The Small Business Administration (SBA) has amended the rules relating to its Small Business Innovation Research (SBIR) program and Small Business Technology Transfer (STTR) program. The new SBA rules implement the provisions of the National Defense Authorization Act for Fiscal Year 2012, which included changes to the SBIR and STTR programs. These rule changes increase the opportunity for private equity and venture capital investment in SBIR program participants and may preview future revisions to the SBA's general affiliation rules.
Background
Prior to the new SBA rules, businesses could not participate in the SBIR program unless they were majority owned and controlled by U.S. citizens or permanent resident aliens or by a single business that was majority owned and controlled by U.S. citizens or permanent resident aliens. In addition, such participating businesses could have no more than 500 employees, including the employees of their affiliates.
To read the original article: SBA Rules: Investment Funds Can Now Be Majority Owners of SBIR Companies | The VC Experts' Buzz | VC Experts
