SBIR/STTR federal seed-funding programs need reauthorization

Two federal programs that have been driving innovation for 40 years by providing seed funding to entrepreneurs are in danger of running out of money - unless Congress acts by September 30, according to the USA’s Biotechnology Innovation Organization (BIO).

The  Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs typically give up to $250,000 for the first year of development of an idea and up to $750,000 more if the idea proves feasible.

The grants provide good value - generating “a 22:1 return for every federal dollar spent,” with “a commercialization rate of between 50-60% for SBIR/STTR investments,” according to the Arizona Bioindustry Association (AZ BIO). Many BIO members have used the grants to commercialize innovations.