2008-2009 Program Guidelines
(Download PDF version of the guidelines here.)
The Michigan ETF will match 25% of phase I SBIR/STTR awards up to $25 thousand, and 25% of phase II SBIR/STTR awards up to $125 thousand. The ETF awards will come in the form of grants and do not need to be paid back, however, ETF award dollars must be used to help bring Michigan projects to commercialization.
Companies must leverage a third party match to be eligible for ETF awards. Before submitting an SBIR/STTR proposal to the federal government, an applicant must first secure a matching commitment from the MI-SBTDC. Preference will be given to applicants who demonstrate significant commercialization potential.
An ETF award recipient must be a Michigan company or have its principal place of business in 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 funds.
The MI-SBTDC administers the Michigan Emerging Technologies Fund 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 Jobs Fund.
Eligibility
To be considered for an Emerging Technologies Fund matching award, a company must meet the following eligibility requirements:
-
company must meet federal SBIR/STTR requirements;
-
company may not have more than two (2) SBIR/STTR Phase II federal grants within the previous five years;
-
company may receive no more than two (2) ETF awards per twelve month period;
-
ETF Funds must leverage third party commercialization funding. For purposes of this program, “third party” is defined as a source of funding other than federal funds, ETF funds or other State of Michigan funds; and “third party leverage” is defined as cash or a third party commitment to provide a match upon receipt of an ETF award;
-
company must be a Michigan company or have its principal place of business in Michigan prior to the disbursement of funds;
-
company must be within one of the four competitive sectors;
-
company must secure an ETF commitment from the MI-SBTDC prior to submitting a federal grant match application. To receive an ETF commitment letter, the company must apply to the MI-SBTDC no later than 10 business days before the federal submission deadlines;
-
Grant Funds will be awarded on a first come first serve basis.
ETF Matching Awards
The Michigan Emerging Technologies Fund was created to provide matching dollars to help bring SBIR/STTR projects to commercialization. Before submitting an SBIR/STTR proposal, the applicant must secure an ETF commitment from the MI-SBTDC. To receive an ETF commitment letter, the company must apply to the MI-SBTDC no later than 10 business days before the federal submission deadline.
Preference will be given to those applicants who are able to demonstrate significant commercial potential.
-
The maximum matching grant for SBIR/STTR Phase I applicants is 25% of the SBIR/STTR federal award with a maximum amount of $25,000. Third party match is required.
-
The maximum matching grant for SBIR/STTR Phase II applicants is 25% of the SBIR/STTR federal award with a maximum amount of $125,000.
Third Party Match Requirements
ETF Funds must leverage third party commercialization funding. For purposes of this program, “third party” is defined as a source of funding other than federal funds, ETF funds or other State of Michigan funds. “Third party leverage” is defined as cash or a third party commitment to provide a match upon receipt of an ETF award.
-
The third party match cannot be cash from the company or an officer or employee of the company.
-
The third party match may be a loan from a bank or family and friends, but the lender may not be an officer, employee, or have a financial interest in the company. The loan must not be collateralized by the federal grant nor the ETF funds. The loan cannot be repaid by proceeds from the federal grant or ETF funds.
Application and Awards Process
-
Applicant submits an electronic application through the Michigan Emerging Technologies Fund web site.
-
Applications must be submitted no later than 10 business days prior to the federal SBIR/STTR submission deadline.
-
MI-SBTDC reviews application to determine eligibility. Eligible applications will receive a letter of support from the MI-SBTDC within 5 business days of submission.
-
Applicant submits SBIR/STTR to the appropriate federal agency.
-
If the applicant receives the federal award, the applicant will submit the following to the MI-SBTDC.
-
Proof in form of the signed contract agreement with the awarding federal agency or department
-
Proof of commitment/receipt of third party match. (Copy of closing documents, letter of commitment from third party, etc.)
-
A one-page summary on the use of ETF and third party match towards commercialization efforts
-
MI-SBTDC will send an ETF contract to the applicant
-
When the applicant sends the signed ETF contract to the MI-SBTDC, the MI-SBTDC will disburse the ETF award funds.
Use of ETF Matching Award Funds
An ETF matching award from the MI-SBTDC will be provided in the form of a grant upon the MI-SBTDCs (i) receipt of notification of the federal award; (ii) proof of receipt of third party match, including a one-page summary on the use of ETF and third party match towards commercialization efforts, and (iii) an agreement entered into between MI-SBTDC and company. The grant may only be used for commercialization purposes such as 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 shall only be provided to the company and shall not be shared with the research institute.
Reporting Requirements
On an annual basis, recipients will be required to provide the MI-SBTDC 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 revenue, the number of jobs created, the number of patents submitted, and the number of patents issued resulting from the project.
Award recipients are expected to accommodate reasonable requests by the MI-SBTDC staff for site visits.
Disclaimer
All awards are subject to availability of funds. Final determination as to eligibility will be at the discretion of the MI-SBTDC. 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-SBTDC.
The MI-SBTDC and MEDC at their sole discretion shall have the right to alter or amend these guidelines.