Many federal agencies participate in the Small Business Innovation Research (SBIR) Program. Each agency releases a solicitation identifying current areas of interest in technology development. Small businesses may submit proposals to respond to agency needs. Contracts or grants are awarded competitively based on technical merit and technology commercialization potential. The program entails three phases – Phase I: Feasibility, Phase II: Demonstration, and Phase III: Commercialization. Phase III funding must be obtained from private capital and other non-SBIR funds.