003.19.24 Ark. Code R. 004 - Arkansas Business and Technology Accelerator Grant
Section 101.
Introduction.
(a)
Overview.
(1) The Arkansas Business and Technology
Accelerator Grant Program, provided for by Act 165 of 2017, as codified at Ark.
Code Ann. §
15-3-601 et. seq., was created to
stimulate innovation and growth among the state's technology
businesses.
(2) The program,
administered by the Division of Science and Technology of the Arkansas Economic
Development Commission, may provide to eligible businesses discretionary grants
of up to two hundred fifty thousand dollars ($250,000) to sponsor business and
technology programs to mentor startup companies.
(3) Objectives of the program are to:
(A) Stimulate corporate growth through the
infusion of innovative:
(i) Ideas;
(ii) Products; and
(iii) Services;
(B) Create high-skilled, high-wage jobs by
encouraging the development of technological products and services;
and
(C) Foster economic growth by
linking new ideas, products, and services by entrepreneurs and startup
companies to corporate sponsors seeking the commercialization of new products
and services.
Section 102.
Definitions.
(1) "Business and technology accelerator"
means a full-time, immersive program administered by an eligible applicant to
potentially invest in, mentor, and accelerate commercial development of startup
businesses;
(2) "Business and
technology accelerator grant" means a discretionary grant of up to two hundred
fifty thousand dollars ($250,000) for each approved business and technology
accelerator application; and
(3)
"Eligible applicant" means an entity that is:
(A) Registered as a business entity in good
standing with the Arkansas Secretary of State; and
(B) Principally engaged in one (1) or more of
the following categories of business or industry:
(i) A manufacturer classified in sectors
31-33 of the 2012 North American Industry Classification System;
(ii) A business that:
(a) Is primarily engaged in:
(1) The design and development of prepackaged
software;
(2) Digital content
production and preservation;
(3)
Computer processing and data preparation services; or
(4) Information retrieval services;
and
(b) Derives at least
seventy-five percent (75%) of its sales revenue from out of state;
(iii) An office sector business
whose business operations support primary business needs, including without
limitation customer service, credit accounting, telemarketing, claims
processing, and other administrative functions that:
(a) Is a nonretail business; and
(b) Derives at least seventy-five percent
(75%) of its sales revenue from out of state;
(iv) A national or regional corporate
headquarters as classified in sector 551114 of the 2012 North American Industry
Classification System;
(v) A
scientific and technical services business that derives at least seventy-five
percent (75%) of its sales revenue from out of state;
(vi) A firm primarily engaged in commercial,
physical, and biological research as classified in code 541711 or 541712 of the
2012 North American Industry Classification System;
(vii) A firm engaged in one (1) or more of
the following categories:
(a) Advanced
materials and manufacturing systems;
(b) Agriculture, food processing, and
environmental sciences;
(c)
Biotechnology, bioengineering, and life sciences;
(d) Information technology;
(e) Transportation logistics; and
(f) Internet-enabled technology or service
solution of one (1) or more of the categories described in section
102(3)(B)(vii)(a)-(e); and
(viii) A business that is primarily engaged
in operating combustors and incinerators for the disposal of nonhazardous solid
waste, as classified in code 562213 of the 2022 North American Industry
Classification System.
Section 103.
Eligibility.
(a)
Eligible applicants. To be
eligible to receive Arkansas Business and Technology Accelerator Grant Program
funding, an applicant shall:
(1) Meet the
definition of "eligible applicant"; and
(2) Submit a completed, signed application on
forms provided by the Division of Science and Technology of the Arkansas
Economic Development Commission.
(b)
Eligible costs. The Division
will review all expenditure requests prior to payment to ensure that costs are
consistent with the terms and conditions of the grant agreement.
Section 104.
Application
process.
(a) Application
submittal.
(1) To request
Arkansas Business and Technology Accelerator Grant Program funds, eligible
applicants shall, utilizing forms prescribed by the Division of Science and
Technology of the Arkansas Economic Development Commission, submit a completed,
signed application with all supporting documentation to the Division.
(2) Applications shall include:
(A) Accelerator title;
(B) Contact information;
(C) Proof of legal organization as a business
entity in good standing with the Arkansas Secretary of State;
(D) A statement of work;
(E) The amount of funding requested;
and
(F) Start and completion dates
of the project.
(b) Application review and
approval. No grant offer shall be made by the Director of the
Arkansas Economic Development Commission to an applicant until the Division has
completed the following review and approval process:
(1) The Division shall conduct a preliminary
review of each application, in order of receipt, to confirm that it:
(A) Was submitted by an eligible
applicant;
(B) Is for a targeted
business activity consistent with program objectives; and
(C) Is complete, including all required
attachments;
(2)
(A) At its discretion, the Division may
request supplemental materials from the applicant.
(B) All supplemental materials must be
received at least forty-five (45) days prior to the next scheduled meeting of
the Board of Directors of the Division of Science and Technology of the
Arkansas Economic Development Commission;
(3) All applications meeting preliminary
review requirements shall be forwarded to the board at least thirty (30) days
prior to its next scheduled meeting;
(4) The Board shall:
(A) Review each application in accordance
with program rules; and
(B)
Forward, for each application reviewed, a recommendation to approve or
disapprove the application to the Director of the Division of Science and
Technology of the Arkansas Economic Development Commission;
(5) The Director of the Division
of Science and Technology shall review each application in accordance with
program rules and the advice and recommendation of the Commercialization
Committee of the board;
(6) Upon
completion of review, the Director of the Division of Science and Technology
will provide preliminary funding recommendations to the Director of the
Arkansas Economic Development Commission; and
(7)
(A) The
Director of the Arkansas Economic Development Commission, after reviewing the
recommendations, will specify which applicants may receive grants.
(B) Unsuccessful applicants will be notified
in writing by the Director.
(C)
Approved applicants will be required to execute a grant agreement outlining the
amount, terms, and conditions of the
grant.
Section
105.
Grant agreements.
(a)
(1)
Arkansas Business and Technology Accelerator Grant Program grants may be
awarded at the discretion of the Director of the Arkansas Economic Development
Commission.
(2) Grant agreements
shall specify:
(A) The eligibility date for
incurring project costs;
(B) Terms
and conditions of the grant;
(C)
The amount of approved costs; and
(D) The process by which grant funds shall be
invoiced and disbursed to the grantee.
(b) The amount of the grant shall be
discretionary and may be for amounts less than requested.
(c) Grants may be funded from any source of
funds allocated to the program.
(d)
Grants will be executed according to the following process:
(1) Two (2) original copies of the grant
agreement will be prepared by the Director of the Division of Science and
Technology of the Arkansas Economic Development Commission and forwarded to the
grantee for signature and return;
(2) Upon receipt of the signed grant
agreements from the grantee, the Director of the Division of Science and
Technology will prepare an approval letter and forward the grant agreements and
the approval letter to the Director of the Arkansas Economic Development
Commission for signature; and
(3)
(A) One (1) original copy of the grant
agreement will be forwarded to the grantee with the signed approval
letter.
(B) One (1) original copy
of the grant agreement will be retained by the Director of the Division of
Science and Technology.
(e) Any material change to the scope of the
project is subject to prior approval by the Director of the Arkansas Economic
Development Commission.
Section
106.
Confidential information.
(a) Applications submitted to the Division of
Science and Technology of the Arkansas Economic Development Commission are
subject to the Freedom of Information Act of 1967, Arkansas Code §
2519-101 et seq.
(b) To the extent
an applicant believes that information in an application is confidential or
otherwise exempt under the Freedom of Information Act of 1967, Arkansas Code
§
25-19-101 et seq., the applicant
shall specifically designate in writing the information the applicant believes
to be confidential or exempt and the basis for the confidentiality or exemption
on that portion of the application in which the information
appears.
Section 107.
Reimbursement.
(a) Disbursements
of Arkansas Business and Technology Accelerator Grant Program funds shall be
made on a reimbursable basis, payable when invoices and financial reports are
submitted to the Division of Science and Technology of the Arkansas Economic
Development Commission.
Section
108.
Final report.
(a) Grantees shall submit final reports, upon
full expenditure of Arkansas Business and Technology Accelerator Grant Program
funds, in accordance with terms specified in the grant agreement.
(b) Reports shall:
(1) Include a one-page nonproprietary
executive summary describing the impact and positive effect of the receipt of
program funds;
(2) Document final
expenditure of grant funds;
(3)
Provide an updated status of the project;
(4) Summarize economic effects of the program
on job creation, project commercialization, and patent applications filed or
approved subsequent to grant award; and
(5) Certify that all grant terms and
conditions were met.
(c)
If a grantee fails to provide the required final report stated in this section
they may be:
(A) Ineligible to receive further
Arkansas Business and Technology Accelerator Grant Program awards;
and
(B) Subject to repayment
language in the grant agreement.
Notes
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