On July 16, NVCA submitted formal comments on SBA’s proposed rule on SBIR-STTR. Overall, NVCA is encouraged by the Proposed Rule’s treatment of participants owned by multiple Venture Capital Funds and believe it will facilitate investment in technology as well as the flourishing of research and innovation in the United States by allowing more small businesses access to the SBIR/STTR programs. The Proposed Rule will help to provide a level playing field for all small businesses interested in applying for SBIR grants.
As reported earlier, the proposed rule takes the first step in implementing the provisions of the new law, which amends SBA’s regulations governing size and eligibility standards for both the SBIR and STTR programs including new ownership, control and affiliation rules for participants in the programs. SBA is supposed to finalize the rule by December 31 of this year. Majority VC-backed companies will be able to apply for SBIR grants once the rule is finalized.
