Top 3 SBIR Application Tips Every Founder Should Know
Don't let your SBIR proposal fail. Learn co-founder-backed tips on non-dilutive funding, including a critical three-month preparation window and the secret to leveraging rejection into a win.
Written by Scout Editorial Team
If you're preparing your first Small Business Innovation Research (SBIR) proposal, you're probably realizing just how much goes into it. Between crafting a compelling technical narrative, assembling your research team, and staying on top of the countless documents, the process can feel overwhelming.
At Scout, we've helped hundreds of founders streamline their SBIR submissions — and we've learned where most first-time applicants get stuck. To save you time (and stress), our cofounder shared the three most important lessons from over a decade of SBIR experience — both as a grant recipient and consultant.
Here's what every founder should keep in mind before hitting "submit."
1. Get Your Letters of Support Early
One of the most overlooked — yet powerful — parts of an SBIR application is the letter of support. These letters validate your idea, demonstrate market need, and signal credibility to reviewers.
Think of them as third-party endorsements that prove your innovation has real-world traction. Strong letters can come from:
Type of Supporter | Why It Matters | Example |
|---|---|---|
Key Opinion Leaders | Add scientific or technical credibility | A leading oncology researcher endorsing your cancer therapeutic |
Potential Customers | Demonstrate market pull and demand | A hospital expressing interest in your medical device |
Strategic Partners | Highlight collaboration and scalability | A manufacturing partner confirming interest in commercialization |
Investors or Advisors | Show business acumen and support | An angel investor vouching for your startup's potential |
Pro Tip: Start collecting these letters early. They often take longer than expected — sometimes weeks or months — especially from busy experts or institutions.
The fastest way to get them? Write them yourself. Draft a letter that aligns with your SBIR narrative and send it to your contacts for review and signature. This saves time and ensures consistency in messaging.
Need examples? You can find SBIR letter templates and samples on keepyourequity.co.
2. Give Yourself Plenty of Time — More Than You Think
Preparing a strong SBIR application takes significantly longer than most founders anticipate.
We've seen it happen countless times: founders start too late, rush through the final week, and end up with an incomplete or unfocused proposal. SBIR reviewers can tell when an application has been hurried — and it shows.
Our rule of thumb? Start at least three months before the deadline.
Here's why:
You'll need time to secure partners and subcontractors who fit your R&D plan.
Your technical approach must be refined, reviewed, and revised multiple times.
You'll go through several budget iterations to ensure compliance and accuracy.
And finally, your team and mentors will need time to provide meaningful feedback.
SBIR programs are highly competitive — and a rushed proposal rarely stands out. Give your idea the time it deserves. Planning ahead doesn't just reduce stress; it improves your odds of funding success.
3. If You're Rejected, Don't Give Up — Revise and Resubmit
Here's a truth most founders don't hear enough: most SBIR proposals are rejected the first time around.
In fact, fewer than 10% of first-time applicants receive funding on their initial submission. But the good news? Many of those who persist — and thoughtfully resubmit — end up winning the second time around.
If your proposal isn't funded:
Review the feedback carefully. SBIR reviewers often provide detailed comments on strengths, weaknesses, and areas to improve.
Look for patterns. If multiple reviewers point to the same issue — for example, unclear commercialization strategy — that's where you should focus.
Don't take it personally. Some comments can sound harsh, but they're designed to help you strengthen your next submission.
Iterate strategically. Use the feedback to improve your technical approach, expand your team's expertise, or clarify your market opportunity.
Remember, every rejection is data. The founders who win SBIRs are often the ones who treat the process like R&D itself — test, learn, and refine.
Final Thoughts: Build a Smarter SBIR Strategy
The SBIR application process can feel daunting, but with preparation, persistence, and the right strategy, it's one of the most valuable sources of non-dilutive funding available to startups.
To recap:
Secure your letters of support early.
Start your application process at least 3 months ahead.
Don't be discouraged by rejection — use it as a roadmap for improvement.
Get expert-level results without expert-level costs. Scout delivers AI-powered proposal writing with human expertise - faster, more affordable, and built to win.