BREAKING NEWS: On September 15, 2025, the U.S. House of Representatives passed H.R. 5100, a bipartisan bill that provides a one-year extension for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The extension shifts the expiration date from September 30, 2025, to September 30, 2026. The US Senate now must act to get a reauthorization bill on the President's desk. The SBIR/STTR programs fuel innovation, empower small businesses, strengthen the economy, and deliver technologies that improve lives and protect the nation. Here in Arizona, these programs are a significant source of funding that helps discoveries progress to become life saving and life changing products and services. SBIR/STTR must be reauthorized by Congress by September 30, 2025. Now is the time to let our elected leaders know why Arizonans depend on these programs.
SBIR Impact In Arizona
Since it was first established by Congress in 1982, the Small Business Innovation Research program (SBIR) has set aside a portion of federal R&D budgets for small businesses to stimulate innovation and commercialization.
"Our Nation is blessed with two important qualities that are often missing in other societies: our spirit of entrepreneurship and our capacity for invention and innovation... Small business is a tonic for what ails this country. By passing and signing this act, we're showing our resolve to unleash this most innovative sector... The Small Business Innovation Development Act recognizes that we in government must work in partnership with small business to ensure that technologies and processes are readily transferred to commercial applications." --President Ronald Reagan, July 22, 1982 (Source: Reagan Library)
The Small Business Technology Transfer (STTR) program was created in 1992 with the first pilots beginning in 1994. While SBIR lets small businesses collaborate with research institutions (optional), STTR requires that the small business formally partner with a nonprofit research institution (like a university, federal lab, or nonprofit R&D center).
SBIR STTR grant opportunities are available to Arizona small businesses via the Small Business Administration; Department of Agriculture; Department of Commerce; Department of Defense; Department of Education; Department of Energy; Department of Health and Human Services; Department of Homeland Security; Department of Transportation; Environmental Protection Agency; National Aeronautics and Space Administration; and the National Science Foundation.
SBIR Reauthorization Timeline (1982–2025)
1982 – SBIR Created
Small Business Innovation Development Act establishes SBIR. 8 agencies required to set aside R&D funds for small businesses.
1986 – First Reauthorization
SBIR renewed for 5 years.
1992 – Expansion
Reauthorized for 8 years. Set-aside increased to 2.5%. Strengthened support for commercialization.
2000–2011 – Short-Term Extensions
After expiration in 2000, Congress passed 14 short-term extensions amid debates over VC eligibility and oversight.
2011 – Modernization
Reauthorized through 2017. Allowed limited VC-backed firms. Increased set-asides (SBIR to 3.2%, STTR to 0.45%). Stronger commercialization focus.
2016–2017 – Extension
NDAA extends SBIR/STTR through Sept 30, 2022.
2022 – Security-Focused Reauthorization
Reauthorized through Sept 30, 2025. Added due diligence, foreign influence safeguards, and risk assessments.
2025 – Next Deadline
Current SBIR/STTR authority set to expire Sept 30, 2025. Advocacy needed for long-term reauthorization
Source: Small Business Innovation Development Act & subsequent reauthorizations (1982–2025).
AZBio Members Share Their SBIR Experiences
CND Life Sciences supports the care of patients facing the potential diagnosis of neurodegenerative disease and other neurological conditions. Operating a CLIA-certified and CAP-accredited laboratory in Scottsdale, Arizona, CND developed the Syn-One Test to help clinicians diagnose synucleinopathies that include Parkinson’s disease, dementia with Lewy bodies, multiple system atrophy, pure autonomic failure, and REM sleep behavior disorder.
“CND Life Sciences is grateful for receiving four NIH-SBIR Phase 2 grants in the last five years supporting our mission to serve the needs of patients facing a diagnosis of a neurodegenerative disease. With funds provided through the SBIR/STTR program, CND has conducted crucial multicenter studies to build scientific validity and evidence for our Syn-One Test technology that has aided the care of nearly 50,000 patients across 50 states. That would not have been possible without the foundational funding through the NIH and the SBIR/STTR program.” -- Richard J. Morello, CEO, CND Life Sciences
NuvOx is a privately held clinical-stage biopharmaceutical company based in Tucson, Ariz. NuvOx is developing a novel platform of oxygen therapeutics for the treatment of diseases where hypoxia plays a role. Hypoxia, or low oxygen, is responsible for resistance to cancer treatment, brain damage in stroke, and the death of patients with acute respiratory distress syndrome (ARDS).
"For NuvOx, SBIR/STTR has been crucial in our success to date. As an Arizona biotech company, we have to be extremely capital efficient. SBIR/STTR award has supported us from lab to animal models to clinic trials. All our current clinical programs have been supported by SBIR/STTR. We are extremely grateful, not only the funding jump started our clinical trials, but also its rigorous vetting process, which validated our technology and played a key role for us to attract private funding. In addition, because we are recipient of SBIR/STTR, we have also received invaluable mentoringship regarding regulatory strategy, reimbursement, and development from NIH as well as other government entities." -- Rong Wang, President & CEO, Nuvox Therapeutics, Inc.
"AdviNOW Medical uses AI to completely automate the medical practice. The SBIR program was critical in developing the base technology that became the product that clients can touch and feel." -- James Bates, President & CEO
"Funding early-stage drug development is challenging, especially for startup companies located outside of coastal biotech hubs. SBIR programs have been absolutely critical in helping Sonoran Biosciences advance the development of new drug formulations, including our current lead program in postoperative pain. In our case, SBIR funding could be responsible for the difference between benefiting millions of patients every year versus never getting the opportunity. Additionally, as a reviewer I've witnessed firsthand the careful deliberation by leading scientists, clinicians, and industry professionals to select the projects with the greatest overall impact to the health of Americans." -- Derek Overstreet, PhD, CEO, Sonoran Biosciences