The Michigan Small Business Development Center
(MI-SBDC) in partnership with the Michigan Economic Development Corporation
(MEDC) has formed the Michigan Emerging Technologies Fund (ETF). The MI-SBDC
administers the ETF through a contractual agreement with the MEDC authorized by
the Michigan Strategic Fund (MSF) Board.
Funding for the program is provided through the Michigan 21st Century
A. Program Summary and Michigan Company Requirement
The ETF was created to provide
grant dollars to support commercialization of SBIR/STTR projects. The ETF will
match SBIR/STTR awards in the amounts of $25,000 for Phase I and up to $125,000
for Phase II proposals. (Refer to
Section E). ETF awards will come in the
form of grants and do not need to be paid back; however, ETF Funds must be used
to help bring Michigan SBIR/STTR projects to commercialization in at least one
of the Four Technology Sectors supported by the ETF. These sectors are:
(i) Advanced Automotive, Manufacturing, Materials, Information, and
Agricultural Processing; (ii) Alternative Energy; (iii) Homeland Security and Defense; and (iv) Life Sciences
A Company must submit
its ETF application prior to submitting its SBIR/STTR proposal to the federal
government. ETF applications received
after the SBIR/STTR submission deadline will not be accepted. Companies must receive and deposit Third Party
Funding (Refer to Sections B and F) to be eligible for an ETF award.
An ETF Award Recipient
must be a Michigan company or have its principal place of business in
Michigan. To meet this standard, a
Company must have and intend to have during the five year reporting period
following receipt of an ETF award, all or substantially all of its operations
and employees located within Michigan. Applications will be accepted from
companies located outside of Michigan, but a company must establish Michigan as
its principal place of business prior to the disbursement of ETF funds.
B. Program Definitions
1. Company: A Michigan technology-based company that
submits an application to the ETF.
2. SBIR/STTR Contract
Date: The effective date of
the SBIR/STTR contract/grant entered into between the federal agency and the
- Third Party Funding: A source of funding other than internal funds,
federal funds, ETF funds or other State of Michigan funds. (Refer also to Section F)
- ETF Award Recipient: A Company that has met all program criteria and is
awarded matching funds from the ETF.
- Four Technology Sectors: Advanced
Automotive, Manufacturing, Materials, Information, and Agricultural
Processing; Alternative Energy; Homeland Security and Defense; and
- ETF Commitment Letter: A letter from the MI-SBDC that commits ETF funds to the
Company as match to an SBIR/STTR proposal contingent upon the Company’s
compliance with eligibility rules and availability of ETF funds.
C. ETF Eligibility Requirements
- The Company must meet all
federal SBIR/STTR requirements;
- The Company must be a Michigan
company or have its principal place of business in Michigan prior to the
disbursement of funds;
- The Company must submit
SBIR/STTR proposals in at least one of the Four Competitive Sectors;
- The Company must complete an
ETF application prior to submitting
an SBIR/STTR proposal.
Company must submit an ETF application for each SBIR/STTR proposal. Filing an ETF application for a Phase I
proposal will not cover a subsequent Phase II.
A separate ETF application must be submitted for the Phase II proposal;
6. To receive an ETF Commitment Letter, the Company
must request the letter no later than
10 business days before the federal submission deadline;
7. The Company must
request an ETF award and upload eligible supporting documents within one year
of the SBIR/STTR Contract Date for both Phase I and Phase II awards;
ETF awards will only
match the base Phase I and Phase II programs for each agency. SBIR/STTR
supplemental programs including, but not limited to, Phase I Option, Phase II
enhancement, Phase II PLUS, Commercialization Pilot Program (CPP), Technical
Assistance Programs (TAP), Commercialization Assistance Program (CAP), Niche
Assessment Program (NAP), Manufacturing Assistance Program (MAP), Cost Match
Feature, and Phases IB, IIA, IIB, IIR, REU/RET/RAHSS, and IICC are not eligible
for ETF Funds.
D. ETF Participation Limits
Company may not have more than two (2) SBIR/STTR Phase II federal grants to participate
in the ETF program.
Company may receive no more than two (2) ETF awards per twelve month period. The
Company may continue filing applications to the ETF; however, the company will
not be eligible to receive ETF Funds until 12 months after receipt of the
second ETF award.
Company may receive no more than six (6) ETF awards throughout its participation
in the ETF program as follows: no more than two (2) ETF awards covering Phase
II awards and no more than four (4) ETF awards covering Phase I awards.
the SBIR/STTR award has been used to meet matching requirements of another
program funded by the MEDC, state of Michigan funds, or the Michigan 21st
Century Jobs Fund, only the non-committed amount of the SBIR/STTR award will be
considered for an ETF award. For example, if $250,000 of a $500,000 phase II
SBIR award is used to meet matching requirements for the Michigan Pre-Seed
Fund, only the $250,000 balance will be considered for an ETF award.
E. ETF Matching Award Grants
- For SBIR/STTR Phase I awards, the
amount of the ETF award is $25,000.
Third Party Funding is
- For SBIR/STTR Phase II awards,
the amount of the ETF award is up to $125,000. Third Party Funding is required. ETF awards for Phase II recipients are distributed
a) A Company may request a single award payment of
$125,000 as long as it receives and deposits eligible Third Party Funding within
twelve (12) months of the SBIR/STTR Contract Date. For example, a Company may receive a single award
payment of $125,000 as long as it raises and deposits eligible Third Party
Funding of $125,000 within twelve (12) months of the SBIR/STTR Contract
b) A Company may request two award payments. A
first award payment of $40,000 may be distributed as long as the Company raises
and deposits eligible Third Party Funding of $5,000 within twelve (12) months
of the SBIR/STTR Contract Date. A second
award payment may be requested as long as the Company receives and deposits the
remaining Third Party Funding of $120,000 within twelve (12) months of the
SBIR/STTR Contract Date. For example, a
Company may request a first award payment of $40,000 and a second award payment
of $85,000 as long as it raises total Third Party Funding of $125,000
within twelve (12) months of the SBIR/STTR Contract Date. No partial or incremental ETF award payments
will be disbursed.
c) Disbursement of a second award payment is
subject to available ETF Funds and eligibility rules. No ETF Funds will be set
aside to accommodate Company requests for a second award payment.
d) A Company that is unable to raise full Third
Party Funding within twelve (12) months of the SBIR/STTR Contract Date will not
be obligated to return the initial $40,000 award payment.
F. Third Party Funding
Third Party Funding must
be raised and deposited into a U.S. bank account within twelve (12)
months of the SBIR/STTR Contract Date with the federal agency for both Phase I
and Phase II awards.
In-kind services do not
count as Third Party Funding.
Third Party Funding may
not be internal funds, federal funds, ETF funds, or other State of Michigan
funds. Funds sourced directly or
indirectly from sole source federal government contracts and federal labs are not
eligible Third Party Funding. (See also
5, below, regarding strategic partners).
State of Michigan funds include, but are not limited to: various programs
where the source of funding is from the MEDC/MSF or state government.
Third Party Funding
cannot be cash from an officer or employee of the Company or from Company
Third Party Funding may
come from a strategic partner pursuant to a development contract as long as the
partner provides cash (as opposed to in kind services) to the Company and the
purpose of the contract is to advance the work done under the original
SBIR/STTR grant or contract. The Company
must provide documentation (email or letter) from the strategic partner stating
that the development contract advances the work under the original SBIR/STTR
grant/contract and the source of the Third Party Funding is neither federal nor
Third Party Funding may
be a loan from a bank, another company, or friend, although the lender may not
be an officer, employee, or have a financial interest in the Company. The loan must not be collateralized by either
the federal grant or ETF Funds. Furthermore,
the loan cannot be repaid by proceeds from the federal grant or ETF Funds.
whereby ETF recipients exchange Third Party Funding are prohibited and may
result in disqualification from the ETF program.
Third Party Funding may
come from a family member with the exception of a spouse or any other
individual who is listed on the tax return of any officer of the Company.
In addition to the ETF
award, Third Party Funding must be used for commercialization of the technology
sponsored under the SBIR/STTR grant. All
Phase II ETF Award Recipients must acknowledge and may be asked to substantiate
that their Third Party Funding (loan, available line of credit, receipt of
investment) will be used to commercialize the sponsored technology.
G. ETF Application
and Award Process
Companies interested in
submitting an application to the ETF, must submit an electronic application
through the Michigan Emerging Technologies Fund web site at www.mietf.org. A summary of the application and award process
is as follows:
1. The Company must complete an ETF application
prior to submitting an SBIR/STTR proposal.
2. To receive an ETF Commitment Letter, the Company
must request the letter no later than
10 business days before the federal submission deadline.
3. The MI-SBDC will review the application to
determine eligibility. A Company that meets the eligibility requirements and
submits a complete application will receive an ETF Commitment Letter
from the MI-SBDC within five (5) business days of the ETF application.
4. The Company may include the letter in its
SBIR/STTR proposal to the appropriate federal agency.
5. ETF applications received after the federal
SBIR/STTR submission deadline will not be accepted.
If a Company is
successful in receiving an SBIR/STTR award, it must submit the following
documents to the MI-SBDC:
1. Proof in the form of an executed SBIR/STTR
contract/grant between the federal agency and the Company;
2. Proof of receipt and deposit of eligible Third
Party Funding; and
3. A one-page Use of Funds template, which can be
found at www.mietf.org or requested at firstname.lastname@example.org
Upon receiving the
required documents from the Company, the MI-SBDC will send an Emerging
Technology Fund Award Agreement to the Company. Upon receipt of a signed
Agreement, the MI-SBDC will disburse an ETF award to the Company.
H. Use of ETF Funds
ETF awards may only be
used for commercialization
of the technology sponsored under the SBIR/STTR Agreement. Expenses used for such commercialization purposes include, but are
not limited to, purchase of equipment, legal costs (intellectual property
protection, employee agreements, licensing agreements, etc.), sales and
marketing costs (reasonable travel, trade shows, advertising, market studies,
etc.), business planning costs, human resource development costs, and
fundraising costs. For an STTR federal award, ETF Funds will only be provided
to the Company and may not be shared with the research institute under any circumstances.
awards must be expended solely with Michigan entities or residents of the state
of Michigan unless an exception is granted by the MI-SBDC.
I. ETF Reporting Requirements
On an annual basis for
five (5) years following the receipt of an ETF award, ETF Award Recipients will
be required to provide the MI-SBDC with a short summary report describing
specific results of the work funded, documenting expenditures made with the
matching award, and forecasting the next steps of the project. The report will
include capital raised, revenue, number of jobs created, number of jobs
retained, number of commercialized products, number of patents submitted, and number of
patents issued resulting from the project. ETF Award Recipients are expected to
accommodate reasonable requests by the MI-SBDC staff for site visits. ETF Award Recipients must file timely reports
to remain eligible to participate in the ETF program.
SBIR/STTR Fast-Track submissions, a Company must complete an ETF application
for each Phase I and Phase II submission.
Filing an ETF application for a Phase I proposal will not cover a
subsequent Phase II. A separate ETF application must be completed for the Phase
II proposal. Effective January
2016, the ETF program will issue ETF awards for successful Phase I and Phase II
Fast-Track awards, assuming all eligibility rules are satisfied.
Companies are encouraged
to file a new ETF application in the event they are resubmitting an
SBIR/STTR proposal that did not receive initial funding from a federal agency.
L. Frequently Asked Questions
A Frequently Asked Questions (FAQ) section will be maintained and made
available to ETF applicants and awardees to clarify issues within the Program
Guidelines and/or address issues that were not anticipated prior to the release
of the Program Guidelines. The FAQ
should be considered an extension of the Program Guidelines and will be adhered
to and enforced as such.
M. Continued Funding and
Availability of Funds
All ETF awards are subject to continued
funding of the ETF program and availability of funds. No amounts will be set
aside to accommodate Company requests for a second payment on Phase II
Final determination as to
eligibility will be at the discretion of the MI-SBDC. Requests will be processed
on a first come first serve basis. Maximum amounts are considered up-to amounts
and may be adjusted at the discretion of the MI-SBDC. The MI-SBDC and MEDC at
their sole discretion shall have the right to alter or amend these guidelines.
N. Contact the ETF
Questions regarding the ETF program
may be emailed to email@example.com
or discussed by calling the program administrator at 734-462-4629.