Understanding the USDA SBIR/STTR Programs
What is the USDA SBIR/STTR program designed to do?
The USDA’s SBIR and STTR programs are competitive federal grants that help small businesses develop commercially viable technologies solving key agricultural challenges. Administered by the National Institute of Food and Agriculture (NIFA), these programs fund early-stage R&D that aligns with USDA priorities like food security, sustainable farming, and rural economic development.
Unlike general startup support, these grants are not intended to help launch a business or cover routine operations. Instead, they target high-impact ideas grounded in science and aimed at delivering both marketable solutions and measurable public benefit.
How is USDA’s approach different from other agencies?
One unique feature of the USDA SBIR/STTR programs is their “investigator-initiated” structure. That means you’re not responding to a specific solicitation or problem posed by the agency. Instead, your team proposes a solution you believe addresses one of the USDA’s broad topic areas—such as animal production, climate adaptation, or food science.
This model gives applicants more freedom to innovate creatively, as long as they stay within the USDA’s mission focus. It contrasts with programs from agencies like the Department of Defense, which often issue highly specific problem statements with narrower solution pathways.
Who administers the USDA SBIR/STTR programs?
While the SBA oversees all SBIR/STTR programs at the federal level, USDA’s implementation is managed exclusively by NIFA. That means all applications, solicitations, contacts, and program details are found on NIFA’s website—not SBIR.gov.
Each year, NIFA releases updated Requests for Applications (RFAs) with key deadlines, topic area definitions, and submission procedures. These RFAs are your primary roadmap for a compliant application. Be sure to follow them precisely, including details about required forms, certifications, and formatting.
Who’s Eligible — and Who’s Not
What are the eligibility rules for small businesses?
To apply for a USDA SBIR or STTR grant, your business must qualify as a Small Business Concern (SBC) under federal law. That means:
- For-profit status is required.
- 500 or fewer employees, including affiliates, part-time staff, and contractors.
- U.S. ownership and operations—at least 51% of the business must be owned and controlled by U.S. citizens or permanent residents.
- Your principal place of business must be located in the United States.
If your company has ties to other businesses—such as shared ownership, management, or significant financial relationships—you may need to count those employees under SBA affiliation rules.
What makes someone eligible to be a Principal Investigator (PI)?
The Principal Investigator (PI) is responsible for leading the project’s R&D and coordinating the work. USDA requires that the PI meet different employment rules depending on the program:
- SBIR: The PI must be primarily employed (≥51%) by the small business.
- STTR: The PI may be employed by either the small business or the partner research institution.
While a specific degree is not required, reviewers assess the PI’s credibility based on education, work history, and availability for the project.
Can any part of the work be done outside the U.S.?
In almost all cases, no. USDA requires that all R&D work be performed in the United States. This includes:
- Work performed by the small business itself
- Work by subcontractors or consultants
- Work by partner research institutions
Rare exceptions are possible—but only with prior written approval from NIFA and a strong justification that the necessary capability does not exist domestically.
How do I prove my eligibility in the application?
You’ll need to include several forms and certifications at the time of proposal submission:
- SBA Company Registry SBC Control ID (from SBIR.gov)
- Certification of small business status and ownership
- SBIR/STTR Information Form (or USDA equivalent, such as G.440)
- Certification for VC-backed firms (if applicable)
These requirements are spelled out in the RFA. Failure to submit accurate or complete eligibility documentation may result in your application being rejected without review.
What to Expect from Funding Phases
What happens in Phase I, Phase II, and Phase III?
How much funding can I get—and for how long?
Phase I: Most topic areas allow for up to $175,000. However, Topics 8.6 (Rural and Community Development) and 8.12 (Small and Mid-Sized Farms) have a lower cap of $125,000. The standard project duration is 8 months for SBIR and 12 months for STTR. No-cost extensions of up to 12 months may be requested.
Phase II: All topic areas allow for up to $600,000 in funding, with a standard project period of 24 months. A no-cost extension of up to 12 additional months may be available.
Phase III: This phase is focused on commercialization but is not funded by USDA. Small businesses are expected to pursue external sources such as private investment, revenue, or contracts with other government agencies. USDA strongly encourages applicants to outline a credible Phase III strategy in both Phase I and Phase II proposals.
Requesting a budget that exceeds the allowed cap for your topic area will result in your proposal being returned without review. Tailor your scope to match the USDA’s defined limits.
The phased model helps USDA minimize risk while investing in innovations with measurable commercial and societal potential. Each phase builds upon the previous one—so strong results in Phase I are essential for advancing to Phase II.
Using TABA for Commercial Success
What is TABA, and how can it help my proposal?
Technical and Business Assistance (TABA) provides additional funding to help SBIR/STTR awardees overcome commercialization hurdles. TABA supports services like:
- Intellectual property protection and legal consulting
- Market research and customer validation
- Business model and marketing strategy development
- Regulatory guidance and manufacturing scale-up planning
These services do not replace R&D work but complement it by improving your project’s readiness for market adoption and investment.
How do I request TABA for Phase I or II?
Phase I: Awardees may request up to $6,500 in TABA support.
- Option 1 – USDA Vendor: If you don’t budget for TABA, USDA will offer services through its designated vendor (currently Larta Institute). You don’t need to include anything in your proposal budget.
- Option 2 – Own Vendor: If you prefer a specific consultant, include up to $6,500 in your proposal budget under “Other Direct Costs.” Provide a justification and a signed letter of commitment from the vendor.
Phase II: Applicants may request up to $50,000 in TABA support. You must:
- Include the request in your proposal budget
- Identify your own vendor(s)
- Submit a detailed plan and justification
- Attach vendor qualifications and signed commitment letter(s)
Choose vendors experienced with SBIR/STTR commercialization—especially in agricultural technologies or rural markets. Your TABA narrative should connect requested services to the real-world barriers your innovation will face when entering the market.
Use it or lose it
TABA funds are strictly earmarked for approved commercialization support. If they’re not used for the stated purpose, they must be returned to USDA. You cannot repurpose unused TABA for other project costs.
Effective use of TABA in Phase I can help you build a compelling Phase II proposal. Start identifying commercialization gaps early and plan how outside expertise can help fill them.
Application Timing, Tips & Pitfalls
When and how should I apply?
USDA typically releases SBIR/STTR Requests for Applications (RFAs) once a year on the NIFA website. Each RFA includes:
- Key deadlines and open/close dates
- Detailed topic area descriptions
- Formatting and submission requirements
All applications must be submitted through Grants.gov. Before applying, ensure your business is registered with:
- SAM.gov – System for Award Management
- SBIR.gov – to obtain your SBC Control ID
- Grants.gov – for proposal submission
These registrations can take weeks. Begin the process at least 6–8 weeks before the application deadline.
What are common mistakes that get proposals rejected?
- Requesting a budget that exceeds the phase cap
- Missing or incorrect eligibility certifications
- Proposing work that falls outside USDA’s defined topic areas
- Improper PI structure or employment percentage
- Failure to articulate societal or agricultural impact
- No or weak commercialization plan
- Inadequate time commitment or credibility from the PI
USDA reviewers evaluate not just scientific merit, but also how well your innovation addresses agricultural needs and benefits public stakeholders.
What strategic tips can boost my chances?
- Align your project clearly with a USDA topic area
- Keep your R&D plan tightly scoped and achievable
- Highlight both market value and public benefit
- Use TABA strategically to enhance your commercialization readiness
- Choose a qualified PI and clearly explain their commitment
- Contact USDA program staff early with any eligibility or scope questions
Proposals that combine technical strength with public impact and commercial viability tend to score highest. Preparation, alignment, and compliance matter as much as innovation itself.