TL;DR
NSF’s SBIR/STTR budget expectations have always been strict, but some new specifics, and clarifications, have surfaced during the JIT (Just-in-Time) process for one of our clients. This post unpacks four major takeaways to save you from painful budget revisions.
What Changed, and What Was Probably Always True
As our clients work through the a JIT phase of an NSF SBIR award, several budget requirements stood out. Some are formal changes under this new administration, others might be policies hiding in plain sight for years. Regardless, they’re catching some applicants off guard and could sink your proposal if overlooked.
#1. No Hourly Rate Cap, but There Is a Hard Two-Month Limit for Senior Personnel: Let’s start with personnel. Contrary to what some might assume, NSF does not impose a strict hourly rate cap (like $125/hour) for senior personnel. Instead, salaries must be aligned with BLS medians for the position and location, and the role must be tied to technical R&D.
💡 Key Detail: Senior personnel can only claim two months of salary. NSF doesn’t care if you’re the CEO, if it’s not R&D, you’re not getting paid through SBIR funds.
#2. Say Goodbye to Publication Services: If your budget includes costs for journal publications or dissemination, stop right there. NSF has explicitly removed publication services from the list of allowable costs.
#3. “Other” Costs? Now Just Three Things. That big gray area known as “Other” (Line G. Other Direct Costs – Other) is no longer the Wild West. It’s now clearly limited to just three approved activities:
- CPA services (up to $10,000) for items like, but not limited to, reviewing financials, preparing audited, compiled, or reviewed financial statements, etc.
- I-Corps participation (up to $25,000). You are strongly encouraged to budget up to an additional $25,000 to cover costs related to undertaking the I-Corps program.
- Technical and Business Assistance (TABA) (up to $6,500) You are encouraged to include up to $6,500 to assist in technology commercialization efforts (as outlined in the current SBIR/STTR Policy Directive and H.R.5515 – 115th Congress (2017-2018): John S. McCain National Defense Authorization Act for Fiscal Year 2019. (Hint!! We can provide you with TABA Services.)
Everything else? Not allowed. No creative accounting here. Not that we were doing that before, but once in a while, we would have a client with an item that was germane to the project, that didn’t fit anywhere else.
#4 Travel? Keep It Tight: Planning to budget for multiple conferences or meetings? Think again. NSF only allows up to $4,000 total for two team members to attend the mandatory onboarding workshop. All other travel? Must be absolutely essential to R&D and justified meticulously—or removed.
Why This Matters
Failing to meet these updated (or now-strictly-enforced) expectations during JIT can delay your award, slash your funding, or worse—derail your chances entirely. Don’t assume old templates or “how we did it last year” will cut it.
The Solution: Get Help Before You Submit
Navigating the NSF budget process isn’t for the faint of heart. That’s why we help our clients align their budget and justification from day one—so surprises don’t show up at JIT.
🗓️ Ready to de-risk your submission? Schedule a consult call today. We’re here to help you clear the NSF’s hurdles the first time around.
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