After a six-month lapse that left small businesses unsure of the future of small business innovation programs, a recent reauthorization bill affirmed continued support for high impact technologies. Federal agencies are now beginning to release new funding opportunities. Here’s what small businesses need to know about changes to the programs and how to apply.
Background
Small businesses are the heart of the American economy and play an essential role in both the energy sector and R&D ecosystem. More than 99% of businesses in the U.S. are small, and they employ almost half the American workforce. Recognizing the importance of small firms to the economy, Congress established the Small Business Innovation Research (SBIR) program in 1982 and the Small Business Technology Transfer (STTR) program in 1992 to drive small business innovation. These programs require federal agencies to set aside 3.65% of their extramural R&D funds for non-dilutive grants to small businesses (SBIR) or partnerships between small businesses and academia (STTR).
Since then, SBIR and STTR programs have supported over 30,000 small businesses, helping leaders make their mark across industries. Between 1995-2017, roughly 1.5 million jobs to the U.S. economy—an average of 66,000 jobs per year—were added to the US economy from Department of Defense SBIR/STTR grants alone. The impacts of these programs extend beyond the United States, with close to 20 countries adopting similar programs to further their R&D ecosystems.
SBIR/STTR Hiatus
The SBIR/STTR programs do not currently have permanent authorization, although many industry leaders have advocated for changing this. Instead, Congress passes legislation every few years reauthorizing the SBIR/STTR programs and making changes to them as needed. Most recently, the programs were due for reauthorization by September 30, 2025, but lawmakers failed to reach agreement on the terms of the legislation in time. Over the next six months, SBIR/STTR remained lapsed and many small businesses interested or involved in these programs questioned how they should move forward. During this time of uncertainty, CEBN:
Finally, lawmakers reached an agreement and enacted the Small Business Innovation and Economic Security Act on April 13, 2026, reauthorizing SBIR/STTR through 2031. Key changes included limiting the number of applications per company, standardizing agencies’ protections against foreign interference, and strengthening commercialization programs. We thank our network, partners, and other business leaders for their advocacy in reauthorizing these critical programs.
What Reauthorization Means for You
With reauthorization complete, federal agencies are beginning to release new funding opportunities. The SBIR program spans 11 agencies and STTR spans 6, so small businesses can explore what partnerships best align with their goals. Each agency posts SBIR/STTR opportunities on its respective website for applicants to review. It is important to consider whether to apply to conventional, mission driven topics or open topics, which focus on how existing technology can be utilized to provide support. If you are developing technology for defense, agriculture, or energy, find agencies that have funding opportunities available around your work.
How To Apply for SBIR/STTR Funding at the Department of Energy
Under a recent Department of Energy (DOE) reorganization, the Office of Technology Commercialization (OTC) is the new home for the agency’s SBIR/STTR programs, strengthening opportunities to guide small businesses in bringing their products to the market. DOE is implementing several reforms to the programs, including simplified application and contracting processes and greater emphasis on commercialization. On July 22nd, OTC posted a new Phase I SBIR/STTR opportunity under the Genesis Mission (deadline: Sep. 10 at 2 pm ET), along with a Phase II opportunity for previous Phase I awardees (deadline: Sep. 25 at 12 pm ET). An additional Phase I solicitation is coming this fall. DOE and its Partnership Intermediary, ConnectWerx, will hold two office hours sessions to answer questions about the Phase I Genesis Mission solicitation (Aug. 5 from 3-4:30 pm ET and Aug. 12 from 3-4:30 pm ET) and one session on Phase II (Aug. 19 from 3-4:30 pm ET). If questions arise while reading about or applying for these programs, first consult the FAQs section of the solicitation and if needed, contact the program managers for guidance well ahead of the deadline.
Entrepreneur Futures Network and CEBN hosted a webinar on June 3rd about the latest developments on the SBIR/STTR programs. Download this presentation to learn more about current and upcoming funding opportunities, anticipated merit review criteria, and project narrative selections.
CEBN’s Continued Involvement
On July 22nd, CEBN delivered a letter signed by 128 business leaders urging the Senate to invest in OTC (the new home of SBIR/STTR) and other energy innovation programs in FY27. Crucial programs such as OTC, Critical Minerals and Energy Innovation (CMEI), and the Advanced Research Projects Agency-Energy (ARPA-E) need adequate resources to continue advancing U.S. technology competitiveness.
CEBN President Lynn Abramson also authored an opinion piece in the NOTUS Perspectives Forum on July 22nd alongside Members of Congress and other business leaders on the topic of “under-the-radar ideas to improve American energy policy.” Lynn highlights the historic impacts of federal investments in small business innovation, particularly through SBIR/STTR, and the need for Congress to provide robust funding for DOE’s Office of Technology Commercialization (OTC) as it takes on management of these programs.
CEBN will continue to advocate for federal investments in energy innovation and provide updates on emerging policies and programs.
