USDA SBIR/STTR Phase II USDA-NIFA-SBIR-012221: Executive Summary for Ag and Food Tech Startups

Executive Summary

Sponsor: USDA National Institute of Food and Agriculture (NIFA)
Award size: Up to $600,000, or up to $650,000 with Technical and Business Assistance (TABA)
Deadline: November 17, 2026, 5:00 PM ET
Eligible applicants: Prior USDA SBIR or STTR Phase I recipients
Funding type: Non-dilutive grant, no cost share required
Funding opportunity number: USDA-NIFA-SBIR-012221

USDA NIFA is accepting Phase II applications from small businesses that have completed a USDA SBIR or STTR Phase I award. Phase II funds the research and development needed to take a proven concept and move it toward the marketplace. Projects typically run 24 months, total program funding is $24.75 million, and NIFA expects to fund roughly half of the applications it receives, making this one of the more favorable success rates in federal non-dilutive funding.

Who Should Apply

This opportunity is open only to companies that previously won a USDA SBIR or STTR Phase I grant. Your Phase II application must show that Phase I achieved its objectives and demonstrated technical feasibility, supported by preliminary data and results.

• SBIR: The principal investigator must be primarily employed (more than 50 percent) by the small business, and the company must perform at least 50 percent of the research.
• STTR: The small business must perform at least 40 percent of the work and a single U.S. research institution partner (university, nonprofit research organization, or FFRDC) must perform at least 30 percent.
• All research and development must be performed in the United States.

Topic Areas

• 8.1 Forests and Related Resources: Forest productivity, management, and value-added forest materials.
• 8.2 Plant Production and Protection (Biology): Crop production, stress protection, and pollinator health.
• 8.3 Animal Production and Protection: Technologies that improve agricultural animal production and health.
• 8.4 Management of Natural Resources: Soil health, erosion reduction, water quality, and nutrient management.
• 8.5 Food Science and Nutrition: Food safety, food processing, and nutrition innovation.
• 8.6 Rural and Community Development: Technologies supporting economic and social development in rural America.
• 8.7 Aquaculture: Technologies that expand domestic aquaculture production.
• 8.8 Biofuels and Biobased Products: Biofuels and industrial chemicals from agricultural materials.
• 8.12 Small and Mid-Size Farms: Sustainability and profitability for farms with under $1 million in annual sales.
• 8.13 Plant Production and Protection (Engineering): Engineering solutions for crop production efficiency and pest and pathogen protection.

How Applications Are Evaluated

• Phase I results and technical feasibility (20 percent): Quality of preliminary data and likelihood of Phase II success.
• Phase II technical approach (20 percent): Clear objectives, sound methodology, and measurable outcomes.
• Commercial potential (20 percent): Market analysis, commercialization strategy, IP protection, revenue projections, and track record.
• Importance of the problem (10 percent): Significance and public benefit.
• Team and resources (10 percent): Expertise and partnerships to complete the work.
• Alignment with USDA priorities: Connection to current USDA priorities such as farmer profitability, market expansion, invasive species protection, soil health, and precision nutrition.

What Goes Into the Application

• Project summary of up to 250 words
• Project narrative of up to 20 pages
• Commercialization plan of up to 10 pages, including a Phase III financing strategy
• TABA plan of up to 3 pages if requesting the additional $50,000
• Required disclosure of foreign affiliations or relationships to foreign countries

Key Considerations

• Commercialization carries real weight. With 20 percent of the score tied to commercial potential and a dedicated 10 page plan, a strong market and Phase III financing story is essential.
• TABA adds up to $50,000. Funds can support IP strategy, regulatory and market services, and other commercialization help from a vendor you select.
• Foreign disclosure is now required. Applicants must disclose foreign ownership, joint ventures, contracts, licensing, and related relationships.
• Experienced awardees face benchmarks. Companies with 20 or more prior Phase I awards must meet Phase I to Phase II transition and commercialization benchmarks.
• Plan for the next cycle too. NIFA lists a tentative FY 2027 deadline of September 21, 2027.

Frequently Asked Questions

When is the USDA SBIR/STTR Phase II FY 2026 deadline?

Applications are due November 17, 2026 at 5:00 PM Eastern Time through Grants.gov. NIFA lists a tentative FY 2027 deadline of September 21, 2027.

How much funding does a USDA SBIR/STTR Phase II award provide?

Awards are up to $600,000, or up to $650,000 when including up to $50,000 in Technical and Business Assistance (TABA). Projects typically run 24 months. Total program funding is $24.75 million.

Who is eligible for USDA SBIR/STTR Phase II?

Only small businesses that previously received a USDA SBIR or STTR Phase I award are eligible. Applicants must show that Phase I objectives were met and technical feasibility was demonstrated.

What topic areas does USDA SBIR/STTR Phase II fund?

Topics include forests and related resources, plant production and protection (biology and engineering), animal production and protection, natural resources management, food science and nutrition, rural and community development, aquaculture, biofuels and biobased products, and small and mid-size farms.

Does USDA SBIR/STTR Phase II require cost sharing?

No. There is no cost sharing or matching requirement for this opportunity.

How are USDA SBIR/STTR Phase II applications evaluated?

Reviewers score Phase I results and feasibility (20 percent), the Phase II technical approach (20 percent), commercial potential (20 percent), importance of the problem (10 percent), team and resources (10 percent), and alignment with USDA priorities.

Can BW&CO help with a USDA SBIR/STTR Phase II application?

Yes. BW&CO helps founders turn Phase I results into a strong technical narrative, build a commercialization plan that scores, and align projects with USDA priorities. BW&CO has helped clients secure more than $350 million in non-dilutive funding.

Turn Your Phase I Win Into a Phase II Award

BW&CO helps agtech, foodtech, and biobased founders translate Phase I results into a compelling technical narrative, build a commercialization plan that scores, and align with current USDA priorities. With a November 17 deadline, now is the time to start.