FOR IMMEDIATE RELEASE
Wednesday, March 26, 2008
CONTACT: Keener A. Tippin II
(573) 751-9065
The path to commercialization of Missouri research has just gotten clearer.
The Missouri Technology Corporation (MTC), in partnership with the Missouri Small Business and Technology Development Centers (MO SBTDC), has announced a new funding source for innovative and high-technology companies interested in pursuing federal research and development funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards.
The Missouri Technology Incentive Program (MoTIP) is designed to generate high-quality SBIR/STTR proposals and broaden the participation of Missouri small businesses through Phase 0 competition assistance grants and Phase I/II Bridge Loans.
"Each year, the federal government makes $2.2 billion available to U.S. small businesses engaged in innovative and high-technology research and development," says Paul Rehrig, MO SBTDC counselor at the University Center for Innovation and Entrepreneurship in Columbia.
"Historically, Missouri has not captured its share of those dollars, often because entrepreneurs lack critical funding at important junctures in the technology's development. MoTIP is designed to fill those gaps and ensure that Missouri wins more dollars for commercialization of innovative ideas, creates more businesses and jobs and develops its economic potential."
Entrepreneurs may apply for Phase 0 competition assistance grants monthly by submitting a proposal to MoTIP. Funds of no more than $5,000 may be used for the required development of a Phase I proposal, market research, attendance at SBIR conferences, communication with or travel to federal agencies, analyses to support research or acquisition of data.
"We believe many more businesses would pursue SBIR/STTR funding opportunities if they had a modest financial help to enable them, for instance, to pay for assistance in writing the proposal," says Rehrig, the MoTIP coordinator. "These are rather small awards, but they can make a huge difference in whether or not a researcher or entrepreneur pursues a commercialization path for a technology. It's a small investment from the state that could potentially pay huge dividends in business and job creation down the road."
Another funding gap often occurs between the awarding of a Phase I and a Phase II SBIR/STTR grant, according to Rehrig.
MoTIP's Phase I/II Bridge Loan program provides gap financing to maintain the momentum of technology development fostered under Phase I to ensure that it is primed for commercialization under Phase II. Small businesses may request up to $50,000 to support research activities lasting up to six months. These funds may be applied to the direct costs associated with research and development activities that either refine Phase I results or initiate work in Phase II of the commercialization funding.
Unlike the Phase 0 funding, which is truly a grant, the MoTIP Bridge Loan funding is forgiven only if the Phase II proposal is not successful with the federal agency. If the proposal is funded, the Bridge Loan must be repaid to MoTIP.
"Our goal with this funding is truly to help the entrepreneur bridge the resource gap that often occurs midway through the commercialization process," says Rehrig. "A repayment of the money ensures resources for future projects. In this way, the success achieved by our state's technology entrepreneurs helps seed the next innovative ideas. It's a double return to the state."
More information and proposal templates are available at MoTIP@missouri.edu or online at www.missouribusiness.net/fast/ under the MoTIP link.