This paper presents the results of a study that investigated the relationship between characteristics of firms and their experience with applying for Small Business Innovation Research (SBIR) funding. The basic issues investigated are (1) the relationship between firm characteristics and the decision to apply for SBIR funding, and (2) the relationship between firm characteristics and whether the SBIR application was successful. The results of the study demonstrate that local efforts to promote the SBJR program by encouraging firms to apply and by increasing the visibility of workshops can lead to a greater number of firms to apply for SBIR funding. Efforts directed at firms in small communities may be even more effective than efforts directed towards firms in large communities. The results also suggest that organizations that provide SBIR assistance may consider screening potential clients according to the business goals of firm’s owners. Owners of "life-style" firms may need extra encouragement and, perhaps, assistance to apply for SBJR funding. Finally, the results also imply that firms that are smaller (as compared to larger firms), have more limited experience raising capital, and serve a smaller market may need greater assistance in pursuing SBIR funding.