Section 57-103-7 - Proof of Concept Grant Program established; eligibility for assistance; application; provisions of contract for assistance, expenditure of assistance, etc.; repayment of assistance under certain circumstances; creation of Proof of Concept Grant Program Fund(1) There is established under the direction of Innovate Mississippi ("IMS") a program to be known as the "Proof of Concept Grant Program" for the purpose of making assistance available to provide working capital to support the initial capitalization of technology-based businesses in rural Mississippi.(2)(a) In order to be eligible for assistance under the program, a business must: (i) have its principal place of business based in Mississippi,(ii) produce or provide a product and/or service that is science or technology related,(iii) have fewer than one hundred fifty (150) employees, and(iv) have completed its product and/or service development planning. For the purposes of this paragraph, a "rural county" shall be a county designated as such by IMS.(b) Any business desiring to participate in the program must submit an application to IMS. The application must contain a description of the purposes for which the assistance is requested, the amount of assistance requested and any other information requested by IMS. If IMS staff reviewing the application determines that an application should be reviewed by the Seed Fund Investment Board appointed by IMS Board of Directors, the application shall be forwarded to the Seed Fund Investment Board. If the Seed Fund Investment Board approves the application, IMS shall negotiate a contract with the business regarding any assistance provided to the business under the program, the expenditure of the assistance provided to the business, and any other matters to which the parties may agree. Any such contract must provide for at least the following: (i) that any assistance provided to the business will be on a reimbursement basis in which the business will expend funds according to the terms of the contract and submit invoices, receipts and other applicable documentation and information to IMS for reimbursement;(ii) that no funds may be expended or used for patent prosecution, reorganization of the business, or payment of any existing debt of the business outstanding or otherwise incurred at the time the contract is entered into;(iii) that no funds may be expended to reimburse expenses for work conducted or services provided by the business, a university or a third-party consultant if those expenses were incurred before the term of the contract;(iv) that the business receiving assistance will retain ownership of any technology developed by the business regardless of whether the technology is developed before or after the receipt of assistance; and(v) that the business will provide matching funding of One Dollar ($1.00) for every One Dollar ($1.00) of assistance, with at least twenty-five percent (25%) of the match being in cash and the remaining amount being from in-kind services, all of which must be documented by time sheets, payroll receipts, invoices and other documentation or information required by IMS. Assistance received by a business may be expended for hiring third-party consultants to assist the business and for equipment. The amount of assistance that a business may receive under the program shall not exceed Ten Thousand Dollars ($10,000.00) and any award of assistance shall be made on a one-time basis.(c) Except as otherwise provided in this paragraph, a business receiving assistance under the program shall not be required to repay the assistance unless IMS determines that the business has violated significant terms of its agreement, presented false information or misrepresented facts in its application. If it is determined the business violated terms or submitted false or knowingly incorrect information, the business will be required to repay one hundred percent (100%) of the amount of assistance received.(3) There is created in the State Treasury a special fund, to be designated as the "Proof of Concept Grant Program Fund," which shall consist of funds appropriated or otherwise made available by the Legislature. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund. Monies in the fund shall be disbursed, in the discretion of the Mississippi Development Authority, to provide funds to IMS for the purposes described in this section, or for the purposes described in Sections 57-103-1, 57-103-3, 57-103-5 and/or 57-103-9 if IMS determines that the funds are not needed for the purposes described in this section. Laws, 2007, ch. 459, § 4, eff. 7/1/2007.Amended by Laws, 2023, ch. 339, SB 2851,§ 3, eff. 7/1/2023.