Matt Moran, owner of Isotherm Technologies, was looking to save money on internal research and development when he found a way to get money that didn’t have to be paid back.
Moran received a Small Business Innovative Research (SBIR) subcontract — government funding available for what the SBIR Web site calls “high quality projects on important scientific, engineering or science/engineering education problems and opportunities that could lead to significant commercial and public benefit if the research is successful.”
Moran wanted to study cooling techniques, so he searched through the Web site’s database and found a match.
“We are doing research for a cooling system basically to cool the base platform to shoot down ballistic missiles,” says Moran.
The research grant is a blessing, since the cooling system ties into the work he already does with Isotherm, meaning that he has, in essence, just been awarded $65,000 to do research that he could’ve been doing in the first place.
That’s the beauty of SBIR grants. Funds are available for small businesses, and the Web site (www.eng.nsf.gov/sbir) encourages “socially and economically disadvantaged small business concerns and women-owned small business concerns” to apply. Qualifications for receiving a grant are listed online, along with a search form for different types of study.
Searches can be done either by the nature of the research or by region. Visitors are asked basic questions about their company and the key people conducting the research.
“There are basic guidelines you have to follow,” says Moran. “They want to know what you’re proposing, but they’re not too restrictive in terms of what they’re looking for.”
Instead, the SBIR outlines for researchers just the general areas of study.
Says Moran, “They give you a topic area and basically say, ‘This is the range of problems we’re trying to solve; if you have any research that could be used toward it, you can propose a project within a time frame.'”
Phase one grants top out at $100,000, but if the SBIR chooses to offer a continuation, phase two funding is available for up to $500,000.
The government also allows companies to retain intellectual property rights to the research, and encourages business owners to commercialize the product for other markets. Considering the process of securing the grant took him less than a month, Moran says, “It’s worth it if you’re a company doing internal research and development work that you want funding for.”
Of course, many companies opt for a conventional business loan rather than deal with the U.S. government. But the way Moran sees it, you can’t beat money you don’t have to repay. How to reach: Isotherm Technologies, (330) 273-2868; SBIR, (703) 306-1390
Courie Weston is ([email protected]) a reporter at SBN.
