Notice Number: NOT-OD-10-079

Key Dates
Release Date:  April 1, 2010
Effective Date:  March 30, 2010

Issued by
National Institutes of Health (NIH), (http://www.nih.gov)

Purpose

The purpose of this Notice is to inform the small business research community of a change in the Phase I and Phase II award amounts under the Small Business Innovation Research (SBIR) program. 
On March 30, 2010, the Small Business Administration (SBA) issued in the Federal Register a final amendment to the Small Business Innovation Research (SBIR) Program Policy Directive.  This Amendment adjusts SBIR Phase I award levels from $100,000 to $150,000, and Phase II award levels from $750,000 to $1,000,000. The amendment also continues to provide participating agencies with an appropriate degree of flexibility in award size.

The SBA has statutory authority to increase these award amounts to adjust for inflation or other economic or programmatic considerations once every five years (U.S.C. 638(j)(2)(D)). The regulatory guideline for the SBIR award amounts can be found in Section 7(h)(1) of the SBIR Policy Directive (67 FR 6008, Sept. 24, 2002). SBA has determined that to restore the average economic value of the SBIR awards, the award threshold amounts should be increased at this time. SBA determined that adjusting the threshold amounts to $150,000 for Phase I and $1,000,000 for Phase II adequately offsets the general effects of inflation, maintains a degree of stability and simplicity to the threshold levels, and continues to provide participating agencies with an appropriate degree of flexibility in award size. This amendment is effective on March 30, 2010.

Applicants submitting NIH SBIR Phase I, Phase II, or Fast-Track applications (new or resubmissions) targeting due dates on or after April 5, 2010, may base budget requests on these adjusted amounts. Note: This amendment only applies to the SBIR program and not to the Small Business Technology Transfer (STTR) program. However, for both programs, the award levels are statutory guidelines, not ceilings. Therefore, applicants are encouraged to propose a budget that is justified, reasonable and appropriate for completion of the research project. A desire to have more time to change the budget request will not be allowed as a valid reason for a late submission.  Also, it will not be possible to increase the budget request after the submission.  As always, applicants are encouraged to contact NIH program staff listed in the Funding Opportunity Announcement to discuss their scientific project and budget plans.

Inquiries

Inquiries may be directed to:

Jo Anne Goodnight, NIH SBIR/STTR Program Coordinator
Office of Extramural Programs
National Institutes of Health
Email:  [email protected]