SBIR Grants for the Environment

SBIR for Climate Tech Companies and Startups

C. L. Beard
10 min readJan 12, 2023
Photo by Nicholas Doherty on Unsplash

There is a growing trend in the business world of using Small Business Innovation Research (SBIR) grants to help companies and startups address the challenges of climate change.

If you are one of those companies looking for funding, you should be aware that there is a cap on the total number of companies in a given category that can receive an SBIR grant in any one year. If the number of applicants exceeds the number of available grants, all applicants will be put on a waiting list for future funding opportunities. Last year, for example, there were about 1,400 SBIR applications were submitted by companies in 11 different categories. Out of these, only 135 were awarded grants. The categories with the highest number of submissions were Energy Storage, Controls & Grids, and Digital Manufacturing Technologies.

So if you are interested in applying for an SBIR grant for your startup tech company, make sure you submit your application on time. Also, make sure that you provide all the supporting documents and information requested by ARPA-E when you submit your application. This will help to ensure that your application is considered by the panel as quickly as possible.

The SBIR program helps to encourage innovation and entrepreneurship in the U.S. economy by stimulating research and development of new, innovative technologies and products. And it plays a key role in developing solutions that can help reduce our dependence on fossil fuels and help combat climate change. So if you want to start a company that is dedicated to addressing climate change, you should definitely consider applying for an SBIR grant. If you would like more information about the SBIR program or the application process, you can contact ARPA-E or visit its website at https://www.arpa-e.energy.gov/sbir-program/index.html.

The United States government created the Small Business Innovation Research (SBIR) program in 1982 to stimulate technological innovation among small firms and help them compete with larger companies. Since its inception, the program has played an important role in helping small businesses develop their technologies and bring them to the marketplace. It is designed to assist innovative startups and small businesses to develop new technologies as well as commercialize existing technologies. All companies that have at least 500 employees worldwide are considered ineligible for the SBIR program.

However, most companies that are eligible for the SBIR program have fewer than 1000 employees. These companies have limited access to the capital and resources needed to turn their innovative ideas into successful products. The goal of the SBIR program is to help these companies overcome this obstacle by providing them with the financial resources they need to turn their ideas into reality. It also helps to foster the development of a strong small business sector that will contribute to the growth of the U.S. economy.

To be eligible for the SBIR program, a company must be legally registered in the U.S. and be privately held by American citizens or permanent residents. It must also be a for-profit business and have less than $1 billion in annual revenues. And finally, the company must have some technical expertise in its area of research. If your business meets all of these requirements, you can apply for an SBIR grant through the ARPA-E website. Your first step is to fill out an online application on the website and submit it to the agency. In your application, you need to provide information about your company and the technology you want to develop.

The agency will review your application and will decide whether or not to fund your project. If it decides to fund your project, the agency will provide you with a contract that includes all the terms and conditions governing your research project. This contract includes the amount of money you will receive from the agency as well as the milestones that need to be achieved before you can receive additional funding. The agency will also provide you with specific instructions on how to carry out your research and prepare a final proposal for funding. At the end of the project, you will need to submit a final report with the results you obtained during your research. The agency will use this information to determine whether or not it will continue to fund future research projects for your company.

There are many benefits of receiving an SBIR grant from ARPA-E. The most obvious advantage is that you will be able to conduct a research project and develop a product based on your ideas without having to find other sources of funding. This will allow you to focus on your research without having to worry about how you are going to finance it. Another advantage is that it will be easier for you to obtain additional grants from the agency in the future. If you perform well during your research project and produce results that are commercially viable, the agency may consider providing you with additional funding for your future projects.

While applying for an SBIR grant can be time-consuming, it is well worth the effort in the long run. It will give you the opportunity to develop a product that has the potential to transform the future of your business and give you a competitive advantage over your competitors. Applying for an SBIR grant can be quite challenging. However, if you are prepared to put in the necessary time and effort, you stand a good chance of being successful.

During the review process, it is important to ensure that your application is complete and contains all the necessary information. In many cases, you will also need to provide detailed information about the technical aspects of your research project. You should keep in mind that the reviewers may not have the knowledge or expertise required to evaluate the technical aspects of your research project.

Therefore, you may have to do some research to find out the information you need and be prepared to explain it to the reviewers if necessary. In addition, you should provide clear and detailed diagrams that explain the various aspects of your research project and how it is carried out. This will help the reviewers to understand the technical aspects of your research project and give them a clear understanding of your proposed solution. Finally, you should avoid including irrelevant information in your proposal as it will only confuse the reviewers and make them less likely to approve your application.

Once you submit your proposal, you will need to wait several weeks for the reviewers to review it. Following the review has been completed, you will receive an email notifying you as to whether or not your application has been approved.

If your application is approved, you will receive funding for the project. If not, however, you will need to revise your proposal and submit it again for consideration. If the second application is rejected as well, you may be asked to submit a third application. This can be a frustrating and time-consuming process, but the reviewers are only human and may make mistakes the first time they review your proposal.

The SBIR application process can be frustrating and time consuming. In addition, you may spend several months working on a single application only to have it rejected in the end. Furthermore, there is no guarantee that your application will be approved if it is submitted more than once. On the other hand, even if you do not get funded the first time you submit an application, you may still receive funding if you submit another application at a later date. Therefore, it is important to keep trying until you get the funding you need to complete your research.

Project management: how to organize your project?

Before you start writing a proposal for your project, it is a good idea to create a basic outline that will help you to organize your thoughts and make sure that you cover all of the necessary details. This is especially important if you are not an experienced writer or if you have never written a proposal before. The firstthing you need to do is to outline the project goals and objectives. This will include information about what you hope to achieve with your research and how long you expect the project to take to complete. Next, you should describe the scope of the research project. You will want to include details about exactly what you plan to do and exactly how you plan to do it. Finally, you will want to provide an estimate of the cost of the project. This is important because it will help you to determine whether or not you can afford to complete the project and whether there is enough funding available to fund it.

Once you have completed your outline, you can start to write the proposal itself. Keep in mind that this is one of the most important parts of the application process so you should put a lot of thought into it and spend several hours writing and revising it before you submit it to the reviewers.

Will VCs de-value companies that do SBIRs?

Most venture capital firms will not invest in a company that does research for the government through the Small Business Innovation Research program or a similar program because it reduces the company’s likelihood of success in the commercial marketplace. However, this does not mean that your company will be worthless. In fact, it may turn out to be a major asset to your commercial business because the government program allows you to develop new technologies in a relatively low-risk environment. As a result, your commercialization efforts are likely to be more successful if you are already familiar with the technology that you are developing and the government program allows you to obtain additional funding for your project if you need it.

I’ve heard I have to wait months for notification on the status of my SBIR proposal. Is this true?

No, you will be notified about the status of your application within two or three weeks after the deadline has passed. The review process can take several weeks longer depending on the topic and the number of proposals being reviewed each year. For this reason, it is important to submit your application as early as possible so that it can be considered for the next round of funding if it passes the initial review.

Will I be automatically notified if my SBIR proposal is rejected?

No, you will receive an email informing you of the status of your application but it will not tell you why it was rejected if the proposal was not funded. The only information you will receive is the rejection letter, which will give you the opportunity to revise the proposal and resubmit it for the next round if it still meets the eligibility criteria.

Initial Review-Once the deadlines have passed and you have received your submission confirmation, the first review of the proposal will begin. This typically takes two weeks to complete and is based on two criteria: the technical merit of the proposal and the feasibility of the research plan proposed. If both of these aspects are approved, the proposal will be approved for the next stage of the process known as “Full Application.”

Full Application-If the review panel approves your proposal at the preliminary stage, it will be forwarded to the full application and funding review committee. The committee will review all the information in the proposal and conduct any necessary research to determine whether the project can proceed. If the project is approved at this phase, you will be provided with further details about the funding process including the amount of funding available and the milestones that must be achieved in order to receive the money. Funding decisions are made on an annual basis and are based on the program’s current budget and the anticipated number of projects that will need to be funded for the coming year.

Who is eligible to receive SBIR and STTR awards?

Any for-profit or non-profit business that is at least 51% owned by US citizens is eligible for an SBIR grant or STTR contract. However, certain industries are not eligible for federal funding and therefore will not be able to apply for a grant from the SBA’s Small Business Innovation Research program. For example, the pharmaceutical industry is not eligible to receive funding from either the SBIR program or the Small Business Technology Transfer program so any companies that work in this industry will not be considered eligible for funding through these programs.

Under the SBIR program, the term “small business concern” means a concern that is independently owned and operated, is not dominant in its field of operation, and has fewer than 500 employees in the United States on a full-time basis (including its subsidiaries).

Can a small business concern with receiving Phase I SBIR funds take those Phase I funds to a commercial lender to obtain debt financing for further development?

Yes, a small concern that receives SBIR Phase I funds may borrow funds from a commercial lender under the term of a promissory note, provided that the small concern does not enter into any payment obligations to the commercial lender that would conflict with the terms under which it would receive payments under the Phase I award agreement. In addition, should the small concern not receive any Phase I awards after expending or committing all prior SBIR funds, it may pledge its right to receive future Phase I awards as collateral for a loan from a commercial lender, provided that the requirements of 35 U.S.C. §42(g) are satisfied and that the SBIR agency and SBA concur that the encumbrance will not impair the future availability to the agency of SBIR Phase II funds or any other federal support.

No, a small U.S. firm formed as a 50–50 joint venture is no longer eligible to compete for an SBIR/STTR award unless the SBIR Agency determines that the firm is eligible to receive an award as a small business concern under other eligibility criteria, e.g., one or more small business concerns participating in the joint venture are themselves small businesses (as defined by SBA size standards), or one or more of the firm’s non-SBIR/STTR partners and collaborators qualify as small businesses under other eligibility criteria. See Section VI.C.2.b. of the SBIR Program Guide for details.

Does a commercial company receive full credit for a subcontract with a small business that does research? As a small business, you are not eligible to receive a subcontract, but are eligible for the full amount of your contract, up to $150,000. As a subcontractor on a government contract above this level, you can contract with a small business to do part or all of the work. However, the government generally considers only the value of the services actually performed by the small business in calculating the amount of the contract awarded to the small business. You do not receive any extra credit because you use the services of another small business.

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C. L. Beard
C. L. Beard

Written by C. L. Beard

I am a writer living on the Salish Sea. I also publish my own AI newsletter https://brainscriblr.beehiiv.com/, come check it out.

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