Proposed SBIR Rules Published – Planning for Changes to SBIR-Funded Company Investments

more+
less-
more+
less-

On May 15, 2012, the U.S. Small Business Administration (SBA) published a proposed rule to amend regulations governing eligibility for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs to implement provisions of the SBIR/STTR Reauthorization Act of 2011, which was included as part of the FY12 National Defense Authorization Act (NDAA). The NDAA reauthorized the SBIR Program for six years and now allows small firms that are majority-owned by venture capital operating companies (VCOCs), hedge funds, or private equity firms to receive SBIR grants. The conditions imposed upon such investors will affect the structure of investments in SBIR-funded companies. This advisory briefly summarizes the most important changes to the SBIR eligibility rules being considered* and briefly discusses how investments in or acquisitions of SBIR-funded companies may be affected.

*The recent publication is a proposed rule and subject to change, but the most material changes are required by the NDAA, and thus are likely to survive in the final rule to be published later this year.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Hedge Funds, NDAA, SBA, SBIRs, STTR, VCOCs

Published In: Administrative Agency Updates, Business Organization Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »