LAST WEEK'S column provided resources
for non-profit and for-profit organizations on where to find
information about government and foundation grants. The frustration for
many businesses, especially in the social service sector, is that most
grant programs favor non-profit entities in their award criteria.
This week's column highlights a government grant program for
prerevenue-stage and expansion-stage small businesses. This program is
called the Small Business Innovation Research program, or SBIR.
SBIR funds are granted in two phases: Phase I awards provide up to
$100,000 to help businesses research and test the feasibility of a new
product or service idea. Often Phase I goals involve the development of
a working prototype. With completion of all Phase I development goals,
award recipients can then apply for a second, Phase II, grant award of
up to $500,000 to help bring developed technologies or services to
market.
In 2005, 4,300 Phase I grant awards totaling more than $461 million
were awarded to for-profit small businesses in the U.S. In addition,
there were 1,871 Phase II awards representing $1.4 billion in 2005.
Minority business owners received about 8 percent of the number of 2005
Phase I and Phase II awards.
