VC-owned firms. The biggest change in eligibility required by the reauthorization legislation will be allowing firms that are majority-owned by multiple venture capital operating companies (VCOCs), hedge funds and/or private equity firms to receive SBIR and STTR awards. SBA has published a proposed rule to amend SBIR/STTR size regulations (Federal Register Vol. 77, No. 94, May 15, 2012) to make this change and to make other modifications to the ownership requirements and affiliation rules. This proposed rule was open for public comment through July 16, 2012. The SBA is currently reviewing the comments and plans to issue the final rule in early 2013, at which time the changes will become effective. Until then, the current regulations at 13 C.F.R. §121.702 remain in effect.

Stay tuned. SBA's final ruling on this issue is expected by January 1, 2013. VC-owned firms cannot currently apply, even at NIH's next grant deadline on December 5th, 2012, per SBA guidance. NIH must issue new solicitations with the revised eligibility requirement, after SBA issues their final rule, for VC-owned firms to be able to apply to the program

On January 28th, 2013 SBA implemented the new size rule.  See here http://sbir.gov/news/time-and-schedule-changes-sbir-size-rules. NIH SBIR/STTR solicitations issued after this date will have revised eligibility requirements and SBIR solicitations issued after this date will allow majority VC-owned SBCs to apply.

Company Registry. All applicants will be required to register with the Company Registry Database at www.sbir.gov at the time of application. This will become effective when the size regulation final rule is published in the Federal Register (anticipated date is 1/1/2013).

Stay tuned. Specific instructions will be available as soon as the SBA final ruling on eligibility is issued which is expected by January 1, 2013.

On January 28th, 2013 SBA launched the Company registry at SBIR.gov.   See here http://www.sbir.gov/registration and here for details and FAQs http://sbir.gov/news/time-and-schedule-changes-sbir-size-rules.  NIH solicitations issued after this date will require companies to register at SBA prior to submitting their application to.  See solicitations issued after 1/28/2013 for instructions.

Cross-program awards. Agencies have the option to allow STTR Phase I awardee to receive SBIR Phase II award and SBIR Phase I awardee to receive STTR Phase II award. Implementation is at agency discretion.

Stay tuned. NIH will offer applicants the opportunity for cross-program awards soon and will notify the community when they can do so.

Cross-agency awards. Clarifies that a Phase I awardee may receive a Phase II award from an agency other than the one that awarded the related Phase I. Reporting to SBA by both agencies is required.

For many years, NIH has accepted Phase II applications from companies receiving a Phase I award from another agency. These have been and will continue to be done on a case-by-case basis and require the support of a technical program officer at the NIH institute or center to which the applicant is interested in applying. Contact NIH if you have questions.

Direct to Phase II pilot. For fiscal years 2012-2017, the NIH, DoD, and Department of Education may issue Phase II SBIR awards to firms to pursue Phase I solicitation topics without requiring the applicant to have received a Phase I award for related work. Implementation is at agency discretion.

Stay tuned. NIH intends to pilot this Direct to Phase II initiative in a limited manner starting in 2013.  NIH will announce the opportunity/s as a Funding Opportunity Announcements in the NIH Guide for Grants and Contracts. Visit the Guide Listserv website to sign up.

Open Phase II competition: Beginning 10/1/2012, agencies must allow all Phase I awardees to apply for a follow-on Phase II award. Issuing Phase II awards via invitation only will not be permitted. Agencies will need to include information on the Phase II application process in all Phase I solicitations released on or after 10/1/2012 and notify their Phase I awardees of this change in practice.

This new provision is mostly directed to those agencies that use contracts as their award mechanism, i.e. , Department of Defense. NIH's SBIR and STTR grant opportunities have always permitted ALL Phase I awardees to apply for Phase II and will continue to do so.

Effective with the 2013 annual SBIR contract solicitation which was just released in August 2012, all selected Phase I contractors will have the opportunity to apply for Phase II.

Second Phase II. Agencies may award a second, sequential, Phase II to continue a Phase II project.

NIH has been offering this opportunity for several years. You may recognize it as a “Phase IIB” award or a “competing renewal. ”

Commercialization standards for Phase I applicants.

Phase I to Phase II Transition Rate: Beginning  1/1/2013, Phase I applicants that have won prior SBIR/STTR Phase I awards, must meet agency-specific standards for progress towards Phase II. Proposed benchmark rates will be published in the Federal Register for comment on 10/1/2012.

Phase II to Phase III Commercialization Rate: Effective 10/1/2013, Phase I applicants that have previously won SBIR/STTR Phase II awards, will be required to meet agency-specific standard rates of commercialization success from those Phase II awards. Proposed benchmarks will be published in the Federal Register for comment on 7/1/2013.

Stay tuned.

Stay tuned.

Company commercialization record. Once the necessary data systems are in place, all applicants will be required, as part of the application process, to provide information on the commercialization of their prior SBIR/STTR awards. The anticipated date for this to be operational is 10/1/2014.

Stay tuned. SBA's commercialization database is expected to be operational October 1, 2014.