NASA SBIR Program: Top Questions Answered

Introduction

Applying to the NASA SBIR program can feel overwhelming, even for experienced businesses. With strict eligibility rules, multiple phases, and detailed proposal requirements, it’s easy to get tripped up. This FAQ addresses the most common questions small businesses have when exploring NASA’s SBIR program—whether you’re just getting started or preparing your next submission. From who can apply to what makes a winning proposal, this guide is designed to help you move forward confidently.

Eligibility: Who Can Apply?

To qualify for NASA’s SBIR program, your company must be a U.S.-based, for-profit small business with 500 or fewer employees. It must also be at least 51% owned and controlled by U.S. citizens or permanent residents. Importantly, this ownership rule applies whether the business is structured as a sole proprietorship, partnership, or corporation.

The Principal Investigator (PI) must be primarily employed by the small business at the time of award and throughout the project—meaning they must spend at least 51% of their time with the business. If the PI is also affiliated with a university, they would need to reduce their academic role to meet this employment requirement for SBIR. (STTR rules are more flexible.)

Previous SBIR awardees are welcome to apply again, but firms with a poor transition track record from Phase I to Phase II may be subject to performance benchmarks. Businesses must also certify that they are not under foreign control and must disclose any foreign relationships as part of their application.

The program also allows joint ventures, provided all participating entities meet SBIR small business criteria. However, majority ownership by venture capital or private equity firms is not permitted for NASA SBIR applicants.

What Are the NASA SBIR Program Phases?

NASA’s SBIR program is divided into three distinct phases, each serving a different role in the development of your technology. Understanding these phases is essential for setting realistic goals and building a long-term commercialization strategy.

How Do I Find Topics and Submit a Proposal?

NASA releases SBIR and STTR solicitations annually, typically in two cycles. Each solicitation includes dozens of specific subtopics aligned with mission needs across NASA’s science, exploration, aeronautics, and technology programs.

To apply, you’ll need to:

• Monitor the NASA SBIR website for open solicitations
• Select a subtopic that matches your innovation
• Follow the detailed instructions in the solicitation, which include formatting, content, and submission requirements

Proposals must be submitted through NASA’s electronic system before the posted deadline. Late or incomplete applications are automatically declined.

It’s critical to align your proposed work closely with the selected subtopic. NASA reviewers are instructed to reject proposals that do not clearly address the topic’s technical objectives.

Writing a Strong NASA SBIR Proposal

Success in the NASA SBIR program depends heavily on the quality of your proposal. Each part—technical, cost, and commercialization—needs to be clear, compelling, and compliant.

Technical Proposal

Make sure your solution directly addresses a NASA subtopic. Explain what makes your technology innovative, back it with technical rationale or data, and outline a realistic six-month work plan. Include milestones, deliverables, and who will perform the work. Reviewers want to see both feasibility and alignment with NASA’s goals.

Cost Proposal

Use NASA’s electronic forms to break down your budget by labor, materials, travel, and indirect costs. Justify each line item. Phase I awards are fixed-price, so your budget should reflect what’s realistically needed to deliver your proposed work—no more, no less.

Commercialization Plan

Even in Phase I, NASA asks how your innovation could eventually be used. Identify relevant NASA mission directorates and potential commercial or government markets. If applicable, mention letters of interest or prior customer discovery efforts.

Submit early to avoid rejection
Proposals with incomplete cost forms or missing uploads are automatically declined. Finalize your submission at least 48 hours before the deadline.

Special Cases and Additional Support

NASA SBIR isn’t just for seasoned contractors. First-time applicants—including startups and small teams—are encouraged to apply. In fact, many NASA Phase I awardees have no prior government experience.

The program also emphasizes inclusive innovation. Women-owned, minority-owned, and socially or economically disadvantaged small businesses are actively welcomed. While there’s no separate application track, NASA works with partners to boost awareness and accessibility across underrepresented communities.

Additionally, NASA offers support beyond the core phases. Programs like Phase II-Extended (Phase II-E) and the Civilian Commercialization Readiness Pilot Program (CCRPP) provide supplementary funding for companies with promising Phase II results. These are competitive add-ons but can significantly boost your chances of transitioning to a viable product or infusion opportunity.

First-time businesses welcome
You don’t need prior NASA awards or federal contracts to apply—NASA actively supports new and underrepresented applicants.

Common Pitfalls and How to Avoid Them

Even strong ideas can be rejected if your proposal doesn’t meet NASA’s requirements. Here are common missteps and how to avoid them:

• Eligibility oversights: Submitting under an ineligible entity or having a PI who doesn’t meet employment rules can result in immediate rejection. Double-check your structure and team roles.
• Weak alignment with subtopics: Reviewers prioritize proposals that clearly address the specific objectives in the NASA subtopic. Vague or loosely related ideas typically score poorly.
• Underdeveloped work plans: A generic or overly ambitious Phase I plan can hurt your credibility. Lay out achievable milestones with clear deliverables.
• Budget misalignment: Proposals with unrealistic or unjustified costs often raise red flags. Match your budget to your work scope—and provide explanations.
• Neglected commercialization: Even for Phase I, ignoring the commercialization section shows a lack of vision. Show that you’ve thought about real-world application and potential customers.

If your proposal isn’t selected, NASA allows you to resubmit in future rounds. Read reviewer feedback carefully, revise your proposal thoroughly, and consider seeking input from mentors or SBIR support organizations before trying again.