SBIR/STTR reauthorization overview

Julie Turner Collins

ATDC/SBIR GA

SBIR - Small Business Innovation Research

2.5% set-aside

STTR - Small Business Technology Transfer

0.3% set-aside

$2.3 Billion

Federal seed capitalnon-equity diluting

AGENCIESSBIR and STTR

Participants

Department of Defense*Department of Health and

Human Services*National Aeronautics and Space

AdministrationDepartment of Energy

National Science Foundation*

SBIR Participants

Department of Homeland Security

Department of AgricultureEnvironmental Protection

AgencyDepartment of Transportation

Department of CommerceDepartment of Education

* FUND MEDICALLY RELATED PRODUCTS

PHASES

AWARD AMOUNT

DURATION OBJECTIVESUB-

CONTRACT

PHASE I $150,0006 TO 12 MOS.

Feasibility 33%

PHASE II $1,000,0002 TO 3 YEARS

Product Developme

nt50%

Phase I required Phase II Phase III

Note: some agencies allow Phase II applications by request only

STTR

• Applicant Small Business Concern

• Consortium Agreement30% required subcontract with RI or FFRDCMax effort 60%

• SBC EffortMin 40%, Max 70%

Reauthorization

• NDAA FY20126 years through 2017

• PROCESSCongress Pass LegislationSBA Draft rules/regulationsAgencies Implement changes

LEGISLATION

• POLICY DIRECTIVEreleased + effective Aug 6, 2012changes implemented in 2013 solicitations

• SIZE RULESreleased Dec 27, 2012, effective Jan 28, 2013changes implement in solicitations released AFTER Jan 28

Size ruleseffective Jan 28, 2013

• OWNERSHIP + CONTROL

50% owned + controlled by:US citizenspermanent residentsand/or one or more domestic business concerns who are 50% owned and controlled ….

Size rulesVC eligibility

• VC OWNERSHIPMultiple domestic VCsEach w/ <50% ownershipSBIR only

• VC EligibilityOrganized under U.S. LawPlace of business in U.S.

• DETERMINED ON A FULLY CONVERTED BASIS

SIZE + AFFILIATION• UNDER 500 EMPLOYEES

Including affiliates[Exception: VC-owns minority share]

• AFFILIATE DEFINITION:One business [or third party] controls or has the power to control another>50% voting stock OR>40% voting stock IFcommon management, reliant upon for 70% of receipts, ostensible subcontractors, license agreements (licensee must bear right to profit and risk of loss)

Bottom line

“totality of circumstances”

AGENCY DISCRETION

0-25% CAP [NIH, NSF, DOE]

0-15% CAP all othersWho will opt-out?

Policy directive• CCR to SAM transition

SBIR to STTR cross over awardsDirect to Phase II

• REGISTRATION WITH SBIR.GOVWhy? Track Phase I to Phase II to Phase III conversion

• PHASE I = $150,000PHASE II = $1,000,000

} 150% CAP

} @ agency discretion

NIH Specifics

• CURRENT OMNIBUS SOLICITATIONSBIR to STTRDirect to Phase IIVC eligibility

MID-YEAR RE-RELEASE! SUBSCRIBE

• $5,000 TECHNICAL ASSISTANCENiche assessment or named provider

} NO!

NIH SPECIFICS

NOT A FUNDING MECHANISM

PART OF YOUR FUNDING STRATEGY

Julie Turner CollinsDirector, SBIR GAa service of ATDC

julie@atdc.org