The Small Business Administration may allow small businesses with outside investors to obtain set-aside federal research funds, Jill Aitoro reports on the Washington Business Journal.
Under a proposed rule, small businesses majority-owned by outside investors could qualify for the Small Business Innovation Research Program and the 1992 Small Business Technology Transfer Act.
Businesses would be eligible for both programs as long as no individual investment company owns more than 50 percent of the business, Aitoro reports.
The SBIR program provides small businesses with funding for research and development projects and the EPA used that program to award $2 million to 25 small companies for environmental R&D initiatives.
Agencies with R&D budgets greater than $1 billion a year are required under the STTR Act to enter funding agreements with small businesses.
Mike Stamler, SBA spokesman, told Aitoro the proposed rule is restricted to research programs for small businesses and would not extend to other programs for small businesses.
SBA plans to hold a webinar on Thursday to discuss the implications of the rule and will accept responses to the proposed rule on the Federal eRulemaking Portal through July 16.