Known as “America’s Seed Fund,” the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs have helped thousands of early-stage companies develop new ideas with support from the US government. These initiatives fall under the umbrella of the US Small Business Administration, but the majority of SBIR/STTR funding comes from the Department of Defense (DOD) and the Department of Health and Human Services (HHS), which includes the National Institutes of Health (NIH). However, these important programs are now at risk.
Between 1985 and 2022, SBIR and STTR provided more than $40 million for small businesses developing innovations in focused ultrasound technology.
This year, the US had the longest government shutdown ever, lasting 43 days. When the government reopened, only a few parts — such as the Legislative Branch, the Department of Agriculture, and the Military Construction-Veterans Affairs — were fully funded for the next full fiscal year. The rest of the government received only temporary funding until January 30, 2026. Therefore, current NIH and other agency SBIR/STTR projects can continue to receive funding only until the end of January.
However, the reauthorization of the SBIR/STTR programs was not part of the bill to reopen the government, so they officially expired on September 30, 2025. As a result, small businesses cannot apply for new SBIR/STTR funds until these programs are officially renewed. Some future NIH funding opportunities, put out as Notices of Funding Opportunity (NOFOs), have now been expired: Click here for the list. NIH cannot issue noncompeting continuation awards for existing projects until the programs are reauthorized.
Together, SBIR and STTR have funded approximately 5,000 new awards each year. It is essential for organizations working in focused ultrasound – and other innovative companies – to continue to receive funding through SBIR and STTR to develop life-saving treatments and increase the quality of life for patients.
Learn more about SBIR and STTR Programs in Jessica Foley’s 2024 blog post.
Reach Out
If you have been affected by the lapse in SBIR/STTR funding, we want to hear from you. Please reach out to Cindy Clark, director of commercial initiatives and strategy at [email protected].
Cindy Clark works with the FUS Partners team as Commercial Initiatives and Strategy Director. She is a serial entrepreneur with more than 25 years of successful commercialization experience in the life science industry.