DOE Opens $147 Million in SBIR-STTR Phase II Funding

The U.S. Department of Energy (DOE) has opened two significant funding opportunities for small technology firms. On July 22, 2026, the agency announced approximately $147 million in available Phase II funding under its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The same day, it launched a new Phase I 'Genesis Mission' opportunity focused on four advanced technology areas.

These competitive, non-dilutive grant programs are designed to support American small businesses in developing innovative technologies with commercial potential. The DOE recently consolidated management of the SBIR and STTR programs into its Office of Technology Commercialization (OTC). According to the DOE, this move reflects a focus on moving taxpayer-funded research toward real-world impact and accelerating commercialization.

Current Funding Opportunities

The newly opened FY25 Phase II funding pool of about $147 million is intended to help eligible small businesses advance technologies toward commercialization. The DOE states that eligible recipients of prior Phase I, Phase II, and Follow-on Phase II awards will receive direct outreach with application details.

Separately, the FY26 Phase I Genesis Mission opportunity seeks to support an anticipated 40 awards. These projects will focus on four specific topic areas outlined by the department.

This initial Phase I release precedes a broader funding opportunity expected later in the fall of 2026.

Program Structure and Recent Changes

The SBIR and STTR programs operate through a competitive, phased process. Companies first receive funding to establish technical feasibility in Phase I. Successful projects can then secure Phase II funding for further development and prototyping. Phase III involves pursuing commercialization and follow-on opportunities without direct SBIR/STTR funding.

Participation is limited to for-profit U.S. Small businesses that meet Small Business Administration eligibility requirements. The programs were recently extended by Congress. The Small Business Innovation and Economic Security Act (S. 3971) was signed into law on April 13, 2026, extending the SBIR and STTR programs through Fiscal Year 2031.

The DOE coordinates its program implementation with the U.S. Small Business Administration. The agency states that currently active projects will not be impacted by the management shift to the OTC, and all projects awarded prior to March 2026 will continue under the same points of contact.

Future Focus and Resources

The DOE indicates that future SBIR and STTR opportunities will address national challenges in areas including advanced manufacturing, biotechnology, critical materials, quantum information science, semiconductors, and energy innovation. The department encourages small businesses to subscribe to the OTC SBIR/STTR newsletter for updates.

Key resources for applicants include guidance on essential registrations, commercialization support, and information on combating fraud. The DOE also notes that program policy factors may be considered alongside expert scores when determining funding recipients. The agency invites feedback and recommendations via email at sbir-sttr@hq.doe.gov.