In this 2025 video, federal grants consultant Stacy Chin addresses the uncertainty surrounding U.S. government budgeting—continuing resolutions, potential shutdowns, and shifting agency priorities—and explains why startups should not pause their Small Business Innovation Research (SBIR) applications. She outlines that SBIR programs at agencies such as NIH, NSF, DOE, and DOD remain funded and operate on a use‑it‑or‑lose‑it basis, meaning money must be awarded even amid delays. Chin argues that reduced competition (as many applicants hesitate) actually improves award odds for those who submit, and that early Phase I awards are essential for accessing larger Phase II/III contracts and building credibility. She offers three concrete actions: submit proposals early and be patient with possible delays, diversify across multiple SBIR agencies and other non‑dilutive sources, and stay continuously informed on agency announcements. Throughout, she emphasizes that consistent, adaptive applicants will emerge ahead of the turmoil, and she directs viewers to her website for further resources.
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There is a lot of uncertainty in the government right now. Budget fights, potential shutdowns, shifting priorities. And if you're working on an SBIR application, you might be wondering, should I even bother? Or should I wait until things settle down? So in this video, I'm going to share my own thoughts and what you should do to prepare for your SBIR strategy in 2025. Hey guys, welcome back to the channel. If you're joining us for the first time, I'm Stacy Chin, a professional federal grants and contracting consultant who has helped to raise over $40 million of non-dilutive funding for startups developing innovations in climate, healthcare, and defense. So let's break down what is going on right now. As you may know, the government is dealing with budget uncertainties, continuing resolutions, and even a looming threat of shutdowns of different funding opportunities. So agencies are now facing some delays, more uncertainties, and are operating on reduced resources. So that means slower review times, funding gaps, and even potential shifts in research priorities. But here's the key takeaway: the SBIR program is still active. Agencies like the NIH, the NSF, the DOE, and the DOD already have allocated budgets for ongoing and upcoming funding opportunities. So while things might move a little slower, the money is still there and proposals are still being reviewed and funded to this very day. Now, you might be thinking, if things are uncertain, shouldn't I wait? Absolutely not. And here's why. One is due to less competition. Many startups and researchers are hesitant to submit any proposals right now, including SBIRs. Due to the current government uncertainties, leading to an overall decrease in overall competition. And when fewer applications are submitted, agencies still need to allocate available funding, which increases the chances of success for those who remain in the process. And this creates a really unique opportunity for dedicated applicants to stand out as reviewers have fewer proposals to evaluate, making it much easier for well-prepared submissions to gain attention. So rather seeing uncertainty as a reason to pause, startups that continue applying can position themselves ahead of the competition and improve their chances of successful SBIR funding. And here's a second reason: the funding still needs to be spent by the government. Despite governmental uncertainties, the money is still there, like we've mentioned, and they have to be awarded within particular time frames. So federal budgets, including SBIR funds, operate on a use-it-or-lose-it basis. So that means agencies have to distribute this funding opportunities to startups, even if delays or operational challenges. So if fewer startups apply due to hesitation, the available funds don't just disappear, they simply go to those who stay in the process. And this makes it an ideal time to submit applications because the funding is still available, and therefore you might have a better chance for an award. 3, we don't want to stop applying because This builds momentum for future phases. Securing an SBIR Phase I application is the first critical step of accessing larger funding opportunities, whether it's Phase II, Phase III contracts, or even the largest FOAs or BAA. And this is where significantly more capital is available to advance your research and commercialization efforts. And since a lot of Phase II funding is only available for Phase I awardees, delaying your application might mean delaying your ability to access these larger grants in the future. So you're kind of missing out on multimillion dollars of funding if you delay today. Additionally, agencies might prioritize applicants with a record of successfully completing previous SBIR applications, meaning that early participation might strengthen your long-term credibility. All right. So here's the bottom line. Startups that succeed in securing SBIR funding throughout these troubling times aren't the ones that hesitate. Rather, they are the ones that are staying consistent and adapt to the processes. So what should you do if you're worried about this current governmental situation? This is what you can do to stay ahead. One, apply early and be patient. Submit as soon as possible and expect potential delays, but don't get discouraged. Two, diversify your funding sources. Look at multiple SBIR agencies and other non-diluted funding opportunities. And three, stay informed. Keep an eye on the agency announcements, funding opportunity updates, and policy changes. And most importantly, keep submitting proposals. The worst thing now is sitting on the sidelines while other companies are pushing forward. Yes, there's turmoil in the government, and yes, this means some uncertainty, but SBIR is not going away anytime soon. Those that will keep applying and playing the game will be the ones that come out ahead. So if you're serious about SBIR funding, get ready to adapt to the current climate and keep moving forward. If you found any of these tips helpful, I would greatly appreciate it if you like this channel and subscribe so that you can learn new ways to keep your equity thriving. Throughout the fundraising journey. And also don't forget to check out our website at keepyourequity.co for more resources, advice, and tips to help you secure non-dilutive funding for your startup. Thank you for joining me today, and I'll see you in a video very soon.
