Help for Small Tech Businesses
By Siobhan Leftwich
You’ve made the decision to go out on your own. You have the ideas, a bit of capital and a few good people on board. But finances are tight, especially in this economy. If this sounds like you, Uncle Sam may be able to help. The National Science Foundation, through its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, is seeking minorities and women who have business proposals that promote discoveries and advance education in science and engineering.
“We’re looking for something that’s really new,” says Juan Figueroa, a program director with the NSF’s Division of Industrial Innovation and Partnerships. “Think cloud computing, web applications for personal devices, and sensors. More importantly, we’re looking at the quality of research and its potential impact on society.”
Each year, the NSF grants approximately $12,500,000 for SBIR Phase I awards and $3,750,000 for STTR Phase I awards — a total of about 150 grants. SBIR Phase I proposals can be submitted for funding up to $100,000 for six-month projects. For STTR Phase I proposals, the limit is $150,000, and projects run for 12 months. Unlike the SBIR, STTR proposals require research institutions or university researchers to play a significant role.
Grant recipients conduct research and development projects that provide evidence of a commercially viable product, process, device or system or meet a social or economic need. NSF requires that projects have high potential commercial payback and be high-risk efforts.
“Most of the companies we fund are really small,” says Figueroa. “And we have a peer review system. We have no idea where ideas are coming from, so it’s a really fair process.”
Cheryl Albus, a program director in the same division as Figueroa, says the awards are given by merit, which benefits minorities and women.
“You don’t have to depend on ‘old boy networks,’ ” she says. “Another plus is that we offer a Phase II component, where we review the technical merits and commercial potential of awardees’ proposals. So you have a sense of how viable your project is and what needs to be tweaked.”
Albus suggests that interested entrepreneurs go to NSF’s website, thoroughly research the proposal requirements and talk to some of the awards’ principal investigators before applying.
“And, before you send in your application, get it reviewed by peers to get their feedback. You really want to dot all your i’s before submitting it,” she says.
To learn more about the NSF’s SBIT and STTR programs, go to www.nsf.gov.
Siobhan Leftwich is a freelance writer who lives in the suburbs of Baltimore, Md.
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