Unlocking Growth Opportunities: AFWERX’s STRATFI and TACFI Programs for Small Businesses

Unlocking Growth Opportunities: AFWERX STRATFI and TACFI Programs for Small Businesses

As a small business owner looking to scale your innovative solutions within the defense sector, understanding and leveraging government programs can be pivotal. The AFWERX STRATFI (Strategic Funding Increase) and TACFI (Tactical Funding Increase) programs offer unique opportunities designed to help bridge the funding gap between SBIR/STTR Phase II and Phase III. Here’s what you need to know to take advantage of these programs.

What are STRATFI and TACFI?

STRATFI and TACFI are initiatives under AFWERX's AFVentures, specifically aimed at helping small businesses transition their technologies from prototypes to operational capabilities within the Air Force and Space Force. These programs address the notorious "valley of death"—the challenging phase where many innovations falter due to insufficient funding or support.

STRATFI (Strategic Funding Increase)

Purpose: STRATFI is designed to provide substantial funding to support the strategic transition of projects that show significant potential for high impact within the Department of the Air Force (DAF).

Funding: The program offers between $3 million and $15 million over a period of up to four years​ (AFRL)​.

Eligibility: To be eligible for STRATFI, your business must:

  • Be a Small Business Concern (SBC) eligible for SBIR/STTR awards.

  • Have an active or recently completed (within two years) Phase II SBIR/STTR contract.

  • Not be executing a prior STRATFI effort at the time of submission​ (AFWERX)​​ (AFWERX)​.

Matching Funds: The program requires various levels of matching funds from other government entities or private sources like venture capital firms​ (AFRL)​.

TACFI (Tactical Funding Increase)

Purpose: TACFI provides targeted, smaller-scale funding to mature and transition projects that can rapidly enhance tactical capabilities for immediate operational use.

Funding: This program offers between $375,000 and $1.9 million over a two-year period​ (AFRL)​​ (AFRL)​.

Eligibility: Similar to STRATFI, TACFI is open to small businesses with recent Phase II SBIR/STTR contracts.

Matching Funds: TACFI also requires matching funds, encouraging partnerships with industry stakeholders to maximize the impact and reach of the projects​ (AFWERX)​.

Why Should Your Business Apply?

Both STRATFI and TACFI provide invaluable resources beyond just funding. Here’s how they can benefit your business:

  1. Accelerated Development: With substantial funding and support, you can expedite the development and commercialization of your innovations, ensuring they reach operational use more quickly.

  2. Strategic Partnerships: These programs foster collaboration between your business, the Air Force, Space Force, private investors, and other government entities, enhancing your network and potential for future contracts.

  3. Reduced Risk: The matching fund requirement means you’ll have additional financial backing, reducing the risk associated with the transition from prototype to fully deployed technology.

  4. Increased Credibility: Being part of STRATFI or TACFI enhances your credibility and visibility within the defense sector, opening doors to further opportunities and contracts.

Application Process

To apply for STRATFI or TACFI, follow these steps:

  1. Review Eligibility: Ensure your business meets all eligibility criteria.

  2. Prepare Documentation: Gather necessary documentation, including your Phase II contract details and matching fund commitments.

  3. Submit Application: Apply online through the AFWERX submission portal. Make sure to leverage the provided guidance documents and templates to streamline your submission​ (AFWERX)​​ (AFWERX)​.

The submission process involves teamwork between your business and a government champion who will help submit the required documentation. Regular “Ask Me Anything” webinars are held to assist applicants with any queries​ (AFRL)​​ (AFRL)​.

Putting it All Together

The STRATFI and TACFI programs represent powerful opportunities for small businesses to scale their innovations and transition from Phase II to Phase III SBIR/STTR projects. By securing substantial funding and forming strategic partnerships, your business can significantly impact the defense sector while overcoming the common funding challenges that many small enterprises face. For more detailed information and to start your application process, visit the AFWERX STRATFI/TACFI page​ (AFWERX)​​ (AFWERX)​​ (AFRL)​​ (AFRL)​.

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