The official term we use is “small business concern.” The Eligibility Criteria are centered on location, ownership, and size. To qualify for NIH small business funding, all the following must be true of the organization at the time of award:
- Is organized for profit, with a place of business located in the United States, which operates primarily within the United States or which makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials, or labor.
- Is in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust, or cooperative, except that where the form is a joint venture, there must be less than 50 percent participation by foreign business entities in the joint venture.
(i) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). Be a concern which is more than 50 percent directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other business concerns (each of which is more than 50 percent directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States), an Indian tribe, Alaska Native Corporation (ANC) or Native Hawaiian Organization (NHO) (or a wholly-owned business entity of such tribe, ANC or NHO), or any combination of these; OR
(ii) SBIR-only. Be a concern that is more than 50 percent owned by multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these. No single venture capital operating company, hedge fund, or private equity firm may own more than 50 percent of the concern unless that single venture capital operating company, hedge fund, or private equity firm qualifies as a small business concern that is more than 50 percent directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States; OR
(iii) SBIR and STTR. Be a joint venture in which each entity to the joint venture must meet the requirements set forth in paragraph 3 (i) or 3 (ii) of this section. A joint venture that includes one or more concerns that meet the requirements of paragraph (ii) of this section must comply with § 121.705(b) concerning registration and proposal requirements.
- Has, including its affiliates, not more than 500 employees.
Check out NIAID Small Business Programs if your qualifying organization is new to NIH grant funding.