Strategic Breakthrough Award

What is the Strategic Breakthrough Award?

The Strategic Breakthrough Award is a new, large SBIR/STTR award created by the Small Business Innovation and Economic Security Act (S.3971, Pub. L. 119-83), signed April 13, 2026. It provides up to $30,000,000 per small business concern, including affiliates, for a period of up to 48 months. Its purpose is to help small firms carry technology that has already proven itself in a Phase II project across the commercialization “valley of death” and into fielded use.

Who is eligible?

To apply, a firm must have not less than one prior Phase II award under the SBIR or STTR program. This is the single most important eligibility gate, and it is specific: a Phase I award alone does not qualify — the prior award must be a Phase II. Standard SBIR/STTR small-business eligibility (for-profit, majority U.S.-owned, within the size limits) continues to apply. The eligibility checker above cross-references your company name against the federal award records we hold and reports how many qualifying Phase II awards it finds.

The matching-funds requirement

Strategic Breakthrough Awards require the applicant to secure not less than 100% matching funds — a dollar-for-dollar match of the award amount. The match must be newly obtained: it can come from new private capital (for example, a new venture or private investment) and/or new funding from a government program other than SBIR/STTR Phase I or II. Existing capital does not count toward the match.

The Department of Defense rule

For awards made by the Department of Defense, the total match is still 100%, but at least 20% of the required match must come from new DoD non-SBIR/STTR program funding; the remaining portion may be private capital or other government funding. DoD applicants must also secure a commitment for inclusion in a Program Objective Memorandum (POM) from an official at the rank of program acquisition executive or higher. Use the matching-funds calculator to pressure-test your capital stack against both rules, including the DoD 20% floor.

Which agencies can make these awards?

Eligibility to make a Strategic Breakthrough Award is threshold-based: any agency whose annual required SBIR expenditures exceed $100 million may make them. This is not a fixed statutory list, and which agencies qualify is subject to annual appropriations. Commonly qualifying agencies (threshold-based, subject to annual appropriations) include DoD, NIH, DOE, NASA, NSF. Always confirm against the actual solicitation for the cycle you are targeting.

Frequently asked questions

This page is informational and is not legal advice. SBA and agency policy directives may refine the requirements described here. Confirm current rules with the solicitation, the SBA, and your own counsel before applying. Statutory source: Small Business Innovation and Economic Security Act (S.3971, Pub. L. 119-83), signed April 13, 2026.