The short answer. SBIR and STTR authority lapsed on October 1, 2025 and was restored by Public Law 119-83, approved April 13, 2026, through September 30, 2031. NIH Phase I awards go up to $323,090 and Phase II up to $2,153,927 under SBA guidelines. The next NIH standard due date is January 5, 2027; the next NSF full proposal deadline is November 4, 2026.

What happened in 2025 and 2026

October 1, 2025: authority expired. NIH withdrew its SBIR and STTR funding opportunities; active awards continued.
NIH held no receipt date in April 2026.
April 13, 2026: the Small Business Innovation and Economic Security Act (Public Law 119-83) extended the programs to September 30, 2031. It allows unspent FY2026 funds to be used in FY2027, creates Strategic Breakthrough Phase II awards of up to $30,000,000 with at least 100 percent matching funds, requires agencies to cap proposals per company from FY2027, and adds research security checks.
May 2026: NIH posted new parent announcements (SBIR PA-27-100, STTR PA-27-102); NSF relaunched with solicitation NSF 26-510.

NIH in 2026 and 2027

Item	Figure
Phase I (SBA guideline)	$323,090
Phase II (SBA guideline)	$2,153,927
Commercialization Readiness Pilot	$4,191,495, up to 3 years
Standard due dates (PA-27-100)	September 5, 2026; January 5, 2027; April 5, 2027
Applications per company	Up to 9 new and resubmitted Phase I, Fast-Track and Direct to Phase II applications per fiscal year
Late applications	Not accepted

Some institutes allow larger budgets (up to $700,000 for Phase I and $3,000,000 for Phase II); NIBIB, NIAMS and NIDCR follow the SBA guideline in PA-27-100.

For device companies, NIBIB lists interest in bionics, medical devices, medical simulators, robotics, imaging and point-of-care technologies. It accepts Commercialization Readiness Pilot projects but not Phase IIB. Fast-Track lets you apply for Phase I and Phase II in one application.

NSF

Item	Figure
Phase I	Up to $305,000, 6 to 18 months
Phase II	Up to $1,250,000, typically 24 months
Next full proposal deadlines	November 4, 2026; March 4, 2027; July 7, 2027
First step	An invited Project Pitch; at most two pitches per company per 12 months

How much work can go to an outside engineering firm

Program and phase	Minimum done by the small business	Third parties
SBIR Phase I	Two thirds (67%) of the research effort	Generally not more than 33%
SBIR Phase II	One half (50%)	Up to 50%
STTR	At least 40%	At least 30% by one partner research institution

NIH PA-27-100 and PA-27-102; SBA Policy Directive, May 3, 2023. SBIR deviations need written approval from the grants management officer; STTR deviations are not allowed.

PA-27-100 also states that applications involving foreign subawards or subcontracts will be deemed noncompliant. If grant money will pay for outside engineering, confirm where the work will be performed and which legal entity performs it with your program officer before you name a partner in the application.

Planning tips

Use Phase I to prove feasibility with a defined prototype and test plan; reviewers fund evidence, not ambition.
Budget engineering within the subcontract limits and keep the core research in your company.
Ask NIH program staff early which institute fits your device, and check that institute’s budget limits in the announcement.

Lisa Voronkova talked about the risks that sink medical device products on the Grant Engine roundtable.

Sources

What OVA does here, and where our responsibility ends

OVA Solutions is a medical device engineering group working under an ISO 13485:2016 certified quality system: 62 engineers, 220 devices developed, $125 per hour, offices in New York, Florida, the United Kingdom, Estonia and Ukraine. We design electronics, firmware and mechanics and take a device from concept to design for manufacturing. We are not a regulatory consultancy and not a contract manufacturer: the regulatory strategy and the submission stay with you or your regulatory consultant.

Updated on October 8, 2026.

SBIR and STTR Grants for Medical Devices in 2026