# Presentation: 028010

## SBIR – Seed Capital for Innovative Small Businesses

**Senator Enzi’s **
**Fifth Annual Inventors Conference**
**Cheyenne Holiday Inn**
**April 20-21, 2006**

## Financing start-ups is one of the greatest challenges facing innovators in launching new products and ventures

## The most common sources of start-up capital are...

- Personal savings
- Credit cards
- Selling assets (boats & other toys)
- Second mortgages
- Loans & investments from family, friends and .....
- Suppliers, vendors, other businesses
- Commercial bank loans
- Private investors, Angels
- Government Grants
- Venture Capital

## GOVERNMENT GRANTS

**SBIR**
**S****mall ****B****usiness ****I****nnovation ****R****esearch**

##  the largest, most accessible source of SEED CAPITAL for the nation’s innovative small businesses$2.2 Billion in 2006

## SBIR

**Program Highlights**
**National Competition Sponsored by 11 Federal Agencies**
**2.5% R&D Funding Set-Aside for Small Businesses to Develop Innovative New Products and Services**
**Provide Federal Agencies with Innovative Concepts**
**Stimulate Innovation & Job Creation in the Nation’s Small Business Sector**

## ...and

- this capital is in the form of
- grants and contracts
- no repayment
- no debt service
- no equity forfeiture
- no IP forfeiture

## SBIR is a 3-Phase Program

_**PHASE I**_
**  ****Feasibility Study **
**  ****Up to $100K and 6-month Award**

_**PHASE II**_
**  ****Prototype Development**
**  ****Up to $750K and 2-year Award**
**    **

_**PHASE III**_
**  ****Commercialization Stage**
**  ****Use of non-SBIR/STTR Funds**

## SBIR PROGRAM ELIGIBILITY

- Small business organized for profit
- At Least 51% U.S. owned and independently operated
- Located in the U.S.
- Fewer than 500 employees
- Principal Investigator (PI) primarily employed with the small business

## DOD	SBIR/STTR
HHS	SBIR/STTR
NASA 	SBIR/STTR
DOE 	SBIR/STTR
NSF 	SBIR/STTR
DHS	SBIR/STTR 
USDA	SBIR
DOC	SBIR
ED		SBIR
EPA	SBIR
DOT	SBIR

**DOD****	****SBIR/STTR**
**HHS****	****SBIR/STTR**
**NASA ****	****SBIR/STTR**
**DOE ****	****SBIR/STTR**
**NSF ****	****SBIR/STTR**
**DHS****	****SBIR/STTR **
**USDA****	****SBIR**
**DOC****	****SBIR**
**ED****	****	****SBIR**
**EPA****	****SBIR**
**DOT****	****SBIR**

**11 SBIR/STTR Participating Agencies**

**Nw**

## CAUTION.....No two agency programs are alike!!!

## Agency Differences

**   **_**Granting**_** Agencies**
** ****Investigator initiates**
**       ****approach**
** ****Less-specific topics**
**     ****More flexibility**

**DOD****	****   ****	****HHS/NIH**
**NASA****	****ED**
**EPA****	****	****DOT  **
**	****	**** ****DOC****	**

**   **_**Contracting**_** Agencies**
** ****Agency establishes plans,**
**       ****protocols, requirements **
** ****Highly focused topics**
** **_**Procurement**_** mechanism**
**       ****for DOD and NASA**
** ****More fiscal requirements**

** ****HHS/NIH****	**** NSF **
** ****ED ****	****  USDA    DOE****	**

## More Agency Differences

**Number and Timing of Solicitations**
**Proposal Due Dates**
**Dollar Amount of Award  (Phase I and II)**
**Proposal Preparation Instructions**
**Proposal Submission Process (electronic/hard copy)**
**Financial details ****(e.g., Indirect Cost Rates, Gap Funding)**
**Proposal Review Process (Peer/Internal) **
**Proposal Success Rates**

## How do I participate?

- Annually, each agency releases an electronic Solicitation listing topics
- Small business selects topic best suited for their innovative concept
- Small business prepares a proposal following _solicitation guidelines_
- Submit proposal on or before due date.

## next...

- Agency reviews proposals (peer/internal)
- Proposals are ranked by review scores determined by quality, responsiveness and _team qualifications_
- Awards assigned according to ranking until funding is spent
- Small business is notified of award
- Process is lengthy (6-12 mos.) and agency specific

## These programs are very competitive...Depending on the agency, 8-15% of the Phase I proposals and 40-50% of the Phase II proposals are funded...

## ...and not for everyone

- Principal Investigator and team must be qualified
- Concept must be innovative and address a specific topic of interest to the federal agency
- Innovation must have commercial potential
- Only research and development - no sales, marketing or manufacturing costs
- Proposal preparation is a daunting task
- Computer literacy required

## How has Wyoming performed in this national competition?

- During the first 17 years of this 24 year program, Wyoming small businesses received a total of $5.5 million.
- 10% of the national per capita average

## During the past 7 years

- Wyoming small businesses have received a total of _$23 million_
- _110%_ of the national per capita average

## How was this turn-around achieved?

## TheWyoming SBIR/STTR Initiative(WSSI)an economic diversification program funded byThe Wyoming Business Counciland administered byThe University of Wyoming Office of Research and Economic Development

##  The WSSI MissionTo encourage and assist all eligible Wyoming residents to participate in the SBIR and STTR programs

## What does the WSSI do?

- Provides state-wide outreach on an individual basis to encourage small business SBIR & STTR participation
- Conducts state-wide conferences and workshops providing opportunities to  meet with federal agency program specialists and Wyoming award winners.

## The WSSI also...

- Provides one-on-one guidance in the preparation of competitive proposals.
- Publishes a monthly e-newsletter with current information on agency solicitations, due dates, regional and national conferences and workshops, a listing of additional resources, and other SBIR/STTR news and topics of interest.

## But of greatest importance to Wyoming residents...the WSSI administers theinnovative, popular and very successful...

## WSSIPhase 0 Program

## If You Decide You’re Going To Participate In The SBIR Grant Process...

## $5,000

**WSSI Phase 0 Program**

**$5,000**
- Planning Grant
- No Payback Of Funds

##  $120,000/year from the Wyoming 	Business Council

** ****$120,000/year**** from the Wyoming ****	****Business Council**
** ****Administered through the UW ****	****Research Office**
** ****Typically Two $5,000 ****awards/month**
** ****2005 – 50% award rate!**

## Phase 0 WSSI 

** ****Modeled After The Federal Program**
** ****Competitive Process**
** ****Prepares You For the SBIR Competition**
** ****Reviewer Feedback**

## Where To Begin...

## www.uwyo.edu/sbir

**www.uwyo.edu/sbir**

## Slide 33

## Slide 34

## WSSI Phase 0

** ****Solicitation on Web Site ******
** ****Phase 0 Template Provided ******
** ****Sample Phase 0 Provided ******

## Phase 0 Process

** ****Submit ****electronically**** by 5:00 p.m. the ****	****first of each month ****(regardless)**
** ****Receive**** Email Verification of Receipt**
** ****Proposals ****Evaluated ****(3 reviewers)**
** ****Funding Recommendations Made**
** ****Awards announced**** about the 10****th**** of ****	****each month**

## Phase 0 Process cont.

**If Chosen For Award**
**Receive Contract, Reviewer Comments, Assigned a Mentor**
**Receive $2,500 up front**
**Receive $2,500 after Contract is fulfilled**
**Draft Reviews Completed By Mentor**
**Mentor Paid In Full**
**Proof of Submission to Target Agency**
**Final Copy of Proposal Submitted to WSSI**
**If Not Chosen For Award**
**Receive Review Comments, Encouraged to Resubmit**

## Tricks To Winning?

**Read the Solicitation**
**Evaluation Criteria**
**Follow the Instructions!!!**
**Use the Template**
** ****Follow the Format **
**Ask Questions**

## WSSI Electronic Newsletter

- Updates (award winners, etc.)
- Agency Openings/Closings
- Upcoming Conferences, etc.
- Sign Up for the WSSI Electronic Newsletter on the WSSI Web Site

## www.uwyo.edu/sbir

## or contact

- Eugene (Gene) Watson
- Program Manager
- 307-742-7162
- 307-760-0456 cell
- _[ewatson@wyoming.com](mailto:ewatson@wyoming.com)_

- Kelly Haigler Cornish
- Outreach Coordinator
- 307-766-2520
- 1-866-703-3280 toll-free
- _[haigler@uwyo.edu](mailto:haigler@uwyo.edu)_

## ...or contact the staff of these partner organizations located in six regional offices throughout Wyoming

- Manufacturing-Works
- Wyoming Business Council
- Wyoming Small Business Development Centers

## Questions?