Office of Investment and Innovation

Since 1958, the mission of the Small Business Investment Company (SBIC) program has been to stimulate and supplement the flow of private equity capital and long-term debt financing that American small businesses need to operate, expand and modernize their businesses.

SBA does this by licensing and providing capital to professionally managed equity and debt investment funds as Small Business Investment Companies. SBA capital comes in the form of a government-guaranteed loan to the fund to match privately raised capital. The SBA-guaranteed loan, paired with private capital, increases access to financing for qualifying U.S. small businesses and startups while potentially improving risk-adjusted returns for private investors.

Established in 1982, the mission of the SBIR program(Link is external) is to stimulate technological innovation in the U.S. economy through the investment of federal research and development (R&D) funds into innovative high-tech US small businesses.  The SBIR statute requires federal agencies with extramural R&D budgets over $100 million to set aside a percentage of their annual extramural R&D budget for small businesses.

Established ten years after SBIR, the STTR program(Link is external) is similar, except that STTR awards are made to small businesses that pursue technological innovation through cooperative research and development with non-profit scientific and educational research institutions.  STTR requires federal agencies with extramural budgets exceeding $1 billion to set aside a percentage of their annual extramural R&D budget for SBCs that work in cooperation with universities, federally funded research and development centers, and other non-profit scientific and educational institutions.

The Regional Innovation Cluster (RIC) initiative supports the development of geographic concentrations of organizations. These clusters work together to support the growth of small businesses and their related industries. The 25 RICs across the country provide small businesses with industry-specific programming and support to help them start, scale, and grow.  

Program features

• RICs target specific industries, such as:
  • Advanced manufacturing
  • Ag tech
  • Biomedical and health
  • Photonics
  • Unmanned aerial systems
  • Critical materials
  • Cybersecurity
  • Defense
• RICs deliver a wide range of small business support services, including:
  • Market research
  • Testing facilities
  • Capital access
  • Government and commercial contracting assistance
• RICs are leaders in developing regional innovation ecosystems and connecting academia, research institutions, capital providers, local and state governments, foundations and philanthropy, and entrepreneur support organizations. This creates a robust network of support for entrepreneurs and small businesses.  

If you are a small business seeking services from an RIC or are interested in partnering with an RIC, you can learn more about the individual organizations.   

Email RICs@sba.gov for more information on Regional Innovation Clusters.

The Growth Accelerator Fund Competition (GAFC) is designed to aid the growth and maturity of innovation-based entrepreneurship ecosystems. The competition seeks to identify impactful and innovative ideas from ESOs.

Funding from the GAFC allows these ESOs to help small businesses and entrepreneurs successfully launch, grow, and scale their businesses. These new entrants into the innovation economy drive entrepreneurial dynamism across America. 

Program features

• The competition targets gaps in capacity, connectivity, and community in entrepreneurship ecosystems, particularly in the country's undercapitalized regions, industries, and communities.
• The competition prioritizes organizations that provide open opportunities for new entrants to participate in the innovation economy.
• The competition bridges the gap between research and commercialization in areas such as:
  • National and economic security,
  • Domestic manufacturing and production, and
  • Biotechnology.
• By fostering innovation across critical and emerging technology sectors, the competition expands investment access for entrepreneurs and small businesses during business formation and growth stages.

Recent updates

• Learn more about each organization by visiting the 2024 GAFC Public Directory(Link is external)
• Read the 2024 GAFC Stage Two announcement press release
• Learn more about the program and 2024 Stage One awardees(Link is external)

Applying for the competition

Visit America's Seed Fund(Link is external) for more information on the current competition.

History of the competition

SBA launched the GAFC in 2014 to stimulate innovation and entrepreneurship nationwide. Since then, over 500 GAFC prize awards have been made to ESOs in all 50 states and three U.S. territories. These awards have funded a wide range of programs in different organizations. They provided support to entrepreneurs, particularly in the STEM/R&D innovation ecosystem. Each competition varies in total prize dollars and communities of focus to respond to the current state of the entrepreneurship ecosystem.

See past GAFC press releases.

Email accelerators@sba.gov for more information on the Growth Accelerator Fund Competition. 

OII manages two of SBA’s expert advisory committees. These committees provide independent advice and recommendations to the agency on matters relating to small business investment and innovation.

• The Invention, Innovation, and Entrepreneurship Advisory Committee advises on matters broadly related to the U.S. startup and small business innovation ecosystem.
• The Investment Capital Advisory Committee advises how SBA’s programs can improve access to patient capital investment.  

The Innovation Ecosystem Summit(Link is external) is an annual virtual summit to connect ESOs from the public and private sectors. These ESOs exchange insights, collaborate, and strengthen national science and technology entrepreneurship networks. 

Innovation Ecosystem Network events(Link is external) are monthly collaborative events. ESOs, ecosystem builders, and federal agencies share insights and align strategies for strengthening national innovation networks.