EPA SBIR Phase II

EPA SBIR Phase II

Supports small United States companies extending proven environmental technologies into broader applications through EPA follow-on innovation funding.

The EPA SBIR Phase II program funds U.S. small businesses that have already completed an EPA SBIR Phase I contract to advance their environmental technology toward commercialization. The maximum Phase II award is $400,000, delivered as a procurement contract rather than a grant. An additional commercialization option of up to $100,000 is available to Phase II recipients who secure qualifying third-party investment alongside the federal contract. In FY2024–25, EPA awarded $2.8 million in Phase II contracts across seven businesses, making Phase II competitive even among Phase I graduates.

Phase II is invitation-only — there is no public solicitation, and no entity can apply without first completing an EPA SBIR Phase I contract. The program covers the same environmental technology topic areas as Phase I: clean and safe water, air quality, land revitalization, homeland security, sustainable materials management, safer chemicals, and risk assessment. Eligible recipients are U.S.-incorporated small businesses only; nonprofits, universities, and individuals are excluded. The contract mechanism means recipients typically retain IP rights under standard SBIR rules, and no cost-sharing or matching is required.

The path to a Phase II award begins entirely in Phase I: rigorous technical execution, timely deliverables, and a compelling commercialization narrative through Phase I will determine whether EPA extends an invitation to apply for Phase II. Once invited, awardees should be prepared to demonstrate TRL progression from the Phase I proof of concept, a defined commercial partner or customer, and a deployment timeline. The optional $100,000 commercialization add-on requires evidence of third-party investment commitment. Program inquiries and listserv registration are handled through the EPA SBIR program page.