Blog

Non-Dilutive Funding, SBIR/STTR Josiah Wegner Non-Dilutive Funding, SBIR/STTR Josiah Wegner

Does the Continuing Resolution Mean My SBIR Won’t Be Funded?

No. SBIR is authorized through 2031 and funded as a share of agency R&D budgets that continue under the CR. The real risk is slower award decisions.

No. FY2027 starts October 1 under a continuing resolution, and SBIR and STTR keep running. What can change is how fast agencies make award decisions.

Why this year is different from last year

Last fall, SBIR stopped because the program's legal authorization expired on September 30, 2025. Agencies couldn't issue new solicitations until Congress passed the Small Business Innovation and Economic Security Act, which was signed on April 13, 2026. That law authorizes SBIR and STTR through September 30, 2031.

The CR that starts October 1 is a funding question, not an authorization question. It keeps agencies funded at FY2026 rates through December 11, 2026.

Why SBIR money keeps flowing under a CR

SBIR doesn't have its own appropriation. Every agency with more than $100 million in extramural R&D must set aside 3.2% of that budget for SBIR. Agencies above $1 billion also set aside 0.45% for STTR. The 2026 reauthorization left those percentages unchanged.

So the SBIR budget follows the agency's R&D budget. Under the CR, that budget continues at the FY2026 rate, and the SBIR share continues with it. That applies to DoW, NIH, NSF, DOE, NASA and the other participating agencies.

The CR also blocks agencies from starting projects that had no FY2026 funding. SBIR isn't a new program, so that restriction doesn't stop it.

Where you may feel it

The practical risk is timing. Agencies often hold back on new commitments until they know their full-year budget. During last year's CR, NIH told grantees its institutes could issue continuing awards below the committed level.

For a founder, that can mean a longer gap between a positive review and a signed award, or a later start date than you planned.

The CR also ends on December 11. Congress will need to pass full-year funding or another CR by then.

What to do now

  1. Keep submitting. Open solicitations remain open. The current DoW SBIR/STTR release, for example, closes October 21.

  2. Ask about timing on pending awards. Ask your program officer whether they expect to fund your award before or after December 11.

  3. Plan cash around the later date. If a delay of a month or two would put your company in trouble, line up bridge options now rather than in December.

  4. Check whether you depend on anything new. A follow-on that requires a brand-new federal program or a larger production buy is more exposed than an SBIR award, because the CR bars those new starts.

The short version: a CR is a reason to plan for slower decisions, not a reason to stop applying.

This article is general information, not legal or financial advice.

Sources

Photo: U.S. Air Force photo by David Dixon, via DVIDS. The appearance of U.S. Department of War visual information does not imply or constitute DoW endorsement.

Read More
Josiah Wegner Josiah Wegner

Understanding NIH Impact Scores

As NIH review results are released, many applicants are asking the same question: how should I interpret my outcome, and what does it mean for funding? Recent NIH review cycles have introduced clearer distinctions in how applications are categorized, making it especially important to understand what your result actually signals.

By Narges Tafreshi - Grant Consultant

As NIH review results are released, many applicants are asking the same question: how should I interpret my outcome, and what does it mean for funding? Recent NIH review cycles have introduced clearer distinctions in how applications are categorized, making it especially important to understand what your result actually signals.

How NIH Review Outcomes Are Assigned

NIH study sections now generally place applications into one of three categories during peer review:

1. Not Discussed

Applications in this category were not selected for full discussion by the study section. This typically means reviewers felt the application was not competitive relative to others in the pool.

  • No overall impact score is assigned

  • Written critiques are still provided

  • These applications are generally not considered for funding in the current cycle

While disappointing, this outcome can still provide useful feedback for a substantial revision or repositioning.

2. Not Discussed – Competitive

This is a newer and important distinction. These applications were not discussed, but reviewers considered them borderline or potentially competitive.

  • No overall impact score is assigned

  • Reviewer comments often indicate specific, fixable weaknesses

  • These applications may be close to discussion thresholds in strong review rounds

A “Not Discussed – Competitive” outcome often signals that a targeted resubmission could meaningfully improve funding chances.

3. Scored

Applications that are discussed by the study section receive an overall impact score, typically ranging from 10 (best) to 90.

  • Lower scores indicate stronger perceived impact

  • Being scored means the application cleared the initial competitiveness bar

  • A scored application can still fall inside or outside likely funding ranges, depending on institute priorities and budget

From Impact Score to Funding Decision

Impact scores are evaluated in the context of institute-specific paylines or zones of consideration. A payline represents the approximate score threshold below which applications are more likely to be funded, based on available funds and application volume.

  • Applications scoring better than the payline are more likely to be funded

  • Applications just outside the payline may still be considered, especially with strong programmatic relevance

  • Applications well outside the payline typically require either exceptional justification or resubmission

It’s important to note that many NIH institutes do not publish formal paylines, particularly for SBIR and STTR programs.

What’s New in Current NIH Funding Cycles

Recent funding cycles have placed increased emphasis on:

  • Programmatic fit, not just numerical rank

  • Portfolio balance and strategic priorities

  • Institute-level discretion, particularly for small business awards

As a result, applicants with competitive scores near traditional paylines are seeing more variability in outcomes. Early communication with Program Officers (POs) has become increasingly valuable, especially for applications that are scored or labeled “Not Discussed – Competitive.”

SBIR and STTR Applications: Additional Context

For SBIR (R43/R44) and STTR (R41/R42) applications, funding decisions depend on more than the impact score alone. Reviewers and institutes also weigh:

  • Commercial and translational potential

  • Technical feasibility and risk

  • Alignment with institute-specific missions

Because SBIR/STTR paylines are often unpublished, understanding how your review outcome is categorized is a key signal for next steps.

What to Do After You Receive Your Outcome

Once your NIH review results are released:

  1. Identify whether your application was Not Discussed, Not Discussed–Competitive, or Scored

  2. Carefully review reviewer comments for common themes

  3. Compare your outcome to recent institute funding patterns

  4. Consider outreach to your Program Officer to assess competitiveness and strategy

  5. Decide whether revisions could materially improve your positioning

While no single outcome guarantees funding, understanding how NIH now categorizes applications allows you to make more informed, strategic decisions about resubmission and next steps.

If you’d like our team’s free assessment, click here.

Read More