Technology R&D & innovation (SBIR/STTR) grants in Texas
Eleven federal agencies set aside R&D budgets for small businesses; many states add matching funds for SBIR winners. In Texas, these funds reach technology r&d & innovation (sbir/sttr) businesses and nonprofits through Texas state agencies, county programs and city economic development offices, alongside direct federal awards.
Example programs available to Texas applicants
- SBIR / STTR Phase I and II
- State SBIR matching programs
- NSF and DOE small business innovation awards
Getting started in Texas
- 01Register your business with Texas (usually the Secretary of State) and get an IRS EIN.
- 02Check Texas licensing, permits and tax registration rules for technology r&d & innovation (sbir/sttr).
- 03Register on SAM.gov for a free UEI so you can receive federal funds passed through Texas agencies.
- 04Contact your local Texas Small Business Development Center (SBDC) for free help with plans and applications.
- 05Ask your Texas city and county economic development office about local technology r&d & innovation (sbir/sttr) grants and incentives.
Who qualifies
- For-profit businesses located in the U.S. with 500 or fewer employees, counting all affiliates.
- Companies that are more than 50% owned and controlled by U.S. citizens or permanent residents, or by other eligible small businesses. NIH, DOE, and ARPA-E, among others, may also accept companies majority-owned by multiple venture capital, hedge fund, or private equity firms, so check each solicitation.
- For SBIR, the Principal Investigator (PI) must be primarily employed (more than 50%) by the small business at the time of award and during the project.
- For STTR, the small business must formally partner with a U.S. nonprofit research institution, university, or federally funded R&D center. The small business generally performs at least 40% of the work and the research institution at least 30%.
- Nonprofits generally cannot apply directly for SBIR/STTR, but universities and nonprofit research institutions can take part as STTR research partners or subcontractors.
- Businesses with a high-risk, innovative technology that matches an agency's published research topics and has a credible path to commercialization.
Where the funding comes from
SBIR Phase I and Phase II awards from the 11 participating agencies: Department of Defense (DoD), Health and Human Services (NIH, CDC, FDA), NASA, Department of Energy (DOE), National Science Foundation (NSF), USDA, Homeland Security, Transportation, Education, EPA, and Commerce (NOAA and NIST). Phase I typically funds 6–12 months of feasibility work. Phase II funds roughly two years of development. SBA publishes guideline award amounts, and individual agencies may set different amounts.
STTR Phase I and Phase II awards from DoD, DOE, HHS/NIH, NASA, and NSF. These fund cooperative R&D between a small business and a research institution.
NSF SBIR/STTR ("America's Seed Fund powered by NSF") funds technology innovation across most fields. Applicants must submit and be invited on a short Project Pitch before writing a full proposal.
DOE SBIR/STTR (including Office of Science and ARPA-E topics) funds energy, climate, physical sciences, and related technologies through annual funding opportunities with specific technical topics.
SBA's Federal and State Technology (FAST) Partnership Program funds state and regional organizations that give small businesses free or low-cost help preparing SBIR/STTR proposals, especially underrepresented and rural firms.
State SBIR/STTR matching and bridge programs. Examples include Kentucky's SBIR-STTR Matching Funds Program and North Carolina's One NC Small Business Program, and similar programs exist in other states. They may provide matching funds to federal award winners or small grants for proposal preparation. Availability and terms change, so contact your state economic development agency.
University technology transfer offices, Small Business Development Centers (SBDCs), local innovation hubs, and incubators often offer proposal assistance, mentoring, lab space, or small proof-of-concept grants that can strengthen an SBIR/STTR application.
Common requirements
- Active SAM.gov registration with a Unique Entity Identifier (UEI). SAM.gov registration is free, can take several weeks, and must be renewed annually.
- Registration in the SBA Company Registry at SBIR.gov, which produces the SBC Control ID and certification PDF required with most proposals.
- Accounts on the required agency submission portals, often accessed through Login.gov. Examples: Grants.gov and eRA Commons for NIH, Research.gov for NSF, PAMS for DOE, and DSIP for DoD.
- Proof of legal business formation and good standing, such as articles of incorporation or organization and state registration. Have an EIN, and any business licenses required by your state or locality.
- Ownership and size certifications, plus the foreign-affiliation and security due-diligence disclosures required under the SBIR and STTR Extension Act of 2022.
- A technical proposal and budget responsive to a specific solicitation topic, plus a commercialization plan (generally required for Phase II). Include letters of support, biosketches for key personnel, and, for STTR, a signed cooperative research agreement with the research institution.
- Applicable research compliance approvals, such as human subjects (IRB), animal welfare (IACUC), or export control reviews. Also maintain an accounting system able to track costs on federal awards.
How to apply
- 01Confirm the program's current authorization status and your eligibility on SBIR.gov. Then search open solicitations and topics from the 11 agencies to find ones that closely match your technology.
- 02Complete registrations early, because they can take weeks: SAM.gov/UEI, the SBA Company Registry, Login.gov, and each agency's submission portal. Contact program managers or technical points of contact where the solicitation allows.
- 03Complete any required pre-submission step, such as an NSF Project Pitch or a DoD topic Q&A period. Arrange STTR research partners and collect letters of support.
- 04Write and submit a full proposal that follows the solicitation exactly. It should cover technical innovation, feasibility objectives, team qualifications, budget, and commercialization potential, and it should be submitted before the stated deadline.
- 05Track the review, which commonly takes about 3–9 months, and use reviewer feedback to resubmit if you are not selected. If you win, ask your state about SBIR matching funds and prepare for Phase II and commercialization.
Frequently asked questions
Can a nonprofit apply for SBIR or STTR funding?
Generally no. Applicants must be for-profit small businesses. However, nonprofit universities and research institutions can participate as the required research partner in STTR projects or as subcontractors on SBIR projects.
What is the difference between SBIR and STTR?
SBIR lets the small business do the research largely on its own, with the PI primarily employed by the company. STTR requires a formal partnership with a research institution, which performs at least 30% of the work. STTR is offered by five agencies: DoD, DOE, HHS/NIH, NASA, and NSF.
How much funding can I receive?
Amounts vary by agency and solicitation. SBA sets guideline caps that are adjusted periodically. Phase I awards are often in the low-to-mid six figures, and Phase II awards can reach roughly $1–2 million or more at some agencies. Funding is competitive, and success rates are typically well below half of applicants.
Do I have to give up equity or repay the award?
No. SBIR/STTR awards are grants or contracts, not loans or equity investments, so the agency takes no ownership. Small businesses generally keep rights to their intellectual property, and the government receives certain limited usage rights. You must still follow federal cost, reporting, and audit rules.
Does winning Phase I guarantee Phase II funding?
No. Phase II is a separate competitive award, usually open only to Phase I awardees, and depends on your Phase I results and commercialization potential. Phase III, or commercialization, uses non-SBIR funds such as private investment or government contracts.
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Researched from public sources. Program details change, so always confirm with the Texas funding agency. GrantVerify does not award grants or guarantee funding.