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SBIR/STTR Eligibility Quiz

To be eligible for SBIR or STTR, your company must be a for-profit business with 500 or fewer employees, including affiliates, and more than 50% owned and controlled by U.S. citizens or permanent residents (with a few exceptions). SBIR and STTR then differ on the principal investigator and research partner. Answer the questions to see where you stand.

1. Is your organization a for-profit business?

Nonprofits and 501(c)(3) organizations cannot apply, though they can be subcontractors.

2. Who owns and controls more than 50% of the company?

"Owned and controlled" means holding the equity and running the company. Count each owner of an employee stock ownership plan or trust as an owner.

3. Does the company, together with its affiliates, have 500 or fewer employees?

Count full-time, part-time and leased employees. Affiliates are companies that control you or that you control, generally through more than 50% of voting equity (SBA may find affiliation at 40% or more).

4. Will the principal investigator be primarily employed by your company during the award?

The principal investigator (PI) leads the research. "Primarily employed" means more than half of their working time is with your company, so they cannot hold a full-time job elsewhere. This is required for SBIR.

5. Do you have, or can you set up, a formal partnership with a U.S. nonprofit research institution?

For STTR, the research institution (typically a university or federal laboratory) must do at least 30% of the research and your company at least 40%.

Answer all five questions for a full result.

Eligibility is decided by the funding agency at the time of award under the current rules and the solicitation. Criteria as of October 2026.

Frequently asked questions

A for-profit small business with 500 or fewer employees, including affiliates, that is more than 50% owned and controlled by U.S. citizens or permanent residents (or by qualifying small businesses, Indian tribes, Alaska Native Corporations or Native Hawaiian Organizations). Some agencies also accept SBIR applicants that are majority owned by multiple venture capital, hedge fund or private equity firms. See 13 CFR 121.702.

STTR requires a formal partnership with a nonprofit research institution such as a university or federal laboratory. The small business must do at least 40% of the work and the research institution at least 30%. In SBIR the principal investigator must be primarily employed by the small business; in STTR the principal investigator may be employed by either partner at most agencies (NSF follows the SBIR rule). See SBIR.gov: SBIR or STTR.

No. SBIR.gov says the small business must be for profit. Nonprofits, including 501(c)(3) organizations, cannot be the applicant, but they can take part as subcontractors or consultants, and a nonprofit research institution is the required partner in STTR.

No. The SBA eligibility guide says that for SBIR and STTR, size is measured only by number of employees, with no revenue limit. SBIR.gov adds that full-time, part-time and leased employees all count, and employees of affiliates count too.

No. Eligibility is decided by the funding agency at the time of award, under the current rules and the specific solicitation. Use this quiz to spot issues early, then read the official text and the solicitation.

Sources

Official sources this tool is based on, checked October 2026.

Planning aid only. Federal rules change; confirm against the cited official source and your award terms.

Independent platform. Not affiliated with or endorsed by any government agency. Data from public federal sources.

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