Notice2026-17987
Updated Minimum Performance Standards for Commercialization for Firms That Receive Funding Through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs
Primary source
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Published
September 2, 2026
Effective
November 15, 2026
Issuing agencies
Small Business Administration
Abstract
The U.S. Small Business Administration (SBA) is publishing for public comment updated minimum performance standards for commercialization for firms funded through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. This commercialization benchmark establishes a minimum share of annual revenue that a Small Business Concern (SBC) must derive from sources other than SBIR or STTR program funding in order to remain eligible for a new Phase I or Direct-to-Phase II award, where that SBC has received more than 25 Phase II awards during the five most recently completed fiscal years, excluding the current fiscal year. The revised benchmark will supersede the benchmark announced at 78 FR 48537 and 78 FR 59410. This requirement is issued under the authority of Section 9 of the Small Business Act.
Full Text
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<title>Federal Register, Volume 91 Issue 169 (Wednesday, September 2, 2026)</title>
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[Federal Register Volume 91, Number 169 (Wednesday, September 2, 2026)]
[Notices]
[Pages 56536-56537]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17987]
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SMALL BUSINESS ADMINISTRATION
Updated Minimum Performance Standards for Commercialization for
Firms That Receive Funding Through the Small Business Innovation
Research (SBIR) and Small Business Technology Transfer (STTR) Programs
ACTION: Notice and request for comment.
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SUMMARY: The U.S. Small Business Administration (SBA) is publishing for
public comment updated minimum performance standards for
commercialization for firms funded through the Small Business
Innovation Research (SBIR) and Small Business Technology Transfer
(STTR) Programs. This commercialization benchmark establishes a minimum
share of annual revenue that a Small Business Concern (SBC) must derive
from sources other than SBIR or STTR program funding in order to remain
eligible for a new Phase I or Direct-to-Phase II award, where that SBC
has received more than 25 Phase II awards during the five most recently
completed fiscal years, excluding the current fiscal year. The revised
benchmark will supersede the benchmark announced at 78 FR 48537 and 78
FR 59410. This requirement is issued under the authority of Section 9
of the Small Business Act.
DATES: The standards take effect November 15, 2026, and when published
on <a href="http://www.sbir.gov">www.sbir.gov</a>.
Comment date: Comments to this notice must be received on or before
October 31, 2026.
ADDRESSES: Send all comments to Joshua Carter, Associate Administrator,
Office of Investment and Innovation, Small Business Administration,
Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT: Joshua Carter, Associate
Administrator, Office of Investment and Innovation, (800) 827-5722,
<a href="/cdn-cgi/l/email-protection#4a3e2f2922242526252d330a39282b642d253c"><span class="__cf_email__" data-cfemail="9ce8f9fff4f2f3f0f3fbe5dceffefdb2fbf3ea">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background. Under section 9 of the Small Business Act, 15 U.S.C.
638(qq)(2), each participating agency must establish a measurement
system and minimum performance standard for progress towards Phase III
success and evaluate covered SBCs annually. Each agency submits its
system and standard to SBA, and the Administrator must approve each
standard and ensure it meets a de minimis level. Notice and comment are
required before a system, standard, or approval takes effect per 15
U.S.C. 638(qq)(4), (5). SBA is updating the de minimis level and has
approved the benchmark described below for the 11 participating
agencies.
Trigger. The updated minimum performance standard applies to any
SBC that has received more than 25 Phase II awards (SBIR and STTR
combined, across all participating agencies) during the five most
recently completed fiscal years, excluding the current fiscal year.
Measurement. For the purposes of this benchmark, ``non-SBIR revenue
share'' means the percentage of the small business concern's total
revenue, that is not derived from Phase I or Phase II SBIR or STTR
award funding. Non-SBIR revenue includes revenue received from awards
made under the Phase III authority of the SBIR and STTR programs at 15
U.S.C. 638(r). The denominator for this calculation is the SBC's total
company revenue from all sources within the three most recent fiscal
years excluding the current fiscal year.
Phased Implementation. SBA will phase in the minimum non-SBIR
revenue share required to pass this benchmark as follows:
<bullet> Fiscal Year 2027 assessment: An SBC subject to this
benchmark must demonstrate a non-SBIR revenue share
[[Page 56537]]
of at least 33 percent during the three most recent fiscal years
excluding the current fiscal year.
<bullet> Fiscal Year 2028 assessment and each fiscal year
thereafter: An SBC subject to this benchmark must demonstrate a non-
SBIR revenue share of at least 50 percent during the three most recent
fiscal years excluding the current fiscal year.
For example, if a company received 30 Phase II awards across Fiscal
Years 2022 through 2026, it would be subject to this benchmark at the
June 1, 2027, determination. If, for the three most recent fiscal
years, the company reports total revenue of $4,000,000, of which
$800,000 came from private commercial sales, $300,000 came from an
award made under Phase III authority from a federal agency, and
$100,000 came from another government contract, for a combined non-SBIR
revenue of $1,200,000, the company's non-SBIR revenue would represent
30 percent of their total revenue, and thus the company would not meet
the 33 percent Fiscal Year 2027 threshold and would be subject to the
consequence described below. Note that the private commercial revenue
and all non-SBIR government funding count toward the 30 percent figure
under this benchmark's definition of non-SBIR revenue. Beginning with
the Fiscal Year 2028 assessment, that same company would need to reach
a 50 percent non-SBIR revenue share during the three most recent fiscal
years to pass.
Consequence of Failing to Meet the Benchmark. An SBC that fails to
meet the applicable minimum non-SBIR revenue share threshold is not
eligible to submit a proposal for a new Phase I or Direct-to-Phase-II
award from any participating agency during the one-year period
beginning on the date on which the determination was made.
Section 9(qq)(4) of the Small Business Act requires that each
system and minimum performance standard established under Section
9(qq)(1) or (qq)(2) be submitted to, and approved by, the SBA
Administrator, who must ensure that the minimum performance standard
exceeds a de minimis level. SBA is required to publish, at least 60
days before becoming effective, the system and performance standard to
be used, and the approval by SBA. SBA will review all comments received
in response to this notice and issue the final commercialization
benchmark requirement within the timeframe noted above in the DATES
section of this notice. That requirement will be published at
<a href="http://www.sbir.gov">www.sbir.gov</a>, consistent with 15 U.S.C. 638(qq)(4)(A).
Joshua Carter,
Associate Administrator.
[FR Doc. 2026-17987 Filed 9-1-26; 8:45 am]
BILLING CODE 8026-09-P
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