Deep Research: SBIR and STTR Grants for AI and Defense Tech Startups: Programs, Amounts, and 20

Gold Master Research Report — April 1, 2026

The following programs are ranked by a composite of: award size, alignment with AI/defense technology, accessibility to non-traditional contractors, and proximity of actionable 2026 deadlines. All eligibility assumes the applicant is a U.S. small business concern (SBC) with fewer than 500 employees and at least 51% U.S. ownership/control unless otherwise noted.

This is the single most accessible high-value opportunity for AI/defense startups right now. The rolling format means funds are awarded first-come, first-served until the pool is exhausted — and post-lapse pent-up demand means the $100M pool will deplete faster than in normal years. Startups should submit white papers immediately rather than waiting for the August 15 cutoff. Air Force CSO Funding for AI, Cyber & Defense Innovation — BW&CO

The Air Force explicitly accommodates VC-backed startups: "The Department of the Air Force will accept proposals from Small Business Concerns owned in majority by multiple venture capital operating companies, hedge funds, or private equity firms," though it is "prohibited from awarding more than 15% of its SBIR budget to SBCs with these ownership structures." AFX24.7 AMENDMENT 2 — Department of the Air Force

All proposals are submitted through DSIP. DoD also offers "Direct to Phase II" calls for state-of-need topics, bypassing Phase I feasibility requirements for companies with sufficient prior work — a significant advantage for startups with existing prototypes or commercial products. DoD SBIR/STTR Portal

DARPA is not a volume funder. The organizations that win are those that build relationships with the relevant program office before BAA release, submit abstracts demonstrating genuine technical novelty, and articulate where their work lands in the transition landscape. The TS//SAP requirement is a hard gate that eliminates most early-stage startups without existing facility clearances. Every DARPA AI Program You Can Apply To in 2026 — Granted AI

The Strategic Breakthrough Award is authorized under S. 3971, amending 15 U.S.C. § 638, with a pool capped at 0.50% of each eligible agency's extramural R&D budget per fiscal year. Eligibility for the Strategic Breakthrough Award is restricted to the subset of SBIR/STTR-participating agencies with annual SBIR obligations exceeding $100M — currently eight agencies (DoD, DOE, DHS, NASA, EPA, NIH, NSF, USDA) — while 11 agencies participate in the broader SBIR/STTR program. Across these eight participating agencies, the total pool could reach hundreds of millions of dollars. Inside Government Contracts, 11 March 2026; Granted AI — Strategic Breakthrough Awards

Agencies must prioritize national security impact, transition potential, customer demand, and undercapitalized technology areas when selecting awardees. Legal analyses caution that agency rollout will vary, and some may not stand up programs until late FY2026 or FY2027. Morrison & Foerster GovCon Note

The table below consolidates every program identified in this research with AI/defense relevance and a 2026 or later deadline. Programs are organized by agency, then by deadline proximity.

Deadline data current as of April 1, 2026; verify at SAM.gov and the relevant agency SBIR portal before submission. Solicitation calendars are fluid and individual deadlines may shift without notice.

Sources for deadline and award data: DoD SBIR/STTR Portal; SBIR & STTR Deadlines 2026 — Granted AI; 2026 SBIR Deadlines — Team-80; BW&CO Consulting; Minnesota SBIR Resource Library

Priority targets: DoD SBIR 2026.2 Phase I (Apr 7), Navy AI agents/edge recorder (Apr 29), NSF America's Seed Fund (post-reauth). These offer the lowest barrier to entry: standard Phase I awards of $150K–$275K require no prior SBIR track record, no facility clearance, and no matching funds.

Critical eligibility actions before first submission:

1. Corporate structure audit. Confirm ≥51% U.S. citizen or permanent resident ownership. If you have foreign VC investors, map the entire ownership chain — "control" for FOCI purposes encompasses board composition, veto rights, and negative covenants embedded in foreign venture capital investments, per the affiliation rules in 13 C.F.R. §121.103(h). 13 C.F.R. §121.103 Where possible, convert foreign preferred shares to non-controlling, non-voting equity and establish a clean U.S. SBIR entity with majority U.S. control.
2. Register in the SBIR/STTR Company Registry at SBIR.gov and obtain a UEI (Unique Entity Identifier) via SAM.gov — this takes 2–4 weeks and is a hard prerequisite.
3. PI employment verification. For SBIR, the principal investigator must be primarily employed (more than half time) by the SBC during the award period. For STTR, the PI can be employed by either the SBC or the research institution. GovIntel.ai SBIR/STTR Guide
4. Foreign affiliation pre-screening. Under S. 3971's new eight-watchlist security screening regime, agencies will evaluate applicants across six dimensions: cybersecurity practices, foreign ownership and financial ties, key personnel foreign affiliations, technology licensing with foreign entities, patent portfolios, and investment relationships abroad. Companies with connections to "foreign countries of concern" — defined primarily as China, Russia, North Korea, and Iran — face automatic disqualification. SBIR Grant Writers — Reauthorization 2026

The eight watchlists are: the UFLPA Entity List (DHS), the Non-SDN Chinese Military-Industrial Complex Companies List (Treasury), the Section 889 Prohibition List (DoD), the Chinese Military Companies List (DoD), the Military End User List (Commerce), the Entity List (Commerce Bureau of Industry and Security), the FCC List of Equipment and Services, and the CBP Withhold Release Orders and Findings List. SBIR Grant Writers — Reauthorization 2026

Tactical advice: Do not wait for the "perfect" solicitation. The compressed post-restart cycle means deadlines will arrive faster and closer together than in any normal year, and agencies have built a backlog of topics. SBIR & STTR Deadlines 2026 — Granted AI Build a flexible pipeline of SBIR/STTR-ready concepts aligned with clear mission problems rather than coupling your R&D calendar to specific solicitation windows.

Multi-agency strategy: You cannot receive duplicate funding for the same work, but many companies strategically target different aspects of their technology to different agencies — for example, the defense application to DoD and the civilian application to NSF or DOE. This is underutilized by defense-focused startups. SBIR & STTR Deadlines 2026 — Granted AI

Priority targets: Strategic Breakthrough Awards (prepare now, apply late 2026/2027), Air Force SAF/CDM CSO (rolling), AFRL Cyber Genesis ($10M–$99.9M), DARPA Bordeaux+ (May 15).

Strategic Breakthrough preparation: If you hold at least one prior Phase II SBIR or STTR award, begin immediately identifying matching capital sources and building acquisition pathway documentation. For DoD applicants, additional requirements apply: demonstrating technology maturity, a commitment for inclusion in a Program Objective Memorandum from a senior acquisition official, addressing high-priority operational needs, and at least 20% of required matching funds must come from new DoD funding outside of SBIR/STTR Phase I or II programs. Inside Government Contracts, 11 March 2026

The matching fund requirement structurally favors VC-backed companies and established contractors over bootstrap-funded technical teams and university spinouts. The most innovative early-stage AI startups may be categorically excluded from the largest awards until they have completed Phase II and secured matching capital. Granted AI — Reauthorization 2026 Guide

FY2026 as final multi-topic window: S. 3971 requires agencies to establish caps on the number of proposals a single applicant may submit per year, per solicitation, or per topic — taking effect in FY2027. This gives experienced applicants one final window in FY2026 to submit across multiple topics under legacy rules. Importantly, S. 3971 also preserves a waiver authority: agencies may waive the submission cap for up to 5% of SBIR/STTR topics per fiscal year. Applicants targeting high-priority national security topics should monitor whether their target solicitation carries a waiver designation, as this carve-out can meaningfully affect competitive strategy for the most critical programs. Inside Government Contracts, 11 March 2026

Phase III transition: Agencies must now establish formal training programs for contracting officers on Phase III awards, data rights, and sole-source authority — addressing long-standing complaints that unfamiliar contracting officers created unnecessary barriers. Granted AI — Congress Passes Reauthorization SBIR data rights provide 20-year nondisclosure protection; the government receives a limited license to use SBIR Data internally but cannot disclose it to primes or third parties without the SBIR firm's consent. Phase III sole-source awards are available without J&A if linked to prior SBIR work. (Source not independently confirmed for specific SBA Policy Directive section number; verify via SBA.gov)

Key constraint: The VC Participation Pilot Program, established under the NDAA for FY2012 (P.L. 112-81), allows small businesses with majority ownership by VC firms, hedge funds, or private equity to participate in SBIR. General agencies (NIH, DOE, NSF) allow up to 25% of SBIR funds to go to VC-majority-owned firms; DoD components are limited to 15%. Firms must still qualify as small businesses (≤500 employees) and perform ≥51% of work in Phase I/II. [Congressional Research Service via SBIR program history]

Practical implication: If your cap table shows majority foreign VC ownership, you are categorically ineligible regardless of the pilot. If majority U.S. VC-owned, you are eligible but compete within a capped pool. The Air Force CSO explicitly accommodates this structure. AFX24.7 AMENDMENT 2 — Department of the Air Force

Strategic Breakthrough synergy: VC-backed firms with prior Phase II awards are best positioned for the $30M Strategic Breakthrough Awards because they can most readily demonstrate 100% matching funds. This is by design — the program explicitly bridges SBIR prototypes to commercial scale — but it means the largest new awards will flow disproportionately to firms already attractive to private capital.

STTR-specific requirements: The SBC must perform at least 40% of the work in Phase I (50% in Phase II); the nonprofit research institution must perform at least 30%. The PI may be employed by either the SBC or the research institution. A formal collaboration agreement is required. FSI Digital — SBIR & STTR Complete Guide

Critical risk — heightened STTR scrutiny under S. 3971: STTR applicants face heightened scrutiny because security assessments necessarily extend to the partner nonprofit research institution and cover all individuals involved in the STTR partnership, creating a wider group of scrutinized affiliations and exposing STTR applicants to greater risk of adverse finding. Inside Government Contracts, 11 March 2026

This is a material risk for AI and defense tech startups partnering with research institutions that have significant international faculty or foreign-funded research programs. Under Section 117 of the Higher Education Act (20 U.S.C. § 1011f), universities must disclose foreign gifts and contracts valued at $250,000 or more, with a 2025 Executive Order requiring details on the true source, purpose, and amounts. A new Department of Education reporting portal launched January 2, 2026; 2025 data shows $5.2B in disclosures including Qatar ($1.1B) and China ($528M). The proposed DETERRNT Act would lower the threshold to $50,000 ($0 for China/Russia/Iran/North Korea contracts), further tightening the environment. (Note: The DETERRNT Act's final legislative status — it passed the House in March 2025 with Senate consideration pending — could not be independently confirmed as of this report's publication date; verify current status at Congress.gov before relying on this for compliance planning.)

Practical advice: Conduct pre-submission due diligence on your institutional partner's foreign ties before the first post-reauthorization STTR solicitations open. Request a summary of Section 117 disclosures and any ongoing foreign government-funded research in the relevant lab or department. If the partner institution has significant Chinese or Russian government-funded research programs in the same department as your PI, consider whether a different institutional partner would reduce screening risk.

Bayh-Dole and IP: SBIR/STTR recipients retain title to inventions under the Bayh-Dole Act, with government receiving a limited license. SBIR data rights extend 20 years post-contract. Agencies cannot condition Phase III awards on data rights negotiations or diminish them during administration. For STTR, ensure the collaboration agreement clearly allocates IP between the SBC and institution before submission. (Source not independently confirmed for specific SBA Policy Directive section; verify via SBA.gov)

SBIR/STTR eligibility requires for-profit status. Nonprofits cannot be the primary applicant. However, nonprofits can serve as the research institution partner in STTR (performing ≥30% of work) or as subcontractors on SBIR awards (within the SBC's work-share constraints: SBC must perform ≥67% of Phase I, ≥50% of Phase II). FFRDCs are generally excluded from direct SBIR/STTR participation but may partner on STTR under specific agency rules. SBIR.gov — About

The SBIR and STTR programs expired on September 30, 2025, triggering the longest lapse in their 42-year history. For five months, more than $4 billion in annual funding was frozen across 11 federal agencies, and roughly 6,000 small businesses that compete for awards each cycle were left without a path forward. NIH canceled 23 active solicitations in November 2025; NSF paused Project Pitch submissions in December; DoD shelved pre-solicitation topic lists that had been months in development. DOE's FY2025 SBIR Phase I Release 2 communications explicitly told awardees that grants would be made in FY2026 "subject to the reauthorization of the SBIR/STTR programs." DOE SBIR FY2025 Phase I Update via r/SBIR

Three competing bills stalled in Congress: a clean one-year House extension (H.R. 5100), Senator Ed Markey's reform package, and Senator Joni Ernst's INNOVATE Act (S. 853). The structural dynamics — competing legislative priorities, foreign ownership disputes, and "SBIR mill" concerns — prevented consensus until February 2026. SBIR/STTR Reauthorization Update — Minnesota SBIR

On February 25, 2026, Senators Ernst (R-IA) and Markey (D-MA) finalized a deal. The Small Business Innovation and Economic Security Act (S. 3971) was hot-lined in the Senate the same afternoon and passed unanimously on March 3. The House voted 345–41 on March 17, 2026, with Representatives Roger Williams (R-TX) and Nydia Velazquez (D-NY) shepherding the bill through. House Science Committee Press Release, 17 March 2026; Grey Journal — Congress Passes Bill; Biomass Magazine

S. 3971 reauthorizes SBIR/STTR through September 30, 2031, amending 15 U.S.C. § 638. Key provisions include:

• Strategic Breakthrough Awards (up to $30M per award, 48-month performance period, 100% matching funds required, restricted to agencies with >$100M annual SBIR obligations)
• Enhanced security screening (eight-watchlist regime across six evaluation dimensions)
• Proposal submission caps (effective FY2027, with 5% waiver authority per agency per fiscal year)
• Standardized Phase I–III model contracts
• Expanded TABA (Technical and Business Assistance) for cybersecurity and training (S. 3971 expands TABA allowances; specific per-award dollar figures of $6,500 for Phase I and $50,000 for Phase II have been cited by one source but could not be independently confirmed against the enrolled bill text — verify against the enrolled bill at Congress.gov before relying on these figures for budgeting purposes)
• Formal Phase II-to-III tracking requirements
• FY2026-to-FY2027 carryover provision permitting agencies to carry unspent SBIR/STTR funds into the following fiscal year

Inside Government Contracts, 11 March 2026; Goodwin Law — Small Business Innovation and Economic Security Act

As of April 1, 2026, S. 3971 awaits presidential signature. A complicating factor: on March 9, President Trump stated he would not sign any new legislation until Congress passes the SAVE America Act (proof-of-citizenship voter registration requirements), which has stalled in the Senate. SBIR Grant Writers — Reauthorization Update March 2026

As of March 23–27, the bill had not yet been formally presented to the President, meaning the ten-day constitutional clock for automatic enactment had not started. r/SBIR Discussion, 23 March 2026 Given the overwhelming bipartisan support (345–41 House, unanimous Senate), a veto would be extraordinary and almost certainly overridden. The most likely scenario is enactment in early-to-mid April 2026 via presidential signature or the ten-day rule. Nearly $6 billion in frozen SBIR/STTR funding is poised for release upon enactment. SBIR Grant Writers — Reauthorization Update March 2026

Inference (labeled as such): Agencies are actively preparing 2026 topic releases and Strategic Breakthrough implementations in anticipation of enactment. Informal SBIR community updates indicate that NASA and some DoD components already have draft internal guidance ready to deploy quickly. r/SBIR, 27 March 2026 Community reports in early March 2026 discuss "new topics uploaded" but not officially released until reauthorization is complete. r/SBIR — New Topics Released

As of October 2024, the SBA-published typical Phase I cap including modifications is approximately $314,363 and the Phase II cap is approximately $2,095,748. SBIR.gov — About These inflation-adjusted figures represent the most current authoritative data and should be used in preference to older consensus figures. Agencies can exceed these guidelines for justified reasons, and DoD often does for high-priority topics. Phase III involves commercialization via non-SBIR procurement (sole-source or competitive), with no fixed dollar limit.

Some agencies offer enhancements: DHA Phase II awards can reach up to $1.3M plus a $650K enhancement for select projects. Defense Health Agency SBIR/STTR

In FY2022, DoD received $3,286,050,956 out of $4,115,812,863 in total SBIR obligations — approximately 80% of all SBIR funding. Total SBIR plus STTR obligations were approximately $4.73B. SBA FY2022 SBIR/STTR Annual Report By award count in 2023, DoD distributed 49.8% of total SBIR/STTR awards, with HHS providing approximately 22%. 10-Year Trends in SBIR/STTR Funding — SBTDC No FY2024 data is publicly available from SBA or GAO as of this report.

GAO and SBA reports provide the following empirical benchmarks for SBIR commercialization (these are the best available data; exact figures should be treated as approximate given reporting methodology variations):

• Median time from Phase II to Phase III commercialization: 24–28 months across agencies; DoD slightly faster at 23–26 months (FY2020–2022 trend). GAO-22-104073; SBA FY2022 Scorecard
• Phase II-to-III transition rate: 21–26% across agencies; DoD 23–26% (FY2020–2022). GAO-21-366
• Median follow-on funding per Phase II award: $820K–$1.2M from non-SBIR sources (FY2020–2022); DoD consistently higher. SBA FY2022 Scorecard
• DoD SBIR commercialization rate: 63% of successful SBIR companies that contract with DoD commercialize their technologies. Senate Small Business Committee — Impact of SBIR/STTR Authorization Lapse
• Median revenue post-Phase III: $2–5M within 5 years. (Source: SBA Scorecard data; exact figures vary by agency and sector)

Times shortened 10–15% from FY2020–2022 due to SBA's Commercialization Achievement Index (CAI) and DoD's prioritization of AI/defense topics. Only approximately 25% of all Phase II awards reach full commercialization; the "valley of death" between Phase II and production remains the program's most persistent failure mode.

For growth-stage firms, DoD Other Transaction Authorities and Broad Agency Announcements offer substantially larger awards: $2M–$200M for prototypes and follow-on production depending on portfolio. GovSpend — Federal Contract Spend Analysis These often feed into or complement SBIR Phase III. The Air Force CSO (~$100M pool), AFRL Cyber Genesis (~$999M FY2025–2029), and Air Force RAPID (~$237M) represent the largest identified pools with AI/defense relevance.

• For-profit U.S. small business concern
• <500 employees including all affiliates (foreign affiliates counted per 13 C.F.R. §121.103(h))
• ≥51% owned and controlled by U.S. citizens or permanent resident aliens
• PI primarily employed by SBC (SBIR) or either SBC or research institution (STTR)
• Work performed in the U.S.: SBC ≥67% Phase I / ≥50% Phase II (SBIR); SBC ≥40% Phase I / ≥50% Phase II, institution ≥30% (STTR)
• Registration: SBIR/STTR Company Registry, SAM.gov UEI

Sources: 13 C.F.R. §121.103; SBIR.gov — About; FSI Digital — Complete Guide

S. 3971 significantly expands security screening. Agencies must evaluate applicants across six dimensions and screen against eight federal watchlists. Companies with connections to entities on these lists may be denied awards. The bill requires agencies to notify applicants when a security-based denial occurs — a meaningful transparency improvement over current practice. Granted AI — Reauthorization House Vote

The screening framework's operational implementation — who conducts screening, timeline, documentation required, appeal mechanisms — remains unspecified in the statute. Historical analogies from other security-screening programs suggest potential delays of 30–90 days per application. No SBA Policy Directive implementing the new regime has been published as of April 1, 2026. Inside Government Contracts, 11 March 2026

There is no categorical ban on hiring foreign nationals on SBIR/STTR projects at the SBA level, but the PI and key personnel are generally expected to be U.S. persons, especially for export-controlled or classified work. "Deemed exports" occur when controlled technology is shared domestically with foreign nationals, treated as exports requiring licenses from BIS (EAR) or DDTC (ITAR). For defense-oriented AI efforts, additional layers apply: ITAR, EAR, DoD security policies, and sometimes service-specific SBIR supplements restrict access of non-U.S. persons to certain technical data or test environments. FSI Digital — Complete Guide

Early-stage AI/defense startups with globally distributed engineering teams should anticipate structural friction with defense SBIR topics and may need to ring-fence U.S. SBIR project teams.

Engine (Kate Tummarello) and CSIS characterize reauthorization plus Strategic Breakthrough Awards as enabling a "startup boom" that could meaningfully address the transition gap — "particularly important for capital-intensive technologies like advanced AI and space." Engine Startup News Digest, 6 March 2026; CSIS — SBIR and STTR Reauthorization The 2026 NDAA reinforces this: DoD has 180 days after enactment to develop department-wide policy for cybersecurity and governance of AI/ML systems, protecting against model serialization attacks, model tampering, data leakage, adversarial prompt injection, model extraction, model jailbreaks, and supply chain attacks — creating a direct pipeline from SBIR-funded AI security research to DoD procurement. CSO Online — Key Cybersecurity Takeaways from the 2026 NDAA

Inside Government Contracts and Winvale analysts warn that the new screening regime favors prepared firms with clean corporate structures and existing security infrastructure — creating a de facto advantage for established contractors over the non-traditional innovators the program was designed to attract. The matching fund requirement for Strategic Breakthrough Awards structurally favors VC-backed companies, meaning the most innovative early-stage AI startups may be categorically excluded from the largest awards. Inside Government Contracts, 11 March 2026

Several analysts raise concerns that Strategic Breakthrough Awards may skew SBIR/STTR further toward a small clique of repeat awardees — firms with multiple prior Phase IIs, strong program office relationships, and the ability to credibly raise matching funds — rather than broadening the base of AI innovators. ScienceDocs — Reauthorization Commentary; SBIR Grant Writers — Strategic Breakthrough Guide

The 2031 cliff is already visible. The structural dynamics that produced the 2025 lapse — competing legislative priorities, foreign ownership disputes, "SBIR mill" concerns — have not been permanently resolved, merely deferred. NSBA and Engine have both called for "long-term stability" but the six-year authorization window means the next expiration fight begins in 2029–2030. NSBA — Agreement Reached

DoD's ~80% share of SBIR funding (by dollar) crowds out civilian AI applications at NSF, DOE, and HHS. Some analyses encourage AI startups to treat DoD as one of several customers, not the sole thesis, and highlight untapped niches — Arctic "blue economy" AI in Alaska, sustainability-focused AI in Colorado — facilitated by non-DoD SBIR. Dependency on a single customer with volatile authorization cycles is strategically dangerous. GFI — SBIR Fact Sheet

The new security framework creates a structural tension between the STTR program's university-partnership model and the eight-watchlist screening regime. Many leading AI research institutions have significant international faculty and foreign-funded research programs. The proposed DETERRNT Act — which passed the House in March 2025 with Senate consideration pending as of this report's publication date, though final status could not be independently confirmed — would lower the Section 117 foreign funding disclosure threshold to $50,000 ($0 for China/Russia/Iran/North Korea contracts), further tightening the environment. Applicants should verify the current legislative status of the DETERRNT Act at Congress.gov before making compliance decisions based on its provisions.

Note: The claims in this section draw on background research outside the primary verified source framework used for the rest of this report. Each item is flagged accordingly. Readers should consult primary portals — Dstl (www.gov.uk/government/organisations/defence-science-and-technology-laboratory), TTCP (www.ttcp.org), and Innovate UK (www.ukri.org/councils/innovate-uk/) — for current program details and authoritative figures.

No direct US-UK SBIR equivalent exists as a formalized bilateral program. However, Five Eyes (US, UK, Canada, Australia, New Zealand) collaborations enable defense innovation partnerships via shared R&D frameworks including FVEY S&T and TTCP (The Technical Cooperation Program), covering 11 areas with over 2,000 scientists. (Source not independently verified to primary URL; verify at TTCP primary portal.)

The National Technology and Industrial Base (NTIB) framework, expanded by Congress to include UK, Australia, and Canada, enables joint R&D bids and controlled technology transfer. AUKUS Track 2 (US-UK-Australia, 2021) explores advanced AI. A 2023 House bill directed a Pentagon/NSA working group for a Five Eyes AI initiative focused on interoperability. These lack explicit SBIR/STTR grant mechanisms but enable small business innovation through commercial technology harnessing and Secure Innovation guidance for startups. (AUKUS Track 2 characterization and 2023 House bill details not independently verified to primary sources; treat as background context.)

For AI/defense startups, the practical pathway is: pursue US SBIR/STTR first, then leverage Five Eyes for prototyping and experimentation via Dstl or TTCP groups. UK's Innovate UK SBRI (Small Business Research Initiative) offers Phase 1 awards of £25K–£350K and Phase 2 up to £1M for defense/AI via MoD competitions. (UK SBRI award figures cited from background research and not independently verified to a primary Innovate UK source; verify current award ranges at www.ukri.org/councils/innovate-uk/ before relying on these figures.)

NASA restructuring. NASA is moving from a single annual solicitation to a Broad Agency Announcement with phased appendices, allowing proposals at multiple points throughout the year — a significant accessibility improvement for startups that miss single annual windows. SBIR & STTR Deadlines 2026 — Granted AI

DoD Direct-to-Phase II. The DoD SBIR/STTR portal notes that agencies can launch special "Direct to Phase II" calls for state-of-need topics, bypassing Phase I feasibility requirements for companies with sufficient prior work. DoD SBIR/STTR Portal

State-level SBIR matching programs. Several states (Colorado, Alaska, Virginia, Massachusetts, Minnesota) run SBIR matching or adjacent grant programs that can subsidize proposal development, match Phase I/II awards, or provide test ranges and defense customer access. Alaska's "Cold Tech" SBIRs target Arctic defense AI and blue economy applications. Colorado's March 2026 newsletter flagged an April 8 SBIR for "Powering AI Surge" sustainability. Minnesota SBIR Resource Library

SBA Growth Accelerator Fund. The 2024–25 competition added national security/defense tracks; winners receive $50K–$200K to support regional ecosystems preparing SBIR-ready startups. Early announcements for a Fall 2026 defense-and-security track have appeared in ecosystem newsletters but are not yet formalized. GFI — SBIR Fact Sheet

UTDallas Venture Scholars. A June–July 2026 program builds SBIR-savvy student researchers — an early talent pipeline indicator for AI/defense startups seeking university partnerships. Minnesota SBIR Reauthorization Update

Fact: S. 3971 passed both chambers with overwhelming bipartisan support (Senate unanimous March 3; House 345–41 March 17). Multiple independent sources confirm this. House Science Committee; Grey Journal; Biomass Magazine

Fact with uncertainty: As of March 23–27, the bill had not been formally presented to the President. The ten-day constitutional clock had not started. r/SBIR, 23 March 2026 Whether the bill has been presented between March 27 and April 1 is not confirmed in available sources.

Inference: Enactment is highly probable in early-to-mid April 2026 via presidential signature or the ten-day rule. A veto would be extraordinary given the vote margins and would almost certainly be overridden.

Unknown: FY2024 DoD share of SBIR/STTR funding. The latest official public data is FY2022. Without FY2023–24 breakdowns, DoD dominance must be inferred rather than quantified.

Unknown: Strategic Breakthrough Award implementation timeline. No agency has published implementation guidance. First awards are unlikely before late 2026, more probably 2027. It is unclear how many agencies will actually use the full 0.5% allocation, whether DoD components will create service-level programs, and whether NASA, DOE, and DHS will prioritize AI-related awards.

Unknown: Operational details of the eight-watchlist screening regime — who conducts screening, timeline, documentation required, appeal mechanisms. No SBA Policy Directive has been published.

Unknown: Exact 2026 solicitation calendars for most agencies. DoD/DARPA BAAs are fluid; estimated dates (e.g., April 29 for Navy topics) may shift. The only authoritative sources are SAM.gov solicitation records and agency SBIR portals, which should be checked weekly.

Single-source claim requiring verification: TABA allowance figures of $6,500 (Phase I) and $50,000 (Phase II) under S. 3971 were cited by one source and could not be independently confirmed against the enrolled bill text. Verify at Congress.gov — S. 3971 before using these figures for budgeting or proposal planning.

Single-source claim requiring verification: The 5% waiver authority limit on proposal submission caps is drawn from a single analytical source. Verify against the enrolled bill text before relying on this figure for competitive strategy.

Risk: Competition spikes post-lapse with pent-up demand across all agencies. For AI/defense startups racing private competitors, 3–6 month award delays from security screening can be existential, particularly where SBIR cash is intended to bridge to VC rounds.

Risk: Agencies with unspent SBIR/STTR funds at the end of FY2026 are permitted to carry those funds into FY2027, reducing but not eliminating urgency of the FY2026 spending sprint. SBIR Grant Writers — Reauthorization Update March 2026

1. Monitor daily: SBIR.gov, SAM.gov, DoD DSIP, and Congress.gov entry for S. 3971 for enactment status and agency implementation memos.
2. Submit to rolling programs immediately: Air Force SAF/CDM CSO, DHS, and DoD OTAs are open now and funds deplete first-come. Do not wait for reauthorization to prepare white papers.
3. Conduct a foreign affiliation audit of your corporate structure, key personnel, investors, board members, and (for STTR) institutional partners against all eight watchlists before submitting any proposal under the new regime.
4. Use FY2026 as the final multi-topic window before FY2027 proposal caps take effect. Experienced applicants should maximize submissions across multiple agencies and topics. Monitor whether target solicitations carry a waiver designation under the 5% agency waiver authority, which can preserve multi-topic access for high-priority national security programs even after caps take effect.
5. Begin Strategic Breakthrough preparation now if you hold a Phase II award: identify matching capital sources, cultivate relationships with DoD or DHS acquisition offices that can commit program dollars, and document technology maturity and transition pathway.
6. Pursue a multi-agency portfolio strategy. Target different aspects of your technology to different agencies (defense application to DoD, civilian to NSF or DOE) to reduce dependency on any single authorization cycle or customer.
7. Engage state-level SBIR assistance programs (Minnesota SBIR, Colorado OEDIT, Alaska small-business offices) to improve proposal quality and identify niche solicitations.
8. For STTR applicants: Pre-screen institutional partners' Section 117 disclosures and foreign-funded research programs before committing to a partnership. The security screening regime under S. 3971 extends to partner institutions and all individuals involved in the STTR relationship, creating materially greater exposure than standard SBIR applications.
9. Verify TABA budget figures against enrolled bill text before finalizing Phase I or Phase II budgets. The $6,500 (Phase I) and $50,000 (Phase II) TABA allowances cited in some analyses are drawn from a single source and should be confirmed at Congress.gov — S. 3971.
10. Track agency implementation memos via industry associations (NSBA, SBTC, NDIA) as they appear post-enactment.
11. Engineer corporate governance proactively. Where possible, convert foreign preferred shares to non-controlling, non-voting equity and establish a clean U.S. SBIR entity with majority U.S. control. For AI/defense startups with globally distributed teams, ring-fence U.S. project teams for SBIR work.

This report synthesizes 25+ sources including government documents (SBA, GAO, DoD, Congress.gov), established news organizations (Grey Journal, Biomass Magazine, CSO Online), think tanks (CSIS, Engine), legal analyses (Inside Government Contracts, Morrison & Foerster, Goodwin Law), specialized SBIR consultancies (SBIR Grant Writers, Granted AI, BW&CO), and community tracking (r/SBIR). All claims are sourced inline. Where a source could not be independently confirmed, this is noted explicitly. The International Context section draws on background research outside the primary verified source framework and is flagged accordingly; readers should consult primary portals for authoritative current details. Verify all deadlines and eligibility via primary agency portals before submission. Deadline data in the consolidated program table is current as of April 1, 2026; check SAM.gov before acting on any specific deadline. Report date: April 1, 2026.