Is Your Company Eligible for SBIR/STTR? 

You’re still reading. That’s a good sign. It means you care about doing this right. So here’s the bonus round—insights you won’t find on any checklist or government website.

You can Google the SBIR/STTR eligibility checklist. But understanding what those rules really mean, and how to navigate them as a founder, that’s where the real work begins. 

Let’s start with what it means to be a “for-profit” company. On paper, that’s just a legal requirement. But in spirit, it signals a mindset: one focused on commercialization from day one. 

If your innovation can’t eventually generate revenue, serve a market, or sustain a team, it’s not aligned with the purpose of SBIR. 

So ask yourself: What’s the path from prototype to product? Who actually needs what you’re building? How will you get it into their hands?

Next, let’s talk about the requirement that your company be U.S.-owned and based. It’s not just about geography, reflects the deeper mission of the SBIR program: to build U.S. innovation capacity. 

That means hiring U.S. workers, partnering with U.S. universities, and keeping your development and research efforts domestic where possible. 

If you’re using foreign contractors or consultants, it may be technically allowed, but consider whether it aligns with the intent of the program, and how reviewers might view it.

The role of the Principal Investigator (PI) also deserves more than a box check. The PI must be the technical lead in practice, not just in title. They should be central to writing the proposal, leading the research, and driving the project forward. If your PI has multiple commitments, say, a full-time academic appointment or other ventures, you need to be ready to show how they’ll prioritize this project. Reviewers will look closely at this, even checking public profiles like LinkedIn to verify.

The 500-employee cap? On its face, it’s a size limit. But in practice, most SBIR awardees are small teams, often just a few people. So the real question isn’t about being under the cap. It’s about whether your team is capable. 

Can this team realistically execute? 

Do they have the technical chops? 

If you’re a solo founder, that’s okay, but surround yourself with advisors, contractors, or partners who bring the necessary expertise. Capability builds credibility.

Finally, ask yourself whether your company is truly ready for this kind of funding. SBIR/STTR grants aren’t easy money. The process is competitive, the timelines can be slow, and the administrative burden is real. But if you’re aligned, mission-wise, strategically, and operationally, this can be a powerful funding source. 

So reflect: 

Do we have the systems in place to manage federal funds? 

Are we applying because it aligns with our long-term goals, or just because we can?

SBIR/STTR isn’t about gaming a system. It’s about alignment. Between your vision and your operations. Between your innovation and national priorities. When those are in sync, you’re not just eligible, you’re competitive.