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

Myth: Most founders assume federal SBIR is the gold standard || Kat Weaver (Power to Pitch)

25 Jun 2026 · 0 min

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In this segment of the Power to Pitch interview, Stacy L. Chin explains that federal grant programs like the Small Business Innovation Research (SBIR) program have strict eligibility rules that create significant red tape for founders. She outlines the key criteria: the business must have fewer than 500 employees, be based in the United States, and be majority‑owned by U.S. citizens or permanent residents. Because SBIR funds are research grants, the company must be engaged in research and development (R&D) activities. Consequently, businesses focused solely on e‑commerce or consulting typically do not qualify. The discussion highlights a common misconception that SBIR is a universal funding option for all startups.

In federal grants and contracting, there's just a lot of red tape as to who can even apply. And so, for example, in a program called the Small Business Innovation Research program or the SBIR program, there's a lot of different things you have to check. For example, are you a small business, which is defined as a company that has less than 500 employees? Are you in the US? And they want to make sure, is your team majority owned by US citizens or permanent residents? And because these are research grants, they want you to pursue R&D efforts. So if you're doing like an e-commerce store or consulting business, you may not qualify