SBIR/STTR – New Rules and Regulations – From the FreeMind Group

April 5th, 2013 – Last chance to submit applications before investor backed companies join the pot

 The SBA has amended its regulations governing size and eligibility for the SBIR/STTR programs. The rule addresses ownership, control and affiliation for participants in the SBIR and STTR programs. This includes participants that are majority-owned by multiple VC operating companies, private equity firms or hedge funds (FAQ). As of August 2013, this rule will begin impacting distribution of funds by the SBIR/STTR programs.

STTR award sizes are increased to match SBIR amounts: $150,000 for Phase I and $1 million for Phase II. Awards may not exceed guideline amounts by more than 50% ($225,000 for Phase I and $1.5 million for Phase II).

NIH has the flexibility to make awards that exceeded the guidelines by up to 50% for those biomedical projects that warranted doing so. Applicants should continue to request what is realistically needed to complete their proposed work. NIH received a limited waiver from SBA for certain topics that can exceed the guidelines –  List of topics.

For FY 2012, SBA has issued guidelines to the agencies that the set-aside share is increased to 2.6%. The share will increase by 0.1%  each FY until it reaches 3.2% for FY 2017. For STTR, the set-aside percent was increased to 0.35% for 2012 and 2013, and will increase to 0.4% for 2014 and 2015, and to 0.45% for 2016 and thereafter.

 

The Company Registry is a new element of the SBIR/STTR data system and application process.  Once you have registered, your company will be given an SBIR/STTR ID number that you will use when applying to any SBIR/STTR agency solicitation.

 

    • For-profit business,
    • With a place of business located in the United States,
    • and which operates primarily within the US or which makes a significant contribution to the U.S economy through payment of taxes or use of American products, materials or labor.
    • more than 50% owned and controlled by individuals who are citizens of or permanent resident aliens in the US, or
    • more than 50% owned and controlled by one or more other small businesses each of which is more than 50% owned and controlled by individuals who are citizens of or permanent resident aliens in the US, or
    • a combination of the above two choices; or
    • more than 50% owned by more than one Venture capital operating company (VCOC), hedge fund, or private equity firm (with no one such firm owning more than 50%), and I am applying to an SBIR agency that is using Section 5107 authority to use a percentage of its SBIR funds for awards to such firms.

To schedule a call with a representative from FreeMind please contact Carala Klien at:

(617) 648-0340 ext 249, carla@freemindconsultants.com

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