From Phase I to Phase II: A Guide to Advancing Your NIH SBIR Research and Development Efforts

August 14, 2025 · 3 min read

Rachel Nguyen

Cover image

Introduction to Advancing Your NIH SBIR Research and Development Efforts

The National Institutes of Health (NIH) Small Business Innovation Research (SBIR) program is a highly competitive funding opportunity for small businesses to engage in innovative research and development efforts. As a grant proposal writing instructor, I have seen many applicants struggle with the transition from Phase I to Phase II of the program. In this blog post, I will provide practical advice and best practices to help you successfully advance your NIH SBIR research and development efforts.

Understanding the Difference Between Phase I and Phase II

Before diving into the tips and best practices, it is crucial to understand the difference between Phase I and Phase II of the NIH SBIR program:

Phase I

Phase II

Best Practices for Advancing from Phase I to Phase II

1. Demonstrate Progress and Success in Phase I

To successfully advance to Phase II, it is essential to demonstrate the progress and success of your Phase I research and development efforts. This includes providing evidence of technical feasibility, proof-of-concept, and preliminary data that supports the potential for commercialization.

For example, if your Phase I project focused on developing a novel drug delivery system, you should provide data on the system's effectiveness in delivering the drug, its safety, and any preliminary results from animal studies or clinical trials.

2. Develop a Comprehensive Commercialization Plan

A strong commercialization plan is a key component of a successful Phase II proposal. This plan should include:

3. Assemble a Strong Team and Collaborators

The expertise and experience of your team and collaborators can significantly impact the success of your Phase II proposal. Be sure to:

4. Address Reviewer Feedback from Phase I

Incorporating reviewer feedback from your Phase I proposal can strengthen your Phase II application. Be sure to:

Conclusion

Successfully advancing from Phase I to Phase II of the NIH SBIR program requires a strong understanding of the program's objectives, a demonstration of progress and success in Phase I, and a well-developed commercialization plan. By following these best practices and seeking guidance from experienced grant proposal writing instructors, you can increase your chances of securing funding for your innovative research and development efforts.

Granted's AI coaching is built to help you navigate the Phase I-to-Phase II transition -- from presenting your feasibility data to building the detailed commercialization narrative reviewers expect. Learn how Granted supports SBIR applicants.

Keep Reading


Ready to find and win your next grant? Granted AI searches 85,000+ opportunities, analyzes your RFP, coaches you through each section, and runs AI committee review before you submit. Start free -- no credit card required.

Get AI Grants Delivered Weekly

New funding opportunities, deadline alerts, and grant writing tips every Tuesday.

Browse all SBIR grants

More SBIR Articles

NASA's SBIR/STTR BAA Pivot and the May 21 Deadline: Why a 50% Phase I Increase Changes the Competitive Math

NASA released its 2026–2027 SBIR/STTR Broad Agency Announcement on April 17, with Appendix 2026A/B Phase I submissions closing May 21 at 5pm ET. Phase I awards rose 50% to $225K, Phase II to $1.275M, and the BAA replaces the old annual solicitation with continuous appendix releases. Here is what the structural shift means for small-business strategy.

Read article

DARPA's June 3 Quadruple: Four BTO SBIRs That Sketch the Future of Distributed Battlefield Medicine

On June 3, 2026, four DARPA Biological Technologies Office SBIR topics close simultaneously — SWiFT, BARK, EXPOSITION, and Medical Swarm Robotics. Combined Phase I plus Phase II potential exceeds $6 million per company, and together they sketch a coherent strategy of distributed, autonomous, dual-species combat casualty care that depends on small businesses, not primes, to actually build.

Read article

SBIR's $30 Million Strategic Breakthrough Awards Aren't a New Grant. They're the End of SBIR as Pure Research Funding.

The Strategic Breakthrough Awards mechanism authorized in the February 2026 SBIR reauthorization is the first post-Phase II funding instrument in program history. The mandatory 100 percent private match and the four-year performance window reposition SBIR from research subsidy to commercialization accelerator — and small businesses that do not understand that pivot will fail to compete for the first solicitations in Q4.

Read article

Not sure which grants to apply for?

Use our free grant finder to search active federal funding opportunities by agency, eligibility, and deadline.

Find Grants

Ready to write your next grant?

Draft your proposal with Granted AI. Win a grant in 12 months or get a full refund.

Backed by the Granted Guarantee