America’s Seed Fund, made up of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, provides technology-focused entrepreneurs, startups, and small businesses with early-stage funding to develop their ideas and set them on a pathway to commercialization. These programs foster U.S. innovation, fuel small business growth, and strengthen the research and development (R&D) partnership between universities and industry across the country.
Why These Programs Matter
- SBIR and STTR have long been proven engines of innovation, helping small businesses develop cutting-edge technologies from concept to market.
- The programs provide critical equity-free seed funding, ensuring that startups and small businesses in all parts of the country - rural, urban, and suburban - can scale innovation without sacrificing ownership.
- They generate strong returns on federally funded research by supporting commercialization that leads to job creation, spinoff companies, and economic growth.
- They ensure discoveries do not remain “stuck in the lab” and instead enrich the America’s innovation ecosystem.
- They adhere to national security protocols so that America’s interests are protected.
The Association of American Universities strongly supports SBIR and STTR funding as a critical driver of innovation that connects university research with small businesses and entrepreneurs. Reauthorization is essential to maintaining U.S. leadership in science and technology and for increasing competition, productivity, and economic growth. By bringing together university and industry partners, SBIR and STTR programs advance American innovation and global competitiveness.
Need for Reauthorization
Recent AAU analysis shows that award trends are geographically broad, underscoring the programs’ widespread impact. Enacting this extension now would prevent the disruption that abrupt program changes would cause across the innovation enterprise. Without reauthorization, universities, small businesses, and entire state innovation ecosystems would lose a key pathway for collaboration and technology transfer.
STTR Spotlight
The STTR program is unique because it requires formal collaboration between small businesses and non-profit research institutions. Its statutory purpose is to stimulate partnerships that move federally funded research into the marketplace.
- Partnerships between research institutions and small businesses extend far beyond a single state, creating national networks of collaboration.
- The program is more geographically distributed in rural areas than often assumed.
- Awards benefit both large research hubs and states with emerging innovation corridors.
STTR Success Story
Located in Plymouth, Indiana, SIMBA Chain is a blockchain company originally developed to support secure communications for the U.S. military. The company was launched with seed funding awarded by the Defense Advanced Research Projects Agency (DARPA) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program in collaboration with the University of Notre Dame.
SIMBA Chain has since grown into a commercial platform used across government, aerospace, and supply chain sectors. Today, SIMBA Chain continues to expand its workforce in Indiana—demonstrating how SBIR and STTR seed funding fosters research partnerships and delivers real-world impact, national security solutions, and economic growth in communities across the county.
Geographic Reach
SBIR and STTR funding is broadly impactful. Since 2015:
- Small businesses in Alabama alone received over $108 million in STTR grants. This amounts to just over $21 per person—this ranks Alabama in the top 10 in the nation per capita.
- Small businesses in rural counties have received nearly $260 million in STTR funding.
- Rural counties have also secured $1.45 billion in SBIR seed funding for innovation.
- This broad reach demonstrates that SBIR/STTR is a tool for innovation in all communities, ensuring that rural areas share in the benefits of federal investment.