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

Can I purchase equipment with SBIR funds?

18 Dec 2023 · 1 min

Watch on YouTube

0:54

In this segment, Stacy Chin explains that SBIR (Small Business Innovation Research) funding is generally not suitable for buying large, expensive equipment—specifically items over roughly $5,000. The U.S. government imposes strict limits on such purchases to ensure SBIR money is directed toward research and development (R&D) activities that foster innovation and commercialization, rather than the acquisition of costly systems or facilities. These restrictions also serve to reduce the risk of fund misuse or fraud. Startups seeking substantial equipment purchases should consider alternative funding sources.

Chapters

SBIR funding may not provide enough resources and support to purchase large equipment. And although some equipment can be purchased with these funds, if your startup is looking for funding to purchase a lot of huge equipment that costs over $5,000 each, then SBIR funding may not be the best fit for you. And this is because the US government have placed really strict limitations on the purchase of really large equipment so that the SBIR funding can go towards R&D efforts instead of the acquisition of large items systems and facilities. And by restricting the use of funds in this manner, the U.S. government hopes that SBIR money go towards R&D research to develop new innovations that have strong potential for commercialization and for the public benefit. Another reason for this limitation is that the U.S. government wants to avoid the risk of misuse of funds or fraud by limiting the use of these funds for certain activities.