An overview of SBA’s resources a nd SBIR/STTR programs

1. An overview of SBA’s resources and SBIR/STTR programs

2. U.S. Small Business Administration • Federal agency created in 1953 • Mission • Nation’s largest single financial backer of small businesses  • What’s a small business?

3. Santa Ana District Office • Big territory • Inform, Educate, Connect

4. Starting a Business Today • Idea • Internet • Computer • Action

5. Capital • Provide loan guaranties to lenders • 60,000 loans for $30 billion in FY12 • SBA loans up to $5.5 million

6. Contracts • Fed gov’t goal: 23% of all federal contracts to small business • Latest figures: over $90 billion • Certification programs • 8(a), HUBZone, Woman-owned

7. Counseling • 14,000 SBA-affiliated counselors • 900 Small Business Development Centers • TriTech SBDC • Launchpad SBDC • 100 Women’s Business Centers • 370 SCORE Chapters • What does the data show?

8. SBA Successes

9. Disaster • Direct loans to renters, homeowners, businesses of all sizes

10. SBA Website • Community • Blog • Online Training • sba.gov/loans-and-grants

11. SBA Grants? Despite what you may hear on late night TV… The SBA does NOT provide grants for starting and expanding a business.

12. Innovation & Investment • Small Business Innovation (SBIR) • Small Business Tech Transfer (STTR)

13. Goals of SBIR/STTR Program • Meet Federal research and development needs • Increase private-sector commercialization of innovations derived from Federal research and development funding • Stimulate technological innovation • Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons

14. SBIR/STTR Program Descriptions • Small Business Innovation Research (SBIR) • A set-aside program for small business to engage in Federal R&D – with potential for commercialization • 2.6% of the extramural research budget for all agencies with a budget greater than $100MM per year. Over $2 billion dollars in program funds. • Small Business Technology Transfer (STTR) • A set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions – with potential for commercialization. • 0.35% of the extramural research budget for all agencies with a budget greater than $1B per year. Over $250 million in program funds.

15. SBIR/STTR Basic Structure • Phase I • Feasibility Study or Prototype • $150k Max and 6 Months • Phase II • Full Research and Development Effort • $1M Max and 24 Months • Phase III • Commercialization Stage • Seek External Funding [No Use of SBIR funds] The program runs as a series of sequential phases.

16. SBIR Program Eligibility Criteria • Be a concern which is more than 50% directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other business concerns (each of which is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States), or any combination of these; or • Be a concern which is more than 50% owned by multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these.

17. STTR Program Eligibility Criteria • Applicant is organized, for-profit small business based in the U.S. • Formal cooperative research and development effort • Minimum 40% by small business • Minimum 30% by U.S. research institution • U.S. research institution • College or university • Other non-profit research organization • Federal research and development center • Intellectual Property Agreement • Allocation of rights in intellectual property and rights to carry out • Follow-on R&D and commercialization effort

18. About 6-9 Months Standard SBIR/STTR Phase 1 Process • Agencies describe R&D topics in solicitations at fixed time periods over the year – not rolling. • Small Business Concerns prepare short (usually 25-page) proposals. • Unsolicited proposals are not accepted. • Agencies evaluate based on technical merit, firm’s qualifications, and commercial potential / societal benefit • Agencies make Phase I awards. Solicitation Topics Proposal Submission Evaluation Ph I award

19. Differences Between a Contract and Grant Award • Contracting Agencies • Granting Agencies • Agency establishes plans, protocols, requirements • Highly focused topics • Procurement mechanism for DOD and NASA • More fiscal requirements • Investigator initiates approach • Less-specified topics • Assistance mechanism • More flexibility DOD, DHS, HHS/NIH, NASA, ED, EPA, DOT, DOC HHS/NIH, NSF, ED, USDA, DOE

20. SBIR/STTR Examples • Hal Technology • Rancho Cucamonga-based designer and manufacturer of environmental monitoring instruments • Phase I Navy SBIR grant • Optical dust sensor for real-time engine health monitoring • Military and civilian vehicle applications

21. SBIR/STTR Examples • EyePredict • SoCal-based developer of technology that predicts visual attention based on cutting-edge neuroscience research • Underlying technology funded in part through National Science Foundation SBIR grant • Expanding to assess brain disorders with gaze measures • Traumatic brain injury, ADHD, military veterans, etc.

22. SBIR/STTR Examples • Flint Rehabilitation • Spin-off small business from the University of California, Irvine, founded by four researchers • Two SBIR grants • Developers of next-gen hand rehabilitation devices • Music Glove • Resonating Arm Exerciser

23. SBIR/STTR Examples • ISCA Technologies • Riverside-based company with a mission to protect the world from damaging insects and disease causing pathogens, by developing tools and solutions that are economical, effective and ecologically friendly • Products include 300+ species specific insect lures, 20+ traps, and other pest mgmt. tools • Recipient of 44 SBIR/STTR fundings for $10 million • Great example of a business collaborating with local university and community

24. Thank You! Christopher Lorenzana christopher.lorenzana@sba.gov 714.560.7453 www.sba.gov/ca/santa