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BUSINESS BASICS CHANNELS 
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U.S. Government Grants The word "grant" has over the years become a synonym for "jackpot" or "free money." Although we all wish there was some magic source of money to help us all get started in our own businesses, there is rarely such a benefit unless you have something very special to offer the government. The U.S. government does not have general grants available for business owners. However, in areas where the government wants to encourage innovation, grants are available as part of the Small Business Innovation Research (SBIR) Program. Small Business Innovation Research (SBIR) The SBIR was started in 1982. Federal Agencies and U.S. Government Departments with extramural R&D budgets over $100 million were required to establish an SBIR program using a set-aside of a stated percentage of that budget. The percentage grew from an initial 0.2% in Fiscal Year (FY) 1983 to the maximum of 2.5% in FY 1997, and remains 2.5% now. These government agencies must reserve a percentage of their R & D budgets to be awarded to small businesses. Companies that receive the grant must have 500 employees or less and the company must be the primary employment place of the person taking the lead on the project investigation. The government's goals in this program are to increase technology development by small businesses, to allow small businesses to join in developing new technologies that are needed by the federal government and to fund small business development of new commercial technologies. A major consideration for decision on SBIR grants is whether the research might lead to a commercial product. There are ten departments of the Federal Government that direct SBIR programs. These break down into: Department
of Energy Total SBIR government grants for Fiscal Year 2000 are $1.1 billion dollars. To find out more about the SBIR program, you may wish to consider attending one of the three annual SBIR conferences. The National Science Foundation maintains information on these conferences and other SBIR links at http://www.zyn.com/sbir/ They also have a coordinated calendar of all agency solicitation dates at http://www.zyn.com/sbir/scomp.htm SBIR Q & A: Q. Is a small US firm still eligible to compete for an SBIR award if it forms a 50-50 joint venture with a nonprofit or foreign firm? A. No. Q. Are foreign-based firms eligible for SBIR awards? A. No. To be eligible for award of SBIR funding agreements, a small business concern has to meet the following qualifications:
U.S. West Project SBIR The U.S. West Foundation has the goal of increasing the number of SBIR grants given to small businesses in fourteen Western states. They maintain an internet page specializing SBIR information, offer a mentoring program, classes and conferences with the goal of increasing SBIR proposals submitted in the 14 states and increasing the number of companies receiving SBIR grants. Small Business Technology Transfer (STTR) Program In addition to the SBIR grants, the Federal Government also offers the Small Business Technology Transfer (STTR) Program is for research done cooperatively by a small business and a research institution. The Small Business Technology Transfer (STTR) Program is for research done cooperatively by a small business and a research institution. At least 40% of the research must be conducted by the small business and at least 30% by the research institution. The total amount available for grant under this program from October 1, 1999 - September 30, 2000 is estimated to be $21 million dollars. In general, SBIR Phase I contracts are valued up to $100,000 and can fund research efforts lasting up to nine months. SBIR Phase II development contracts go only to successful Phase I winners and can reach up to $750,000. SBIR Phase III is when funding from outside the SBIR program commercializes a Phase II project. Contract winners are chosen for merit based on the evaluation of an agency's technical and scientific experts. The Department of Defense has a Fast Track program in which companies that are able to get matching outside funding for their Phase II efforts receive higher priority in being awarded Phase II SBIR grants. They also can receive interim funding between Phase I & Phase II so that work can continue uninterrupted. -Cynthia Nemeth-Johannes
An associate of VentureConsult.com has offered to field questions from groups wishing to know about the SBIR process from individuals who have been through the process. You may forward your questions to: info@theblueskygroup.com. Our thanks to The Blue Sky Group! See their website at http://www.theblueskygroup.com |
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