Why this check matters
Foreign-risk reviews can stop an award even after a proposal scores well
Federal agencies screen small-business applicants and their teams for foreign risk. When a problem surfaces at that stage, applicants often get little explanation and little chance to respond.
835 flagged. 303 denied.
SBIR and STTR applications flagged for foreign risk across agencies in 2023 and 2024, and the number denied. NIH denied all 144 applications it flagged.
Source: Office of Sen. Joni Ernst, report release, May 15, 2025
No chance to fix it first
For NIH and other HHS small-business awards, HHS says it "will not provide applicants the opportunity to address" identified security risks before award. It names only the category of risk.
Past ties still count
In Kayhan Space Corp. v. United States, the court upheld an Air Force SBIR denial based on founders' earlier ties that were not disclosed. It found the Air Force did not have to offer a chance to rebut first.
Source: U.S. Court of Federal Claims, 2026, summarized in National Law Review, June 15, 2026
Checking before you apply gives you time to act
Many issues come down to what was disclosed, which ties are still active, and how partners are set up. BW&CO helps deep-tech companies choose the right funding paths, build stronger projects, and execute complex pursuits, including the disclosures that now come with them.
- $350M+
- secured for clients
- 350+
- companies served
Client figures as of 2026. Agencies make all award decisions; this self-check and BW&CO's advice do not guarantee eligibility or funding. Program names are used for identification only. BW&CO is not affiliated with or endorsed by the sponsoring agencies.