Does ARPA-H fund small businesses?ARPA-H Innovative Solution Openings (ISOs) — Health Technology OT Agreements
Advanced Research Projects Agency for Health (ARPA-H) — U.S. Department of Health and Human Services
Varies by solicitation
Researched for this program: 3 rejection traps · 5 required documentsWhat decides this award ↓
Yes. ARPA-H funds for-profit small businesses through Other Transaction (OT) agreements and SBIR/STTR contracts, up to $600K for Phase 1 and $3.5M for Phase 2. It is not a grant maker: pay follows milestones.
ARPA-H accelerates biomedical and health breakthroughs by funding high-risk, high-reward research through Other Transaction (OT) agreements — flexible instruments that are not grants or contracts. For-profit small businesses, startups, large companies, universities, and hospitals can all receive OT awards. ARPA-H issues Innovative Solution Openings (ISOs) on a rolling basis across four Mission Offices: Health Science Futures, Proactive Health, Resilient Systems, and Scalable Solutions. Awards are milestone-based; funding disbursed upon achieving technical milestones. SBIR/STTR topics also available.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $500,000 – $50,000,000
- Realistic amount
- Award size varies by solicitation; each opening states its own budget. ARPA-H SBIR/STTR awards are generally contracts of up to $600K for Phase 1 and $3.5M for Phase 2.
- Deadline
- Rolling — ARPA-H publishes ISOs continuously. Check arpa-h.gov/explore-funding/open-funding-opportunities for current open ISOs. Mission Office ISOs accept submissions year-round.
- Status
- active
- States
- Nationwide
- Payment model
- milestone
Who qualifies
- U.S.-based for-profit small businesses with a health technology innovation are eligible
- Large companies, universities, nonprofits, hospitals, and research institutions also eligible
- No size restriction for standard ISO awards (small business set-asides exist for SBIR topics only)
- PI must be primarily employed by the applicant organization (>50% effort)
- Work must primarily be performed in the United States
- For SBIR topics specifically: fewer than 500 employees, majority U.S.-owned and controlled
Hard requirements
- Must be incorporated
- Restricted to industry: healthcare
What small businesses ask next
Is ARPA-H a grant agency?
No. ARPA-H describes itself as not a grant-making agency. It mainly signs Other Transactions (OTs) and cooperative agreements for research and development. An OT is a flexible agreement written to fit the project, with funding tied to milestones agreed in negotiation. ARPA-H program managers stay involved while the work runs. This is why the program type above reads “Grant” but the money arrives as a negotiated agreement.
Can a small for-profit company apply?
Yes. ARPA-H says small businesses are welcome to apply to any opportunity. Universities, nonprofits, hospitals and individuals can apply too. It will not fund current ARPA-H support contractors, government entities, or entities organized in Russia, Iran, North Korea or China. SBIR and STTR topics are limited to small businesses: no more than 500 employees, majority U.S. ownership, and all work done in the U.S.
How much can a small business receive?
ARPA-H SBIR and STTR awards are generally contracts of up to $600K for Phase 1 and $3.5M for Phase 2. Awards to small businesses outside SBIR depend on the project and the ISO, so check the amount range above. Payments depend on meeting milestones. For smaller, standard-size health SBIRs, compare SBIR Phase I at NIH.
How do I apply to a Mission Office ISO?
Start with a short Solution Summary, not a full proposal. Submit it through ARPA-H’s Solutions site to the one Mission Office ISO that fits your idea. ARPA-H answers in writing, and you must have that response before you send a full proposal. Every ARPA-H solicitation requires a valid Unique Entity ID (UEI) from SAM.gov when you submit a proposal, so register early because SAM.gov timing is outside ARPA-H’s control.
What if nothing is open right now?
Mission Office ISOs are accepted on a rolling basis, so there is usually a way in. Program ISOs and SBIR/STTR topics open for a limited time and are announced throughout the year; see the Deadline row above. Mission Office submissions are reviewed more slowly than program submissions, and an idea inside an existing ARPA-H program can be rejected, so read its program list first. You can also leave your email in the watch box below to hear when a window moves.
What it covers
Eligible expenses
- Salaries and benefits for scientists, engineers, and technical staff
- Materials, equipment, and laboratory supplies
- Subcontracts to specialized research partners
- Clinical study costs (for health technology programs)
- IP protection costs (patents directly related to the funded technology)
- Travel for technical milestones, site visits, or program reviews
Ineligible expenses
- Profit above a reasonable fee (negotiated into the OT budget)
- Costs not directly related to the approved milestones
- Construction or renovation of facilities
- Costs incurred before OT agreement execution
How to apply
-
1
Monitor ARPA-H for relevant ISOs
Visit arpa-h.gov/explore-funding/open-funding-opportunities and SAM.gov regularly. Subscribe to ARPA-H email updates. Review the four Mission Office areas (Health Science Futures, Proactive Health, Resilient Systems, Scalable Solutions) to identify where your technology fits.
~5 hrs
-
2
Review the ISO and prepare a Solution Summary
ARPA-H uses a fast, lightweight first stage — typically a 2–4 page Solution Summary (not a 50-page grant proposal). The Summary describes the technical approach, team, proposed milestones, and budget overview. Reviewers decide on merit from this brief document.
~20 hrs
-
3
Technical presentation (if invited)
Shortlisted applicants are invited to give a 1–2 hour technical presentation and Q&A with ARPA-H Program Managers. This is where the program manager evaluates technical depth and team credibility. More interactive than a traditional grant review.
~30 hrs
-
4
Negotiate OT agreement terms and milestones
Successful applicants negotiate a milestone-based OT agreement with ARPA-H. Milestones are specific, measurable technical accomplishments — not progress reports. ARPA-H pays on milestone completion. Negotiation typically takes 4–12 weeks.
~20 hrs
Industry & certifications
NAICS codes: 541714, 541715, 339112, 325412
ARPA-H Program Managers are the real decision-makers — engage with them before submitting. Attend ARPA-H webinars and Industry Days. A 2-page Solution Summary that's technically crisp beats a 50-page federal grant narrative.
Deadline & timing
ARPA-H uses Innovative Solution Openings (ISOs) posted on SAM.gov and the ARPA-H website. Some ISOs are topic-specific with set deadlines (30–90 days); Mission Office ISOs are open continuously. Watch arpa-h.gov/explore-funding for new openings. ARPA-H typically issues new solicitations monthly.
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