Phase I: This phase focuses on establishing the technical merit, feasibility, and commercial potential of the proposed research. Awards are typically up to $150,000 for 6 months. Phase II: Based on the success of Phase I, Phase II awards are granted to continue the research and development efforts. Funding can reach up to $1,000,000 for 2 years. Phase III: This phase is aimed at commercialization. While no SBIR funds are allocated for Phase III, the small business must find external funding sources to bring the product to market. Some federal agencies offer contracts for products that meet specific government needs.
