Congress has officially extended funding for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs — a welcome development for early‑stage life science companies relying on non‑dilutive capital to advance research and development.
For many companies, these programs are more than just grants. They’re a critical bridge between scientific discovery and commercial viability. For companies navigating long R&D timelines and complex regulatory pathways, continuity in these programs is essential. With this renewed authorization funding continues without interruption, preserving stability for companies planning upcoming research milestones. Also, In-process applications remain on track, minimizing the risk of delays tied to program funding.
What Life Science Companies Should Be Thinking About Now
This extension creates an opportunity for life science companies to revisit their funding strategies:
- Evaluate eligibility for upcoming SBIR/STTR solicitations.
- Review cost accounting systems to ensure compliance with federal award requirements.
- Assess tax implications, including how grant funding interacts with R&D credits and capitalization rules.
- Prepare documentation early, as competition for awards remains strong across NIH, NSF, DoD, and other agencies.
Our audit and tax teams continue to see increased scrutiny around indirect cost rates, time tracking, and documentation. Whether you’re considering your first SBIR/STTR submission or managing multiple active awards, Dean Dorton is here to help.
