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

Don't screw up your SBIR/STTR budget

13 Apr 2026 · 1 min

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1:09

In this instructional video, Stacy Chin explains how to construct a proper budget for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grant applications. She outlines the three budgeting categories that must be addressed: direct costs (salaries, materials, equipment, travel—expenses directly tied to the R&D work), indirect costs (overhead such as rent, administration, compliance, and operations, applied as a percentage on top of direct costs), and the small business fee (a fixed additional percentage, typically about 7%). Stacy emphasizes the correct sequencing: first calculate and allocate direct costs, then apply the indirect cost rate to that total, and finally add the small business fee. The video serves as a concise guide to avoid common budgeting mistakes and ensure compliance with agency requirements.

Chapters

When budgeting for an SBIR and STTR application, there are 3 budgeting categories to consider. Like me, the direct costs. And me, the indirect costs. And me, the small business fee. Under the direct costs, these are typically the expenses where the real work happens. You know, like salaries, materials, equipment, travel, everything directly tied to building and executing your research and development efforts. We don't want those things under the indirect costs. These are the expenses that are needed to keep the engine running but are not directly tied to your proposal. Think about things like rent, admin, compliance, and operations. Think of me as a fancy profit margin built into your budget and want to ensure that your company's working and most importantly, growing. When you tackle the budget, take care of my expenses first. After you take care of the direct costs, Apply a percentage on top of your direct work, and then that's me, your indirect costs. Combine those first two, and I'm typically applied as a fixed additional percentage for the small business, usually around 7%.