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The EPA recently awarded $1.9 million to 19 small businesses to develop green technology ideas that tackle what the Agency considers critical environmental problems. Each of the companies will receive a Small Business Innovation Research (SBIR) Phase I contract (the awards are called “contracts”) for up to $100,000 to develop their green technology—this is the proof of concept stage. When the project is commercially viable, the companies will be eligible to apply for a Phase II contract of up to $300,000 to develop and commercialize their technology for the marketplace. There is also the potential for another $100,000 for companies that secure third-party investment of $100,000 or more.
So, you are looking at the possibility of $500,000 to help get your green tech idea to market.
A little background. Under SBIR, the EPA issues annual solicitations for Phase I and Phase II research proposals from science and technology-based firms. Phase II contracts are limited to small businesses that have successfully completed their Phase I projects.
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Five Steps
How did the companies get this money and what do you need to do to qualify? Here are five steps toward pursuing a SBIR green technology grant.
Step 1: Know EPA’s priorities. The EPA has some research priorities for funding under SBIR. The current priorities include:
- Air and climate: Lab-on-a-chip sensors for organic pollutants in homes
- Integrated cookstove-heating-electricity generation for small homes
- Manufacturing: Nontoxic and biodegradable plastics
- Toxic chemicals: Less toxic coatings
- Water: Resource and/or energy recovery
- Building materials: Innovative construction materials
- Homeland security: Decontamination of railroad and subway cars
Note. Only proposals that directly address the specific priority topics and subtopics within each broad category will be considered. If your proposal does not fit under the topics for the year you are applying, you can wait until the next year to see if your technology would fit under one of that year’s topics, or you can look at SBIR programs in the other federal agencies to determine if your topic is covered in one of their solicitations.
Step 2: Find out if you are eligible. In order to be eligible for an SBIR grant:
- Your company must be a for-profit and have fewer than 500 employees.
- Your principal place of business must be in the United States.
- The majority of your company’s equity (more than 50%) must be controlled by either some person(s) who is a U.S. citizen or a permanent resident alien, and/or another small for-profit business owned or controlled by a U.S. citizen or permanent resident alien, or multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these, so long as no one firm owns or controls more than 50% of the equity.
- The primary employment of the principal investigator must be with the small business, and the proposing firm must perform at least two-thirds of the R&D work in Phase I and at least one-half in Phase II.
Step 3: What to do before registering. Before registering for a SBIR award, you must register at the SBA Company Registry and attach proof of registration to the SBIR application. You must complete an application and keep an active registration with the federal government’s System for Award Management (SAM). The registration must be renewed annually. The EPA warns that the renewal process may take as much time as the initial registration.
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Step 4: Connect with FedConnect. Before submitting your proposal, you must establish an account with FedConnect, a website that helps you find and apply for opportunities for federal contracts, grants, and other types of assistance funding. Make sure to register with SAM first because you will need your SAM number before you can set up an account with FedConnect.
Step 5: Submit your proposal through FedConnect. Proposals will not be accepted after the deadline has passed. Also, you will not be able to make any corrections after you submit your proposal.