The SBIR program is a non-equity based funding mechanism for startups working on technologies that need time and resources to develop to the point where they are ready to raise equity based funding.
Following is the description on the official SBIR.gov website:
"The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs."
This article builds on content developed by the Martin Trust Center for MIT Entrepreneurship for MIT's Orbit Knowledgebase and is licensed under CC BY-NC-SA 4.0.