Glossary · Match, Unite
Phase I and Phase II (SBIR and STTR)
Phase I and Phase II are the two funded stages of SBIR and STTR, where Phase I tests whether an idea is technically feasible and Phase II funds continued research and development of the ideas that showed promise.
How it works in a university-industry collaboration
As of April 2026, SBA guidelines let an agency make a Phase I award of up to $323,090 and a Phase II award of up to $2,153,927 without SBA approval. Larger awards need a waiver (SBIR.gov). Agencies also set their own caps. NSF's Phase I, for example, is up to $305,000 over 6 to 18 months, inclusive of indirect costs, fee, and TABA (NSF 26-510). Recipients may also use up to $6,500 per Phase I project and up to $50,000 per Phase II project for technical and business assistance, and the 2026 reauthorization updated how those funds can be used (S. 3971).
Phase III is work that derives from, extends, or completes an earlier SBIR or STTR award, funded from sources other than the SBIR and STTR programs. It can be commercial work financed by private capital, or federal work funded outside SBIR and STTR, such as a follow-on contract (SBA Policy Directive, §4(c)).
How does the university's share change between phases?
- SBIR. The small business performs at least two-thirds of the effort in Phase I and at least one-half in Phase II, so the share open to subcontractors and consultants, a university among them, can grow from up to one-third to up to one-half (SBA Policy Directive).
- STTR. The split stays the same in both phases. The small business performs at least 40% and the research institution at least 30%, with no deviations.
What Helikon does with it
On the Helikon platform, the Discover Funding tab shows the SBIR and STTR solicitations Grants.gov posts, and matches the relevant opportunities to your profile. You can track your SBIR/STTR proposals and project execution by setting up a Helikon project with timelines, milestones, file and contract sharing, and discussion threads, and invite your collaborators to a shared workspace.
Sources
- SBIR.gov, 2026, About (award guidelines as of April 2026). www.sbir.gov/about
- National Science Foundation, 2026, SBIR/STTR Phase I, Phase II and Fast-Track Programs, NSF 26-510. nsf.gov/funding/opportunities/small-business-innovation-research-small-business-technology/nsf26-510/solicitation
- U.S. Small Business Administration, 2023, SBIR and STTR Policy Directive (May 2023). www.sbir.gov/sites/default/files/documents/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf
- U.S. Congress, 2026, Small Business Innovation and Economic Security Act, S. 3971, Public Law 119-83, enrolled bill. www.govinfo.gov/content/pkg/BILLS-119s3971enr/html/BILLS-119s3971enr.htm