SBIR · 13 CFR 121.702 · SBA Policy Directive

Does Your Business
Qualify for SBIR Funding?

12 questions based on actual 2026 eligibility rules. Get an ELIGIBLE / CONDITIONALLY ELIGIBLE / NOT ELIGIBLE verdict with citations, agency match, and next steps — in under 5 minutes.

⚖️

Real Regulatory Rules

Based on 13 CFR 121.702, 13 CFR 121.103 affiliation rules, and the SBA SBIR Policy Directive (2024 edition).

🏛️

Agency Match

Recommends your top 5 agencies from DoD, NIH, NSF, DOE, NASA, DARPA, DHS, and more based on your tech area.

📄

Print as PDF Memo

Export a formatted eligibility memo with rule citations. Runs entirely in your browser — nothing sent anywhere.

What Is SBIR?

The Small Business Innovation Research (SBIR) program is a competitive federal grant and contract program that funds early-stage R&D in small businesses. Congress set aside roughly 3.2% of extramural R&D budgets at 11 participating agencies — totaling over $4 billion annually.

SBIR is not a loan. There is no equity dilution. Awards go to companies that win competitive topic-based solicitations. The program was reauthorized through 2031 with key changes effective 2026.

Phase I

Feasibility

Typically $50K–$300K. 6–12 months. Prove technical merit. No equity given up.

Phase II

R&D

Typically $400K–$2M. 24 months. Full development. Requires Phase I success.

Phase III

Commercialization

No SBIR funds. Agency procurement, private capital, or licensing. Unlimited potential.

Disclaimer: This tool is for planning purposes only. Final eligibility is determined by the Small Business Administration and the awarding agency. Rules may change. Consult SBA.gov and the agency's SBIR solicitation before submitting.

Key Rules to Know

SBIR eligibility is governed by the Small Business Act, 13 CFR Part 121, and the SBA SBIR Policy Directive. The main requirements are:

1

For-profit, US-based. Must be organized for profit, principally based in the US, with principal place of business in the US.

2

51% US-owned & controlled. More than 50% must be owned by US citizens or permanent residents, OR by another qualifying small business.

3

500 employee cap. Including all affiliates. Affiliation is determined under 13 CFR 121.103 — common ownership, overlapping officers, or economic dependence can create affiliation.

4

PI majority-employed by company. The Principal Investigator must be employed more than 50% by the applicant firm during the award period.

5

Work performed in US. Substantially all R&D work must be performed in the United States.

SBIR.gov 13 CFR 121.702 SBA Policy Directive

SBIR Eligibility Assessment Question 1 of 12

Precision AI Academy — SBIR Eligibility Memo

precisionaiacademy.com/sbir-eligibility-checker

—

Requirements Met

—

Need Attention

—

Disqualifying

Ready to Submit Your First SBIR Proposal?

Our Federal AI bootcamp covers proposal strategy, technical narrative structure, and how to identify winning topics across DoD, NIH, NSF, and more.

View Bootcamp Schedule

Does Your BusinessQualify for SBIR Funding?

Ready to Submit Your First SBIR Proposal?

Does Your Business
Qualify for SBIR Funding?