One really great program is called the Small Business Innovation Research grant program. All federal agencies are required to participate in the program. Each of the federal agencies will publish technical topics to fund. For example, a Corvallis company has received two SBIR awards to research the potential to convert grass straw into cellulosic ethanol. Phase I grants, which are $80,000 to $90,000, allow a company to research and analyze a concept.
Phase II grants, which range into hundreds of thousands of dollars, allow a company to develop prototypes.
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