Andrea True Kelly, PhD SCTR Translational Consultant Res. Asst. Professor kellyat@musc.edu MUSC: 792-4146 New SCTR SPARC Translational Technology Consult Menu 843-792-8300 http://sctr.musc.edu
Summary of Changes to SBIR/STTR from Dec 2011 Reauthorization H.R. 1540 Extends SBIR/STTR Program through 2017 ( tucked in Natl. Defense Authorization Act) For details, see: http://www.zyn.com/sbir/insider/sbir_pages_from-hr1540conf.pdf and http://www.nsba.biz/docs/hr1540conf_sbir_reauthorization.pdf Key Changes: Authorizes participation by small businesses w/ Venture Funding for SBIR only (still ineligible for STTR): Majority-owned by multiple venture capital (VC) operating companies, hedge funds (HF), or private equity firms (PEF) may participate e.g., if two venture capital firms each own minority stakes in a small business, and the combination of those minority stakes would amount to a majority interest, the small business MAY participate in SBIR Program. If only a single venture capital, hedge fund, or private equity firm and/or foreign firm owns a MAJORITY stake in the small business, MAY NOT participate. Up to 25% of SBIR funding at NIH, NSF and DoE can go to small businesses which are majority owned by multiple VC/HF/PEFs All other agencies can give awards equaling 15% or less of their SBIR budgets to such entities There is no minimum dollar amount that must be awarded to such entities, but there are penalties for agencies that exceed the stated percentages
Key Changes to SBIR/STTR, cont. Increased required agency set-aside for SBIR from 2.5% of the agency s extramural R&D budget to 3.2% (0.1% annual increase) By FY2017, a ~24% net increase in SBIR funding, compared to FY2011 (but more fingers in pot for SBIR with VC-backed firms allowed so a ~ 5% net increase for non-multiple VC backed SB s ) Not to exceed $150k Phase 1 and $1 million Phase 2 guidelines by more than 50% Thus, Phase 1 awards essentially capped at $225k and Phase 2 awards at $1.5 million (with annual provisions for cost of living increase) Provision for SBA waivers on specific topics But Agencies can now keep up to 3% of their SBIR budgets for administrative purposes for up to 3 FY s
Key Changes to SBIR/STTR, cont. No majority VC-backed co s allowed with STTR Increased required agency set-aside for STTR from.3% of the agency s extramural R&D budget to.45% In year 1, translates into a 17% increase in STTR and 50% overall increase by 2017 NIH can spend up to $5 million of its STTR funds for a Phase 0 Proof of Concept Partnership Pilot Program: Can give up to $1 million per year for up to 3 years to a university or other research institution that participants in the [NIH] STTR Program to accelerate the creation of small businesses and the commercialization of research innovations from within the institution. Now allows for switch between SBIR and STTR awards: Phase 1 SBIR winners can receive Phase 2 funding through the STTR program, and Phase 1 STTR winners can get SBIR Phase 2 awards; allows for greater flexibility Experts recommend trying for STTR in the next FY, if eligible
Key Changes to SBIR/STTR, cont. Eliminates Phase II invitations, meaning that any company that has received and completed a Phase I award is eligible to submit a Phase II proposal Allow agencies to issue a second Phase II award for the same project A pilot program will allow NIH, DoD and DoEd to allow a project to skip directly to Phase II award without Phase 1; no limit on fraction of SBIR funds to be channeled directly into Phase II (funding more sure bets?) More agencies to create Phase 3 Commercial Readiness Assistance Programs like DoD s now permanent Commercialization Readiness Program Allows for greater freedom to subcontract to federal labs Federal labs can t require advance payment for more than 30 days worth of work as a subcontractor on SBIR/STTR
Translational Technology and Other Resources Available via SCTR in SPARC: To request a service, go to: https://sparc.musc.edu
SPARC Intellectual Property (IP) Consults:
Questions on requesting a Trans Tech. service request or consult? Andrea True Kelly, PhD E-mail: kellyat@musc.edu; MUSC phone: 843-792-4146 IP-related question or consult? David Holman, Ph.D. E-mail: holmad@musc.edu; MUSC phone: 843-876-2412 General SCTR Service Requests? E-mail: success@musc.edu; 792-8300
THE BUSINESS OF BIOSCIENCE: What Goes Into Making a Biotechnology Product? An online certificate course An excellent course based on the instructor's 27 years of real-life experience in the biotechnology industry as an entrepreneur and co-founder of THREE biotechnology companies, one of which was taken public through an IPO. He also authored the book "The Business of Bioscience: What Goes Into Making a Biotechnology Product", available at Amazon.com Instructor: Craig D. Shimasaki, PhD, MBA (FULL BIO) CEO, BioSource Consulting Group CEO, Moleculera Labs, Inc. http://biosourceconsulting.com To Register for this course go to: http://center.ncet2.org/index.php?option=com_joomla_lms&itemid=53&task=details_course&id=70)
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