About this programme
The Small Business Innovation Research (SBIR) program at the U.S. Environmental Protection Agency funds small businesses to develop and commercialize innovative environmental technologies. EPA is one of eleven federal agencies that run an SBIR program under the Small Business Innovation Development Act of 1982; EPA's version is contract-based (not a grant) and is tied to the agency's own research priorities.
The program funds work across EPA's priority topic areas: clean and safe water, air quality, land revitalization, homeland security, sustainable materials management and the circular economy, safer chemicals, and risk assessment. A company applies against an annual solicitation built around these topics, not an open-ended pitch.
Funding moves in stages: a short Phase I contract to prove the concept, then a larger Phase II contract for companies that completed Phase I, to further develop and commercialize the technology. EPA also offers a Phase II Commercialization Option for companies that have secured third-party investment, to help accelerate the path to market.
In the 2025-2026 cycle EPA awarded $3.6 million in Phase II funding to nine small businesses working on technologies spanning water sensors and PFAS removal, air filtration, and circular-economy materials.
How it works
Phase I: a firm-fixed-price contract of up to $100,000 for a 6-month period of performance, to demonstrate proof of concept for the proposed technology.
Phase II: a contract of $400,000 for companies that successfully completed Phase I, to further develop and commercialize the technology; the 2025-2026 Phase II awards ran a two-year period of performance (July 2026-July 2028).
Phase II Commercialization Option: up to an additional $100,000 available to Phase II awardees who have secured qualifying third-party investment, intended to accelerate commercialization.
Award timing historically runs on a cycle: Phase I contracts typically start in early December and Phase II contracts typically start in mid-October, following each award's solicitation and review cycle.
Proposals are scored across three equally weighted criteria: technical approach and team qualifications, relevance/impact to the solicitation's topic areas, and commercial potential (innovation, IP position, market opportunity, and commercialization strategy). Final selection also weighs programmatic balance and available funding.
Who can apply
Only U.S. small businesses may apply; EPA's SBIR page states the program is open to small businesses and start-ups new to the program, not only prior awardees. Detailed size and ownership standards (majority U.S.-owned, for-profit, size-standard thresholds) follow the government-wide SBIR eligibility rules published by the Small Business Administration (SBA) — EPA's application guidance points applicants there rather than restating the rules itself.
Phase II eligibility additionally requires having completed a Phase I award under the same or a related EPA SBIR topic; the Commercialization Option is only available to companies that already hold a Phase II award and have lined up qualifying third-party investment.
EPA discourages Phase I proposals that would involve human-subjects research, since Institutional Review Board approval typically takes 6-12 months — longer than the 6-month Phase I period of performance.
How to apply
- Develop a technology concept that responds directly to one of the topic areas in EPA's current annual SBIR solicitation.
- Complete the required federal registrations before the deadline — EPA recommends starting this 6-8 weeks in advance, since it is often the slowest part of applying.
- Obtain or confirm an Employer Identification Number (EIN) — the business's IRS tax ID.
- Register (or renew) in the System for Award Management (SAM.gov); the SAM profile must be set to allow 'contracts' or 'all awards', and SAM registration must be renewed annually.
- Obtain a Unique Entity Identifier (UEI) through SAM.gov, which has replaced the legacy DUNS number.
- Register with the SBA Company Registry and record the resulting SBC Control ID for inclusion in the proposal.
- Register on FedConnect.net, the portal EPA uses to receive SBIR proposals.
- Submit the completed proposal through FedConnect by the solicitation's stated deadline.
Documents you’ll typically need
- Employer Identification Number (EIN)
- Active SAM.gov registration (contracts/all-awards profile)
- Unique Entity Identifier (UEI)
- FedConnect.net account
- SBA Company Registry record and SBC Control ID
Frequently asked
Is EPA SBIR a grant or a contract?
It is a contract, not a grant. EPA issues Phase I and Phase II as firm-fixed-price contracts against its own solicitation topics, which is a different mechanism than the grant-based SBIR programs some other federal agencies run.
How much funding is available at each phase?
Phase I contracts go up to $100,000 over 6 months to prove the concept. Phase II contracts are $400,000, with an optional additional $100,000 available to Phase II awardees who secure qualifying third-party investment.
Can a company apply directly for Phase II without doing Phase I?
No. Phase II is only open to companies that have already completed an EPA SBIR Phase I award; it funds further development and commercialization of the Phase I technology, not new concepts.
What registrations does a company need before applying?
An EIN, an active SAM.gov registration (renewed annually) with a UEI, an SBA Company Registry record with its SBC Control ID, and a FedConnect.net account for proposal submission. EPA recommends starting these 6-8 weeks before the deadline.
How are proposals evaluated?
On three equally weighted criteria: technical approach and team qualifications, relevance and impact to the solicitation topic, and commercial potential — including IP, market opportunity, and commercialization strategy. Programmatic balance and available funding also factor into final selections.
What topic areas does EPA SBIR fund?
EPA's stated priority areas are clean and safe water, air quality, land revitalization, homeland security, sustainable materials management and the circular economy, safer chemicals, and risk assessment. Specific topics are set fresh in each year's solicitation.
Does EPA offer help before a company applies?
EPA has run informational webinars ahead of past solicitations (for example, a Phase I solicitation webinar and topic-specific sessions on sustainable materials and recycling technologies) and maintains a listserv for solicitation and event announcements.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.