SBIR Phase I awards range from $100,000 to $314,363 depending on the agency. Phase II awards range from $400,000 to $2,095,748. Phase III is a sole-source contract with no funding ceiling. The 2026 reauthorization adds Strategic Breakthrough Awards of up to $30 million for Phase II alumni. Here's every agency's numbers, verified from official sources.
No clean cross-agency comparison of SBIR award amounts exists anywhere else. The government's own site (sbir.gov) lists agency budgets but not award-level detail. Individual agency pages bury the amounts in solicitation documents. This page puts them all in one table.
SBIR Phase I and Phase II award amounts: all agencies
All amounts verified from official agency sources. Last verified March 2026.
Major agencies (largest budgets)
| Agency | Annual Budget | Phase I | Phase II | Timeline (Phase I) | What They Fund |
|---|---|---|---|---|---|
| DoD -- AFWERX | Part of ~$2.3B | $75K (SBIR) / $110K (STTR) | $1.25M (SBIR) / $1.8M (STTR) | 3 months | Air Force dual-use technology, open topics |
| DoD -- Navy | Part of ~$2.3B | $140K base + $100K option = $240K | $1.7M-$1.8M | ~6 months | Naval technology, cybersecurity, undersea |
| DoD -- Army | Part of ~$2.3B | Up to $250K | Up to $2M | 3-6 months | Ground systems, comms, soldier tech |
| DoD -- DARPA | Part of ~$2.3B | ~$250K (varies by topic) | ~$1.8M (topic-driven, not cycle-driven) | ~6 months | Breakthrough / high-risk technology |
| DoD -- SOCOM | Part of ~$2.3B | $150K | Up to $1M | 6 months | Special operations technology |
| NIH | ~$1.2B | Up to $314,363 | Up to $2,095,748 | 6-9 months | Biomedical, health tech, diagnostics |
| NSF | ~$174M | $305,000 | $1,250,000 | 4-6 months | Broad science and engineering |
| DOE | ~$315M | Up to $200K (some topics $250K) | Up to $1.1M (some topics $1.6M) | ~9 months | Energy, nuclear, grid, climate tech |
| NASA | ~$174M | $150,000 | $850,000 (+ $50K Technical and Business Assistance) | ~6 months | Space, aeronautics, earth science |
Smaller agencies
| Agency | Annual Budget | Phase I | Phase II | What They Fund |
|---|---|---|---|---|
| USDA (NIFA) | ~$42M | $125K-$175K | $600K | Agriculture, food safety, rural tech |
| DHS | ~$18M | Up to $175K | $1M-$1.5M | Homeland security, cybersecurity, border tech |
| DOC (NIST) | ~$15M | $100K | $400K | Measurement science, advanced manufacturing |
| ED (IES) | ~$10M | $250K | $1M | Education technology |
| DOT | ~$9M | Up to $200K | Up to $1.5M | Transportation technology |
| EPA | ~$5M | $100K | $400K (+ $100K commercialization option) | Environmental technology |
Total across all agencies: roughly $4.3 billion annually in SBIR set-aside funding.
Most tech startups won't apply to the smaller agencies. USDA fits ag-tech, ED fits edtech, EPA fits environmental tech, DOT fits transportation. If none of those describe your company, focus on the major agencies table above.
The SBA caps
The Small Business Administration sets maximum award guidelines that apply to all agencies:
- Phase I cap: $314,363 (including modifications)
- Phase II cap: $2,095,748 (including modifications)
Most agencies award well below these caps. NIH is the only agency that routinely awards Phase I at the full cap. NSF's $305,000 is close. Most DoD agencies range from $75K-$250K for Phase I.
Agencies can request SBA approval to exceed these caps for specific topics, but it's rare.
Special programs worth knowing
Direct-to-Phase-II
Several agencies let you skip Phase I entirely if you've already completed feasibility work on your own. You apply directly for Phase II funding (larger awards, longer timelines).
| Agency | D2P2 Available? | D2P2 Award |
|---|---|---|
| NIH | Yes | Up to $2,095,748 |
| DoD (Army) | Yes | Up to $2M |
| DoD (Navy) | Yes (Sequential Phase II) | Up to $1.97M |
| ED | Yes | Up to $1M |
| NSF | No (use Fast-Track instead) | -- |
| DOE | Limited (topic-dependent) | Varies |
The catch: you need to demonstrate Phase I-equivalent work with real data. Preliminary results, prototypes, published research. "We've thought about this a lot" doesn't count.
Fast-Track (combined Phase I + II)
NSF and NIH both offer Fast-Track options that combine Phase I and Phase II into a single proposal. If approved, you move from Phase I to Phase II without reapplying.
- NSF Fast-Track: $1,555,000 total ($400K Phase I + $1,155K Phase II)
- NIH Fast-Track: Combined Phase I + Phase II up to the SBA caps
This is worth considering if you have strong preliminary data and want to lock in Phase II funding from the start.
AFWERX bridge programs
AFWERX has the most developed pipeline from SBIR to government contracts:
- STRATFI (Strategic Financing): $3M-$15M. Combines SBIR funds with customer funds and private capital. Requires a government customer champion.
- TACFI (Tactical Financing): $375K-$2M. Smaller-scale version of STRATFI for tactical problem sets.
These aren't SBIR awards per se. They're the bridge between your Phase II and a real government contract. If you're doing defense tech, AFWERX's pathway from Phase I ($75K) through Phase II ($1.25M) to STRATFI ($15M) to Phase III (no ceiling) is the clearest commercialization funnel in the entire SBIR ecosystem.
NIH Commercialization Readiness Pilot (CRP)
NIH offers a post-Phase-II program for companies ready to commercialize:
- CRP awards: Up to $4,191,495 (double the Phase II cap)
- Eligibility: Must hold an active Phase II or have completed Phase II within the last 5 years
- Must demonstrate commercialization readiness (revenue, partnerships, regulatory progress)
Strategic Breakthrough Awards (new in 2026)
Status: the 2026 reauthorization bill passed Congress in March 2026 but is awaiting presidential signature. The details below describe the proposed program. If signed into law, the structure would be:
- Amount: Up to $30 million per award (or series of milestone-based awards)
- Duration: Up to 48 months
- Eligibility: Must hold at least one prior Phase II SBIR or STTR award
- Matching requirement: 100% matching funds from private capital, non-SBIR government sources, or company revenue
- Eligible agencies: Only those with $100M+ annual SBIR obligations (DoD, NIH, NSF, DOE, NASA, DHS, EPA)
This is the biggest structural change to SBIR in years. For a Phase II alumnus that can raise matching capital, $30M in non-dilutive funding is venture-scale money without the dilution.
First solicitations are expected Q4 FY2026 (July-September 2026), starting with DoD and NIH.
Check sbir.gov for current status on the reauthorization.
Phase III: the part that changes everything
Phase III is not a grant. It's a sole-source government contract.
Here's what that means: if a government agency likes your Phase I/II work, they can contract with you to buy the product or continue the R&D -- without running a competitive bid. No funding ceiling. No additional SBIR set-aside required. The funding comes from the agency's own mission budget.
Key Phase III facts:
- No dollar limit. Phase III contracts have ranged from thousands to hundreds of millions
- No competition required. The agency can sole-source directly to you under 15 U.S.C. 638(r)(4)
- Data rights carry forward. Your SBIR data rights protections extend into Phase III
- Any contract type. Fixed-price, cost-plus, time-and-materials -- whatever the contracting officer prefers
- DoD is the primary user. AFWERX, Army, Navy, and DARPA all have active Phase III pipelines
For defense tech and govtech companies, Phase III is the entire economic model. Phase I and Phase II are R&D validation. Phase III is where you become a government vendor.
Which SBIR agency is right for your startup?
A few things to keep in mind when comparing agencies:
Bigger isn't always better. NIH's $314K Phase I is the largest, but NIH is also the most competitive and requires the strongest preliminary data. AFWERX's $75K Phase I is the smallest, but it comes with the fastest timeline (3 months) and the clearest path to larger follow-on funding (Phase II + STRATFI + Phase III).
The Phase I amount is not the point. The real value of SBIR is the funding pathway. NSF's $305K Phase I is great, but it's the $1.25M Phase II and the technology validation that matter. For DoD, the $75K-$250K Phase I is just the door opener to Phase III contracts that can dwarf the original grant.
Watch the performance periods. A $305K NSF Phase I over 12 months is a different burn rate than a $75K AFWERX Phase I over 3 months. Make sure the grant timeline aligns with your R&D plan.
"Up to" means exactly that. Most agencies award below their stated maximums. DOE Phase I is "up to $200K" but many topics award $150K. The SBA caps are ceilings, not targets.
Annual SBIR funding by agency
For context on the size of each agency's program:
| Agency | Annual SBIR Budget | Share of Total |
|---|---|---|
| DoD (all branches) | ~$2.3 Billion | ~53% |
| NIH (HHS) | ~$1.2 Billion | ~28% |
| DOE | ~$315 Million | ~7% |
| NSF | ~$174 Million | ~4% |
| NASA | ~$174 Million | ~4% |
| All others combined | ~$114 Million | ~3% |
| Total | ~$4.3 Billion | 100% |
DoD and NIH account for over 80% of all SBIR funding. If your technology doesn't align with either defense or biomedical applications, you're competing for a much smaller slice of the pie. NSF is the broadest option for non-defense, non-biomedical tech companies, but its budget is 1/13th the size of DoD's.
Want help matching your technology to the right agency?
The amount matters less than the fit. A $305K NSF award that aligns with your R&D roadmap is worth more than a $314K NIH award you spend six months contorting your proposal to match. We've matched 500+ companies across 30+ agencies -- the analysis that would take you a week of research takes us one conversation. Book a Strategy Review -- no obligation.