Small Business Innovation Research (SBIR) Program Phase II

A. Eligibility RequirementsOnly previous USDA-NIFA SBIR Phase I awardees who have not previously applied for Phase II support are eligible to apply for Phase II support through this FY 2021 RFA. This includes those awardees identified via a “novated” or “successor-in-interest” revised funding agreement. A Phase I project may only apply for a Phase II award once. If a Phase I awardee was unsuccessful in receiving a Phase II award with a previous application, then the awardee is not eligible to resubmit the proposal under this or a future Phase II program solicitation. Failure to meet an eligibility criterion by the application deadline may result in the application being excluded from consideration or, even though an application may be reviewed, will preclude USDA NIFA from making an award.Each applicant submitting an application must qualify as a Small Business Concern (SBC) through registration with the SBA for R/R&D purposes at the time of award (see Definitions in Part VIII).SBIR/STTR program eligibility requirements are in place to ensure that the funds go only to small, independent businesses within the United States. The regulations include restrictions about (1) the type of firm, (2) its ownership structure, and (3) the firm’s size in terms of the number of employees. The purpose of the requirement regarding type of firm is to target the awards to firms with an economic interest in developing the idea or research into a commercial application. The purpose of the ownership requirement is to limit the program to independent firms controlled by United States citizens or permanent resident aliens as a way of maximizing the likelihood that the funding will stimulate innovative activity within the United States economy. The purpose of the size restriction (number of employees of the firm and its affiliates) is to limit program funding to small business concerns which have a unique capacity for innovation and are more likely to be constrained by lack of access to such funding.TYPE OF FIRM• An SBIR/STTR small business awardee must be a business concern – it must be organized as a for-profit concern and meet all of the other requirements for a “business concern” in 13 C.F.R. § 121.105.• Non-profit entities are not eligible.• If an awardee is a joint venture, each party to the joint venture must be a concern that satisfies all program eligibility requirements.OWNERSHIP & CONTROLA majority (more than 50%) of your firms’ equity (e.g., stock) must be directly owned and controlled by one of the following:1)One or more individuals who are citizens or permanent resident aliens of the US,2)Other for-profit small business concerns (each of which is directly owned and controlled by individuals who are citizens or permanent resident aliens of the US).3)A combination of (1) and (2) above.4)Multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these, so long as no one such firm owns or controls more than 50% of the equity. Note: This option is allowed only for SBIR awards from agencies that are using the authority provided in § 5107 of the SBIR/STTR Reauthorization Act (majority Note: If an Employee Stock Ownership Plan owns all or part of the concern, each stock trustee and plan member is considered an owner. If a trust owns all or part of the concern, each trustee and trust beneficiary is considered an owner.For more information on SBIR eligibility go to https://www.sbir.gov/sites/default/files/elig_size_compliance_guide.pdfA potential grantee that is a subsidiary must show that the parent company or parent companies are also a small business entity as described above. The parent companies must be a small business and located within the United States. The parent company or parent companies must provide documentation supporting their small business status (the documentation should be included in, Other Attachments, of the Research and Related (R&R) Other

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