$1.6B Secured
500+ Proposals Written
NSF, DoD & NIH Expertise
SBIR/STTR Fundamentals

SBIR Funding Amounts by Agency: The Complete 2026 Reference

NalinLast updated: March 31, 2026

SBIR Phase I awards range from $100,000 to $314,363 depending on the agency. Phase II awards range from $400,000 to $2,095,748. Phase III is a sole-source contract with no funding ceiling. The 2026 reauthorization adds Strategic Breakthrough Awards of up to $30 million for Phase II alumni. Here's every agency's numbers, verified from official sources.

No clean cross-agency comparison of SBIR award amounts exists anywhere else. The government's own site (sbir.gov) lists agency budgets but not award-level detail. Individual agency pages bury the amounts in solicitation documents. This page puts them all in one table.

SBIR Phase I and Phase II award amounts: all agencies

All amounts verified from official agency sources. Last verified March 2026.

Major agencies (largest budgets)

Agency Annual Budget Phase I Phase II Timeline (Phase I) What They Fund
DoD -- AFWERX Part of ~$2.3B $75K (SBIR) / $110K (STTR) $1.25M (SBIR) / $1.8M (STTR) 3 months Air Force dual-use technology, open topics
DoD -- Navy Part of ~$2.3B $140K base + $100K option = $240K $1.7M-$1.8M ~6 months Naval technology, cybersecurity, undersea
DoD -- Army Part of ~$2.3B Up to $250K Up to $2M 3-6 months Ground systems, comms, soldier tech
DoD -- DARPA Part of ~$2.3B ~$250K (varies by topic) ~$1.8M (topic-driven, not cycle-driven) ~6 months Breakthrough / high-risk technology
DoD -- SOCOM Part of ~$2.3B $150K Up to $1M 6 months Special operations technology
NIH ~$1.2B Up to $314,363 Up to $2,095,748 6-9 months Biomedical, health tech, diagnostics
NSF ~$174M $305,000 $1,250,000 4-6 months Broad science and engineering
DOE ~$315M Up to $200K (some topics $250K) Up to $1.1M (some topics $1.6M) ~9 months Energy, nuclear, grid, climate tech
NASA ~$174M $150,000 $850,000 (+ $50K Technical and Business Assistance) ~6 months Space, aeronautics, earth science

Smaller agencies

Agency Annual Budget Phase I Phase II What They Fund
USDA (NIFA) ~$42M $125K-$175K $600K Agriculture, food safety, rural tech
DHS ~$18M Up to $175K $1M-$1.5M Homeland security, cybersecurity, border tech
DOC (NIST) ~$15M $100K $400K Measurement science, advanced manufacturing
ED (IES) ~$10M $250K $1M Education technology
DOT ~$9M Up to $200K Up to $1.5M Transportation technology
EPA ~$5M $100K $400K (+ $100K commercialization option) Environmental technology

Total across all agencies: roughly $4.3 billion annually in SBIR set-aside funding.

Most tech startups won't apply to the smaller agencies. USDA fits ag-tech, ED fits edtech, EPA fits environmental tech, DOT fits transportation. If none of those describe your company, focus on the major agencies table above.

The SBA caps

The Small Business Administration sets maximum award guidelines that apply to all agencies:

  • Phase I cap: $314,363 (including modifications)
  • Phase II cap: $2,095,748 (including modifications)

Most agencies award well below these caps. NIH is the only agency that routinely awards Phase I at the full cap. NSF's $305,000 is close. Most DoD agencies range from $75K-$250K for Phase I.

Agencies can request SBA approval to exceed these caps for specific topics, but it's rare.

Special programs worth knowing

Direct-to-Phase-II

Several agencies let you skip Phase I entirely if you've already completed feasibility work on your own. You apply directly for Phase II funding (larger awards, longer timelines).

Agency D2P2 Available? D2P2 Award
NIH Yes Up to $2,095,748
DoD (Army) Yes Up to $2M
DoD (Navy) Yes (Sequential Phase II) Up to $1.97M
ED Yes Up to $1M
NSF No (use Fast-Track instead) --
DOE Limited (topic-dependent) Varies

The catch: you need to demonstrate Phase I-equivalent work with real data. Preliminary results, prototypes, published research. "We've thought about this a lot" doesn't count.

Fast-Track (combined Phase I + II)

NSF and NIH both offer Fast-Track options that combine Phase I and Phase II into a single proposal. If approved, you move from Phase I to Phase II without reapplying.

  • NSF Fast-Track: $1,555,000 total ($400K Phase I + $1,155K Phase II)
  • NIH Fast-Track: Combined Phase I + Phase II up to the SBA caps

This is worth considering if you have strong preliminary data and want to lock in Phase II funding from the start.

AFWERX bridge programs

AFWERX has the most developed pipeline from SBIR to government contracts:

  • STRATFI (Strategic Financing): $3M-$15M. Combines SBIR funds with customer funds and private capital. Requires a government customer champion.
  • TACFI (Tactical Financing): $375K-$2M. Smaller-scale version of STRATFI for tactical problem sets.

These aren't SBIR awards per se. They're the bridge between your Phase II and a real government contract. If you're doing defense tech, AFWERX's pathway from Phase I ($75K) through Phase II ($1.25M) to STRATFI ($15M) to Phase III (no ceiling) is the clearest commercialization funnel in the entire SBIR ecosystem.

NIH Commercialization Readiness Pilot (CRP)

NIH offers a post-Phase-II program for companies ready to commercialize:

  • CRP awards: Up to $4,191,495 (double the Phase II cap)
  • Eligibility: Must hold an active Phase II or have completed Phase II within the last 5 years
  • Must demonstrate commercialization readiness (revenue, partnerships, regulatory progress)

Strategic Breakthrough Awards (new in 2026)

Status: the 2026 reauthorization bill passed Congress in March 2026 but is awaiting presidential signature. The details below describe the proposed program. If signed into law, the structure would be:

  • Amount: Up to $30 million per award (or series of milestone-based awards)
  • Duration: Up to 48 months
  • Eligibility: Must hold at least one prior Phase II SBIR or STTR award
  • Matching requirement: 100% matching funds from private capital, non-SBIR government sources, or company revenue
  • Eligible agencies: Only those with $100M+ annual SBIR obligations (DoD, NIH, NSF, DOE, NASA, DHS, EPA)

This is the biggest structural change to SBIR in years. For a Phase II alumnus that can raise matching capital, $30M in non-dilutive funding is venture-scale money without the dilution.

First solicitations are expected Q4 FY2026 (July-September 2026), starting with DoD and NIH.

Check sbir.gov for current status on the reauthorization.

Phase III: the part that changes everything

Phase III is not a grant. It's a sole-source government contract.

Here's what that means: if a government agency likes your Phase I/II work, they can contract with you to buy the product or continue the R&D -- without running a competitive bid. No funding ceiling. No additional SBIR set-aside required. The funding comes from the agency's own mission budget.

Key Phase III facts:

  • No dollar limit. Phase III contracts have ranged from thousands to hundreds of millions
  • No competition required. The agency can sole-source directly to you under 15 U.S.C. 638(r)(4)
  • Data rights carry forward. Your SBIR data rights protections extend into Phase III
  • Any contract type. Fixed-price, cost-plus, time-and-materials -- whatever the contracting officer prefers
  • DoD is the primary user. AFWERX, Army, Navy, and DARPA all have active Phase III pipelines

For defense tech and govtech companies, Phase III is the entire economic model. Phase I and Phase II are R&D validation. Phase III is where you become a government vendor.

Which SBIR agency is right for your startup?

A few things to keep in mind when comparing agencies:

Bigger isn't always better. NIH's $314K Phase I is the largest, but NIH is also the most competitive and requires the strongest preliminary data. AFWERX's $75K Phase I is the smallest, but it comes with the fastest timeline (3 months) and the clearest path to larger follow-on funding (Phase II + STRATFI + Phase III).

The Phase I amount is not the point. The real value of SBIR is the funding pathway. NSF's $305K Phase I is great, but it's the $1.25M Phase II and the technology validation that matter. For DoD, the $75K-$250K Phase I is just the door opener to Phase III contracts that can dwarf the original grant.

Watch the performance periods. A $305K NSF Phase I over 12 months is a different burn rate than a $75K AFWERX Phase I over 3 months. Make sure the grant timeline aligns with your R&D plan.

"Up to" means exactly that. Most agencies award below their stated maximums. DOE Phase I is "up to $200K" but many topics award $150K. The SBA caps are ceilings, not targets.

Annual SBIR funding by agency

For context on the size of each agency's program:

Agency Annual SBIR Budget Share of Total
DoD (all branches) ~$2.3 Billion ~53%
NIH (HHS) ~$1.2 Billion ~28%
DOE ~$315 Million ~7%
NSF ~$174 Million ~4%
NASA ~$174 Million ~4%
All others combined ~$114 Million ~3%
Total ~$4.3 Billion 100%

DoD and NIH account for over 80% of all SBIR funding. If your technology doesn't align with either defense or biomedical applications, you're competing for a much smaller slice of the pie. NSF is the broadest option for non-defense, non-biomedical tech companies, but its budget is 1/13th the size of DoD's.

Want help matching your technology to the right agency?

The amount matters less than the fit. A $305K NSF award that aligns with your R&D roadmap is worth more than a $314K NIH award you spend six months contorting your proposal to match. We've matched 500+ companies across 30+ agencies -- the analysis that would take you a week of research takes us one conversation. Book a Strategy Review -- no obligation.

Frequently Asked Questions

SBIR Phase I awards range from $100,000 (EPA, NIST) to $314,363 (NIH) depending on the agency. Phase II awards range from $400,000 (EPA) to $2,095,748 (NIH). Phase III is a sole-source contract with no funding ceiling. The new Strategic Breakthrough Awards go up to $30 million for Phase II alumni.
The SBA sets a guideline maximum of $314,363 for Phase I. NIH awards up to the full cap. NSF awards a flat $305,000. Most DoD agencies range from $75,000 (AFWERX) to $250,000 (Army). Smaller agencies like EPA and NIST award $100,000.
The Department of Defense leads at roughly $2.3 billion annually across all branches (AFWERX, Navy, Army, DARPA, SOCOM, and others). NIH is second at approximately $1.2 billion. NSF and NASA each contribute around $174 million. The remaining seven agencies combined contribute about $114 million.
Phase III is not a grant. It's a sole-source government contract, meaning the agency can buy your product without competitive bidding. There is no funding ceiling. Phase III is funded by agency mission budgets (not SBIR set-aside money), and your SBIR data rights protections carry forward. DoD is the most active user of Phase III.
Yes. Several agencies offer Direct-to-Phase-II (D2P2) programs for companies that already have feasibility data. NIH, DoD agencies (Army, Navy), and the Department of Education all offer D2P2. You'll need to demonstrate that you've already completed Phase I-equivalent work, typically with preliminary data and proof of concept.
Phase I performance periods vary by agency. AFWERX is the shortest at 3 months. Most DoD agencies and NSF allow 6-12 months. NIH allows up to 2 years. The performance period starts when you receive the award, not when you submit the proposal.
A proposed new award category from the 2026 SBIR reauthorization bill (passed Congress, awaiting presidential signature as of March 2026). Up to $30 million, structured around performance milestones, available only to companies with at least one prior Phase II award. Requires 100% matching funds. First solicitations expected Q4 FY2026 if signed.
No. SBIR awards are grants or contracts. You keep 100% of your equity. There is no repayment requirement. However, SBIR income is taxable, and funds are restricted to the proposed R&D activities -- you can't redirect them to marketing, sales, or general operations.

Ready to explore your funding options?

We'll map your technology to the most relevant programs and tell you where to start. 15 minutes, no obligation.

Book Strategy Review