Conditions for Using a Grant

SBIR grant funding comes with requirements for how to use it.

SBIR funds for phase 1 are focused on determining the scientific or technical feasibility of a new concept or innovation.

The goal of the funding is to reduce the technical risk and increase the development of intellectual property.

Funds can be used for salaries, benefits, materials and supplies and direct costs to conduct R&D.

Here’s a list of use of funds not allowed with a Phase 1 grant: Incremental development of an existing product.

Basic engineering work that has no risk.

Testing of existing products.

Unrelated scientific research.

Market research, sales and marketing, and business development.

Clinical trials.

Procure goods or services from the federal government.

Consider these requirements for the use of your SBIR grant funds. 

Also, the SBIR granting agency has unlimited data rights to the project.  

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.