— BUDGET CAPS

NIH SBIR/STTR budget caps — the numbers, and where to verify them.

SBA publishes statutory guideline award levels that adjust annually. NIH institutes and centers then set their own limits per NOFO — some at the guideline, some higher under approved waiver topics. Use this page for orientation. Use the linked NIH SEED and SBA pages for the number you cite in a budget.

— READ THIS FIRST

These figures adjust annually and vary by IC. Always confirm the current cap against the live SBA/NIH SEED figure for your target IC and the specific NOFO you are answering. A related NIH Guide Notice overrides the NOFO; the NOFO overrides the Application Guide; SBA statutory guidelines set the ceiling absent a waiver.

— CEILINGS UNDER THE 2026 PARENT SOLICITATIONS

Phase

Mechanism

Duration

SBA guideline

Phase I
R43 (SBIR) / R41 (STTR)
typically 6–12 months (SBIR); longer with justification. STTR guideline up to 1 year
Up to $700K at some ICs; many ICs at the SBA guideline
prior level: $314,363
Under the 2026 parent solicitations, Phase I runs up to $700,000 at several ICs (including NCI, NIA, NIAID, NIGMS, NIMH, NINDS, NCCIH); other ICs cap at the SBA guideline. Approved waiver topics may exceed these amounts. Confirm the ceiling for your IC in the PA-27-100 / PA-27-102 IC table before budgeting.
Phase II
R44 (SBIR) / R42 (STTR)
1 – 3 years
Up to $3M at some ICs; many ICs at the SBA guideline
prior level: $2,095,748
Under the 2026 parent solicitations, Phase II runs up to $3,000,000 at several ICs (including NHLBI, NIA, NIAID, NIDCD, NIGMS, NIMH, NINDS); other ICs cap at the SBA guideline. Example line items from the IC table: NCI $700,000 Phase I / $2,500,000 Phase II; NHLBI $400,000 Phase I / $3,000,000 Phase II. Direct-to-Phase-II (D2P2) uses the same cap when the IC participates.
Commercialization Readiness Pilot (CRP)
SB1 / R44 CRP supplement
Varies by IC; typically 1 – 2 years
See PAR-27-098 for current CRP levels.
Post-Phase-II bridge for regulatory, manufacturing scale-up, or partnering activities. Availability, cap, and mechanism vary by IC and NOFO — see PAR-27-098.
Phase IIB — Strategic Breakthrough
R44 Phase IIB (IC-specific)
Varies (often 2 – 3 years)
IC-set; can significantly exceed statutory levels
Follow-on Phase II awards for programs still requiring substantial R&D — e.g. NCI SBIR Phase IIB Bridge Awards can reach $4M+ and often expect substantial (~1:1) third-party matching funds — verify the specific NCI Bridge NOFO.

— BUDGET STRUCTURE

DIRECT COSTS

Salaries, supplies, subawards, equipment, travel.

Everything directly incurred by the project. Subawards to the STTR research partner count toward direct costs and toward the 30% partner-work minimum.

INDIRECT COSTS (F&A)

Overhead on direct costs, per your negotiated rate.

If you have a negotiated indirect rate with a federal cognizant agency, use it. If not, SBIR/STTR applicants may use a de minimis rate — as of the 2024 Uniform Guidance revision, up to 15% of modified total direct costs — without formal negotiation.

FEE (PROFIT)

Up to 7% of total (direct + indirect) costs.

Distinct from indirect costs. Not tied to actual profit, not audited as profit — a fixed allowance recognized by SBA for SBIR/STTR small businesses. Cap is 7% for both Phase I and Phase II.

TOTAL AWARD = DIRECT + INDIRECT + FEE. THE STATUTORY GUIDELINE IS THE TOTAL, INCLUSIVE OF ALL THREE.

— IC VARIATION

NIH institutes and centers can set award ceilings above the SBA statutory guideline only for topics SBA has approved for waiver. Several ICs — including NCI, NIAID, NHLBI, NIDA, and NINDS — maintain waiver-topic lists that permit Phase I above the guideline (commonly $400K, occasionally higher) and Phase II above the guideline (commonly $2.5M–$3M). Always check the NOFO you are answering; the waiver topics are enumerated there.

NIH SEEDVER 09 JUL 2026

NIH's official small-business funding hub publishes the current statutory guideline award levels for Phase I, Phase II, and CRP — and lists ICs with approved waiver topics that permit higher budgets on specific topics. This is the number to cite when you're writing a budget.

NIH SBIR Omnibus PA-27-100VER 24 JUL 2026

The 2026 SBIR parent solicitation — the authoritative source for the per-IC ceiling that applies to your budget.

SBA SBIR/STTR Policy DirectiveVER 09 JUL 2026

SBA sets the statutory guideline levels and adjusts them for inflation annually. Waiver topics that permit higher awards must be approved by SBA on a topic-by-topic basis; agencies cannot unilaterally exceed the statutory guideline.

NIH GPS Section 7 — Cost ConsiderationsVER 09 JUL 2026

Direct-cost vs. F&A (indirect) treatment, allowable-cost principles, and the SBIR/STTR fee are documented in the NIH Grants Policy Statement. This is the reference NIH grants management specialists work from during Just-In-Time review.

2 CFR 200 — Uniform Guidance (de minimis F&A)VER 09 JUL 2026

Small businesses without a negotiated indirect rate may use the federal de minimis F&A rate. The 2024 revision to 2 CFR 200 raised the de minimis ceiling; confirm the current rate against the live regulation before submitting a budget.

— HONESTY NOTE

We do not print a "the cap is $X" claim without a link. SBA adjusts these levels for inflation each year and ICs publish waiver topics independently. If the number you need is time-sensitive — a budget going into eRA Commons tomorrow — open the NIH SEED link above and use the figure printed there, then cross-check the specific NOFO you are answering.