# NIH Resumes SBIR Funding in North Carolina

The Small Business Innovation Research (SBIR) program, after a five-month funding pause caused by Congressional delays, has resumed awarding grants to startups, including those in the Triangle region such as Social Cascade. Federal agencies like the National Institutes of Health (NIH) are distributing multi-million dollar awards, with Social Cascade securing approximately $2.5 million in 2026. However, the program faces a significant backlog and new procedural challenges, including foreign risk assessments and resubmission requests, which are delaying timely funding distribution. These developments impact research-driven small businesses relying on non-dilutive federal funding to advance innovation.

- Procurement professionals should anticipate continued delays and increased scrutiny in SBIR grant processing, affecting award timelines and contract execution.
- Startups and contractors in North Carolina and similar innovation hubs must prepare for extended review cycles and potential resubmission requirements.
- Agencies and grant managers should consider streamlining foreign risk assessment processes to reduce backlog and improve funding flow.
- Businesses can leverage this funding resumption to align their federal grant strategies but should remain cautious given the ongoing procedural complexities.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Grants & Funding
**Published:** September 22, 2026

### Government Entities
- National Institutes of Health (NIH)
- Congress

### Vendors
- Social Cascade (awardee)

### Key Quotes
> With everything that’s happened in the past few years… I think our federal grant strategy has always been, don’t count those chickens before they hatch.
> — Lucy Shores Kosturko, Co-founder of Social Cascade

> Very highly scored applications are being rejected without any reason being given.
> — Eva Garland, Head of Eva Garland Consulting

### Sources
- [Triangle startups secure SBIR funding following program halt - Bizwomen](https://www.bizjournals.com/portland/bizwomen/news/latest-news/2026/09/ai-startup-scores-millions-plots-hires.html) - The Business Journals