FUNDING INNOVATION: SBTDC HELPS SMALL BUSINESSES UTILIZE SBIR FUNDING TO DEVELOP NEW TECHNOLOGIES.

• Position: RESEARCH: NORTH CAROLINA: SMALL BUSINESS AND TECHNOLOGY DEVELOPMENT CENTER

The higher the risk, the less funding that is available. Such is the quandary of every entrepreneurial, innovation-driven small business that is seeking R&D funding to develop a technology. Triangle Environmental Health Initiative (TE) in Durham and OpiAID in Wilmington are two companies that have faced this challenge.

Enter the Small Business Innovation Research (SBIR) program, a highly competitive three-phase award system that rewards technological innovation of small businesses in critical needs of the federal government. Enacted in 1982, federal agencies with more than $100 million in extramural R&D are required to set-aside 3.2% of their budget for the SBIR program.

SBIR has played a significant role in funding early-stage innovations that are deemed too risky for other entities, such as equity investors and banks. Over $1.4 billion has been awarded to innovation-driven small businesses in North Carolina since the program was launched.

Small businesses that earn Phase I awards can obtain a maximum of $256,000 over six months to fund concept development and feasibility studies. Phase II awardees can receive up to $1.5 million to work on protype development of their technology. Eleven federal agencies currently participate in the SBIR program.

The North Carolina SBTDC is equipped to help small businesses tap into the opportunity that the SBIR program provides. Founded in 1984, the SBTDC was the first Small Business Development Center in the nation to be officially recognized as providing specialized technology commercialization services. The SBTDC is a business and technology extension program of the UNC System, administered by NC State University and operated in partnership with the U.S. Small Business Administration.

The SBTDC's Technology Development and Commercialization program assists eligible small businesses with incorporating SBIR into their funding strategies, identifying appropriate agencies and topics, and providing proposal reviews. The SBTDC also regularly offers SBIR workshops across the state and online.

"We take a holistic approach towards serving our clients," said John Ujvari, SBIR/STTR Specialist at the SBTDC. "We see businesses as a whole and provide education and counseling when specific needs arise. Thousands of innovators have attended our trainings and utilized our one-on-one counseling services."

Resources available to North Carolina small businesses through the SBIR program have grown in recent years, as...