There’s a source of funding that many USDA clients know little about – the Small Business Innovation Research (SBIR) program. Every year USDA provides ~ $27,000,000 to small businesses to address the problems of rural America. These small businesses include small and mid-sized farms, ranches and start-ups formed to solve a local problem such as water pollution, care for the elderly, or educating the young. Other small businesses are started by scientists and engineers – many of whom graduated from the nation’s Land Grant Universities including the 1890 historically black colleges and universities and the 1994 tribal colleges and universities.

The SBIR awards are provided competitively. Phase I awards are up to $100,000 for concept development and Phase II awards are up to $600,000. Many SBIR award winners have successfully used SBIR funding to develop new products and/or services. The dilemma is that not enough small businesses know about the SBIR program and some states don’t win very many awards.