Small Business Innovation Research Grants (SBIR)

Official Website: http://www.csrees.usda.gov/funding/sir/sbir.html

Purpose: The Small Business Innovation Research (SBIR) program at the U.S. Department of Agriculture (USDA) makes competitively awarded grants that are to qualified small businesses to support high quality, advanced concepts research related to important scientific problems and opportunities in agriculture that could lead to significant public benefit if successful.

Eligible applicants: Applicant must qualify as a small business concern. To be eligible for Phase II, applicants must be Phase I winners. University involvement in SBIR projects is strongly encouraged. University faculty can serve as consultants or can receive a subcontract (in both cases limited to no more than 1/3 of the Phase I award or 1/2 of the Phase II award) and continue to work full time at a university.

Funding level: SBIR Phase I grants are limited to $80,000 and a duration of 8 months. SBIR Phase II grants are limited to $300,000 and a duration of 24 months.

Match requirement: None

Timing of grants: Proposals for Phase 1 are generally due in the fall, and Phase 2 in the late winter.

Pros: SBIR grants can provide significant federal funding to test out a new idea. The program actually allows a the business to keep a portion of the funds not spent as profit. If you are awarded an SBIR grant, your idea is very marketable.

Cons: Very competitive program. Success rates for applicants have been 17% and 57% for Phase I and II respectively. Requires a very sophisticated proposal.

Small Business Innovation Research Grants (SBIR) Topics

8.1 Forests and Related Resources
8.2 Plant Production and Protection
8.3 Animal Production and Protection
8.4 Air, Water and Soils
8.5 Food Science and Nutrition
8.6 Rural and Community Development
8.7 Aquaculture
8.8 Industrial Applications
8.9 Marketing and Trade
8.10 Wildlife
8.11 Animal Waste Management
8.12 Small Mid Size Farms (New in 2006)

Examples of funded projects:

Chesapeake Fields Farmers, LLC. Marketing Assessment of the Identity-Preserved and Value-Added Soy-Based Ethnic Foods and Health Bars Produced by Chesapeake Fields Farmers (Phase I):

Assess and evaluate the type, size and location of market opportunities for value-added products produced from CFF commodities and developed commercially as soy-based ethnic foods and health bars;
Quantify market characteristics determining product demand, consumption patterns, shifts in retail and wholesale marketing, and shifts in food manufacturing; and
Develop specific strategies for rural farmers to gain entry into these niche markets with identity-preserved, value-added crops.

Agren, Inc. Goat Browsing to Enhance Economic Opportunity in the Loess Hills
The invasion of woody vegetation into native plant communities is a growing problem on many of the Nation's rangelands, resulting in the loss of pastureland and the need to make alterations in livestock management. The opportunity to employ goat browsing as a means of rehabilitating pastures, diversifying income potential for local farmers, and providing a source of chevon to surrounding ethnic communities will be studied.