SBIR Grant Values to Jump for Phase I and II

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The Small Business Administration has decided to raise the amount of Small Business Innovation Research program grants in both phases, with Phase I awards increasing from $100,000 to $150,000, and Phase II awards rising from $750,000 to $1 million.

In 2008, SBA initially considered making the increases in the grants in order to catch up with inflation. Following a comments period and analysis, the administration has decided to implement the increases.

The current award value of $100,000 and $750,000 was originally set in 1992. SBA has the authority to increase the amount of the award every five years.

SBA said in an announcement in the Federal Register that adjusting the threshold of awards up to $150,000 and $1 million "adequately offsets the general effects of inflation, maintains a degree of stability and simplicity to the threshold levels, and continues to provide participating agencies with an appropriate degree of flexibility in award size."

In determining the amount of the increases, SBA used information from the Department of Commerce's Bureau of Economic Analysis, including the Biomedical Research and Development Price Index, the GDP Implicit Price Deflator, and the Satellite R&D Account.

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