The federal government supports innovative research through Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) programs, which are offered through several government departments. For general information about the SBIR program, visit http://www.sba.gov/SBIR/sbirq.html . For general information about the STTR program, visit http://www.sba.gov/SBIR/sbirq.html . It is worth noting that these grants are sometimes not offered to businesses that are just getting started, but they could be applied for and used to fund a business once it is underway.

These grant programs often offer funds in two stages. Phase one grants are usually less than phase two grants, which are awarded for further and deeper research. These grants often favor women- and minority-owned businesses, and when reviewers look at the grant proposals, they look for innovative ideas that have potential for commercialization. In other words, the end result of the research needs to be something that you can sell!

The National Institutes of Health
The National Institutes of Health (NIH) offers an SBIR Program that offers grants from $100,000 to $750,000. For information and application forms, visit http://grants.nih.gov/grants/funding/sbir.htm .

Department of Defense
The Department of Defense (DoD) also has an SBIR program and an STTR program to support defense-related technology research. These programs fund more than $1/2 billion each year in early-stage research and development projects at small technology companies. These projects must serve a DoD need and have commercial applications. This program offers a "Fast Track" option for small businesses that can get outside investor funding. In that case, the DoD will match each dollar the investor puts in with $1 to $4. For information and application forms, visit http://www.acq.osd.mil/sadbu/sbir/ . For information about specific departmental forms, visit the following sites:
° Department of the Air Force: http://www.afrl.af.mil/sbir/index.htm
° Department of the Army: http://www.aro.army.mil/arowash/rt/
° Department of the Navy: http://www.navysbir.brtrc.com/
° Ballistic Missile Defense Organization: http://www.winbmdo.com/scripts/MAIN.asp
° Defense Advanced Research Projects Agency: http://www.darpa.mil/sbir /
° Special Operations Acquisition and Logistics Center: http://soal.socom.mil/smallbus04.htm

Department of Agriculture
The Department of Agriculture offers SBIR grants to small businesses proposing research that will improve agriculture technology and yield. Phase one grants are for a maximum of $70,000. For information, visit http://www.reeusda.gov/sbir /.

Department of Education
The Department of Education offers SBIR grants of up to $50,000 in phase one and up to $300,000 in phase two. For information, visit http://www.ed.gov/offices/OERI/SBIR/.

Department of Commerce
The Department of Commerce offers SBIR grants through the National Oceanic and Aeronautics Administration (program information available at http://www.rdc.noaa.gov/~amd/sbir.html ) and the National Institute of Standards and Technology (program information available at http://patapsco.nist.gov/ts_sbir/).

Department of Transportation
For information, visit http://www.volpe.dot.gov/sbir/.

National Aeronautics and Space Administration
For information, visit http://sbir.nasa.gov .

National Science Foundation
For information, visit http://www.eng.nsf.gov/sbir/.

Environmental Protection Agency
For information, visit http://es.epa.gov/ncerqa/sbir.