SBIR Phase II — NSF (America's Seed Fund)

Who qualifies

• Must have received and completed an NSF SBIR Phase I award — Phase II is not available to companies without a prior NSF Phase I
• Company must still qualify as a small business (fewer than 500 employees including affiliates) at time of Phase II application
• More than 50% owned and controlled by US citizens or permanent legal residents
• New 2026 requirement: mandatory foreign national/ownership screening (FOCI disclosure) for all applicants per the April 13, 2026 SBIR/STTR reauthorization
• PI must be primarily employed (more than 50% of working time) at the small business at time of Phase II award — PI does not need to be the same person as Phase I PI but continuity is preferred by reviewers
• Phase I final report (or acceptable progress) required — NSF may delay Phase II invitation if Phase I is behind schedule
• Active SAM.gov registration with valid UEI required
• SBA SBIR Company Registry registration required
• No cost-sharing required for Phase II (cost-sharing IS required for Phase IIB supplement: 1:1 private investment match)

Hard requirements

• Must be incorporated
• 51%+ US ownership required
• Requires a prior Phase I award
• Max 500 employees

What it covers

How to apply

1. 1

   Confirm Phase II invitation from your NSF Program Director

   NSF Program Directors send Phase II invitations via email and through Research.gov approximately 3–6 months before Phase I end. If you have not received an invitation 4 months before your Phase I ends, proactively contact your assigned NSF Program Director — they can clarify your eligibility status and invitation timeline. Invitations are not automatic; Phase I awardees with unsatisfactory Phase I progress or companies that have changed business focus may not receive an invitation.

   ~2 hrs

2. 2

   Complete Phase I final report and schedule a customer discovery check-in

   Before writing the Phase II application, ensure your Phase I final report is submitted on time through Research.gov. NSF Program Directors review Phase I outcomes before formally issuing the Phase II application package. Additionally, NSF requires Phase II applicants to demonstrate customer discovery activities — document 20+ customer interviews completed during Phase I (this is an NSF Innovation Corps (I-Corps) expectation that flows into Phase II scoring).

   ~20 hrs

3. 3

   Develop the Phase II commercialization plan

   The NSF Phase II application places significant weight on the Commercialization Plan — a detailed narrative covering target customers, market size, competitive landscape, go-to-market strategy, business model, and funding plan post-Phase II. This is the most important differentiator between Phase II applications at NSF (vs. NIH or DoD where technical merit dominates). NSF expects Phase II awardees to be on a fundraising or revenue path within the 24-month award period. The commercialization plan should be investor-grade quality.

   ~25 hrs

4. 4

   Write the Phase II technical narrative (15–20 pages)

   The technical narrative describes: (1) Phase I results that justify Phase II funding; (2) Phase II research plan with specific milestones and go/no-go criteria at months 12 and 24; (3) technical risks and mitigation; (4) team qualifications for Phase II scope. NSF Phase II technical proposals are shorter than Phase I technical volumes — the Phase I demonstrated feasibility and the Phase II proposal is about execution. Focus on measurable technical milestones that directly enable commercialization.

   ~35 hrs

5. 5

   Prepare budget and submit via Research.gov

   NSF Phase II uses a fixed-amount cooperative agreement — the budget must total the awarded amount (typically $1,000,000) across 24 months. Budget categories: direct costs (labor, materials, equipment, subcontracts, travel) plus indirect costs. The NSF Program Director will review the budget with you during a pre-submission call. Submit through Research.gov (not seedfund.nsf.gov — Phase II uses NSF's main grants management portal, separate from Phase I's submission system).

   ~15 hrs

6. 6

   Await review and Phase II award

   NSF Phase II review takes approximately 6 months from submission. Reviews are conducted by NSF Program Directors with input from ad hoc technical and commercialization reviewers. NSF notifies awardees and unsuccessful applicants. Phase II award allows one free 6-month no-cost extension. Funds are accessible via advance drawdown through NSF's payment system.

   ~3 hrs

SBIR / STTR details

NAICS codes: 541714, 541715, 541511, 541512, 336411, 325412, 334413, 541330

Deadline & timing

NSF SBIR Phase II is invitation-only — you must have received an NSF SBIR Phase I award to be eligible. NSF sends Phase II invitations approximately 3–6 months before the end of Phase I. Phase II applications are submitted through Research.gov (not the Project Pitch portal used for Phase I). NSF reviews Phase II applications on a rolling basis — there is no fixed annual deadline, but NSF recommends submitting within the first half of the invitation window. Phase II review takes approximately 6 months. The same Phase I pause noted in the NSF Phase I record (April 16, 2026) does not affect Phase II applications from existing Phase I awardees.

Programs that stack well

• Research & Development Tax Credit (Section 41)
• SBIR Phase I — NSF (America's Seed Fund)
• SBIR Phase I — NIH (PHS Omnibus)
• SBIR Phase I — Department of Energy
• California Research & Development Tax Credit
• Clean Electricity Investment Tax Credit (Section 48E)

Related programs