Accurate timekeeping and labor cost allocation are vital for SBIR/STTR compliance, as labor often constitutes a significant portion of project budgets.

A Fictionalized Story of Real Events The Email That Stopped My Heart It was a Tuesday morning when the email landed: “Your SBIR grant is under audit.” My stomach dropped. Our small medical device startup had poured everything into a $275,000 Phase I grant from the...

Transitioning from an FFP to a CPFF award in the SBIR program presents significant accounting challenges, including detailed cost tracking, accurate indirect rate calculation, increased documentation, robust internal controls, and strict compliance with the FAR and DCAA regulations.

SBIR and STTR recipients must navigate accounting challenges and establish robust, DCAA-compliant accounting systems.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are vital lifelines for innovative startups, providing non-dilutive funding to fuel research and development (R&D). However, for several years, federal tax law,...

The transition from basic accounting and indirect rates for FFPs to the complex and comprehensive compliance systems for CPFF agreements requires time and investment.

Build compensation structures based on truthful, supportable, and fully paid wages, and you’ll not only stay compliant, you’ll strengthen your credibility with federal agencies and build a solid foundation for long-term funding success.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs offer funding to small businesses working on cutting-edge research and development (R&D). These federal programs help entrepreneurs bring new technologies to life,...

This article presents a fictionalized account of a recent client’s experience before our collaboration. The Call That Shook My World I’ll never forget the phone call that came at 9 a.m. on a rainy Monday. “We’re auditing your SBIR grant,” the voice said. My heart...

Proper documentation serves as the foundation for audit readiness, providing objective evidence of financial transactions, operational processes, and compliance activities that auditors and regulators rely on to verify accuracy, completeness, and adherence to rules.

SBIR and STTR Recipients are required to comply with various federal regulations and policies. Below is a list of common compliance requirements for SBIR and STTR recipients: Eligibility Requirements Small Business Status: The applicant must be a small business as...

After countless failures, the device finally hums to life, delivering the exact results they’d hoped for. In that moment, Sarah doesn’t just celebrate a breakthrough—she’s just “reduced her invention to practice.”

Protecting intellectual property (IP) and managing data rights are crucial for small businesses participating in the SBIR/STTR programs, as these federal grants support innovative R&D with commercial potential.

At its core, the requirement to comply with all laws and regulations means that your business must adhere to the specific terms of the SBIR or STTR contract and a vast array of other federal, state, and local laws that govern business operations.

Navigating the Compliance Terrain As a small business navigating the intricacies of federal funding, securing an award through the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs is a significant achievement. These...

The Trump administration’s revolutionary overhaul of the Federal Acquisition Regulations (FAR), announced in April 2025, is reshaping the federal procurement landscape. With nearly $1 trillion in annual federal contracts at stake, this transformation focuses on:...

Turning groundbreaking research into a successful startup is exhilarating but demanding. As a university spinout founder, academic systems no longer insulate you; you’re entirely accountable for navigating the legal and regulatory landscape. Understanding and mastering these rules is critical to ensuring your startup’s survival and growth.

ermination clauses in government funding agreements are fundamental risk management tools that protect federal interests while providing mechanisms to ensure accountability and transparency. Whether operating in academia, industry, or non-profit sectors, recipients must understand these provisions and implement robust compliance and response strategies. Proactive awareness of the potential for termination, whether for cause or convenience, can help organizations safeguard funding and maintain positive relationships with government agencies.

The Department of Defense (DoD) updated its data rights regulations and contract clauses for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

What Founders and Small Businesses Need to Know Compensation structures can be both a strategic decision and a compliance challenge for small businesses navigating the SBIR (Small Business Innovation Research) or STTR (Small Business Technology Transfer) funding...

Using stipend-funded MBA interns offers small businesses a cost-effective way to leverage talent, but it introduces significant IP risks, particularly when university agreements conflict with company needs.

The SBIR/STTR fixed fee is a powerful tool, whether a margin on a fixed-price award or a fixed profit on a CPFF contract. Managed correctly, it allows your business to grow, innovate, and invest in sustainability. Mismanaged, it can lead to compliance trouble or even funding loss.

Treat the Fixed Fee as a strategic asset, not just extra cash. Know your contract type, track costs, and build a resilient funding model that supports both innovation and compliance.

Several companies recently asked me to help with a serious but avoidable compliance issue: misrepresenting labor rates in federal grants. This often happens by mistake, but it can lead to major legal and financial trouble, especially for those applying for competitive...

If you're preparing proposals for future work while managing a Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) award, it's essential to understand how Bid and Proposal (B&P) costs fit into your indirect cost structure. Under...

Navigating Liability in Grant Writing Who Bears the Liability for False Statements? Securing grant funding can be a game-changer for small businesses, particularly in programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer...

Small businesses must ensure correct invoicing and labor cost reporting when navigating the SBIR program. The federal government provides grants and contracts to support R&D. Invoicing these costs can be confusing, especially for direct labor. Direct labor costs...

Securing a grant through the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs is a significant milestone for any small business. These programs provide essential funding to support research and development (R&D) in...

Submitting your first SBIR (Small Business Innovation Research) or STTR (Small Business Technology Transfer) proposal can feel daunting. These highly competitive federal programs offer small businesses the chance to develop innovative technologies with funding from...