The Office of Energy Efficiency and Renewable Energy (EERE) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants follow a funding ladder like that of other technology investors. EERE Phase I funding awards provide up to $200,000. EERE Phase II funding awards provide up to $1.1 million. Awards known as sequential Phase II awards can provide up to an additional $2.2 million. In some circumstances, a Phase III award of several million may be made at the discretion of the U.S. Department of Energy.

Summary of SBIR/STTR Funding Phases and Award Amounts
PhaseTaskDescriptionMaximum Award
Phase IProof of concept or refinement of proof of concept, including prototype developmentExplores feasibility of innovative concepts or prototype construction. Concentrate on research that will contribute to proving scientific or technical feasibility of the concept, but may involve the development of a working prototype.

$200,000 over nine months 

Phase II –initial Full research and development, including advanced prototypes

Main R&D effort. Now called “initial Phase II” to distinguish it from sequential. Only recipients of Phase I awards may compete for Phase II funding.

Should result in a working prototype, where applicable. 

$1.1 million over two years.

Depending on technology.
Phase II – second Full research and development continuationTwo types of second or sequential Phase IIA and Phase IIB grants. Phase IIA grants continue the current research, whereas Phase IIB grants aid in commercialization of the technology.

$1.1 million over two years

Phase II-third

Full research and development with high potential for commercialization

Third Phase II aka Phase IIC- sequential for continued R&D toward commercialization similar review criteria as Phase IIB, For SBIR program only. Matching funds may come from a small business other than applicant, a venture capital firm, an individual investor, a non-SBIR federal, state or local government, or any combination thereof.

1:1 matching funds only over two years