Stacy L ChinFounder, KeepYourEquity · I get the government to write you checks

Budgeting Indirect Costs for SBIR grants

4 Jan 2024 · 0 min

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In this segment, Stacy Chin explains how to calculate indirect costs for an SBIR project after direct costs have been identified. She defines indirect costs as the general and administrative expenses that support the overall operation of the business but are not tied to specific project activities. These costs form the "backbone" of the organization during the project and include items such as office rent, utilities, postage, office supplies, and occasional legal consultation. The explanation sets the stage for budgeting these overhead expenses correctly within an SBIR grant proposal.

Alright, so once you've established your direct costs, it's now time to calculate the indirect costs. Indirect costs are the overarching expenses vital for the day-to-day operation of your business that are separate from the specific expenses of your SBIR project. So think of the indirect costs as kind of the backbone of your general and administrative expenses while your project is going underway. And these expenses can include office rent, utility bills, postage, office supplies, and occasional legal consultation.