NIH SBIR/STTR Budget Caps for 2026: What You Can Actually Request

Quick Answer

SBIR/STTR applications use the detailed R&R budget, not the modular form. For the current cycle, the SBA guideline totals, meaning direct costs, indirect costs, and fee combined, are approximately $323,090 for Phase I and $2,153,927 for Phase II. But these are guidelines, not universal ceilings. Individual NIH Institutes set their own budget caps, and the number that actually governs your application is your Institute's figure, not a single NIH-wide one. Confirm the exact current figures on NIH's SBIR page before you build your budget, since these adjust annually.

Why the Modular Budget Form Is the Wrong Form

This is the single place applicants most often pick the wrong form. NIH's application guide includes a Modular Budget Form, but it is built for certain research grants, not for SBIR/STTR. SBIR/STTR applications use the detailed R&R Budget Form instead, which itemizes personnel, equipment, travel, other direct costs, and indirect costs, plus fee, along with a written justification. If you have a subaward, such as the research-institution partner required in an STTR project or a consultant organization, that gets its own detailed budget on a separate R&R Subaward Budget Attachment.

If you request Technical and Business Assistance (TABA) funds, those are entered under Other Direct Costs on this same detailed budget form.

Two Things That Trip Up First-Time Applicants

Your Institute's cap governs, not the SBA guideline. The SBA guideline totals are a starting reference point, not the number every NIH Institute follows. Some Institutes allow markedly higher Phase I and Phase II budgets on specific topics. Others sit at or below the SBA guideline. The number that actually governs your application is set by the Institute you are applying to, so check your specific Institute and topic before you assume the SBA figure applies to you.

NIH will not raise a budget after submission. If your requested budget sits at or above the applicable cap, it must be well justified in your application. NIH does not increase a budget after the fact, so there is no opportunity to correct an underestimate once you have submitted. Request the right amount the first time. If your project is anywhere near or above the cap, talk to program staff before you submit rather than after.

Building the Budget in the Right Order

Get your scope stable before you build the detailed budget. A budget built around a moving research plan tends to need last-minute changes, which is exactly the situation that produces underestimated costs or justification gaps. Confirm your Institute's specific ceiling, build your detailed R&R budget against your finalized scope, and if your number is close to or above the cap, get in touch with your program officer well ahead of the deadline rather than hoping it resolves itself during review.

FAQ

What is the current NIH SBIR Phase I budget guideline? For the current cycle, the SBA guideline total, combining direct costs, indirect costs, and fee, is approximately $323,090 for Phase I. Confirm the exact current figure on NIH's SBIR page, since these are reset annually.

What is the current NIH SBIR Phase II budget guideline? Approximately $2,153,927 for Phase II under the current cycle's SBA guideline. As with the Phase I figure, confirm the exact current number before building your budget, since it changes each year.

Does every NIH Institute use the same budget cap? No. Individual NIH Institutes set their own ceilings. Some allow markedly higher Phase I and Phase II budgets on specific topics, while others sit at or below the SBA guideline. The figure that actually governs your application is your Institute's, not a single NIH-wide number.

Should I use the Modular Budget Form or the detailed R&R Budget Form? Use the detailed R&R Budget Form. The Modular Budget Form is for certain other research grants, not SBIR/STTR applications.

Can NIH increase our budget after we submit if we underestimated costs? No. NIH will not raise a budget after submission. If your request is at or above your applicable cap, it needs to be well justified in the application itself, and it is worth speaking with program staff before you submit if you are anywhere near that threshold.