2014 Rhode Island General Laws
Title 42 - State Affairs and Government
Chapter 42-64.16 - The Innovate Rhode Island Small Business Program
Section 42-64.16-2 - Establishment of matching funds program.

RI Gen L § 42-64.16-2 (2014) What's This?

§ 42-64.16-2 Establishment of matching funds program. – (a) There is established the Rhode Island SBIR/STTR Matching Funds Program to be administered by STAC. In order to foster job creation and economic development in the state, STAC may provide grants to eligible businesses to match funds received by a business as a SBIR or STTR Phase I award, loans to eligible businesses to match funds received by a business as a SBIR or STTR Phase II award, and to encourage businesses to apply for further Phase II and Phase III awards, respectively.

(b) Eligibility. In order to be eligible for a grant under this section, a business must satisfy all of the following conditions:

(1) The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer employees. For the purposes of this section, Rhode Island-based business is one that has its principal place of business and at least fifty-one percent (51%) of its employees residing in this state.

(2) The business must have received an SBIR/STTR Phase I award from a participating federal agency in response to a specific federal solicitation. To receive the full Phase I matching grant, the business must also have submitted a final Phase I report, demonstrated that the sponsoring agency has interest in the Phase II proposal, and submitted a Phase II proposal to the agency. To receive the full Phase II matching loan, the business must also have submitted a final Phase II report, demonstrated that the sponsoring agency has interest in the Phase III proposal, and submitted a Phase III proposal to the agency.

(3) The business must satisfy all federal SBIR/STTR requirements.

(4) The business shall not receive concurrent funding support from other sources that duplicates the purpose of this section.

(5) For a Phase I matching grant, the business must certify that at least fifty-one percent (51%) of the research described in the federal SBIR/STTR Phase II proposal will be conducted in this state and that the business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase II project. For a Phase II matching loan, the business must certify that at least fifty- one percent (51%) of the research described in the federal SBIR/STTR Phase III proposal will be conducted in this state and that the business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase III project.

(6) For a Phase I matching grant, the business must demonstrate its ability to conduct research in its SBIR/STTR Phase II proposal. For a Phase II matching loan, the business must demonstrate its ability to conduct research in its SBIR/STTR Phase III proposal.

(c) Phase I Matching Grant. STAC may award grants to match the funds received by a business through a SBIR/STTR Phase I proposal up to a maximum of one hundred thousand dollars ($100,000). Seventy-five percent (75%) of the total grant shall be remitted to the business upon receipt of the SBIR/STTR Phase I award and application for funds under this section. Twenty-five percent (25%) of the total grant shall be remitted to the business upon submission by the business of the Phase II application to the funding agency and acceptance of the Phase I report by the funding agency. A business may receive only one grant under this section per year. A business may receive only one grant under this section with respect to each federal proposal submission. Over its lifetime, a business may receive a maximum of six (6) awards under this section.

(d) Phase II Matching Loan. STAC may award loans to match the funds received by a business through a SBIR/STTR Phase II proposal up to a maximum of three hundred thousand dollars ($300,000) that must be secured by sufficient assets of the business. Seventy-five percent (75%) of the total loan shall be remitted to the business upon receipt of the SBIR/STTR Phase II award and application for funds under this section. Twenty-five percent (25%) of the total loan shall be remitted to the business upon submission by the business of the Phase III application to the funding agency and acceptance of the Phase I report by the funding agency. A business may receive only one loan under this section per year. A business may receive only one loan under this section with respect to each federal proposal submission. Over its lifetime, a business may receive a maximum of six (6) loans under this section.

(e) Application. A business shall apply, under oath, to STAC for a grant or loan under this section on a form prescribed by STAC that includes at least all of the following:

(1) The name of the business, the form of business organization under which it is operated, and the names and addresses of the principals or management of the business.

(2) For a Phase I matching grant, an acknowledgement of receipt of the Phase I report and Phase II proposal by the relevant federal agency. For a Phase II matching loan, an acknowledgement of receipt of the Phase II report and Phase III proposal by the relevant federal agency.

(3) Any other information necessary for STAC to evaluate the application.

History of Section.
(P.L. 2013, ch. 144, art. 23, § 1.)

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