SMALL BUSINESS INNOVATION
RESEARCH (SBIR) PROGRAM

The Small Business Innovation Research (SBIR) program at the U.S. Department of Agriculture (USDA) makes grants that are competitively awarded to qualified small businesses for the purpose of supporting high quality research proposals containing advanced concepts related to important scientific problems and opportunities in agriculture that could lead to significant public benefit if the research is successful. The SBIR Program does not make loans and does not award grants for the purpose of helping a business get established. SBIR Phase I grants are limited to $80,000 and a duration of 6 months. For a full description of the program, please refer to the Fiscal Year 2003 Program Solicitation which can be found at the website below.

SBIR proposals are solicited from the full range of topic areas. Topic areas that apply to farmers' markets include Food Science and Nutrition, Rural and Community Development, and Marketing and Trade. For a full description of each of these topics see the 2003 Program solicitation at the website below. It is USDA's intention to provide sufficient flexibility to obtain the greatest degree of creativity and innovation possible, consistent with overall SBIR and USDA program objectives. Proposals are encouraged that focus on problems dealing with bioterrorism and homeland security, especially as these issues relate to rural communities.

Although no grants have been given to farmers' markets in the recent past, USDA specifically asks for creativity and innovation in grant proposals, and farmers' markets clearly fit into the topic areas of Food Science and Nutrition, Rural and Community Development, and Marketing and Trade. For a full list of recent grant recipients go to the website below.

Funding
USDA expects to make approximately 90 Phase I awards ranging up to $80,000 each to small businesses in FY 2003, depending upon the availability of funds. Awards are expected to be made on or before May 15, 2003.

USDA will announce the names of those concerns receiving awards, and successful proposals will then normally have 6 months after awards are made to carry out their proposed Phase I effort. USDA expects to make approximately 35 Phase II awards ranging up to $300,000 each to previous USDA Phase I awardees, depending upon the results of the Phase I efforts, the scientific and technical merit of the Phase II proposal, and the availability of funds.

Next Round of Funding
The Fiscal Year 2003 USDA SBIR Program Solicitation is CLOSED. The Fiscal Year 2004 solicitation is expected to open in June 2003. Use the Fiscal Year 2003 Program Solication located at the website below as a guide in preparing a proposal for the next open soliciation as topic areas will remain the same and program guidelines will have few changes.

To find out more about this program, including information on applying for a grant go to: www.reeusda.gov/sbir/