MFN recently hosted a webinar to discuss SBIR funding and what it looks like in 2025. With some uncertainty around the program, we invited SBIR Advisor Dan Lilly and multiple-time SBIR recipient Elizabeth Nelson to walk us through potential strategies and offer guidance. Here’s a recap:

Dan Lilly, SBIR Advisor at Massachusetts Small Business Development Center: I’ve been doing this for a number of years now and have become a specialist in the area. I’m science-agnostic, meaning I approach this from a contracting point of view. I have done SBIR work with everything from green energy to cancer research to genomics.

Elizabeth Nelson, multiple SBIR recipient and co-founder of MMIB: I’m working on a device that concentrates human milk for preterm babies who need more nutrients than breast milk can provide on its own. MMIB started with a Phase I SBIR and is now in Phase II.

Q: What’s changed in the SBIR program over the last six months? What are the key differences?

Elizabeth: You really have to be careful with international affiliations. Those are now reviewed twice during the application process, and both checks take time because they run background checks on everyone associated with your grant. Another big shift has been greater stringency with data management and budgets- with a recent submission, a lot of the JIT information requested was around  managing and securing data.

Dan: There’s certainly a lot more scrutiny in the area of foreign involvement. There’s also a big push to truly understand the capability of the company and financial capability prior to awarding grants. I’ve seen “just-in-time” requests that are much longer than in the past, requiring much more detail. For true early-stage startups, that’s tough. It creates a chicken-and-egg problem: you need to prove financial capability to win the grant, but you need the grant to build financial capability. That’s been a real barrier for some young companies.

Q: You recommend  developing a network of SBIR administrators to help you. But you both mentioned that communication with these folks is shifting. What’s going on there?

Dan: There’s so much change going on right now that I think everybody’s tied up. I wouldn’t say that there’s been a change in the attitude, but there is a change in availability, as folks are simply less available to do the things that they were doing six months ago. That said, building relationships is still important. Treat them as partners, not adversaries.

Elizabeth: In our experience, we’ve had a couple different program officers, they’re also in flux with roles changing over to different departments. But I think sending occasional updates is helpful. Even if they just read it or recognize your name, it helps you stay on their radar. You don’t want to pester, but staying visible isn’t a bad thing.

Q: What advice do you have for these startup founders who would be interested in developing some SBIR funding right now? Should they go full steam ahead? Or try to hold off until things normalize?

Dan: There’s no clear right answer right now.. Some founders are moving ahead since the deadlines remain unchanged. There’s also the idea there could be less competition and fewer submissions might increase their odds. Others are holding back, concerned about wasting effort if things get delayed or reshuffled. It really depends on your risk tolerance and timing of needs.

Elizabeth: I say go ahead and submit. When you apply, you get in the queue and if you get a good score, you’re in line. Keep in touch with your program officer and let them know you are still working towards your goal. It can help remind them about your application! That said, if you need the money soon, SBIR may not be the right route because it can take time. But if you’ve got a flexible timeline, I’d say go for it. Another reason is if it’s your first time submitting for an SBIR, it is helpful to to gain an understanding of what the administrators really care about.

Looking for more resources? Here are some helpful links:

• Success rates of NIH grants
• NIH RePORTER 
• Federal spending reports from all agencies
• SBIR Success Stories

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