# DoD Funds Small-Business Prototypes

The Department of Defense’s Small Business Innovation Research (SBIR) program offers small businesses a staged route from technical concept toward a potential DoD contract: Phase I supports proof of concept, and Phase II funds prototype development. DoD SBIR/STTR topics are posted online, giving prospective applicants a concrete source for identifying areas of interest and shaping submissions to agency needs.

- Small businesses should review posted DoD SBIR/STTR topics and assess whether their technology aligns with a specific solicitation before investing in an application.
- The Phase I-to-Phase II structure supports staged development, but participation does not itself guarantee a follow-on contract or procurement award.
- Procurement professionals and industry stakeholders can use the program as an indicator of DoD demand for emerging technologies and a potential entry point for small-business innovation.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** November 01, 2026

### Government Entities
- Department of Defense (DoD)

### Sources
- [Can he sell it to DoD? Yes, and there's a known path from prototype to first contract.

Step 1: SBIR. Small business grants-turned-contracts. Phase I proves the idea works, and Phase II builds the prototype. Topics post on the DoD SBIR/STTR site (https://t.co/tVd0vdgtUH).](https://x.com/scottkbryant/status/2116885288366817516) - twitter-defense