Business Incubator

The Small Business Innovation Research and Small Business Technology Transfer programs support new research and development needed to evaluate or advance an innovative technology.

They do not provide general operating capital or reimburse a company for development work that has already been completed. A proposed project should involve meaningful technical uncertainty and respond to the needs described by the participating federal agency.

A strong opportunity generally sits at the intersection of:

• An eligible small business
• A defined federal research priority
• An innovative technical approach
• A credible development plan
• Evidence of commercial potential

Each participating agency administers its own program. Application formats, review criteria and research topics vary considerably. Companies should treat the agency as a potential customer and understand its mission before preparing a proposal.

Under the Small Business Innovation Research (SBIR) program, the small business leads the project and performs the required share of the research and development work.

The company may work with subcontractors or research partners, but it must meet federal requirements governing project control, principal investigator employment and the amount of work performed by the small business.

The Small Business Technology Transfer (STTR) program requires a formal partnership between an eligible small business and a qualified nonprofit research institution.

The small business must perform at least 40% of the research and development work. The partnering research institution must perform at least 30%.

The small business remains the applicant and award recipient. The research institution participates as a project partner rather than the lead applicant.

For applications involving University of Toledo research or intellectual property, the Business Incubator works alongside the University’s Technology Transfer office.

Technology Transfer helps researchers and companies address University-owned intellectual property, invention disclosures and the agreements needed to support research collaboration or licensing. The Business Incubator complements that work by helping the company evaluate customer needs and strengthen its business model. Advisors can also provide guidance on the commercialization strategy included in the federal proposal.

When appropriate, the two teams coordinate with the researcher and small business so the research partnership, intellectual property pathway and commercialization plan support the proposed project.

Companies interested in partnering with a University researcher or licensing University technology should begin these conversations well before the application deadline. Research agreements and intellectual property matters can require additional review.

Applicants must meet the federal definition of an eligible small business at the time of an award. Eligibility requirements address company size, ownership and control.

Additional requirements may apply to:

• The principal investigator’s primary employment
• Where the research will be performed
• The percentage of work completed by the company
• Subcontractors and research partners
• Affiliates or outside investors
• The company’s registration status

The Small Business Administration uses eligibility rules specific to these programs. Companies should not assume that qualification for another federal small-business program automatically makes them eligible.

Beyond formal eligibility, companies should consider whether the opportunity is strategically appropriate.

A company may be a strong candidate when:

• Additional research or development is still required
• The project involves genuine technical risk
• The technology addresses a published agency need
• The company has the expertise needed to complete the work
• The proposed innovation has a plausible path to commercialization

Applicants are responsible for confirming their eligibility and understanding the requirements of the specific agency solicitation.

Federal applications require more than a strong technical idea. Companies may need to complete several registration processes before submitting a proposal. Research partnerships and commercialization evidence also take time to develop.

Begin by identifying the exact agency solicitation your technology addresses. Participating government agencies have been listed on the official SBIR/STTR program website.

When you're ready, contact the Business Incubator to discuss fit, readiness and the areas where advising may strengthen your application.

Phase I supports work needed to evaluate the technical merit, feasibility and commercial potential of the proposed innovation.

The company uses the project to test key assumptions and determine whether the technology is ready for further development.

Phase II supports additional research and development based on the results of Phase I.

The work may involve advancing a prototype, resolving technical risks or preparing the technology for testing in a more representative environment. Commercial potential becomes increasingly important during this phase.

In most cases, companies must receive a Phase I award before applying for Phase II funding. Some agencies offer direct or alternative Phase II pathways under specific conditions.

Phase III focuses on moving the technology into commercial or government use.

Small Business Innovation Research and Small Business Technology Transfer program funds do not support Phase III. Companies must pursue private investment, revenue or other government funding for continued development and commercialization.

Award amounts and project timelines vary by agency. Applicants must follow the requirements published in the specific solicitation rather than relying on general program information.