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At the time SBA issued the proposed rule, SBAs existing regulations stated that an SBIR awardee must be a business concern that is at least 51% owned and controlled by U.S. citizens or permanent resident aliens, or a business concern that is at least 51% owned and controlled by another business that is at least 51%
The Small Business Act (the Act) requires that the SBA issue a policy directive setting forth guidance to the Federal Agencies participating in the SBIR and STTR programs (Participating Agencies). The SBIR/STTR Policy Directive outlines how agencies must generally conduct their programs.
At the time SBA issued the proposed rule, SBAs existing regulations stated that an SBIR awardee must be a business concern that is at least 51% owned and controlled by U.S. citizens or permanent resident aliens, or a business concern that is at least 51% owned and controlled by another business that is at least 51%
A Phase I award helps you focus on the feasibility, technical merit, and commercial potential of your research project. A Phase II award lets you continue the research and development efforts initiated in Phase I.
An SBIR or STTR awardee, together with its affiliates, must not have more than 500 employees. Concerns and entities are affiliates of each other when one controls or has the power to control the other, or a third party or parties controls or has the power to control both.
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The SBIR/STTR definition is fairly simple. It is a firm with 500 or fewer employees. It does not matter if they are full- or part-time employees, or even leased employeesthey all count toward the 500 employee limit. At the low-end of the employee spectrum, the small business could also be a start-up with one employee.
To be eligible for award of SBIR funding agreements, a small business concern has to meet the following qualifications: be independently owned and operated: principal place of business is located in the United States; at least 51 percent owned or in the case of a publicly owned business, at least 51 percent of its
Eligible businesses must have 500 or fewer employees, including affiliates.

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