NIH Small Business Transition Grant for New Entrepreneurs (PAR-27-039 / PAR-27-040): SBIR and STTR Funding for First-Time PIs

The NIH Small Business Transition Grant for New Entrepreneurs funds small businesses that put a first-time Principal Investigator in charge of a research project, then pays for that person's mentorship and entrepreneurial training alongside the R&D. NIH and CDC have announced it is returning for fiscal year 2027 as PAR-27-039 (SBIR) and PAR-27-040 (STTR), and both versions will allow clinical trials.

Deadline: NIH expects to post the full solicitation around November 5, 2026, with applications due around January 5, 2027. These dates are NIH estimates, and applications are not being accepted yet, so now is the time to line up your PI and mentor.

Why This Opportunity Matters

Most SBIR and STTR reviewers want to see a PI with a track record of leading funded research. That puts many startups in a bind when their best technical person is a recent PhD, postdoc, clinician, or engineer who has never been an independent PI. This program flips that around: it is reserved for first-time PIs and rewards companies that commit to developing them.

It also pays for things a standard SBIR award usually does not emphasize, including the PI's salary, entrepreneurship courses, and a structured mentoring team. For a founder hiring their first scientist, or a company promoting an internal researcher, it can fund the R&D and the leadership development at the same time.

Key Facts at a Glance

• Sponsors: National Institutes of Health (NIH) and Centers for Disease Control and Prevention (CDC), with many participating Institutes and Centers
• Solicitations: PAR-27-039 (SBIR, R43/R44) and PAR-27-040 (STTR, R41/R42), both Clinical Trial Optional
• Status: Forecasted. NIH is not accepting applications yet
• Estimated posting date: November 5, 2026
• Estimated application due date: January 5, 2027
• Estimated award start: July 1, 2027
• Award types: Phase I and Fast-Track (CDC does not support Fast-Track). Direct to Phase II was not allowed in the prior cycle
• Award size: Not yet published. In the prior cycle, Phase I awards normally could not exceed $306,872 and Phase II $2,045,816 in total costs, with some Institutes allowing more on approved topics
• Cost share: Not required

What the Program Funds

Each award supports three things at once:

• Research and development: A Phase I feasibility project, or a Fast-Track project, that fits the mission of one of the participating Institutes or Centers and has clear commercial potential.
• Mentorship: At least one mentor with real entrepreneurial and mentoring experience must be on the team with measurable committed effort. The mentor can be a company founder or executive, but does not have to be.
• Entrepreneurial training: A career development plan for the PI built from courses, workshops, NIH entrepreneurship programs, or similar training.

In the prior cycle, every aim needed quantitative milestones for both the research and the PI's entrepreneurial development. Participating Institutes ranged from NHLBI, NIA, NIDDK, NIDA, NICHD, NEI, NHGRI, NIEHS and NLM to NCATS, NCCIH and CDC's NIOSH, so the program covers devices, diagnostics, digital health, data science, therapeutics, and occupational safety technologies. Some Institutes funded Phase I only.

Is Your Company a Fit?

This program is a strong fit if most of these are true:

• You are a U.S. small business with 500 or fewer employees that meets SBA ownership rules for SBIR or STTR.
• Your proposed PI has never been an independent PI on an NIH or CDC research grant, or a comparable peer-reviewed research grant elsewhere.
• Your PI is a U.S. citizen or lawful permanent resident.
• Your PI has real research or technology development experience but limited entrepreneurial or independent leadership experience. Recent PhDs, postdocs, clinicians, engineers, and public health practitioners are typical.
• You can name a mentor with entrepreneurial experience who will commit measurable time to the project.
• Your technology fits the mission of at least one participating Institute or Center.

The program is not meant for experienced PIs or seasoned founders, who are steered to the standard NIH SBIR and STTR parent solicitations instead. Foreign organizations cannot apply.

How to Prepare Now

1. Pick your PI. Confirm they have never led an NIH or CDC research grant and meet the citizenship requirement. They can be a new hire or an existing employee stepping into a real leadership role.
2. Recruit your mentor. NIH is giving advance notice specifically so companies can line up industry mentors and training resources. Secure a commitment letter early.
3. Choose the right Institute. Match your project to a participating Institute or Center and contact its program officer before you write.
4. Get registered. SAM.gov, the SBA Company Registry, Grants.gov, and eRA Commons accounts for the company and the PI can take six weeks or more.
5. Watch for the November posting. When PAR-27-039 and PAR-27-040 are published, confirm the final due date, budget limits, and participating Institutes before you finalize your application.

How BW&CO Helps

BW&CO helps life science and health technology startups decide whether the Transition Grant or a standard NIH SBIR or STTR application is the better path, pick the right Institute, and build the mentorship and career development plan reviewers expect. We start early so your team is ready the day the solicitation posts. With $350M+ in non-dilutive funding secured for our clients, we help first-time founders and first-time PIs compete for NIH funding.

Frequently Asked Questions

What is the NIH Small Business Transition Grant for New Entrepreneurs?

It is an NIH and CDC SBIR and STTR program that funds small businesses led on a project by a first-time PI, combining research and development funding with mentorship and entrepreneurial training for that PI.

When is the deadline?

NIH estimates the solicitation will post around November 5, 2026, with applications due around January 5, 2027. Applications are not being accepted yet, and dates may change when the final solicitation is published.

Who can be the PI?

Someone who has never been an independent PI on an NIH or CDC research grant, or a comparable peer-reviewed research grant, and who is a U.S. citizen or lawful permanent resident. Early-career scientists, engineers, clinicians, and public health professionals are the intended applicants.

Is a mentor required?

Yes. Key personnel must include a mentor with entrepreneurial experience who commits measurable effort to the project.

How much funding is available?

NIH has not published amounts for the new cycle. In the prior cycle, Phase I awards normally could not exceed $306,872 in total costs and Phase II awards $2,045,816, with some Institutes allowing more for approved topics.

What happened to the previous version of this program?

The prior solicitations (PAR-24-131 through PAR-24-134) expired early on November 17, 2025, when SBIR and STTR authority lapsed. NIH has forecast the program's return as PAR-27-039 and PAR-27-040.

ARPA-H Emerging Health Innovators (EHI) 2026, ARPA-H-SOL-26-150: Up to $1.05M for Early-Career Researchers

ARPA-H's Emerging Health Innovators (EHI) initiative funds bold, early-stage health research led by early-career investigators, and pairs every award with an ARPA-H Program Manager who acts as project manager and mentor. Companies, universities, and nonprofits can all lead, as long as the Project Lead is within 8 years of their first terminal degree. Each award is worth up to $1,050,000 over three years, across 16 topic areas spanning devices, diagnostics, biotech, and clinical AI.

Deadline: Solution Summaries are due October 30, 2026 at 2:00 PM ET through the ARPA-H Solutions site. Full proposals are due February 10, 2027 at 2:00 PM ET.

Why This Opportunity Matters

Most ARPA-H programs are built for large, experienced teams. EHI is the exception. It is designed to bring new researchers into the ARPA-H model, fund ideas that are still too early for traditional grants, and train the next generation of ARPA-H performers and Program Managers. For a startup with a young technical lead, it is one of the few ways to win a direct ARPA-H award without competing against established multi-institution teams.

EHI also comes with something money cannot buy: a monthly working relationship with an ARPA-H Program Manager. For a company planning to pursue larger ARPA-H programs later, that relationship and the track record of delivering on an ARPA-H agreement can be a meaningful advantage.

Key Facts at a Glance

• Sponsor: Advanced Research Projects Agency for Health (ARPA-H), Office of Commercialization
• Solicitation: ARPA-H-SOL-26-150, Innovative Solutions Opening (Amendment 1)
• Award type: Fixed-price Other Transaction (OT) agreements paid on milestones
• Award size: Up to $1,050,000 total, including indirect costs
• Structure: 24-month base period (up to $350,000 per year) plus an optional 12-month Director's Award (up to $350,000) for top performers
• Number of awards: Multiple. ARPA-H expects to fund 20 or more awards per year through EHI
• Proposers' Day: October 13, 2026 (virtual, register by October 12)
• Solution Summary due: October 30, 2026, 2:00 PM ET (required)
• Full proposal due: February 10, 2027, 2:00 PM ET
• Tentative selections: April 30, 2027, with awards starting around June 30, 2027
• Cost share: Not required

The 16 EHI Topic Areas

Every submission must target exactly one topic. Ideas outside these topics are not accepted.

Devices, Implants, and Neurotechnology

• Topic 1, Precision Control of Skin Inflammation: Networked biomaterials in the skin that sense inflammation and deliver localized, reversible therapy without systemic exposure.
• Topic 2, Internal Sensing and Targeted Control of Inflammation: Injectable or ingestible micro and nano scale platforms that sense inflammation and deliver therapy under closed-loop or external control.
• Topic 3, Deep Brain Stimulation for Sleep (Deep Sleep): Using DBS to record and modulate deep brain activity during sleep and test personalized, closed-loop therapy.
• Topic 15, ICAT In-Cavity Adjuvant Therapy: Implantable systems placed in the tumor resection cavity that deliver steep, tunable therapy and sense residual disease, with glioblastoma as the example model.

Diagnostics and Women's Health

• Topic 9, SMILE: Low-cost detection of early tooth decay and oral microbiome imbalance, or bio-inspired enamel repair that outlasts fillings.
• Topic 10, Ectopic Pregnancy First-Visit Diagnosis: Same-day point-of-care tools, biomarker panels, or imaging approaches that distinguish viable pregnancy, early loss, and ectopic pregnancy.
• Topic 11, Transforming the Well-Woman Exam: Objective at-home or primary care screening for conditions such as endometriosis, fibroids, and perimenopause. Standalone AI tools are discouraged.
• Topic 14, Non-Contact Sterility Testing: Measuring sterility in sealed containers fast enough for in-line distributed manufacturing, replacing tests that take 3 to 14 days.

Biotech, Immunology, and Tissue Platforms

• Topic 4, CLEAR-MIND: Preclinical work to restore the brain's drainage system and rebalance immune response after injury.
• Topic 5, HIND: Host-pathway interventions, biomarkers, and CNS delivery for neurotropic diseases such as rabies, EEEV, and prion disease.
• Topic 7, Engineering DRTs: Programmable, protein-templated DNA synthesis as a new medical countermeasure strategy.
• Topic 8, Alpha-Gal Syndrome: Mapping, predicting, preventing, and treating tick-bite triggered alpha-gal allergy.
• Topic 12, Biotransport for Organ Preservation: Uniform, low-toxicity delivery and removal of cryoprotectants through thick tissues and whole organs.
• Topic 13, Organs-in-Action: Organ and system scale human tissue platforms, beyond organoids and chips, for aging, disease, and therapy discovery.

Artificial Intelligence and Data

• Topic 6, Protecting Patient Data in Life Science AI: Defenses against membership inference and model inversion, leakage measurement, machine unlearning, and agentic AI security.
• Topic 16, Causally Grounded Alignment for Clinical Generative AI: Causal alignment constraints, evaluators, and mechanistic auditing for clinical generative AI tools.

Is Your Company a Fit?

EHI is a strong fit if most of these are true:

• Your proposed Project Lead completed their first terminal degree (typically a PhD, MD, or equivalent professional degree) within the last 8 years. Leave, postdoc, residency, and fellowship periods can be excluded.
• The Project Lead is a working researcher, not an administrator, and is not currently a postdoc or clinical trainee.
• The Project Lead has never been the prime lead on an award from any ARPA agency (ARPA-H, DARPA, IARPA, ARPA-E).
• Your organization and every team member are employed at a U.S. institution.
• Your idea fits one of the 16 topics and aims for a revolutionary advance, not an incremental improvement.
• Your company has, or can quickly get, an active SAM.gov registration and UEI.

Things that rule a team out: FFRDCs, UARCs, national labs, and government entities cannot apply or team. Subawards, consultants, and vendors together cannot exceed 30 percent of the total agreement value. The concept cannot already be funded or selected for funding by another agency.

How to Apply

1. Register on the ARPA-H Solutions site. All submissions go through solutions.arpa-h.gov. Start your SAM.gov registration now if you do not have one, since it can take more than 14 business days.
2. Submit a Solution Summary by October 30, 2026. The summary is limited to 2 pages plus a cover sheet, names one topic, and must be completely anonymized. Identifying information about the Project Lead, company, or team goes on the cover sheet only, and references are not allowed.
3. Wait for an encourage or discourage decision. ARPA-H does not provide written feedback. Discouraged proposers may still submit but are strongly advised not to.
4. Submit the full proposal by February 10, 2027. It includes pitch slides, an 8-page technical and management proposal, a task description document, a milestone payment schedule, administrative and research security forms, and a signed organizational letter of support.

Each organization may submit more than one proposal, but each must have a different Project Lead, and each Project Lead may submit to only one topic.

How BW&CO Helps

BW&CO helps deep tech and life science companies decide whether EHI is the right ARPA-H entry point, choose the strongest topic, and write a Solution Summary that stands out in a blind review. We also build milestone payment schedules that ARPA-H can approve and help teams prepare the full proposal package if they are encouraged. With $350M+ in non-dilutive funding secured for our clients, we know how to position early-stage ideas for agencies that fund breakthroughs.

Frequently Asked Questions

What is the ARPA-H Emerging Health Innovators (EHI) initiative?

EHI is an ARPA-H mentorship and funding initiative for early-career investigators. It funds revolutionary health research across 16 topic areas through Other Transaction agreements, and each award is paired with an ARPA-H Program Manager who serves as mentor and project manager.

How much funding does EHI provide?

Each award can be worth up to $1,050,000, including indirect costs. That includes a 24-month base period of up to $700,000 and an optional 12-month Director's Award of up to $350,000 reserved for exceptional performers.

When is the EHI 2026 deadline?

Solution Summaries are due October 30, 2026 at 2:00 PM ET. Full proposals are due February 10, 2027 at 2:00 PM ET. A Solution Summary is required before submitting a full proposal.

Can a startup or small business apply to EHI?

Yes. EHI accepts proposals led by early-career investigators at industry, academic, and nonprofit organizations. There is no small business size requirement, but the organization and all team members must be employed at a U.S. institution.

Who counts as an early-career investigator for EHI?

An individual within 8 years of completing their first terminal degree. Leaves of absence, postdoctoral, residency, and fellowship periods can be excluded. Current postdocs and clinical trainees cannot serve as Project Lead, and anyone who has already led an award from any ARPA agency is not eligible.

Is cost share required for EHI?

No. The solicitation does not require cost share.

How long is the EHI Solution Summary?

Two pages, not counting the cover sheet. It must be fully anonymized, with identifying information only on the cover sheet, and it cannot include references.