I.
Introduction
Overview
The Arkansas Small Business Innovation Research Matching Grant Program
(ArSBIRMGP), Act 166 of 2017, was created to stimulate innovation and growth
among the state's technology businesses. The program, administered by the
Division of Science and Technology of the Arkansas Economic Development
Commission (Division), may provide, to eligible businesses, discretionary
matching grants of up to fifty percent (50%) of the amount of federal Phase I
and Phase II Small Business Innovation Research (SBIR) grants, not to exceed
fifty thousand dollars ($50,000) for Phase I awards and $100,000 for Phase II
awards.
Objectives of the ArSBIRMGP are to:
* Create and retain high-tech jobs, especially high-wage jobs in
middle-skill and high-skill occupations;
* Encourage innovative small businesses to engage in federally-funded
research that has the potential for technological innovation and
commercialization;
* Increase the amount of SBIR funds invested in Arkansas businesses;
and
* Induce the retention, growth, and location of companies in
Arkansas.
Program Rule Summary
1. Eligible applicants shall submit completed
applications, on forms prescribed by the Division to request grant funding from
the ArSBIRMGP.
2. The Director of
the Division of Science and Technology of the Arkansas Economic Development
Commission (Director), with advice from the Board of Directors of the Division
of Science and Technology of the Arkansas Economic Development Commission
(Board), shall review and recommend applications for grant funding to the
Executive Director of the Arkansas Economic Development Commission (Executive
Director).
3. Applicants receiving
approval from the Executive Director shall execute grant agreements specifying
grant terms and conditions.
4.
Grant funding shall be made available to grantees on a reimbursement basis,
subsequent to submittal of requests for payment on forms approved by the
Division.
5. Grantees shall submit
final reports, upon full expenditure of ArSBIRMGP grant funds, in accordance
with terms specified in the grant agreement.
Contact Information
For more information, please contact:
Arkansas Economic Development Commission
Division of Science and Technology
900 West Capitol
Little Rock, AR 72201
(501) 682-1121
II.
Rulemaking Authority
The AEDC has authority, at § 15-3-609, to promulgate rules
necessary to administer the Arkansas Small Business Innovation Research
Matching Grant Program.
III.
Definitions
1. "Eligible business" means a for-profit
business that:
A. Is registered as a business
entity in good standing; and
B. Has
its principal place of business in Arkansas;
2. "Matching grant" means a discretionary
grant of up to fifty percent (50%) of the amount of a federal Small Business
Innovation Research grant for each approved matching grant
application;
3. "Principal
investigator/project manager" means the primary individual designated by an
eligible business to provide the scientific and technical direction to a
project supported by a matching grant;
4. "Principal place of business" means the
physical location in this state where the eligible business maintains its
principal business office; and
5.
"Small Business Innovation Research Program" means the federal program
administered by the United States Small Business Administration according to
regulations adopted pursuant to 15 U.S.C. §
638, as it existed on October
1, 2016, which provides funds for Phase I and Phase II Small Business
Innovation Research grants through participating federal agencies.
IV.
Eligibility
Applicants
To be eligible to receive ArSBIRMGP funding, an applicant shall:
1. Submit a completed signed application,
under forms provided by the Division.
2. Meet the definition of "eligible
business"; and
3. Certify that:
A. For Phase I applications, they have
received an SBIR grant from a sponsoring agency in response to a specific
federal solicitation; or
B. For
Phase II applications, they have:
(i)
Submitted a final Phase I SBIR report to the sponsoring agency;
(ii) Demonstrated that the sponsoring agency
has interest in the Phase II SBIR proposal; and
(iii) Submitted a Phase II proposal to the
sponsoring agency.
C.
All federal SBIR grant requirements will be met.
D. At least fifty-one percent (51%) of the
ArSBIRMGP grant shall be spent in Arkansas.
E. They shall remain in Arkansas for the
duration of the matching grant project.
F. An Arkansas resident or employee will be
designated as the principal investigator/project manager for the duration of
the matching grant;
G. They will be
principally engaged in one (1) or more of the following targeted business
activities:
(i) Advanced materials and
manufacturing systems;
(ii)
Agriculture, food, and environmental sciences;
(iii) Biotechnology, bioengineering, and life
sciences;
(iv) Information
technology;
(v) Transportation
logistics; and
(vi) Bio-based
products.
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.
V.
Application
Process
Application Submittal
To request ArSBIRMGP funds, eligible businesses shall, utilizing forms
prescribed by the Division, submit a completed signed application with all
supporting documentation to the Division. Applications shall include:
1. A project title;
2. Contact information;
3. Proof of legal organization as a business
entity in good standing;
4. A
statement of work;
5. Federal SBIR
documentation, including:
A. For Phase I
applications, they have received a SBIR grant from a sponsoring agency in
response to a specific federal solicitation; or
B. For Phase II applications:
i. A final SBIR Phase I report submitted to
the sponsoring agency;
ii.
Documentation from the sponsoring agency indicating an interest in the Phase II
proposal; and
iii. A copy of the
Phase II SBIR proposal to the sponsoring agency.
6. A summary of previous ArSBIRMGP
awards;
7. The amount of funding
requested; and
8. Start and
completion dates of the project.
Application Review and Approval
No grant offer shall be made by the Executive Director to an applicant
until the applicant 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
business;
B. Is for a targeted
business activity;
C. Is complete,
including all required attachments; and
D. Contains all required federal SBIR
documentation.
2. At its
discretion, the Division may request supplemental materials from the applicant.
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 their next scheduled meeting.
4. The Board shall:
A. Review each application in accordance with
program rules.
B. Forward, for each
application reviewed, a recommendation to approve or disapprove the application
to the Director.
5. The
Director shall review each application in accordance with program rules and the
advice and recommendation of the Board.
6. Upon completion of review, the Director
will provide preliminary funding recommendations to the Executive
Director.
7. The Executive
Director, after reviewing Director recommendations, will specify which
applicants may receive grants.
A. Unsuccessful
applicants will be notified in writing by the Director.
B. Approved applicants will be required to
execute a grant agreement outlining the amount, terms, and conditions of the
grant.
VI.
Grant Agreements
1. ArSBIRMGP
grants may be awarded, pending availability of funds, at the discretion of the
Executive Director. 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.
2. The amount of the grant shall
be discretionary and may be for amounts less than requested.
3. Grants may be funded from any source of
funds allocated to the ArSBIRMGP.
4. Grants will be executed according to the
following process:
A. Two (2) original copies
of the grant agreement will be prepared by the Director and forwarded to the
grantee for signature and return.
B. Upon receipt of the signed grant
agreements from the grantee, the Director will prepare an approval letter and
forward the grant agreements and the approval letter to the Executive Director
for signature.
C. One (1) original
copy of the grant agreement will be forwarded to the grantee with the signed
approval letter. One (1) original copy of the grant agreement will be retained
by the Director.
5.
Grantees shall not receive more than three (3) matching grants under this
program.
6. Any material change to
the scope of the project, including changes to the principal
investigator/project manager, is subject to prior approval by the Executive
Director.
VII.
Confidential Information
Applications submitted to the Division are subject to the Freedom of
Information Act of 1967, § 25-19-101 et seq. To the extent an applicant
believes that information in an application is confidential or otherwise exempt
under the Freedom of Information Act of 1967, § 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.
VIII.
Reimbursement
Disbursements of matching grant funds shall be made on a reimbursable
basis, payable when invoices and financial reports are submitted to the
Division.
IX.
Final
Report
Grantees shall submit final reports, upon full expenditure of ArSBIRMGP
grant funds, in accordance with terms specified in the grant agreement. Reports
shall:
A. Include a one-page
non-proprietary executive summary describing the impact and positive effect of
the receipt of ArSBIRMGP funds;
B.
Document final expenditure of grant funds, including proof that at least
fifty-one percent (51%) of the amount awarded for the matching grant was spent
in Arkansas;
C. Provide an updated
status of the project;
D. Summarize
the technical progress of the federal Phase I or Phase II SBIR
project;
E. State whether or not
the grantee plans to continue the proposed research with its own or other
resources such as venture capital funding;
F. Summarize economic effects of the
ArSBIRMGP on job creation, project commercialization, patent applications filed
or approved subsequent to grant award, and receipt of additional private or
government funds; and
G. Certify
that all grant terms and conditions were met.
X.
Effective Date
These rules are effective on or after October 1,
2017.
