ED/IES SBIR Phase II

ED/IES SBIR Phase II (Standard — Phase I Graduates)

Supports United States education small businesses turning early feasibility into commercially viable offerings.

The ED/IES SBIR Standard Phase II program awards $1,000,000 over 2 years to small businesses that have completed a Phase IA or Phase IB contract and are ready to advance to full-scale product development. Phase II is the primary commercialization stage within the IES SBIR pipeline: it requires awardees to produce a fully developed, commercially viable education technology product, demonstrate implementation in real educational settings, and deliver a formal commercialization plan. Both Phase IA graduates (novel technology) and Phase IB graduates (component on existing product) are eligible to apply for this standard Phase II track.

IES administers Standard Phase II under the same annual $13 million SBIR budget that covers all tracks. Since the program's founding in 2002, IES has awarded 99 Phase II contracts, compared with 258 Phase I awards — indicating that roughly 38% of Phase I awardees have advanced to Phase II historically. Up to one-half of the Phase II funds ($500,000) may be directed to a nonprofit or research-institution partner as a subaward. Applicants must retain the same U.S.-based, for-profit, small-business structure required at Phase I: 500 or fewer employees, at least 51% U.S. citizen/permanent resident ownership, and a principal investigator employed at the company at least 51% of the time.

Phase II proposals should demonstrate prototype feasibility established during Phase I, specify measurable product development milestones across the 2-year period, and present a realistic path to market adoption by schools or districts. Phase III — private-sector commercialization — receives no government SBIR funding, so applicants are expected to identify follow-on funding sources before Phase II concludes. The strongest applications show prior-phase results, documented user testing in educational settings, and named commercial or distribution partners.