STTR Phase I — NSF
National Science Foundation
Up to $305,000
NSF seed fund — university partner required
NSF funds early-stage deep-technology R&D through STTR Phase I — a $305,000 feasibility award that requires a formal university or federal-lab research partner. Unlike SBIR, at least 30% of Phase I work must be performed by the research institution, and the PI may be a faculty member (though NSF requires ≥20 hrs/week engagement with the small business). Ideal when your core IP originates in a university lab and tech-transfer makes commercial sense.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $305,000
- Realistic amount
- Most NSF STTR Phase I awards are at or near the $305,000 cap. Budget requests rarely come in significantly under cap — N…
- Deadline
- Rolling Project Pitches (paused as of May 2026 — expected to resume in coming weeks per NSF). Full proposals submitted after invitation; no fixed annual receipt dates unlike NIH.
- Status
- paused
- States
- Nationwide
- Payment model
- advance
Who qualifies
- For-profit US small business concern with fewer than 500 employees (including affiliates)
- More than 50% directly owned and controlled by US citizens or permanent resident aliens — or by another US small business meeting this rule
- Majority ownership by venture capital firms, hedge funds, or private-equity entities disqualifies the applicant
- Principal Investigator must be employed by the small business for at least 20 hours per week during the project (NSF-specific rule — stricter than most STTR agencies)
- Formal research partnership with a US university, Federally Funded Research and Development Center (FFRDC), or qualified non-profit research institution
- Research institution must perform at least 30% of Phase I R&D work via subaward
- Small business must perform at least 40% of Phase I R&D work directly
- Written IP allocation agreement between the small business and research institution required before award
- Project must address a specific NSF topic area with high technical risk and strong commercial potential
- SAM.gov UEI registration required (active at time of award)
- SBA SBIR Company Registry registration required before submitting any proposal
- Work must be performed in the United States
- Research institution must be located within the United States
Hard requirements
- Must be incorporated
- 51%+ US ownership required
- Requires a research-institution partner
What it covers
Eligible expenses
- Salaries and wages for PI, co-investigators, and staff at the small business
- Fringe benefits proportional to salaries charged
- Subaward to research institution (must be ≥30% of total Phase I budget)
- Supplies, reagents, and consumables consumed during the research
- Equipment under $5,000 per item (minor equipment); capital equipment over $5,000 requires prior justification and approval
- Travel directly related to the project (domestic conferences, partner site visits, NSF meetings)
- Consultant fees for specialized expertise not available at the SB or research partner
- Indirect (F&A) costs at the applicant's negotiated rate; research institution charges its own F&A on subaward separately
- SBIR/STTR fee (up to 7% profit/fee on direct + indirect costs at the prime SB level — not on subawards)
Ineligible expenses
- Capital equipment over $5,000 per item without explicit prior justification in the approved budget
- Clinical trials (NSF explicitly excludes these from SBIR/STTR funding)
- Schedule I controlled substances research
- Construction or renovation of facilities
- Fundraising, investor relations, or business development activities
- Lobbying or political activities
- Entertainment, alcohol, or personal expenses
- Costs incurred before the Notice of Award date
- Profit or fees charged on subawards (the 7% fee is only allowable at the prime recipient level)
- Foreign organization subcontracting (research institution must be US-based)
How to apply
-
1
Register in SAM.gov and obtain UEI
Create or renew your System for Award Management registration at sam.gov to obtain a Unique Entity Identifier. Annual renewal required. Allow 4–6 weeks for new registrations — SAM processing frequently takes 2–3 weeks. Your research institution likely already has a UEI; confirm theirs before starting your own.
~4 hrs
-
2
Register in SBA SBIR Company Registry
Complete your company profile at sbir.gov before submitting any proposal. Takes 1–3 business days to approve. Provide accurate ownership structure, employee count, and investor details — misrepresentation is a federal violation. STTR applicants should note the required research institution co-registration is handled at the proposal stage, not here.
~2 hrs
-
3
Identify research institution partner and negotiate IP agreement
Identify your partner — typically a university PI whose lab originated the core technology. Contact the university's tech-transfer office (TTO) to initiate the IP allocation agreement. NSF requires this agreement to be in place before award. Budget 3–6 months for TTO negotiation if IP rights are complex — university TTOs move slowly and this is the most common schedule-killer in STTR. Align on subaward budget (≥30% of project) and work scope.
~20 hrs
-
4
Assess project fit and submit Project Pitch
Review NSF's ~30 topic areas at seedfund.nsf.gov to confirm your technology aligns with NSF's focus on unproven, high-risk deep-tech with commercial potential. Submit a Project Pitch (4 sections, ~10,500 characters total): Technology Innovation, Technical Objectives, Market Opportunity, Company and Team. Only one active pitch allowed at a time. Response expected in 1–2 months. STTR pitches must mention the research institution and partnership rationale.
~25 hrs
-
5
Prepare full proposal package
Upon invitation from NSF, prepare the full Phase I proposal via Research.gov. Required sections include: Project Description (15 pages), Budget and Budget Justification (must show ≥30% to research partner, ≥40% to SB), Commercialization Plan, Facilities & Equipment, Biosketches for all key personnel including research institution PI, References, and the signed IP allocation agreement. Subaward budget from the research institution is a required attachment.
~100 hrs
-
6
Submit via Research.gov and await decision
Submit the complete application package via NSF's Research.gov portal. Both the small business and the research institution signing officials must authorize the submission. NSF reviews take approximately 6 months from submission to decision. Award notifications are issued to the small business as prime recipient; the research institution receives funding as a subawardee.
~8 hrs
SBIR / STTR details
SBIR phase amounts
| Phase | Max award | Duration |
|---|---|---|
| Phase1 | $305,000 | 6–18 months (12 months typical) |
| Phase2 | $1,250,000 | 24 months |
NAICS codes: 541715, 541714, 541712, 541711, 334510, 334413, 325414
The university tech-transfer office (TTO) IP negotiation is the biggest timeline risk — TTOs routinely take 3–6 months and may claim equity stakes that small businesses should reject upfront. Get a TTO letter of intent before investing 100+ hours. Critical: NSF STTR requires the PI to be employed by the small business for ≥20 hrs/week — unlike DoD, NIH, or NASA where the faculty member can stay 100% at the university. Confirm this with the faculty PI's institution before committing.
Deadline & timing
NSF STTR uses a rolling Project Pitch model — no fixed annual deadlines. Submit a Pitch anytime; NSF responds in ~1-2 months with an invitation or decline. If invited, you then complete the full proposal submission via Research.gov. The full review-to-decision cycle typically takes 6 months from full proposal submission. NSF paused new Project Pitch submissions in early 2026 and as of May 2026 had not yet publicly announced the reopening date. Monitor seedfund.nsf.gov for resumption.
Programs that stack well
- SBIR Phase I — NSF (America's Seed Fund)
- Research & Development Tax Credit (Section 41)
- Sttr Phase 2 Nsf
- State Sbir Matching Programs
- America Seed Fund Matching
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.