Innovation funding FAQ

Answers to the questions deep-tech founders and R&D leaders ask BW&CO most often about SBIR, STTR, and other federal and non-dilutive funding, and about how we work. Facts about federal programs are current as of October 12, 2026; always confirm details in the solicitation you are pursuing.

Assess your funding path

Choosing funding

How do we know which funding opportunity is the right fit?

Compare the opportunity against your technology, stage, project, agency mission, commercial path, timing, and evidence. The strongest fit is usually the opportunity where the funder's need and your next milestone overlap, not the one with the largest budget.

How much funding should we realistically pursue?

Pursue what your team can execute well and what moves the company to its next milestone. A smaller, well-fit award that leads to a follow-on phase is often worth more than a large award that pulls the team off course.

What is non-dilutive funding?

Non-dilutive funding is capital that does not require giving up equity, such as SBIR and STTR awards, federal R&D contracts and grants, state innovation funds, and foundation grants.

What is the difference between SBIR, STTR, BAAs, CSOs, OTAs, grants, and contracts?

SBIR and STTR are federal small business R&D programs; STTR also requires a research institution partner. BAAs invite research proposals in broad topic areas. CSOs are a competitive, merit-based procedure used by DoD and some other agencies to buy innovative commercial solutions. Other transaction (OT) agreements, awarded under Other Transaction Authority (OTA), are flexible agreements often used for prototypes. Grants and cooperative agreements support research the government wants done, while contracts buy something the government needs.

Eligibility and timing

Are we eligible for SBIR or STTR?

Generally, a U.S. for-profit small business with 500 or fewer employees, including affiliates, that is majority owned and controlled by U.S. citizens or permanent residents is eligible. Some agencies allow majority venture-backed ownership. Confirm the rules in each solicitation.

How long does it take to apply and receive an award?

Plan for several weeks to prepare a strong proposal, then several months for review and award. Timelines vary by agency and program, and registrations such as SAM.gov should start well before the deadline.

What registrations do we need before applying?

Most federal pursuits require an active SAM.gov registration with a Unique Entity ID, plus agency-specific portal accounts. SBIR and STTR applicants also register with SBA's company registry. Start early because registrations can take weeks.

The 2026 SBIR and STTR changes

Were SBIR and STTR reauthorized?

Yes. The Small Business Innovation and Economic Security Act of 2026 was signed on April 13, 2026, and extends SBIR and STTR through September 30, 2031, after a lapse that began October 1, 2025.

Are there new limits on how many SBIR proposals a company can submit?

Yes. Beginning in fiscal year 2027, agencies set their own caps on Phase I and Phase II proposals per company, per solicitation, or per topic. That makes choosing the strongest opportunities more important than submitting more proposals.

How does foreign risk screening affect SBIR applicants?

Agencies must screen applicants, owners, and key personnel for foreign affiliations and ties to countries of concern, and the law adds four federal restricted lists as exclusions. Screen partners and suppliers before you apply; BW&CO's free Foreign Risk Scanner can help.

Working with BW&CO

Can AI just write my proposal?

AI tools can speed up drafting, but they do not choose the right opportunity, understand agency context, apply reviewer judgment, or take accountability for the result. BW&CO uses modern tools inside a process led by experienced people.

Can BW&CO help us find government customers or stakeholders?

Yes. We identify government customers and stakeholders using public information and permitted engagement. We do not offer special access to programs or officials.

Does BW&CO guarantee an award?

No. Agencies make every award decision. BW&CO can guarantee defined service standards it controls, such as the money-back term on its compliance package.

How much do BW&CO's services cost?

Full-service single-proposal engagements start at a $10,000 initial fee plus a 5% success fee, ongoing multi-proposal engagements start at $6,000 per month plus a 5% success fee, and fractional modules start at $1,000 for a proposal review.

Related resources

Program names are used for identification only. BW&CO is not affiliated with or endorsed by the sponsoring agencies.