Federal funding opportunities like SBIR and STTR can be transformative for early-stage startups. But writing a competitive Phase I proposal requires more than a good idea—it takes research, planning, and the kind of preparation that many small businesses can’t fund out-of-pocket. That’s why the South Dakota Governor’s Office of Economic Development (GOED) created the Proof of Concept SBIR Phase 0 Program.
TL;DR
South Dakota startups can receive up to $5,000 for activities supporting the development and submission of a Phase I SBIR/STTR proposal. Key deadlines apply: intent to apply must be submitted 6 weeks before the federal deadline; the application must be submitted 4 weeks before.
Startups need support to submit competitive federal proposals
Early-stage companies often operate with limited resources. Yet writing a compelling, agency-aligned SBIR/STTR proposal requires expert input, market validation, and time for revisions. Without dedicated funding, many founders skip key steps or submit underdeveloped proposals, missing out on transformative federal funding.
South Dakota’s Phase 0 program is built to prevent that outcome.
A Sioux Falls biotech startup leveraged South Dakota’s Phase 0 funds to refine their NIH SBIR proposal, working with expert consultants to strengthen their research plan. The result? A $256K Phase I award, opening doors to national partnerships and future Phase II funding
South Dakota provides $5,000 in Phase 0 funding for SBIR/STTR applicants
The Proof of Concept SBIR Phase 0 Program offers up to $5,000 to South Dakota-based businesses preparing a Phase I SBIR or STTR proposal. This support can cover expenses related to:
- Preliminary research
- Consultant or grant writing services
- Proposal preparation activities
However, funds may not be used to compensate company principals. The program’s purpose is to improve the competitiveness and quality of SBIR/STTR submissions originating from the state.
Secure early support and submit a stronger federal proposal
The program is ideal for startups in the concepting or pre-seed phase that are seeking their first major federal research award. With dedicated resources for proposal refinement, teams can approach federal review panels with more compelling submissions, higher quality research justifications, and better-formed commercialization plans.
Applicants must follow a clear timeline:
- Notify GOED of intent to apply at least 6 weeks before the federal SBIR/STTR deadline
- Submit the Phase 0 application at least 4 weeks before the federal deadline
- Provide a draft proposal to the South Dakota SBIR Center 1 week prior to federal submission
Without timeline-driven funding, founders miss out on critical review and preparation time
A rushed or poorly aligned SBIR/STTR proposal won’t win federal funds—no matter how promising the idea. South Dakota’s program enforces early planning with structured deadlines that keep applicants on track and ensure proposals are thoroughly reviewed before submission.
This model builds realistic pacing into the pre-submission process, giving founders the feedback and financial flexibility they need.
Use Phase 0 funds to strengthen your proposal and improve competitiveness
By applying on time and leveraging expert review from the South Dakota SBIR Center, founders can gain insights into how reviewers will evaluate their proposal. The $5,000 in funding can support a range of pre-submission tasks, giving applicants the tools to write proposals that stand out.
Applicants must be SBIR-eligible and located in South Dakota. Proposals are reviewed internally by GOED, and awards are made on a rolling basis in alignment with federal solicitation deadlines.
Planning to apply for SBIR/STTR? Start early and secure South Dakota’s support
Download the SBIR Phase 0 application PDF and review the timeline requirements. If you’re looking for help building a compliant SBIR proposal or want help navigating deadlines, schedule a consult call with our team for one-on-one strategy.
EB Howard supports founders through every stage of SBIR proposal planning
We’ve worked with startups across the U.S. to plan, write, and win SBIR/STTR awards—especially when backed by Phase 0 resources like South Dakota’s program. This initiative stands out for its structure, clarity, and commitment to high-quality proposals. If you’re in South Dakota and aiming for federal funding, now is the time to act.