GET SMART: GOVERNMENT GRANTS - HOW TO FIND THEM, GET THEM AND ACCOUNT FOR THEM Date: Thursday, June 11th, 2009 Time: 6:00 - 7:30 PM Location: Accounting Management Solutions , Waltham, MA George Andyns, Sr. Consultant, CPA - Accounting Management Solutions Kyle Meetze, Sr. Business Strategist – Partners/MGH; Res. Ventures & Licensing Dawn Fitzgerald, Entrepreneur, Exec. Mgr., Engineer Ian Carver, Director Business Development - Accounting Management Solutions
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GET SMART: GOVERNMENT GRANTS - HOW TO FIND
THEM, GET THEM AND ACCOUNT FOR THEM
Date: Thursday, June 11th, 2009Time: 6:00 - 7:30 PM Location: Accounting Management Solutions , Waltham, MA
George Andyns, Sr. Consultant, CPA - Accounting Management Solutions Kyle Meetze, Sr. Business Strategist – Partners/MGH; Res. Ventures & LicensingDawn Fitzgerald, Entrepreneur, Exec. Mgr., EngineerIan Carver, Director Business Development - Accounting Management Solutions
Our Aim
Provide background on SBIR and STTR grants and tools for you to go forward;
Help you to locate and apply for opportunities that will further your business goals;
Inform you of some of the accounting peculiarities with grants.
Overview of Govt. Grants Grants and Contracts Many types of grants
SBIR STTR Stimulus Multi-year grants
i.e. NIH R01
Grants vs. Contracts Contracts
Conform to Federal Acquisition Regulations (FAR) Competition In Contracts Act applies – no one-on-one
discussions after the solicitation is “open”. Traditionally are used when the Government is the
direct beneficiary of the effort Primarily DoD, NASA
Grants Conform to and guided by individual CFRs for each
agency CICA does not apply Traditionally are used where a third party benefits
from the effort. NIH, DOE, NSF
What is the SBIR/STTR Program
A “set-aside” funding program for all federal agencies with extramural research budgets in excess of $100 million. SBIR – 2.5% of extramural budget STTR – 0.3% of extramural budget
SBIR: Small Business Innovative Research Set-aside program for small business concerns to
engage in federal R&D -- with potential for commercialization.
STTR: Small Business Technology Transfer Set-aside program to facilitate cooperative R&D between
small business concerns and U.S. research institutions -- with potential for commercialization.
3 Phase SystemThree Phases Phase 1 – Proof of
Concept/Feasibility Typically $80 - $100k (NIH is the
exception) 6 months (12 months for STTR)
Phase 2 – Research and Development Up to $750k for SBIR and $500k for
STTR 2 years and requires successful
Phase 1
Phase 3 – Commercialization Your money
Eligibility1.A. Eligible Institutions
Only United States small business concerns (SBCs) are eligible to submit SBIR applications. A small business concern is one that, at the time of award of SBIR Phase I and Phase II, meets all of the following criteria:
1. Is organized for profit, with a place of business located in the United States, which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials or labor;
2. Is in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that where the form is a joint venture, there can be no more than 49 percent participation by foreign business entities in the joint venture;
3. Is at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, or it must be a for-profit business concern that is at least 51% owned and controlled by another for-profit business concern that is at least 51% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, except in the case of a joint venture, where each entity to the venture must be 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States; and;
4. Has, including its affiliates, not more than 500 employees.SBCs must also meet the other regulatory requirements found in 13 C.F.R. Part 121. Business concerns, other than investment companies licensed, or
state development companies qualifying under the Small Business Investment Act of 1958, 15 U.S.C. 661, et seq., are affiliates of one another when either directly or indirectly, (a) one concern controls or has the power to control the other; or (b) a third-party/parties controls or has the power to control both.
Control can be exercised through common ownership, common management, and contractual relationships. The term "affiliates" is defined in greater detail in 13 C.F.R. 121.3-2(a). The term "number of employees" is defined in 13 C.F.R. 121.3-2(t).
Business concerns include, but are not limited to, any individual (sole proprietorship), partnership, corporation, joint venture, association, or cooperative. Further information may be obtained by contacting the Small Business Administration Office of Size Standards (http://sba.gov/size).
One of the circumstances that would lead to a finding that an organization is controlling or has the power to control another organization involves sharing common office space and/or employees and/or other facilities (e.g., laboratory space). Access to special facilities or equipment in another organization is permitted (as in cases where the awardee organization has entered into a subcontractual agreement with another organization for a specific, limited portion of the research project). However, research space occupied by an SBIR awardee organization must be space that is available to and under the control of the SBIR awardee for the conduct of its portion of the proposed project.
Title 13 CFR 121.3 also states that control or the power to control exists when “key employees of one concern organize a new concern ... and serve as its officers, directors, principal stockholders, and/or key employees, and one concern is furnishing or will furnish the other concern with subcontracts, financial or technical assistance, and/or other facilities, whether for a fee or otherwise.” Where there is indication of sharing of common employees, a determination will be made on a case-by-case basis of whether such sharing constitutes control or the power to control.
For purposes of the SBIR program, personnel obtained through a Professional Employer Organization or other similar personnel leasing company may be considered employees of the awardee. This is consistent with SBA’s size regulations, 13 CFR 121.106 – Small Business Size Regulations.
Note regarding affiliation arising under stock options, convertible securities, and agreements to merge: In determining size, SBA considers stock options, convertible securities, and agreements to merge (including agreements in principle) to have a present effect on the power to control a concern. SBA treats such options, convertible securities, and agreements as though the rights granted have been exercised. See http://edocket.access.gpo.gov/cfr_2005/janqtr/pdf/13cfr121.103.pdf.
All SBIR grant applications will be examined with the above eligibility considerations in mind. If it appears that an applicant organization does not meet the eligibility requirements, NIH will request a size determination by the SBA. If eligibility is unclear, NIH will not make an SBIR award until the SBA provides a determination.
Note: An applicant organization that has been determined previously by SBA to be “other than small” for a size standard of not more than 500 employees or for purposes of the SBIR/STTR program, must be recertified by the SBA prior to any future SBIR/STTR awards.
Eligibility
Organized for- profit U.S. business At least 51% U.S.-owned and
independently operated Small Business located in the U.S. P.I.’s primary employment with small
business during project 500 or fewer employees
Highlights
Eligibility is determined at time of award No appendices allowed in Phase I The PI is not required to have a Ph.D. The PI is required to have expertise to
oversee project scientifically and technically
Applications may be submitted to different agencies for similar work
Awards may not be accepted from different agencies for duplicative projects
Highlights SBIR Grants do not require a
partner or an academic collaborator Research Partnerships:
SBIR: Permits research institution partners [ ~ 33% Phase I and 50% Phase II R&D]
STTR: Requires research institution partners (e.g., universities) [ 40% small business and 30% research institution]
Principal Investigators SBIR: Primary (>50%) employment must be with
small business concern STTR: Primary employment not stipulated
Related SBIR Topics of Interest
Bayh-Dole Act Background by Stephen B. Rothman
March-in Rights by Stephen B. Rothman Preference for United States Manufactur