The U.S. National Science Foundation has relaunched its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grant programs, putting $250 million in non-dilutive funding on the table for startups and small businesses. The announcement came May 26, 2026, alongside a separate $40 million pilot focused on next-generation scientific instrumentation.
Non-dilutive means the money comes with no strings attached to ownership. According to NSF, the agency takes no equity and awardees keep full control of their company and intellectual property.
The programs had been on hold after SBIR/STTR authorization lapsed in late 2025. Congress ended the freeze in early 2026 by passing the Small Business Innovation and Economic Security Act, which reauthorized the programs through September 30, 2031.
How the funding works
Under the new solicitation (NSF 26-510), Phase I awards can provide up to $305,000 for initial feasibility work. Phase II awards, meant for prototype development, go up to $1.25 million over two years. Each company can receive up to $2 million total through the standard grant tracks.
For standout Phase II companies, a new Strategic Breakthrough category allows awards up to $30 million, though that path requires an invitation from an NSF program officer and is not an open application.
The program is open to startups across nearly all technology areas and market sectors. It is designed for high-risk, early-stage “deep tech” rather than routine product development.
What small businesses should know now
The first step is submitting a Project Pitch through NSF’s portal. Project Pitch submissions opened June 2, 2026. NSF reviews pitches before inviting companies to submit full proposals, so building in lead time is important.
The first full proposal deadline is July 27, 2026, followed by November 4, 2026 and March 4, 2027. Going forward, deadlines will recur on the first Wednesday in November and first Thursday in March each year.
Companies are limited to two Project Pitches per year and three total submissions per technology. Historical Phase I funding rates at NSF have run between 10% and 20%, so competition is real.
Registration with SAM.gov and the SBA’s SBIR Company Registry is required before applying, and the SAM process can take up to three weeks. Businesses considering a July 27 submission should start that paperwork immediately.
