Funding Agreement Certification SBIR: Understanding Key Requirements
Small Business Innovation Research (SBIR) programs aim to support the research and development efforts of small businesses in the United States. One essential requirement of SBIR funding is the Funding Agreement Certification (FAC), which is a legal document that outlines the terms and conditions of the award. If your small business is applying for SBIR funding, it’s important to understand the FAC and its key requirements to ensure compliance and maximize your chances of success.
What is the Funding Agreement Certification (FAC)?
The FAC is a legal contract that serves as the binding agreement between the funding agency and the small business that receives the award. It outlines the terms and conditions of the award, including reporting requirements, intellectual property rights, and other obligations that the business must adhere to.
The FAC is a critical document for both the funding agency and the small business because it protects the interests of both parties. For the funding agency, the FAC ensures that the government’s investment is used for the intended purpose and that the small business meets its obligations. For the small business, the FAC provides legal protection and helps to manage risks associated with the award.
What are the Key Requirements of the FAC?
The FAC includes several important requirements that small businesses must meet to receive and maintain their SBIR funding. Here are some of the key requirements you should be aware of:
1. Reporting Requirements: Small businesses receiving SBIR funding must submit regular reports to the funding agency, detailing their progress towards meeting the goals outlined in their proposal. These reports typically include technical progress reports, financial reports, and invention reports.
2. Intellectual Property Rights: The FAC outlines the intellectual property rights of both the small business and the funding agency. In general, small businesses retain ownership of their intellectual property but must grant the funding agency a license to use the technology developed with the SBIR funds.
3. Cost Sharing Requirements: Some SBIR programs require small businesses to provide cost sharing, which means they must contribute a portion of the project’s total cost. The FAC will specify the amount of cost sharing required and the timeline for payment.
4. Compliance with Federal Regulations: Small businesses receiving SBIR funding must comply with all federal regulations related to the award. This includes adhering to labor laws, environmental regulations, and other requirements.
5. Termination and Default: The FAC includes provisions for termination and default, which outline the circumstances under which the funding agency can terminate the award and the consequences for the small business.
Conclusion
The FAC is a critical component of the SBIR funding process, and small businesses must ensure they meet all its requirements to maintain their funding. If you’re applying for SBIR funding, it’s important to familiarize yourself with the FAC and work with legal and financial experts to ensure compliance. By understanding the key requirements of the FAC, you can maximize your chances of success and effectively manage the risks associated with SBIR funding.