FAQs
Purpose
- What is the statutory purpose of these programs?
The North Carolina SBIR/STTR Phase I Incentive Program reimburses qualified North Carolina firms for a portion of the costs incurred in preparing and submitting Phase I proposals for the U.S. Government’s SBIR/STTR Program. The North Carolina SBIR/STTR Phase I Matching Funds Program is designed to award matching funds to North Carolina firms who have been awarded a SBIR/STTR Phase I award.
Applying for Funding
- The information on the website gives the Solicitation dates as July 1, 2009 – June 30, 2010. Does the Solicitation date “key off” of the proposal submission date or the award date?
The award date. For an organization to be eligible for an award under the Match Program, the organization must receive an official notification of federal award during the solicitation period. The proposal date or the due date for the federal solicitation is not used in determining eligibility. Applications for Match Awards may only be submitted after an official notification of award has been received.
- Are organizations that have received an official notification of award by the federal government before the first date of the Solicitation Period eligible for match funding for that project?
No.
- How is the Match amount calculated?
Awards will be made in the amount of 50% of the eligible Federal SBIR/STTR Program award, not to exceed $50,000. Note that the entire Federal award amount is not used in calculating a STTR Match Award – please refer to the solicitation for details.
- How are Match funds dispersed?
Subject to satisfaction of all other requirements, Matching Awards are disbursed in two Stages:
a. Stage 1 - 75% of the total Match Award will be disbursed upon proof of Phase I award, as described in the Guidelines
b. Stage 2 - 25% of the total Match Award will be disbursed upon submission and acceptance of the Phase I report by the Federal SBIR/STTR Program agency described in the Application and acknowledgement of receipt by the agency of the Phase II proposal corresponding to the Phase I effort, as described in the Guidelines.
- What is a Certificate of Existence?
The NC Secretary of State issues "Certificates of Existence" pursuant to G.S. 55-1-28, 55A-1-28, and 57C-1-28. The certificate gives information about the company’s name, about its incorporation, (or authorization to conduct business in North Carolina if it is a foreign entity), about whether the company’s articles or certificate of authority has been suspended, if its annual report is current, and if articles of dissolution have been filed. The Certificate of Existence may be relied upon as conclusive evidence that the company is in existence or is authorized to transact business in North Carolina. See http://www.secretary.state.nc.us/corporations/corpfaq.aspx for more information on Certificates of Existence.
“Certificates of Authorization” are issued to companies not organized under the laws of North Carolina. They satisfy this requirement.
Use of State Grants
Fast Track
The Fast Track program is a process designed to streamline transition from Phase I to Phase II. The "funding gaps" between regular Phase I and Phase II projects may often extend beyond 6 months, which can pose a genuine hardship for small firms. The Department of Defense, Department of Homeland Security, and National Institutes of Health have implemented Fast Track programs, but their implementations differ significantly. For NIH, Fast Track requires you to submit both the Phase I and Phase II proposal at the same time. For DOD and Homeland Security, Fast Track requires that you attract matching cash from an outside investor for the Phase II SBIR effort.
As discussed in detail below, projects that obtain matching funds from outside investors and thereby qualify for the DOD SBIR Fast Track will (subject to qualifications):
1. Receive interim funding of $30,000 to $50,000 between Phases I and II;
2. Be evaluated for Phase II award under a separate, expedited process; and
3. Be selected for Phase II award provided they meet or exceed a threshold of "technically sufficient" and have substantially met their Phase I technical goals (and assuming other programmatic factors are met).
In the DOD you must attract and outside investor for your project who will commit cash to the project within 90 days of the start of your Phase II effort. Outside investors may include such entities as another company, a venture capital firm, an individual investor, or a non SBIR, non STTR government program; they do not include the owners of the small business, their family members, and/or affiliates of the small business.
The Fast Track speeds the transition from Phase I to Phase II. In addition, companies that qualify for Fast Track have a much higher probability of receiving funding for Phase II than do those who do not qualify. .
Some SBIR agencies (e.g., NSF) offer the opportunity for a Phase II winner to obtain additional SBIR money from the Phase II set-aside by submitting a brief proposal that covers the next stage of R&D work (focused on successful commercialization) and that includes significant outside matching funds (often more than the government provides at this stage). You need to refer to each solicitation or talk with your SBIR program manager to determine how this initiative works within the participating agencies.
