1 Del. Admin. Code § 402-9.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 402-9.0 - Transition Grant Assistance

9.1 Authority: Grant funding pursuant to the Delaware Technical Innovation Program created pursuant to 29 Del.C. Sec. 5035, shall be administered by DEDO through the Strategic Fund, and these regulations shall be applicable to all applications for Small Business Innovation Research Program, ("SBIR Program") and Small Business Technology Transfer Program, ("STTR Program"), collectively ( "Transition Grant").

9.2 Purpose: A Transition Grant permits an Applicant to maintain its staff and continue its research pending SBIR or STTR Program Phase II approval, which may take as long as nine months after the submission of an SBIR or STTR Program Phase II proposal. A Transition Grant may be used to help cover the salaries of personnel after completion of Phase I and before Phase II funds are available. In addition, a Transition Grant may be used to help defray expenses connected with scientific research, patent search and applications, strategic and business plan development, market research, product planning and product development. Capital equipment and construction or modifications of facilities are not covered.

9.3 Transition Grant Approval and Standards: The Authority shall make the findings and determinations required by 29 Del.C. § 5055, and Section 10.2 herein with respect to the Applicant and the Project. The Authority shall make the following additional findings with regard to Transition Grant awards:

9.3.1 Applicant has certified that as of the date of application to DEDO for Transition Grant funding that Applicant: (i) has been granted an SBIR Program or STTR Program Phase I award; (ii) has a pending application to the appropriate federal agency for a SBIR Program or STTR Program Phase II grant; and (iii) has received no actual funding for Phase II funding.

9.3.2 Applicant's principal place of business is in the State. In order to meet this standard, the Applicant shall demonstrate to the Authority that its Delaware operation is either its sole operation or its primary business location.

9.3.3 Applicant's research will benefit the State economy. In order to meet this standard, the Applicant shall demonstrate to the Authority that the SBIR or STTR Project will maintain or provide gainful employment within the State. The Authority's review will include, but will not be limited to, the wage scale applicable to persons to be employed as a result of the research project, the economic situation in the State, the impact of the project on the tax base of the State, and of the county or municipality in which the project is to be located, and the expected impact that the research project will have on the development of new economic activity within the State.

9.3.4 Applicant is a "small business" within the meaning of 29 Del.C. sec. 5035 (3). In order to meet this standard, an authorized officer or principal of the Applicant shall certify to the Authority that the Applicant maintains a full-time equivalent of not more than one hundred (100) employees.

9.4 SBIR Program and STTR Program Grant Limitations: The Authority may award a matching grant of up to a maximum of Fifty Thousand Dollars ($50,000) per application. The Authority may not award more than five (5) SBIR Grants to an Applicant within ten (10) years of the date of a completed application for SBIR Grant assistance. Additional Awards may be granted by the Authority upon a showing of good cause, but the Authority may, in its discretion, require repayment of such additional awards. An Award may be made, at the sole discretion of the Authority, in a lump sum or in installments. The specific conditions under which the Authority shall make an Award to an Applicant shall be set forth in a commitment letter between the Authority and the Applicant.

9.5 Post-Award Documentation: The following documentation shall be required of all Applicants receiving Awards:

9.5.1 The Applicant shall, for a period of five (5) years following the funding of a Grant, submit to the Authority, on an annual basis, financial statements in a form acceptable to the Authority, a progress report on the status of the Project, including, but not limited to, the number of permanent, quality, full-time jobs created or saved as a result of the Project and the wage scale applicable to such persons, any economic impact of the funding (such as sales, costs, etc.) and any other information required by the Authority. This reporting period may be extended or reduced, as appropriate, by the Authority in its sole discretion. Each Applicant shall also submit an annual statutory report, as required pursuant to 29 Del.C. § 5053 (k), report to the Authority no later than June 30 of each of the term years of the loan.

9.5.2 Notification of Phase II SBIR Program or STTR Program Phase II application grant results no more than ten (10) days after notice to Applicant that the SBIR Program or STTR Program Phase II Grant application is approved or denied.

1 Del. Admin. Code § 402-9.0

5 DE Reg. 1141 (11/1/01)
16 DE Reg. 662 (12/01/12)