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US Gov t Sets New Rules for SBIR Funding; Public Comment Period Open

NEW YORK, Dec. 6 (GenomeWeb News) - The Federal Register published last week a final ruling regarding small business requirements for SBIR funding.


According to the Small Business Administration, an SBIR grant recipient must be a for-profit business that is at least 51-percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States.


Alternatively, the grant recipient can be majority owned and controlled by a for-profit concern that is at least 51 percent owned and controlled by an individual or individuals who are citizens of, or permanent resident aliens in, the United States.


The ruling also "permits subsidiaries to be eligible for SBIR awards under certain conditions."


In its ruling, which was pubished in the Federal Register on Dec. 3, SBA noted that this rule does not change the size standard required to receive SBIR funding. Currently, a company or its affiliates must employ no more than 500 people.


The SBA said that because it has received a large number of comments concerning ownership of SBIR Program participants by venture capital firms, SBA said it plans to issue an Advanced Notice of Proposed Rulemaking seeking comments from the public this issue.


The SBA is also currently seeking comments from the public on several issues that were raised during the public comment period of the administration's recently withdrawn proposal to restructure its small business size standards. Specifically, the SBA is seeking comments on whether it should provide an exclusion from affiliation with venture capital companies in determining small business eligibility for the SBIR program, the NIH said.


All comments must be received by Feb. 1, 2005. Details about the rule and how to submit comments can be found here.

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