SBIR (Small Business Innovation Research): Can It Be Used to Buy Machines?

What Is SBIR?

SBIR (Small Business Innovation Research) is an R&D subsidy program run by the Ministry of Economic Affairs' Small and Medium Enterprise and Startup Administration, aimed at encouraging SMEs to invest in R&D for innovative technologies, products, or services. It isn't limited by industry; food businesses developing new products or new processes can apply.

Under the 2026 (ROC 115) application guidelines, SBIR is divided into six fields: information and communications, electronics, machinery, biotech and pharmaceuticals, consumer chemicals, and services; applications can be made individually or as an R&D alliance of 3 or more companies.

Subsidy Caps: Raised From 2026

On December 30, 2025, the Ministry of Economic Affairs announced higher SBIR subsidy caps effective January 1, 2026. Under the 2026 (ROC 115) application guidelines, the durations and caps for individual applications are:

• Phase 1 (preliminary research): Duration 6 months, up to NT$1.5 million per project
• Phase 2 (research and development): Duration of 6 months or more, up to 2 years, up to NT$6 million per year and NT$12 million in total
• Phase 2+ (value-added application): Duration of 6 months or more, up to 1 year, up to NT$6 million per project; must be applied for within 3 years after Phase 2 closes

A new subsidy item for patent application fees has also been added.

Subsidy ratio: The subsidy may not exceed 50% of total project funding, and must satisfy "subsidy ≤ self-funding ≤ paid-in capital." In other words, to apply for a NT$1.5 million subsidy, the company must contribute at least NT$1.5 million itself, and its paid-in capital must also be at least NT$1.5 million.

Eligibility

Under the 2026 (ROC 115) application guidelines, applicants must be SMEs as defined by the Standards for Identifying Small and Medium-sized Enterprises (中小企業認定標準), that is, paid-in capital of NT$100 million or less, or fewer than 200 regular employees. The following may not apply:

• Companies with mainland Chinese capital
• Tax arrears within the past 3 years
• A record of major breach in government projects within the past 5 years
• The same project has already received tax incentives or subsidies under other laws
• Serious violations of environmental, labor, or food safety laws within the past 3 years
• Taiwan branches of foreign companies
• Companies that have been dissolved or suspended operations

The project must be carried out in Taiwan.

How to Apply

• Rolling intake: Proposals can be submitted online year-round
• Phase 1 uses a slide presentation format; Phase 2 and Phase 2+ use a proposal document format
• Approval follows written review, presentation review, and other procedures

According to a Ministry of Economic Affairs press release on June 9, 2026, the amount approved under SBIR in 2026 (ROC 115) doubled compared with the same period the previous year, and the number of projects rose 44%, so demand is strong.

Can SBIR Be Used to Buy Machines?

This is the question food businesses ask most often. The answer: SBIR funds R&D, not equipment purchases.

• The project must have a clear R&D topic, such as "developing a low-gluten dough recipe suited to machine forming," "establishing a new process for frozen buns," or "developing new flavors of ready-to-eat wheat-based foods," and it must be innovative.
• Equipment needed for the R&D is generally budgeted as an "equipment usage fee," calculated by depreciation or period of use, rather than listing the full purchase price of the machine as a subsidized item. Taking local SBIR as an example, Taichung City's 2026 (ROC 115) guidelines specify that only equipment usage fees may be budgeted, and maintenance fees may not be budgeted for equipment purchased within the past year; for the accounting item details of central SBIR, go by the annexes to the current year's application guidelines.
• Simply "buying an encrusting machine to increase output" isn't R&D and isn't suited to SBIR.

If what you need is simply to buy equipment, it's better to evaluate smart machinery investment tax credits or other equipment upgrade programs; see the current status of government subsidies.

SBIR Topic Ideas for the Food Industry

• New product development: New flavors or new formats of frozen wheat-based foods or snacks
• Process improvement: Enabling handmade products to be mass-produced by machine while preserving texture
• Preservation technology: Extending shelf life and improving texture after freezing
• Reducing labor: Designing new production workflows and automation integration

If your R&D topic needs trial runs or an assessment of the feasibility of machine forming, please call Dong-Yih Machinery at 06-257-4644 or reach us through our contact information page.

FAQ

Q: Can SBIR be used to buy machines?
A: SBIR is an R&D subsidy, not an equipment purchase subsidy. Equipment needed for R&D is generally budgeted as an equipment usage fee; simply buying machines to increase output doesn't qualify.

Q: What are the eligibility requirements for SBIR?
A: An SME under the Standards for Identifying Small and Medium-sized Enterprises (paid-in capital of NT$100 million or less or fewer than 200 employees), with no mainland Chinese capital, no tax arrears in the past 3 years, no record of major breach or serious violations, and the project carried out in Taiwan.

Q: What are the SBIR subsidy caps?
A: From 2026, NT$1.5 million per project for Phase 1, NT$12 million total for Phase 2 (up to NT$6 million per year), and NT$6 million per project for Phase 2+; the subsidy may not exceed 50% of total project funding.

Q: When can we apply for SBIR?
A: Central SBIR accepts applications on a rolling basis, online, year-round. Local SBIR programs follow each city or county's annual announcement and have fixed application periods.