SBA Updates SBIR/STTR Commercial Revenue Performance Standards
Published Date: 9/2/2026
Notice
Summary
The U.S. Small Business Administration (SBA) is publishing for public comment updated minimum performance standards for commercialization for firms funded through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. This commercialization benchmark establishes a minimum share of annual revenue that a Small Business Concern (SBC) must derive from sources other than SBIR or STTR program funding in order to remain eligible for a new Phase I or Direct-to-Phase II award, where that SBC has received more than 25 Phase II awards during the five most recently completed fiscal years, excluding the current fiscal year. The revised benchmark will supersede the benchmark announced at 78 FR 48537 and 78 FR 59410. This requirement is issued under the authority of Section 9 of the Small Business Act.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
New SBIR/STTR Commercialization Revenue Test
If your small business has received more than 25 Phase II awards during the five most recently completed fiscal years (excluding the current fiscal year), you must show a non-SBIR revenue share equal to at least 33% for the three most recent fiscal years to pass the Fiscal Year 2027 assessment and at least 50% for the three most recent fiscal years for Fiscal Year 2028 and each year after. "Non-SBIR revenue share" is the percent of total company revenue not from Phase I or Phase II SBIR/STTR funding (it does include Phase III awards and other non-SBIR government or private sales).
One-Year Ineligibility Penalty for Failing Test
If an SBC fails to meet the applicable non-SBIR revenue share threshold, it is not eligible to submit a proposal for a new Phase I or Direct-to-Phase-II award from any participating agency for one year starting on the date the determination is made.
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