About this programme
America's Seed Fund powered by NSF is the National Science Foundation's SBIR/STTR programme — a congressionally mandated funding vehicle for turning scientific and engineering discoveries into commercial products. NSF describes it as distributing more than $200 million in research and development funding to roughly 400 startups and small businesses a year.
The money is a non-dilutive grant, not an investment: NSF takes 0% equity and there is no repayment obligation. Funds can cover employee salaries and benefits, materials, and other R&D costs tied to the funded project, but not intellectual-property costs or marketing.
NSF funds deep-technology R&D across nearly every technical field it covers as an agency — the programme lists topics from biotechnology and medical devices to wireless communications, quantum, semiconductors, AI, nanotechnology, and augmented/virtual reality among the areas it backs. Applications are judged on four things: impact (addressing a significant need), technological innovation, market pull (real customer demand), and scale (potential for substantial business growth).
It runs as two tracks with the same phase structure: SBIR, open to any eligible small business, and STTR, which requires a formal research partnership with a nonprofit research institution. Both use the same Project Pitch and Full Proposal process.
How it works
Phase I funds up to $305,000 over 6-18 months for prototype or proof-of-concept development.
Phase II funds up to $1,250,000 over 24 months for full R&D and development toward commercialisation, with potential supplements exceeding $500,000 on top of that base.
Combined, Phase I and Phase II together can reach up to $2 million in non-dilutive funding across 42-plus months.
A Fast-Track pilot lets qualifying, more mature applicants submit a single proposal spanning both phases (Phase I up to $400,000 over 6-12 months, Phase II up to $1,155,000 over 18-24 months, combined ceiling $1,555,000) for a faster Phase I-to-Phase II transition. Fast-Track requires the company to have received NSF research funding within the past five years (I-Corps and prior SBIR/STTR awards do not count), completion of formal customer-discovery training such as I-Corps within the prior two years, and a complete team assembled at proposal time — it targets startups with an established NSF track record, not first-time applicants.
For STTR specifically, the small business must subaward a portion of the project to a partner nonprofit research institution: at least 40% of the total budget goes to the small business and at least 30% to the research-institution partner.
Who can apply
The applicant must be a U.S. for-profit small business with fewer than 500 employees, including affiliates, and be at least 51% owned and controlled by U.S. citizens or permanent residents (or by small businesses that themselves meet that standard).
The Principal Investigator must be more than 50% employed by the small business for the duration of the project — NSF translates this as outside work not exceeding 19.6 hours a week.
All research and development funded by the award must take place within the United States, and all personnel working on the project must be legally authorised to work in the U.S.
Businesses majority-owned or controlled by venture capital firms, hedge funds, or private-equity companies are not eligible, though joint ventures and partnerships can apply. Nonprofits are not eligible applicants. Senior/key personnel cannot participate in a malign foreign talent recruitment programme.
STTR applicants must additionally partner with an eligible nonprofit research institution under a formal subaward, with one co-Principal Investigator leading that institution's portion of the work; the small-business PI must still be employed by the small business throughout the award.
Before submitting a full proposal, applicants need active registrations in the System for Award Management (SAM), Research.gov, and the SBA Company Registry.
How to apply
- Run the project through NSF's project-fit self-assessment (seven criteria covering technological innovation, unproven/risky R&D, and commercial potential) to confirm the project is a fit before applying.
- Submit a Project Pitch through the MyWork Community portal — this can be done at any time and outlines the technology innovation, technical objectives and challenges, market opportunity, and company/team. NSF responds in about 1-2 months.
- If invited, review the applicable solicitation, complete the required registrations (SAM, Research.gov, SBA Company Registry), and prepare the full proposal.
- Submit the full Phase I (or Fast-Track) proposal — proposals can be submitted at any time against the programme's multiple annual submission deadlines. NSF states applicants are typically notified of a funding decision about 6 months after submission.
- Awardees who complete Phase I can apply separately for Phase II funding to continue development toward commercialisation (or, under Fast-Track, the Phase I-to-Phase II transition is built into the single proposal).
Frequently asked
Does NSF take equity or require repayment for an SBIR/STTR award?
No. NSF SBIR/STTR awards are grants: NSF takes 0% equity in the company and there is no obligation to repay the funds.
What is the difference between SBIR and STTR?
Both use the same phase structure and funding ceilings. STTR requires the small business to formally partner with a nonprofit research institution through a subaward, with at least 40% of the budget going to the small business and at least 30% to the research partner; SBIR has no such research-institution requirement.
How much can a company receive in total?
Up to $305,000 in Phase I (6-18 months) and up to $1,250,000 in Phase II (24 months), plus possible Phase II supplements exceeding $500,000 — up to roughly $2 million combined across 42-plus months under the standard track.
Is there a faster path than the standard Phase I then Phase II sequence?
Yes, the Fast-Track pilot lets qualifying companies submit one proposal covering both phases for a more seamless Phase I-to-Phase II transition. It is limited to companies with NSF research funding in the past five years and completed customer-discovery training such as I-Corps, so it targets more established applicants rather than first-time ones.
Can a venture-backed startup apply?
A company that is majority-owned or controlled by venture capital firms, hedge funds, or private-equity companies is not eligible. Minority VC ownership alongside majority U.S.-citizen/permanent-resident ownership and control can still meet the standard eligibility test.
Does the Principal Investigator need to work full-time for the company?
The PI must be more than 50% employed by the small business for the project duration — NSF describes this as outside work capped at 19.6 hours per week — for the duration of the SBIR/STTR project.
Is there a deadline to apply?
Project Pitches can be submitted at any time, and NSF typically responds in about 1-2 months. If invited, full proposals can also be submitted at any time against the programme's multiple annual submission deadlines, with a funding decision typically communicated around 6 months after submission.
Does CapEasy submit or guarantee this application?
No. This is a U.S. federal grant programme administered directly by the National Science Foundation through its own MyWork Community portal. CapEasy provides research and preparation support only and does not lodge applications, guarantee approval, or make funding decisions.
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.