can reduce risks.
Tip:
Use this glossary when preparing any SBIR/STTR application—it can prevent small mistakes that lead to major delays.
Conclusion
The SBIR/STTR ecosystem is filled with acronyms, regulatory terms, and agency-specific language. For innovators focused on R&D, this terminology can feel like a barrier—but it doesn’t have to be.
This glossary is designed to be your plain-English reference point. Whether you’re interpreting a solicitation, refining your budget, or preparing for a Phase II submission, coming back to these definitions can save time and help you avoid costly misunderstandings.
Bookmark it. Share it with your team. Refer to it often. The better you speak the language of SBIR/STTR, the stronger and more competitive your proposals will be.