FY26-SBIR-STTR-PII-NOFO-P.pdf

Notice of Funding Opportunity Small Business Innovation Research and

Small Business Technology Transfer Programs Phase II

FUNDING YEAR: Fiscal Year (FY) 2026 and FY 2027

APPLICATION DEADLINE: FY 2026: November 17, 2026 FY 2027: September 21, 2027

ANTICIPATED PROGRAM FUNDING: FY 2026:

SBIR - $19,500,000

STTR - $5,250,000

FY 2027:

SBIR - $19,500,000 for STTR - $5,250,000 for

AVERAGE INDIVIDUAL AWARD

RANGE:

$600,000 - $650,000

FUNDING OPPORTUNITY NUMBER: USDA-NIFA-SBIR-012221

ASSISTANCE LISTING NUMBER: 10.212

ANNOUNCEMENT

National Institute of Food and Agriculture United States Department of Agriculture

Assistance Listing Number (ALN): The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs Phase II is listed in the Assistance Listings under number 10.212.

Table 1: Key Dates and Deadlines

Task Description Deadline

Application: FY 2026: 5:00 P.M. Eastern Time, November 17, 2026 FY 2027: 5:00 P.M. Eastern Time, September 21, 2027 (tentative)

Applicants Comments: Within six months from the issuance of this notice (NIFA may not consider comments received after the sixth month)

The United States Department of Agriculture (USDA), to the extent permitted by law, will no longer make grants or otherwise fund programs or activities that improperly discriminate on the basis of race or sex, including discrimination in the name of Diversity, Equity, and Inclusion policies. Instead, USDA will prioritize merit and efficiency. USDA recognizes programs and initiatives will have the greatest impact when these programs and initiatives put American farmers, ranchers, and foresters first by:

• solving the most pressing challenges they face;

• protecting America’s food, fuel, and fiber supply to enhance national security;

• supporting production of healthy and safe food for consumers;

• expanding and developing domestic markets;

• training the next generation of agriculturalists; and

• fueling innovation to keep American farmers at the forefront of productivity.

The National Institute of Food and Agriculture (NIFA) is committed to advancing these principles and encourages applicants to actively engage farmers, ranchers, and foresters when applying for funding opportunities to ensure relevancy and adherence to them. NIFA also encourages agricultural leaders to engage in the peer review panel process to ensure American producers are better served through research, education, and extension activities.

Projects submitted under this Notice of Funding Opportunity (NOFO) should align with USDA Secretary’s Memorandum 1078-020 Directive on Departmental Research and Development Priorities:

1. Increasing Profitability of Farmers and Ranchers

2. Expanding Markets and Creating New Uses of U.S. Agricultural Products

3. Protecting the Integrity of American Agriculture from Invasive Species

4. Promoting Soil Health to Regenerate Long-Term Productivity of Land

5. Improving Human Health through Precision Nutrition and Food Quality https://www.usda.gov/sites/default/files/documents/sm-1078-020.pdf

Stakeholder Input. NIFA seeks comments on all NOFO so it can deliver programs efficiently, effectively, with integrity, and with a focus on customer service. NIFA considers comments to the extent possible when developing NOFOs and uses comments to help meet the requirements of Section 103(c)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(c)(2)). Applicants may submit written comments to Policy@usda.gov. Please use the following subject line: Response to the SBIR/STTR Phase II NOFO.

https://uscode.house.gov/view.xhtml?req=(title:7%20section:7613%20edition:prelim)%20OR%20(granuleid:USC-prelim-title7-section7613)&f=treesort&edition=prelim&num=0&jumpTo=true mailto:Policy@usda.gov

EXECUTIVE SUMMARY

This NOFO is being released prior to the passage of a full appropriations act for FY 2027.

Enactment of a continuing resolution, appropriations act, or other authorizing legislation may affect the availability or level of funding for this program. The amount available for SBIR Phase II in FY 2026 is approximately $19,500,000. The anticipated amount available for SBIR Phase II in FY 2027 is approximately $19,500,000. The amount available for STTR Phase II in FY 2026 is approximately $5,250,000. The anticipated amount available for STTR Phase II in FY 2027 is approximately $5,250,000. USDA is not committed to fund any particular application or to make a specific number of awards.

NIFA requests applications for the Phase II SBIR/STTR programs from previous SBIR/STTR program Phase I recipients. This notice identifies the objectives for the SBIR and STTR Phase II program projects, deadlines, funding information, eligibility criteria for projects and applicants, and application forms and associated instructions.

TABLE OF CONTENTS

ANNOUNCEMENT

EXECUTIVE SUMMARY

TABLE OF CONTENTS

TABLE OF KEY INFORMATION

PART I. FUNDING OPPORTUNITY DESCRIPTION

A. Legislative Authority B. Purpose and Priorities C. Program Area Descriptions

PART II. AWARD INFORMATION

A. Available Funding B. Application Restrictions C. Project and Grant Types D. Ethical Conduct of Funded Projects E. Due Diligence Program to Assess Security Risks

PART III. ELIGIBILITY INFORMATION

A. Eligibility Requirements B. Cost Sharing or Matching

PART IV. APPLICATION AND SUBMISSION

A. Method of Application B. Content and Form of the Application C. Funding Restrictions

PART V. APPLICATION REVIEW REQUIREMENT

A. NIFA’s Evaluation Process B. Evaluation Criteria C. Proprietary Information D. Rights in Technical Data E. Copyrights F. Patents and Inventions G. Research Involving Special Considerations H. Recipient Commitments I. Additional Information J. Organizational Management Information K. Application Disposition

PART VI. AWARD ADMINISTRATION

A. General B. Administrative and National Policy Requirements C. Expected Program Outputs and Reporting Requirements D. SBIR/STTR Data Rights Clause

PART VII. OTHER INFORMATION

A. Use of Funds and Changes in Budget

B. Confidential Aspects of Applications and Awards C. Regulatory Information D. Language Access Services

APPENDIX I: AGENCY CONTACTS

APPENDIX II: GLOSSARY OF TERMS

APPENDIX III: DEFINITIONS

TABLE OF KEY INFORMATION

Table 1: Key Dates and Deadlines Table 2: Program Code and Program Code Names Table 3: Forest and Related Resources Topic 8.1 Key Information Table 4: Plant Production and Protection-Biology Topic 8.2 Key Information Table 5: Animal Production and Protection Topic 8.3 Key Information Table 6: Management of Natural Resources Topic 8.4 Key Information Table 7: Food Science and Nutrition Topic 8.5 Key Information Table 8: Rural and Community Development Topic 8.6 Key Information Table 9: Aquaculture Topic 8.7 Key Information Table 10: Biofuels and Biobased Products Topic 8.8 Key Information Table 11: Small and Mid-Size Farms Topic 8.12 Key Information Table 12: Plant Production and Protection-Engineering Topic 8.13 Key Information Table 13: Comparison of Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs for Phase II Table 14. Steps to Obtain Application Materials Table 15: Help and Resources Table 16: Key Application Instructions

PART I. FUNDING OPPORTUNITY DESCRIPTION

A. Legislative Authority The Small Business Innovation and Economic Security Act, Pub. L. 119–83, reauthorized and amends the SBIR program, the STTR program, and related pilot programs through FY 2031 (15 U.S.C. 638). Each Federal agency with an extramural budget for research or research and development (R/R&D) in excess of $100,000,000 and $1,000,000,000 must participate in the SBIR and STTR programs, respectively, and spend a minimum percentage of their extramural R/R&D budgets of not less than 3.2% and 0.45% of such budgets for awards to small business for R/R&D under the SBIR and STTR programs. The USDA SBIR and STTR programs are administered by NIFA on behalf of USDA. In accordance with 15 U.S.C. 638(vv), Federal agencies with SBIR/STTR programs must assess security risks posed by small business, including foreign financial ties and foreign affiliations of owners, key personnel, or other covered individuals. This requirement is detailed in Part II, E . This program is subject to federal regulations as outlined in the administrative provisions found in 7 CFR 3403—Small Business Innovation Research Grants Program.

B. Purpose and Priorities The USDA SBIR/STTR programs, Assistance Listing number 10.212, support scientific excellence and technological innovation through investment of Federal research funds to build a strong national economy by stimulating technological innovation in the private sector;

strengthening the role of small business in meeting Federal research and development needs; and increasing the commercial application of Federally supported research results. Further, the objective of the STTR program is to stimulate formal cooperative partnerships of ideas and technologies between small businesses and partnering research institutions (e.g., Universities and Federal laboratories).

The USDA SBIR/STTR programs are carried out in three separate phases. This solicitation is only for SBIR/STTR Phase II applications, and only prior Phase I grant recipients are eligible to apply. The aim of SBIR/STTR Phase II is to continue the R/R&D developed under Phase I with a goal to bring the innovation to marketplace as the Phase II project completes.

Phase II requires a more comprehensive application outlining the proposed effort in detail and the commercialization strategy for the effort. Phase II awards may not be sufficient in either dollars or time for the firm to complete the total R/R&D and the commercialization activities required to bring the project results to a marketplace. Therefore, completion of R/R&D under these circumstances may have to be carried into Phase III. Phase III refers to work that derives from, extends, or logically concludes effort(s) performed under prior SBIR/STTR funding but is funded by sources other than the SBIR/STTR programs. Phase III work is typically oriented towards completing the commercialization of SBIR/STTR research or technology.

For Phase II applications, a Small Business Concern (SBC) may not propose large-scale demonstration projects or classified research. Many of the research projects supported by the SBIR/STTR programs lead to the development of new products based upon the research results obtained during the project. However, projects that seek funding solely for product development where no research is involved (i.e., the funds are needed to permit the development of a product based on previously completed research) will not be accepted. Research may be carried out https://www.congress.gov/bill/119th-congress/senate-bill/3971/text https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)%20OR%20(granuleid:USC-prelim-title15-section638)&f=treesort&edition=prelim&num=0&jumpTo=true https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)%20OR%20(granuleid:USC-prelim-title15-section638)&f=treesort&edition=prelim&num=0&jumpTo=true https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)%20OR%20(granuleid:USC-prelim-title15-section638)&f=treesort&edition=prelim&num=0&jumpTo=true https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXIV/part-3403 through the construction and evaluation of a laboratory prototype, where necessary, however the prototype will have to comply with Federal Regulations (7 CFR 3403) for disposition at the end of the grant and cannot be used for Phase III activities. The prototype must only be used as a model to manufacture new versions of the innovation for sale to a commercial market.

Literature surveys must be completed prior to the Phase II application and cannot be proposed as part of the R&D effort. Phase II Applicants are encouraged to respond to a topic area listed (see Part I, C of this NOFO) that corresponds to the Phase I work that was previously funded.

The purpose of a research application is to provide a written statement that contains sufficient information to persuade members of the research community who review the application and then advise the USDA SBIR/STTR professional staff that the proposed research is a sound approach to an important scientific question and is worthy of support under the stated USDA NIFA evaluation criteria (See Part V, B).

Potential Commercial Outcome – In addition to supporting scientific R/R&D, another program goal is to provide incentives and opportunities for SBCs to convert USDA SBIR/STTR-sponsored research into technological innovations in the private sector.

Where Phase II applications are evaluated as having approximately equal technical merit, NIFA will consider optional letters of support or contingent commitment letters. In such instances, Phase II applicants with strong letters of support or contingent commitment letters for non- SBIR/STTR follow-on funding to pursue further development of the commercial potential during Phase III may receive special consideration as a point of merit in the review and evaluation process.

To receive the consideration described above, applicants must submit letters of support or contingent commitment letters between the SBC and the entity as part of their Phase II application. The terms cannot be contingent upon obtaining an issued patent because of the time this process requires. Greater value (in Phase II evaluation) will be given for an executed formal agreement with reasonable terms and funding equal to or in excess of the Federal investment requested in the Phase II application.

The follow-on commitment may be in the form of venture capital, a package including venture capital, contract R&D, a joint venture, an R/R&D limited partnership, or other agreement with a non-SBIR/STTR source of funding. No amortization, repayment, or repurchase of commitment funds may be included during the Phase II period of performance. USDA understands that any such commitment will likely be contingent upon the Phase II recipient attaining technical objectives that are mutually agreed upon between the SBC and the provider of the follow-on funding. These objectives should be closely related. They do not need to be identical to those delineated in the Phase II research application, but they must be able to be accomplished within the scope of the proposed SBIR/STTR-funded research. The technical objectives must be clearly defined, measurable, and specified in the commitment agreement at the threshold level that would justify such an investment. Any letters or other forms of tentative commitment for follow-on Phase III funding from sources other than Federal SBIR/STTR programs will be considered.

Technical and Business Assistance – SBIR/STTR Phase II recipients may receive up to $50,000 in additional funding for Technical and Business Assistance (TABA). TABA is aimed at improving the commercialization success of SBIR/STTR technologies. To access these funds for vendor services or staff training, applicants must identify and select their own TABA provider.

Recipients may only be reimbursed for services that comply with these statutory requirements.

Any unspent TABA funds may not be re-budgeted to other project costs and must be returned to

USDA.

TABA may be used to:

• make better technical decisions on SBIR/STTR projects;

• solve technical problems that arise during SBIR/STTR projects;

• minimize technical risks associated with SBIR/STTR projects;

• develop and commercialize the product or process resulting from SBIR/STTR projects, including intellectual property protections; and/or

• screen for potential foreign involvement in technology development or commercialization activities.

TABA must NOT be used for:

• any indirect costs, profit, or fee calculations;

• general maintenance of, or investment in, the SBC

• audit, bookkeeping, payroll, or general accounting services; or

• contingency costs or costs associated with the R/R&D activities of the award

To receive this assistance for vendor services or staff training, grant recipients must identify their own TABA provider, and the associated costs must be included in the application as part of the TABA Plan.

Phase II recipients may request USDA funding to secure independent, external TABA services or hire, augment, or direct staff to conduct or participate in training activities are consistent with TABA purposes. Proposed TABA funds for commercialization efforts requiring certification or registration of an innovation may be included. If these efforts require a research or analytical effort that is outside the scope of the Phase II grant application, these costs may count towards the SBIR/STTR one-half cap for subcontracts. To use this option, the Phase II proposal must include a formal TABA Plan, as described in Part IV, B R&R Budget.

C. Program Area Descriptions USDA SBIR/STTR offers ten program areas that are intended to permit a broad spectrum of eligible and innovative science- and technology-based small businesses to compete for funding.

NIFA is soliciting applications under the following program areas:

Table 2: Program Code and Program Code Names

Program Code Program Code Name

8.1 Forests and Related Resources

8.2 Plant Production and Protection-Biology

8.3 Animal Production and Protection

8.4 Management of Natural Resources

8.5 Food Science and Nutrition

8.6 Rural and Community Development

8.7 Aquaculture

8.8 Biofuels and Biobased Products

8.12 Small and Mid-size Farms

8.13 Plant Production and Protection-Engineering

1. Forests and Related Resources – Topic 8.1 The Forests and Related Resources program area aims to address the health, heterogeneity, and productivity of the Nation’s forests to meet the needs of present and future generations while creating rural economic opportunities through the development of technologies that develop approaches to increase productivity of forest lands, improve management and longevity, and develop value-added materials derived from forest resources.

Table 3: Forest and Related Resources Topic 8.1 Key Information

Title Description Program Code: 8.1

Program Code Name: Forest and Related Resources

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 2 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

2. Plant Production and Protection-Biology – Topic 8.2 The objective of this program area is to develop novel ways of enhancing crop production and protection against abiotic and/or biotic stresses through the use of novel diagnostic technologies, plant improvement approaches, and tools or management practices that ensure healthy pollinators.

Table 4: Plant Production and Protection-Biology Topic 8.2 Key Information

Title Description Program Code: 8.2

Program Code Name: Plant Production and Protection - Biology

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 2 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

3. Animal Production and Protection – Topic 8.3 The Animal Production and Protection program area aims to develop innovative, marketable technologies that will provide significant benefit to the production and protection of agricultural animals.

Table 5: Animal Production and Protection Topic 8.3 Key Information

Title Description Program Code: 8.3

Program Code Name: Animal Production and Protection

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 2 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

4. Management of Natural Resources – Topic 8.4 The Management of Natural Resources program area aims to develop innovative technologies that are developed with the purpose to manage, monitor, improve, and/or protect the quality and/or quantity of natural resources while sustaining optimal farm and forest productivity and profitability. New technologies and innovations that will help improve soil health, reduce soil erosion, improve water and air quality, improve nutrient management, and conserve and use water more effectively are encouraged.

Table 6: Management of Natural Resources Topic 8.4 Key Information

Title Description Program Code: 8.4

Program Code Name: Management of Natural Resources

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 4 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

5. Food Science and Nutrition – Topic 8.5 The Food Science and Nutrition program area aims to fund projects that support research focusing on developing new and improved processes, technologies, or services that address emerging food safety, food processing, and nutrition issues.

Table 7: Food Science and Nutrition Topic 8.5 Key Information

Title Description Program Code: 8.5

Program Code Name: Food Science and Nutrition

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 4 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

6. Rural and Community Development – Topic 8.6 The Rural and Community Development program area aims to fund the development of new technologies, or the utilization of existing technologies, that address important economic and social development issues or challenges in rural America. The applications need not be centered on agriculture but may be focused on any area that has the potential to provide significant benefit to rural Americans.

Table 8: Rural and Community Development Topic 8.6 Key Information

Title Description Program Code: 8.6

Program Code Name: Rural and Community Development

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 2 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

7. Aquaculture – Topic 8.7 The Aquaculture program area aims to develop new technologies that will enhance the knowledge and technology base necessary for the expansion of the domestic aquaculture industry as a form of production agriculture.

Table 9: Aquaculture Topic 8.7 Key Information Title Description

Program Code: 8.7 Program Code Name: Aquaculture

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 2 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

8. Biofuels and Biobased Products – Topic 8.8 The objective of this program area is to promote the use of biofuels and non-food biobased products by developing new or improved technologies that will lead to increased production of biofuels, industrial chemicals, and other value-added products from agricultural materials.

Table 10: Biofuels and Biobased Products Topic 8.8 Key Information

Title Description Program Code: 8.8

Program Code Name: Biofuels and Biobased Products

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 4 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

9. Small and Mid-Size Farms – Topic 8.12 The Small and Mid-Size Farms program area aims to promote and improve the sustainability and profitability of small and mid-size farms and ranches (where annual sales of agricultural products are less than $350,000 for small farms and between $350,000 and $999,999 for mid-size farms – hereafter referred to as small farms).

Table 11: Small and Mid-Size Farms Topic 8.12 Key Information

Title Description Program Code: 8.12

Program Code Name: Small and Mid-Size Farms

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 2 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

10. Plant Production and Protection-Engineering – Topic 8.13 The objective of this program area is to enhance crop production by creating and commercializing engineering technologies that enhance system efficiency and profitability and protect crops from pests and pathogens in economically and environmentally sound ways.

Table 12: Plant Production and Protection-Engineering Topic 8.13 Key Information

Title Description Program Code: 8.13

Program Code Name: Plant Production and Protection - Engineering

ALN: 10.212

Project Type: Research Projects Grant Type: Standard Grants

Application Deadline FY 2026: November 17, 2026 FY 2027: September 21, 2027

Grant Duration: 24-36 Months Anticipated # of Awards: 4 SBIR; 1 STTR

Minimum Award Amount: $600,000 Maximum Award Amount: $650,000 (with Technical and Business

Assistance)

11. Cross Cutting Topics USDA NIFA recognizes agricultural-related manufacturing technology and domestic energy resource development as two crosscutting topics with relevance to all program areas listed in this program solicitation. Applicants should address these topics, as appropriate, within their applications addressing one of the ten program areas above and not as standalone program areas.

a. Agricultural-related Manufacturing Technology. Technological innovation is critical to a strong manufacturing sector in the U.S. economy particularly agricultural-related manufacturing technology.

b. Biofuels and Rural Energy. Investing in R/R&D is necessary to unleash American energy through the production and use of domestic biofuels including the development of new energy feedstocks, improved conversion methods for producing biofuels, as well as hydrogen and other fuel gases derived from agricultural waste. These efforts can positively impact farmers, support rural economies, and expand infrastructure.

PART II. AWARD INFORMATION

A. Available Funding This NOFO is being released prior to the passage of an appropriations act for FY 2027.

Enactment of additional continuing resolutions, appropriations act, or other authorizing legislation may affect the availability or level of funding for these programs. The amount available for the Phase II SBIR Program is approximately $19,500,000 for FY 2026 and $19,500,000 for FY 2027. The anticipated amount available for the Phase II STTR Program is approximately $5,250,000 for FY 2026 and $5,250,000 for FY 2027. USDA is not committed to funding any particular application or making a specific number of awards.

The Automated Standard Application for Payments, operated by the Department of Treasury, Bureau of the Fiscal Service, is the designated payment system for awards resulting from this

NOFO.

B. Application Restrictions NIFA will evaluate applications using the criteria described in Part V of this NOFO.

Applications for FY 2026 and 2027 are limited to the following application types:

1. New application: This is a project application that has not been previously submitted to the USDA SBIR/STTR Phase II Programs. We will review all new applications competitively using the screening for administrative requirements, review panel evaluation of applications using evaluation criteria, and the selection process described in Part V- Application Review Requirements (see Appendix III for definition).

2. Resubmitted application: Resubmitted applications must include the response to the previous review panel summary and include the Phase I award number and declined Phase II proposal number in the response to reviewer comments and are subject to the same criteria and due dates herein. Resubmitted applicants must enter the NIFA-assigned proposal number of the previously submitted application in the Federal Field (Field 4) on the application form (see Appendix III for definition). This includes resubmissions for Phase I recipients who were not successful in their first attempt at a Phase II application.

Resubmissions must be from a prior USDA SBIR/STTR Phase II solicitation and must be submitted to the same topic area. SBCs are limited to only one resubmission within five years following the initial submission, and applicants must include their NIFA-assigned proposal number of the previously submitted application in the Federal Field (Field 4) on the application form.

C. Project and Grant Types The following describes the types of projects or grants that are eligible for funding:

1. Project Types. Applicants must propose a Research project as described in Program Area Descriptions in Part I, C of this NOFO. Only Research projects described in Part I, C of this NOFO will be considered for review.

2. Grant Types. Applicants must select the Standard grant described in Program Area Descriptions in Part I, C of this NOFO. Only Standard grants described in Part I, C of this NOFO will be considered for review.

Phase II applications may not request more than $600,000 (not including TABA), with the maximum award available $650,000 (including TABA) for a period normally not to exceed 24 https://fiscal.treasury.gov/payments-from-government/automated-standard-application-for-payments-asap months. In special cases, NIFA can allow a period of performance up to 36 months, but applicants may not request more than $600,000 (not including TABA) or $650,000 (including TABA). The planned period of performance dates are listed below; however, these dates may change due to the enactment of continuing resolutions or an appropriations act.

• FY 2026: Phase II: 3/15/2027 through 3/14/2029

• FY 2027: Phase II: 3/15/2028 through 3/14/2030

D. Ethical Conduct of Funded Projects In accordance with sections 2, 3, and 8 of 2 CFR Part 422, institutions that conduct USDA-funded extramural research must foster an atmosphere conducive to research integrity, bear primary responsibility for the prevention and detection of research misconduct, and maintain and effectively communicate and train their staff regarding policies and procedures. In the event an application to NIFA results in an award, the Authorized Representative (AR) assures, through acceptance of the award, that the institution will comply with the above requirements. Award recipients must, upon request, make available to NIFA the policies, procedures, and documentation to support the conduct of the training. See Responsible and Ethical Conduct of Research for further information.

Please review the training for Fraud, Waste, and Abuse found at:

https://www.sbir.gov/tutorials/fraud-waste-abuse. In the event a company or individual suspects any fraud, waste, and/or abuse, the company or individual can contact the USDA Office of Inspector General (OIG)'s hotline or at 800-424-9121 or at 800-424-9121.

E. Due Diligence Program to Assess Security Risks In accordance with 15 U.S.C. 638(vv), USDA SBIR/STTR will not make awards to businesses with connections to certain foreign entities. To comply with this requirement, the program requires all SBIR/STTR Phase II applicants to complete additional certifications disclosing ties to foreign countries of concern at the time of application and as needed during the life of the grant award by completing the Required Disclosures of Foreign Affiliations or Relationships to Foreign Countries form described in Part IV, B. Updated disclosures must be provided within 30 days of any substantive changes to the project or key personnel. The disclosure of information related to foreign involvement or investment does not mean denial or disqualification of an applicant. Any questions regarding the Disclosure of Foreign Affiliations or Relationships to Foreign Countries Form should be emailed to sm.ddsbir@usda.gov.

These certifications include:

1. The identity of all owners and covered individuals of the small business concern (SBC) who are a party to any foreign talent recruitment program of any foreign country of concern;

2. The existence of any joint venture or subsidiary of the SBC that is based in, funded by, or has a foreign affiliation with any foreign country of concern;

3. Any current or pending contractual or financial obligation, or other agreement specific to a business arrangement or joint venture-like arrangement, with an enterprise owned by a foreign state or any foreign entity;

4. Whether the SBC is wholly owned in a foreign country of concern;

5. The percentage, if any, of venture capital (VC) or institutional investment by an entity https://www.ecfr.gov/cgi-bin/text-idx?SID=3f96ab05cf1fc2d2713e5e46755e7696&mc=true&node=pt2.1.422&rgn=div5#se2.1.422_12 https://nifa.usda.gov/responsible-and-ethical-conduct-research https://nifa.usda.gov/responsible-and-ethical-conduct-research https://www.sbir.gov/tutorials/fraud-waste-abuse https://usdaoig.oversight.gov/resources/hotline-information https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)%20OR%20(granuleid:USC-prelim-title15-section638)&f=treesort&edition=prelim&num=0&jumpTo=true mailto:sm.ddsbir@usda.gov that has a general partner or individual holding a leadership role in such entity who has a foreign affiliation with any foreign country of concern;

6. Any technology licensing or intellectual property sales to a foreign country of concern, during the five-year period preceding submission of the proposal; and

7. Any foreign business entity, offshore entity, or entity outside the United States related to the SBC.

Additional guidance and program policy is provided by the Small Business Administration (SBA) through the SBIR/STTR Policy Directive.

https://www.sbir.gov/about/policies

PART III. ELIGIBILITY INFORMATION

A. Eligibility Requirements Eligibility for the SBIR/STTR Phase II program is limited to only SBIR/STTR Phase I recipients. This includes recipients identified via a “novated” or “successor-in-interest” revised funding agreement. Failure to meet the eligibility criteria by the application deadline may result in exclusion from consideration or preclude NIFA from making an award. For those new to Federal financial assistance, NIFA’s About Grants provides highly recommended information about grants and other resources to help understand the Federal awards process.

Each applicant must qualify as an SBC through registration with the SBA for R/R&D purposes at the time of selection (see Definitions in Appendix III of this NOFO).

SBIR/STTR program eligibility requirements are in place to ensure that the funds go only to small, independent U.S. businesses. The regulations include restrictions about (1) the type of firm, (2) its ownership structure, and (3) the firm’s size in terms of the number of employees.

Type of Firm The purpose of the requirement regarding the type of firm is to target the awards to firms with an economic interest in developing the idea or research into a commercial application.

1. An SBIR/STTR small business recipient must be a business concern – it must be organized as a for-profit concern and meet all of the other requirements for a “business concern” in 13 CFR 121.105. Non-profit entities are not eligible (except as the partnering research institution collaborator under the STTR Program).

2. If a recipient is a joint venture, limited partnership, or venture capital partner, each party to the joint venture must be a concern that satisfies all program eligibility requirements regarding type, size, ownership, and control.

Ownership & Control The purpose of the ownership requirement is to limit the program to independent firms controlled by US citizens or permanent resident aliens as a way of maximizing the likelihood that the funding will stimulate innovative activity within the US economy.

A majority (more than 50%) of a firm’s equity (e.g., stock) must be directly owned and controlled by one of the following:

1. One or more individuals who are citizens or permanent resident aliens of the United States,

2. Other for-profit SBC (each of which is directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States).

a. This includes single venture capital operating companies (VCOC), hedge funds, or private equity firms that are SBCs more than 50% directly owned and controlled by individuals who are U.S. citizens or permanent resident aliens of the United States.

b. This also includes applicants more than 50% directly owned and controlled by Alaska Native Corporations, Native Hawaiian Organizations, or Indian tribes or by a wholly owned subsidiary of an Alaska Native Corporation, Native Hawaiian Organization, or Indian tribe.

3. A combination of (1) and (2) above.

https://www.nifa.usda.gov/grants https://app.www.sbir.gov/company-registration/overview https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRd133f03f6d8398b/section-121.105

4. For SBIR only, multiple venture capital operating companies (VCOCs), hedge funds, private equity firms, or any combination of these, so long as no one such firm owns or controls more than 50% of the equity. Note: This option is allowed only for SBIR awards from agencies that are using the authority provided in 15 U.S.C. § 638(dd)(1) (majority‐ VC‐owned authority). USDA has not elected to make a portion of its SBIR awards to SBCs that are majority-owned by multiple VCOCs, hedge funds, or private equity firms under 15 U.S.C. § 638(dd)(1).

Notes:

a. If an Employee Stock Ownership Plan owns all or part of the SBC, each stock trustee and plan member is considered an owner. If a trust owns all or part of the SBC, each trustee and trust beneficiary is considered an owner.

b. A potential recipient that is a subsidiary must show that the parent company or parent companies are also a small business entity. The parent company or parent companies must provide documentation supporting their small business status (the documentation must be included in the Research and Related (R&R) Other Project Information form under Other Attachments, as directed by Part IV of this NOFO).

If the parent company or one of the parent companies is a nonprofit organization, then the subsidiary is not eligible to submit an SBIR/STTR application.

Size The purpose of the size restriction (number of employees of the firm and its affiliates) is to limit program funding to SBCs that have a unique capacity for innovation and are more likely to be constrained by lack of access to such funding. An SBIR/STTR recipient, combined with its affiliates, must not have more than 500 employees.

For more information on SBIR/STTR eligibility, see the Guide to SBIR/STTR Program Eligibility.

SBIR/STTR Program Eligibilities Applicants can choose from SBIR only, STTR only, or Both (SBIR/STTR in a single submission). The following SBIR and STTR program eligibility distinctions are summarized in Table 13.

To apply for SBIR only, the primary employment of the Project Director/Principal Investigator (PD/PI) must be with the SBC at the time of award and during the conduct of the proposed project. Eligible primary employment means that more than one-half of the PD’s/PI’s time is spent in the employment of the SBC during the award period of performance. Primary employment with the SBC precludes the applicant as a full-time employee with another organization or academic institution. While the PD/PI must work more than one-half of his/her time for the SBC during the entire grant period, there is no time requirement for the PD’s/PI’s work on the proposed research. Prior Federal Employees must provide documentation that post termination requirements from Federal Service have been completed at time of submission. For SBIR Phase II, as determined by budget expenditures, a minimum of one-half (50%) of the research or analytical work must be performed by the proposing SBC.

To apply for STTR only, the PD/PI for the proposed project (or, if multiple PD/PIs, at least one PD/PI) must be employed by and perform more than one half of the PD’s/PI’s time in the https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim) https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim) https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim) https://www.sbir.gov/sites/default/files/elig_size_compliance_guide_1.pdf https://www.sbir.gov/sites/default/files/elig_size_compliance_guide_1.pdf employ of either the SBC or the partnering Research Institution. For projects with multiple PD/PIs, at least one PD/PI must meet the primary employment requirement. That PD/PI will serve as the contact PD/PI for the Project Team. For STTR Phase II, as determined by budget expenditures, a minimum of 30% of the research or analytical work must be performed by a single partnering research institution (e.g., University, Federal Laboratory, etc.), and the SBC must conduct a minimum of 40% of the proposed research or analytical work.

To apply to Both (SBIR and STTR), the PD/PI must be employed more than one-half by the SBC.

For Phase II, as determined by budget expenditures, a minimum of 30% of the research and analytical work must be conducted by a single partnering research institution (e.g., University, Federal Laboratory, etc.), and the SBC must conduct a minimum of 50% of the proposed research or analytical work.

Table 13: Comparison of Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs for Phase II Elements SBIR STTR Both Applicant Small Business Small Business Small Business Award Size, without TABA $600,000 $600,000 $600,000 Duration 24 months 24 months 24 months % of Agency’s Extramural R&D

Budget 3.20% 0.45% N/A

Formal Cooperative Agreement Required Outlining Intellectual Property Rights

No Yes Yes

Partnering Research Institution or Federally Funded Research and Development Center Participation Required

No Yes Yes

% Participation of Partnering Research Institution or Federally Funded Research and Development Center

Less than 50% 30 to 60% 30 to 50%

PI/PD Employment Small Business Small Business or Research Institution

Small Business

Work in the United States For Phase II, the R/R&D work must be performed in the United States. On rare and unique circumstances (e.g., a supply, material, or project requirement may not be available in the United States) agencies may allow that particular portion of the work to be performed or obtained outside of the United States. Upon award, the Phase II recipient may request an exception as described in the SBIR/STTR Award Terms and Conditions.

Benchmark The Phase I to Phase II Transition Rate Benchmark was published at 78 FR 30951 in May 2013, and the Commercialization Rate Benchmark was published at 78 FR 59410 in September 2013.

The SBIR and STTR Extension Act of 2022 amended the application of these benchmarks for https://nifa.usda.gov/terms-and-conditions https://www.federalregister.gov/d/2013-12312 https://www.federalregister.gov/documents/2013/09/26/2013-23492/small-business-innovation-research-and-small-business-technology-transfer-programs-commercialization https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf more experienced firms. A summary of the benchmarks is located at https://www.sbir.gov/performance-benchmarks.

Phase I to Phase II Transition Rate Benchmark Any SBC that has received more than 20 Phase I awards during the past five fiscal years, excluding the most recently completed fiscal year, must average one Phase II for every four Phase I awards received (25% conversion rate), regardless of the awarding agency, to be eligible to submit a Phase I application. If a company has not received an SBIR/STTR award or has received 20 or fewer SBIR/STTR awards, this benchmark requirement does not apply.

Any SBC that has received more than 50 Phase I awards during the past five fiscal years, excluding the most recently completed fiscal year, must average one Phase II for every two Phase I awards received (50% conversion rate). If a company has received 50 or fewer SBIR/STTR Phase I awards, this benchmark requirement does not apply.

Commercialization Rate Benchmark Any SBC that has received more than 15 Phase II awards during the past 10 fiscal years, excluding the two most recently completed fiscal years, must average at least $100,000 of sales and/or investments per Phase II award received during the covered period; or have been issued a number of patents equal to or greater than 15% of the number of Phase II awards during the covered period. If a company has not received an SBIR/STTR award or has received 15 or fewer SBIR/STTR awards, this benchmark requirement does not apply.

Any SBC that has received more than 50 Phase II awards during the past 10 fiscal years, excluding the two most recently completed fiscal years, must have an average of $250,000 of aggregate sales and investments per Phase II award received during the covered period. Any SBC that has received more than 100 Phase II awards during the past 10 fiscal years, excluding the two most recent fiscal years, must have an average of $450,000 of aggregate sales and investments per Phase II award received during the covered period.

Each SBC that is subject to an increased performance standard for the Commercialization Rate Benchmark must submit to the SBA supporting documentation evidencing that all covered sales of the SBC were properly used to meet the increased minimum performance standard. Covered sales are defined at 15 U.S.C. § 638(qq)(3)(B)(iii)(II).

There are consequences of failure to meet the Phase I to Phase II Transition or the Commercialization Benchmarks, including ineligibility to submit a proposal for a Phase I for a period of one year beginning on June 1, and if the increased performance standards for more experienced firms are not met, then companies may not receive more than 20 total Phase I awards from each Federal agency during the 1-year period beginning on June 1.

STTR Partnering Research Institution Eligibility Criteria Must be located in the United States and meet one of three definitions:

1. Nonprofit college or University;

2. Domestic nonprofit research organization; or

3. Federally funded R&D center https://www.sbir.gov/performance-benchmarks https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)

USDA will not accept competitive applications for grants and cooperative agreements submitted for dangerous gain-of-function research, as defined in Section 8 of E.O. 14292.

Duplicate or Multiple Submissions – Applicants are restricted to one Phase II submission per individual Phase I award. For SBC holding multiple Phase I awards, a maximum of two (2) distinctly different Phase II applications may be submitted per solicitation. Furthermore, USDA NIFA limits issuance to one (1) SBIR/STTR Phase II award per SBC. In instances where multiple applications from a single SBC are recommended for funding via peer review, USDA staff will require the applicant to provide a written determination specifying which single application shall proceed under this NOFO. Applications not selected for funding by the applicant may maintain eligibility for resubmission under future Phase II cycles, subject to then-current competitive peer review procedures and resubmission criteria.

B. Cost Sharing or Matching No Match Required - The SBIR/STTR programs have no matching requirement. NIFA will not factor matching resources into the review process as an evaluation criterion. While not required, cost share is encouraged.

https://www.federalregister.gov/documents/2025/05/08/2025-08266/improving-the-safety-and-security-of-biological-research

PART IV. APPLICATION AND SUBMISSION

A. Method of Application Applicants must apply to this NOFO electronically; no other method or response is accepted.

The electronic application for this NOFO and additional resources are available on Grants.gov and Grants 101. Table 14 provides instructions on how to obtain an electronic application. Part III of the NIFA Grants Application Guide contains detailed information regarding the Grants.gov registration process. The NIFA Grants Application Guide is contained in the specific funding opportunity package or a sample of the guide can be found here. When applying for a NIFA award, it is important to reference the version of the guide that is included in the specific funding opportunity application package.

Table 14. Steps to Obtain Application Materials

Steps Action Step One: Register New Users to Grants.gov must register early with Grants.gov prior to submitting an application.

Step Two:

Download Adobe Download and Install Adobe Reader (see Adobe Software Compatibility for basic system requirements).

Step Three: Find Application

Using this funding opportunity number USDA-NIFA-SBIR-012221, search for application here: Opportunity Package.

Step Four: Assess Readiness

Contact an AR prior to starting an application to assess the organization’s readiness to submit an electronic application.

Table 15: Help and Resources

Grants.gov Support NIFA Support Grants.gov Online Support Telephone support: 800-518-4726 Toll-Free or 606-545-5035

Email support: support@grants.gov Self-service customer-based support: Grants.gov iPortal

Customer service business Hours 24/7, except…